'Offer' of increase in credit limit on credit card; refuse it or just leave it?

mochynbach

I've been offered an increase on my credit limit for a capital one card which has an outstanding balance that I'm slowly chipping away at. Once I've been able to pay it off I'll be getting rid! (Or alternatively, when I can, get a 0% balance card to deal with it that way)

I have no intention of spending any more with it (even 'temptation' won't get the better of me because of past experiences)......honestly this is true.

I've managed to get my credit worthiness up and that has been my goal financially for some time now.
Anyway, I'm babbling!

Does an increased credit limit on a CC (due to handling the account favourably), prove to be a positive thing for overall credit worthiness or does it have no effect whatsoever?
i.e. should I stop the increased limit or just let them add it on regardless?

Thanks

Mr_K

Turn it down if you don't need it.

Have you destroyed the card if you're serious about not using it and paying it off ? You seem very excited about 'an opportunity to increase your debt offer', which is a bad sign.

Only way to operate a credit card is to pay it off in full each month. Anything else is a mugs game.

StuC75

The lender increasing the credit limit is a sign of there improved view of your account.

Since you do not intend to use the facility, then it may be sensible to actually ACCEPT it. The reason being is that since you are paying off a long standing balance then it will give an improvement by way of showing a reduced % of credit utilisation both on the account and on the credit file..

For a fuller answer then a bit more information would help with a more informed opinion - i.e. you appear to be credit rebuilding - so would assume you don't have a high level of available credit, and so its unlikely to impact on your chances of getting a card elsewhere to transfer it to; not that is even on your 'radar' at this time..

planteria

StuC75 wrote: »

The lender increasing the credit limit is a sign of there improved view of your account..

agreed. i would let them increase it, unless there is a good reason not to.

mochynbach

StuC75 wrote: »

The lender increasing the credit limit is a sign of there improved view of your account.

Since you do not intend to use the facility, then it may be sensible to actually ACCEPT it. The reason being is that since you are paying off a long standing balance then it will give an improvement by way of showing a reduced % of credit utilisation both on the account and on the credit file..

For a fuller answer then a bit more information would help with a more informed opinion - i.e. you appear to be credit rebuilding - so would assume you don't have a high level of available credit, and so its unlikely to impact on your chances of getting a card elsewhere to transfer it to; not that is even on your 'radar' at this time..

Yes Credit rebuilding. I have a default due to come off my credit file at the end of this month.....a BIG weight off my mind.
My only concern is improving my financial 'status', I'm not concerened about having credit as such (despite appearances).
I've learned my lesson and the only reason I mention a 0% balance transfer card (whether I would be in a position to be accepted or not, I can only find out some time after the default has been removed), is just to help with paying off the outstanding balance quicker.

I guess I'm not coming across very well......have a default on file and now trying to pay off a credit card. I'm much more careful these days and only have that outstanding balance due to essential car repairs........can't get to work without it. Always feel I have to explain myself on here!

Thanks for your answers