Existing Card or New Card

Freddie_85

I have received a letter from Barclaycard notifying me that my credit limit is being increased from £350 to £1800. I have had the card for years and years.

I also have another credit card with a £3000 limit, and as such this is my primary card. I pay my bills off in full every month, and have always done so.

I have a week left to accept or to not accept the change. My question is, should I take this as a hint that I can get a new card, given that I am obviously eligible for more credit?

I had been thinking of getting a new card anyway, ideally a 0% spending card, as a buffer, while I change jobs in the coming months. If I accept the new limit will it have an adverse effect on my chances of being accepted for a new card?

Thanks

MrSilk

The increase does not necessarily mean that you'd be accepted for a new 0% CC, it could mean that your internal score has improved by you managing the account well (paying in full, on time).

What does your credit file say? Do you have any defaults? CCJs?, late payments at all?

longtermplanner

Freddie_85 wrote: »

If I accept the new limit will it have an adverse effect on my chances of being accepted for a new card?

Having more credit available already makes you look less good to a possible new lender. But this will only matter if you are somewhere close to "your limit" which depends on your credit record (is it spotless?) and your debt levels in relation to your income.

If you are expecting to change jobs, this would be a good time to try to build up a buffer of savings to cover the first few weeks if you expect there may be a gap between pay cheques.

danielhermann

If the increase being offerred is close to the limit you would enjoy on a new card, then the interest rate is the only factor which could make a difference. Are you looking at increased usage and using the credit card as a credit tool till you settle down in your new job. I would advise against it because a credit card debt is the most expensive and the first step towards a financial ruin. Do not spoil your credit score.