Does credit limit increase mean that my credit rating is improving?

BugsyBrowne

samtoby wrote: »

I think it means your management of your account is good

Exactly management of THAT ACCOUNT is good..

shireknight

It clearly means your credit rating is improving however I also think they have a sneaky second agenda in that as your rating improves they bump up your credit limit to ensure that if you were to apply for a credit card with another company you are less likely to be accepted.

The other company will look at your current card and think "Oh look he already has a £4000 limit on his existing card which he doesn't use so there's no profit for us giving him a second card" whereas if you only have a £1000 limit on your card and an excellent credit rating the new company can see potential profit for them in giving you a second card.

BugsyBrowne

shireknight wrote: »

It clearly means your credit rating is improving however I also think they have a sneaky second agenda in that as your rating improves they bump up your credit limit to ensure that if you were to apply for a credit card with another company you are less likely to be accepted.

The other company will look at your current card and think "Oh look he already has a £4000 limit on his existing card which he doesn't use so there's no profit for us giving him a second card" whereas if you only have a £1000 limit on your card and an excellent credit rating the new company can see potential profit for them in giving you a second card.

Not to sure if this a wind up post or not.

simeyb

Bugsy - have you not gotten any lately? Whether you agree with someone's post or not, you don't need to snarl at them on here.

Thrugelmir

matttye wrote: »

Not if they pay in full each time.

I was referring to those that don't. Who are in the majority.

Credit card companies want to suck you in. Lending on CC's is far more profitable than mortgage lending. Not least that the CC company also picks up the retailers fee.