Using Cards to Improve Credit

rmcc89

Hey,

So, I already have a card with bank but the 18month interest free has run out. My credit limit on it has increased up to £2k while using it, but I continue to use it and pay it off every month in full balance direct debit.

If I apply to increase the limit to £5k - Will that mark my file?

I was going to apply for another card elsewhere, interest or interest free, just to use for purchases and pay off at the end of the month. I assume I couldn't apply for both new credit limit and new card?

What option would I be better off with in terms of my 'rating'?

[Deleted User]

An increased limit, or any new card, will show on your file.

You don't have a rating - just the data on your files that lenders will interpret. Your total limits and debt will generally be of more concern than how many lenders that is split over.

rmcc89

Thanks.

So, I would be as well increasing my credit to debt ratio by just applying for an increase with the bank card I already have.

£2k to £5k - or should I jump up slowly ?

[Deleted User]

You'll be restricted by what they will give you. Also think about any further credit you may want and how 5k would look in relation to your income.

rmcc89

Deleted_User wrote: »

You'll be restricted by what they will give you. Also think about any further credit you may want and how 5k would look in relation to your income.

Well, I was hoping to get a mortgage late end of next year, prob a years time. So just looking into options on improving my overall credit look.

5k would be 1/3 of this years income, hopefully 1/4 of next years.
I don't have any outstanding debts and all my cards are paid off; my thinking was just increasing credit to debt - making some purchases and paying it off. Perhaps I need to do some more research if having more credit available on the card makes me look 'worse'