Offered credit increase

positiveR

First let me explain, NB not a boast, that I have always paid my credit cards (ever since my first at age 19) in full every month, and have therefore never paid a penny interest. I use them as "debit cards" i.e. only spend what I have and use them for very short-term advances and primarily the perks, cashback, airmails etc etc.

A few months ago Nationwide (CL £3300) wrote to offer me an increase to £4000; I admit I forgot to respond. They have now offered it me again. I realise they are hoping I will spend on it and incur interest charges but, as I stated above, this won't happen. So my question is, is there any benefit to me accepting this and having a higher credit limit on file???

PeacefulWaters

Any impact on how a lender will interpret your credit risk will be negligible.

molerat

As long as all your limits stay within your affordability it could be a positive factor as it shows that one of your lenders thinks you are a good risk.

positiveR

But its not about affordability; as I said I never spend what I don't have so what if any benefit is there to me?

[Deleted User]

positiveR wrote: »

as I said I never spend what I don't have so what if any benefit is there to me?

Hmm. Good question. Anyone know?

molerat wrote: »

it could be a positive factor as it shows that one of your lenders thinks you are a good risk.

Ah - that'll be it!

copperclock

Also, access to more funds should the SHTF and you have to, I don't know, buy an emergency flight home from Dubai or something...

onthefencepost

My aqua credit card is kepts as spare credit card - again in-case i need emergency access to funds. Just annoying to use it for a every month for a small transaction just to get my activity marker on my credit file.

Doctor_Duke

The increase is so small it will have no impact. The only risk I can see is if you ar reckless with the added credit which frankly you don't sound like. Don't worry about it I'd say.

bearcat16

Take it.

It will reduce your credit utilization, which is a good thing.

I got my nationwide card 4 yrs ago with a limit of £3,500. After regular increases every 6 months or so, it's now at £13,500. I think nationwide are pretty generous with limits, especially if you have a current account with them (which I do)

Yawn

I just rented a car and needed to put down a £1,250 deposit / charge on my credit card. Even if you don't spend the money, it can have its purposes.