Card Limit - Build Credit Score

DoA_2

Hi all,

Does a credit card's limit have any impact (positive or negative) on the building of a credit score or is it all down to the repayments?

I'm using a CC for business purposes (expenses) so can guarantee that I'll be always be able to pay it back and never overspend .... Just wondering if it's worth asking for a limit increase as I do still find myself using my current account (CC limit is low due to no credit history).

jimmy*c

Generally if you pay back every month in full it's a satisfying sight for other potential lenders. The only thing that could affect it, I think, is the usage of credit, eg, if you had a card with £1,000 limit and were using £200, your usage is 20% which looks favourable in general. If you had the same usage but only a £500 limit, you're using 40% of the available which conveys a message that you seem more reliant on it and my not fit too many lenders' profiles. That's about it really - Personally I would ask for an increase.

DoA_2

Oh, they are able to look at the usage patterns too? Ok. I am usually near maxing it out but, as I say, on expenses, so I'll just stick more of those on my current account until they lift the limit.

Just applied online and was refused because the card is still so new (just coming up to 3 months).

I used to wear the "I've never had a credit card" badge with pride, now I realise that even that was a stupid methodology.... The world we live in!

jimmy*c

I'm fairly sure lenders can see it - I would've thought they'd take this into account when doing affordability checks. Saying that, green ticks are no harm whatsoever (however you make them) and shows a good relationship with your creditor and a good money management ethic. It's all plus really. Personally I would try to get a higher limit, but you're doing absolutely nothing wrong, and absolutely everything right.