Next credit limit

Sncjw

I currently have a limit of £600 and haven't even got up to £100 yet. When I checked my statement they are now offering to increase my limit to £1,500.

I'm not sure if I should increase it or just leave it.

Any advice plewse

[Deleted User]

Do you want it or need it?

CakeCrusader

The interest rate for Next isn't great, so I'd only say 'yes' if I'm able to clear it all at once or very quickly.

MallyGirl

I got rid of my account as it was showing on my credit report as available credit and they kept increasing the limit to £5k. I asked them to reduce it but the request only lasted for a year and then it popped back up again.

MattTheMoneyGuru

For me, the downsides to increasing the credit limit:
It would show on your credit file and may prevent you getting credit elsewhere in the future
If you were tempted to spend this when you cannot afford to pay the balance off, leaving you with higher debt & interest on that debt

Some might suggest having it there in case of emergencies. A better approach might be to save up a savings balance for emergencies rather than rely on credit.

CakeCrusader

MattTheMoneyGuru wrote: »

For me, the downsides to increasing the credit limit:
It would show on your credit file and may prevent you getting credit elsewhere in the future
If you were tempted to spend this when you cannot afford to pay the balance off, leaving you with higher debt & interest on that debt

Some might suggest having it there in case of emergencies. A better approach might be to save up a savings balance for emergencies rather than rely on credit.

I don't think Next is the right place for an emergency considering it's basically a store card and they only sell clothes and stuff for your home

Sncjw

I don't need the limit really. I haven't spent more than £50 on my statements. I pay it off in full.

I don't buy much full prIce I got it so I could get into the sales early.

I have ahalifax credit card with 2k limit most I've spent there is £500 and I pay it off in full by statement date as well.

I wasn't sure if it would hurt my file having higher limit or look good

CakeCrusader

I don't think having a high limit is a bad thing, it shows that you're trusted and able to manage your credit wisely, but it is a bad thing if you're constantly very close to your max limit (especially on a credit card).

A4445

Mines £2000 and the most I've ever owed was £100, they seem to increase every 6 months or so.

CakeCrusader

A4445 wrote: »

Mines £2000 and the most I've ever owed was £100, they seem to increase every 6 months or so.

They want you to spend more money so they will be increasing your limit to entice you to spend If there's nothing you need, I wouldn't do it. I'm not a fan of Next clothes anyway, they changed the fabrics they use a number of years ago so they are Primark quality now (but four times the price). You can no longer get a wool jumper, it's acrylic etc, and it's not worth the cost really. The house items aren't bad if you like that sort of look.

A4445

They could increase it to £10000 I will only buy what I need! Plus they charge high interest. I may decline any further increases £2000 is a bit excessive as it is! :rotfl: