Credit limit increase affect credit score?

taylor86

We applied for an agreement in principle with halifax in May and were told our credit score was ok but not top so we would need to put down a higher deposit. Since then we have been trying to build our credit score so when we come to buy we can use less deposit. We have been reducing credit card balances and 2 credit card companies have increased the credit limit and sent us letters informing us this has been done. Is this a good thing or bad thing? I'm not sure if it means a search and they have left a mark on file or good as there is more unused credit available? How quickly can a score go from average to excellent?

I have one credit card application rejection from April and no late payments.

CKhalvashi

If used sensibly, it's a good thing.

Companies are willing to trust you with more of their money.

It will also reduce your credit utilisation.

CK

taylor86

Thanks, does that mean overall it might help increase my score if left unused?

The_Boss

taylor86 wrote: »

Thanks, does that mean overall it might help increase my score if left unused?

You don't have a credit score so that's irrelevant.

Tixy

In terms of a mortgage application it is unlikely to make much difference.

The card companies may have viewed your credit file before increasing your limit, but they wouldn't (shouldn't) have carried out a credit application search.

Don't worry about 'average' or 'excellent' credit scores/rating. The mortgage lender will judge what is on your credit file, they don't see scores/ratings from the credit reference agency.

GlitterQueen_2

Tixy and the Boss are correct. There is no such thing as a credit score. Lenders/creditors view the information on your credit file and make lending decisions assessing that data against their own company criteria.