credit limit increase

confusedFTB_3

Both me and partner got letters from Lloyds this month, they will automatically raise our limit end of month. Cards always paid in full, never went above the limit, all good.

But we are looking at getting a mortgage this month. Concerned that raising this limit would count as a new credit check (we did not apply to have the limit increased, Lloyds just randomly offered to do so it seems). Obviously wouldn't want to mess our chances with the mortgage.

Advice please ? Queued on Lloyds customer support for almost 1h now.

[Deleted User]

What are the old and new limits, your balances, your total limits across all cards and your incomes?

If you're nervous, reject it.

mrsammyp

I doubt they will do a credit check as they have their own data to make a decision on.

I think your main concern should be whether increasing the limit or having your existing limit will effect your mortgage application.

I think this where zx81 is going with the questions.

Superscrooge

If you have good credit history and always clear your credit card each month. It is unlikely to have any effect.

I've got a ridiculous amount of available credit. Far more than I am ever likely to need. Yet this doesn't stop other lenders offering me even more.

confusedFTB_3

625 now, to be upped to 1000 on mine, and 2500 going to 3000 on my partner's. Balance is anywhere between 30-60% on each, paid in full every month. These are the only 2 credit cards that we have, and credit history is flawless. Joint income is over 100k. So we wouldn't really gain anything by accepting this limit increase.

Marcio45

You are talking about relatively low credit card limits. I dont believe it would make any difference when you get to the mortgage stage. If it was limits on 5 figures then it could be a bit trickier.
Having a low credit limit may also go against you as it can show banks dont trust you with high limits.
By general rule, when a bank offers you a credit limit increase, there is no credit search.

20aday

I had the Lloyds Bank Choice Rewards card duo and had a credit limit increase (£500) in January 2015.

They recorded nothing on any of my credit reports (in terms of searches).

Anthorn

Back in the mists of time there used to be a figure which was bandied about below which other credit would not be affected: Basically a credit card limit which is twice your monthly spend on the card. Easy to calculate for everyday purchase cards but not so easy for other types of cards.

Anyway you can phone Lloyds and instantly cancel the increase within 30 days of being notified.