Maximising credit limit for stoozing?

garfield33

(apologies to anyone who's read this before, I posted it elsewhere but I think I put it on the wrong sub-forum)

I've had a Smile credit card for several years and pay it off in full every month. I got it to improve my credit file, with the added bonus of a little cashback each month. It currently has a credit limit of £3000 but I rarely go over £500 a month.

I recently took out a Tesco credit card, with the intention of doing a little stoozing (0% on purchases for 19 months), the credit limit they have given me is £2100.

I was hoping that the Tesco limit would be a bit higher. If I got the credit limit reduced on my smile credit card, would I be able to approach Tesco in a few months and ask for an increase? Is that how it works, would they see the change on my credit file?

I always pay off the Smile card in full every month, and will pay the minimum payment for the Tesco card and then the full balance when the 0% period is up, so APRs, charges etc aren't an issue.

Thanks

YorkshireBoy

Tesco aren't generally known for giving high limits. Having said that, they did give me £7K second time around (the first gave me only £2K ish several years ago), and that was a big surprise!

Sometimes having low limits on existing cards can be a hindrance, especially if accompanied by a low salary and/or other financial commitments.

Based on my slow-stoozing experience (over many years), you don't generally get decent, if any, credit limit increases during the intro period...especially if you max the card out quickly and are only making minimum payments. Even if you do, it'll be many months in...and by then you should have stopped spending on this card anyway, and taken out another to maximise* your return.

* I only ever used to run a, say, £5K 15 month slow-stooz card for 6-9 months and then jump to the next, whilst continuing to make minimum payments on the first.

antonymp

garfield33 wrote: »

I was hoping that the Tesco limit would be a bit higher. If I got the credit limit reduced on my smile credit card, would I be able to approach Tesco in a few months and ask for an increase? Is that how it works, would they see the change on my credit file?

I'm afraid Tesco won't consider a credit limit increase for at least a year after the account is opened.

garfield33

Thank you both, I'll leave things as they are for now, though I might do as YorkshireBoy has done and consider a second stoozing card in a few months.