Credit Limit too low

Mufeed

Hi,

I recently used Experian's free trial to look at my Credit Score. I had one negative on the report which said that my current credit card limit of £1000 is too low and indicates the banks may be reluctant in giving you a bigloan. I have had this Credit Card for 5 years when I started university and was given a credit limit of £1000 which I have hardly touched. I have recently been using the card to boost my credit rating (20-25% of available credit). The question is, should I try to increase my credit limit? And if so, what credit limit should I aim for?

Thanks,

Mufeed

[Deleted User]

A better strategy may be to apply for another card, so that you have a back up and more flexibility.

Ignore your credit score and any advice from Experian.

mwarby

That wouldn't remove warning, as i think it looks at lowest limit of all open cards. If you open another and close low limit card it'll drop average age and warn of a new account, both of which will lower score at least in short term

Best thing is to just ignore it,most lenders probably will, don't spend your life trying to be experians idea of ideal.

Thrugelmir

Why do want a larger credit facility when you don't even use the one you've already got?

Gouki7851

Go over a 1k limit and experian increase your score. Would a bank think a 1001 limit opposed to a 1000 limit differently? You decide, but over a 1k limit makes experian very happy