How to increase my credit limit?

ElwoodBlues

I have a mastercard with Asda Money (actually is a company called Creation / Sygma Bank). I took it out just over a year ago, and it earns me a small amount of cashback. I always pay it off in full each month (with another credit card, and they pay that one off in cash a month later, so I get an extra month interest free).

Trouble is, it has a relatively low credit limit (just over £2000), and as I put as many purchases as I can through it to maximise the cash back, I have to be quite careful each month not to go over the limit. I requested a credit increase to give me a bit more breathing space, but they rejected it "due to personal circumstances/credit checks etc". I have a perfect credit record, never missed a repayment on anything in my life, and there's plenty of activity on my credit file from mobile phones and other credit cards, never had a personal loan or mortgage though.

So, is there anything I can do to make them come to a different decision next time I apply for an increase? Or do you think they just don't want as a customer since they don't make any money out of me (in terms of interest)?

I do have several other credit cards, all have MUCH higher credit limits than the ASDA one. The one I use to pay the Asda card off mirrors the Asda card spending, but a month behind (always cleared every month). One has an old balance transfer on it (about £700 left), and another is pretty much dormant, with zero balance.

Would it be worth me reducing my credit limit on one/some of the other cards, or even cancelling one of them all together? Is it likely that this would be enough to get a limit increase on the Asda card?

What I don't want to do is cancel a long standing credit card and loose £10k credit limit, and then find that they won't increase the limit on the Asda card anyway.

[Deleted User]

If you have 'several' others, you could certainly stand to close a couple. It's most likely your combined limits which is making them reluctant to give you any more.

There's no guarantee you will get an increase, but it would probably increase your chances.

jonesMUFCforever

Look for other cards offering similar or better cashback.

The sticky at the top of this board should be your next port of call.

knightstyle

Ask them to reconsider, it worked with Santander for me. It is often a machine that makes the decision but you should get a human if you ask them to reconsider.

datlex

Are you looking for extra credit or will you still be paying in full?

If you are paying in full - there is a way to get extra from your card without increasing the limit.

ElwoodBlues

datlex wrote: »

Are you looking for extra credit or will you still be paying in full?

If you are paying in full - there is a way to get extra from your card without increasing the limit.

Yes, I intend to keep paying it in full.

loveandlight

I wouldn't get too comfy with your high credit limits. Card companies can wipe out the limit for no reason at all just because they can. I had a co-op credit card once with £15k credit limit. The manager at my local co-op bank wiped most of it off reducing it to £1500.00 because I wouldn't take out one of their new cards.

guesswho2000

loveandlight wrote: »

I wouldn't get too comfy with your high credit limits. Card companies can wipe out the limit for no reason at all just because they can. I had a co-op credit card once with £15k credit limit. The manager at my local co-op bank wiped most of it off reducing it to £1500.00 because I wouldn't take out one of their new cards.

I agree, mostly. Never had a limit reduced for refusing to take a product, but I've had my Halifax Clarity limit reduced recently, randomly.

They say it's operational, however I assume it's because my credit limits exceeded my salary and I withdrew around £1,500 in cash on it that month (all abroad, and all repaid in full, of course).

Hey ho. The end result is the same, but the fact is they can reduce your limit when they like! I'm just glad they waited until I was home, instead of being stranded in Asia (I wouldn't have been, I take multiple cards, bear this in mind if you rely on one presently).

Paradoxically, I've had an email from MBNA saying they're near doubling my limit in Feb, despite me not using it. Go figure!