Increase credit limit on Aqua card?

cardquestions

So I have had an Aqua Card and a Barclay Card initial since December, both with £250 credit limits. These are my first cards.

My mum said it was a bad idea to have a card like Aqua as it could negatively impact my credit rating, so I paid it off in full for the 2 months I used it, at the end of each month, and haven't used it since. Forgot to close it.

Since then, been repaying the Barclaycard in full each month, so that's all good.

Today I got a letter from Aqua saying based on my usage they want to up my limit from £250 to £750.

What should I do? Take it, deny it, or close my account with them?

What's best for my credit score, that's my priority, not £.

giblet10

Used sensibly any credit card should have a positive effect on your credit status.

I would take the increased limit - unless you don't trust yourself or have a track record of being bad with money.

Aqua has a relatively high interest rate - that could be what your mum meant. But APR's are meaningless if you pay off your balance in full each month.

MallyGirl

usually the fact that people are happy to lend you more is seen as a good thing - as long as you don't use it! It will also show that the percentage of credit available that is in use is lower than it would be if you didn't accept the limit increase.

Mr_Goodkat

cardquestions wrote: »

So I have had an Aqua Card and a Barclay Card initial since December, both with £250 credit limits. These are my first cards.

My mum said it was a bad idea to have a card like Aqua as it could negatively impact my credit rating, so I paid it off in full for the 2 months I used it, at the end of each month, and haven't used it since. Forgot to close it.

Since then, been repaying the Barclaycard in full each month, so that's all good.

Today I got a letter from Aqua saying based on my usage they want to up my limit from £250 to £750.

What should I do? Take it, deny it, or close my account with them?

What's best for my credit score, that's my priority, not £.

Credit Card provider is not listed on the version of your credit report lenders get to see only type e.g credit card, loan, mortgage etc, limit, date opened and payment history. The provider is only seen on the version you see.

I expect your mum thought Aqua would be seen negatively as a sub prime lender but this won't be seen. A low limit would however suggest sub prime.

Accept any increases you get, pay the balances in full each month and in time you will be able to get better cards eg lower rates, cash back or rewards.

CKhalvashi

My advice would be to accept and continue to pay in full each month, thus making sure you're not spending more than you can afford.

It can only have a positive effect.

CK