Barclaycard increasing credit limit by 55% - impact on credit score?

mageliken

Barclaycard have text me to say that they're increasing my credit limit by around 55%, and to call them if I don't want this.

I've no issue with it, and there could be a circumstance in the future where it would be handy. I always pay off in full each month by Direct Debit.

I am, however, considering applying for a rewards credit card (either for air miles or cashback) imminently. I'm conscious about the likelihood of being accepted given my current credit score, and also what impact applying might have on my credit score.

Will allowing Barclaycard to increase my credit limit have an impact on my credit score? Would it be in my interest to say 'no, thank you' if I want to increase my chances of being accepted and getting a 'good deal' on another rewards credit card (and limit the total impact to my credit score from this application too)?

JimmyTheWig

Imagine a friend wants you to lend them some money. You are considering whether to do it or not.

You ask a mutual friend what they think. They answer either...
A: "I would lend them up to £100 if it was me"
B: "I would lend them up to £155 if it was me"

Which answer would make you more likely to lend the money?

stevenhp1987

You could ring Barclaycard up and see if you're eligible for their Cashback card (Visa/Amex cards) on a product transfer? Only gives 1% on Amex and 0.5% on Visa, but better than nothing. They don't appear on the website, but I transferred this month.

Either way, it would be more likely to benefit you to keep the new limit (makes you look more trustworthy) unless they've bumped it up to, say, near your annual salary.

mageliken

I think answer B plays to the trustworthiness that stevenhp1987 mentions, however I might also think "Hmm, you've just (voluntarily?) leant my friend an extra £55 because you trust them, why are they now coming to me wanting even more so soon after?". Is that a consideration?

Thanks stevenhp1987 - I'll take a look at the Barclaycard cards.

[Deleted User]

Barbara_Edmond wrote: »

Such a brilliant post. Thanks so much for the kind words! It does really help me.

Hi Barbs. Bang on time with your afternoon spam, I see. Good stuff.

mageliken

Thanks for the helpful comments, I just want to make sure that I'm interpreting this correctly. I am better of allowing Barclaycard to increase my credit limit?

Unfortunately I've noticed my Experian and Noddle credit scores has decreased this month, which I think can only be due to a search performed by my insurance company. I'm getting a little bit worried about what an application to a second rewards/cashback credit card might be now.

[Deleted User]

Ignore your credit scores. They are fictional and mean nothing