Credit Card Limit

RG2015

I have just received a special offer for my credit card on my personal online banking homepage.

Good news! As a valued customer, and based on your recent account activity you are eligible for a new credit limit of £X,XXX on card ending 1234 . Manage your credit limit here.

I shall ignore the dubious ethics of an unsolicited offer to increase my credit limit by 43%. However I am interested in what it would mean for my credit score and credit rating if I accepted the offer to increase my credit limit.

Incidentally, I always pay off my balance and in the year I have had the card, I have never utilised more than 50% of my current limit.

YorkshireBoy

RG2015 wrote: »

I shall ignore the dubious ethics of an unsolicited offer to increase my credit limit by 43%.

It might not be "unsolicited" though? If you didn't want to receive such offers you should have told them. These days lenders must offer you the chance to opt out of such increases. All it takes is a phone call. You probably didn't tell them, so they made you an offer. If you did tell them, then if it annoys you so much let them know.

However I am interested in what it would mean for my credit score and credit rating if I accepted the offer to increase my credit limit.

Firstly you don't have a "credit score". As to what it would do to your credit rating, as perceived by lenders, not a CRA, then that's anyone's guess without knowing your income, other limits, this limit (both before and after), mortgage situation, and any other credit facilities you have, whether used or unused.

In short, no-one (here) knows.

RG2015

Hi YorkshireBoy,

Thank you for your reply. I have just checked my latest credit reports and Noddle give me a credit score and a credit rating and ClearScore also give me a credit score.

I infer from your post that you are sceptical of these metrics but I still have to use the language of the credit rating industry. I hope that your comment that nobody here can answer my question is incorrect and that there is someone able to answer.

As regards the "unsolicited" offer, I did indeed opt out of marketing notifications but my bank thinks that this only applies to emails not to my personal banking homepage.

[Deleted User]

YB is correct. No one can answer your question because it depends on too many factors.

It will be negative if lender decides you have too much available credit so are a higher risk. It will be positive if a lender determines it shows you can be trusted with a better limit or that you only use a smaller percentage of your availanble credit.

Sadly, neither Noddle nor Clearscore have any say on these views, hence their scores are not 'credit scores' but 'generic stab in the dark scores'.

YorkshireBoy

RG2015 wrote: »

Thank you for your reply. I have just checked my latest credit reports and Noddle give me a credit score and a credit rating and ClearScore also give me a credit score.

When Noddle and Clearscore start lending money I'll pay attention to their credit scores. Until then, I'll remain sceptical dismissive. I've been all over the place this year with Noddle...5/5, 4/5, 5/5, 4/5 and currently 3/5 for the last two months. It means nothing, for a fairly stagnant credit file where my (stoozing) debt is actually reducing.

As regards the "unsolicited" offer, I did indeed opt out of marketing notifications but my bank thinks that this only applies to emails not to my personal banking homepage.

You misunderstand. Your credit card credit agreement/T&Cs with them contains the request to contact them if you don't want any credit limit increases. Marketing preferences, in general, are an entirely different thing.

RG2015

Thank you zx81, it is now becoming a bit clearer to me.

I have also just read Martin's articles on credit rating and by going into more detail it does provide a balanced view.

It does make me chuckle though when Martin says "You don't have a credit score in the UK" and then later gives advice on how to boost your credit score.

And just to make it clear, I have never paid and will never pay a penny to a credit agency.

RG2015

YorkshireBoy wrote: »

You misunderstand. Your credit card credit agreement/T&Cs with them contains the request to contact them if you don't want any credit limit increases. Marketing preferences, in general, are an entirely different thing.

Thanks again, I stand corrected.

YorkshireBoy

RG2015 wrote: »

It does make me chuckle though when Martin says "You don't have a credit score in the UK" and then later gives advice on how to boost your credit score.

I agree he should be more careful/consistent. He was even on TV this week and mentioning credit scores (regarding opening multiple current accounts). I'd rather he was more careful to always say credit rating.

CornishOptimist

YorkshireBoy wrote: »

I agree he should be more careful/consistent. He was even on TV this week and mentioning credit scores (regarding opening multiple current accounts). I'd rather he was more careful to always say credit rating.

Indeed, careless but I believe that's all it is (or a slip of the tongue)

However with regards to the OP, I have had similar things happen to me recently. I contacted my CC provider who confirmed that it was a genuine attempt to increase my limit and I informed them that I wasn't interested and not to ask me again. They duly obliged and put a note on my file not to do again.

Hope you are able to do similar

CO

RG2015

Thank you for your reply, CornishOptimist.

I have had "notes on my file" before and am a bit sceptical of their long term efficacy. Nevertheless, I shall follow your advice and adopt the second part of your username and think positively!