Why won't they increase my credit limit?

amy1695

I got a 'bad credit' credit card last year. They gave me a £200 credit limit. I have a CCJ from 2015 which was only 3 months old when they let me have the card. I use the cars every month and pay it straight away. I never max out the card and the amount of debt I owe to other companies is now £1,500 less than it was when I took out the credit card. I want a higher limit as this can improve my credit score. So why did they reject me when I applied for a credit limit increase?

[Deleted User]

Leave it a few months then go back to them.

YorkshireBoy

When you say you pay it straight away do you mean as soon as you spend or when the statement arrives?

Thrugelmir

amy1695 wrote: »

I never max out the card and the amount of debt I owe to other companies is now £1,500 less than it was when I took out the credit card. I want a higher limit as this can improve my credit score. So why did they reject me when I applied for a credit limit increase?

The other debt you owe perhaps.

DCFC79

amy1695 wrote: »

I got a 'bad credit' credit card last year. They gave me a £200 credit limit. I have a CCJ from 2015 which was only 3 months old when they let me have the card. I use the cars every month and pay it straight away. I never max out the card and the amount of debt I owe to other companies is now £1,500 less than it was when I took out the credit card. I want a higher limit as this can improve my credit score. So why did they reject me when I applied for a credit limit increase?

Who says it will improve the magical credit score ?

Because they can reject you, due to your past financial management I bet.

forgotmyname

Your other debt is £1500 less than when taking the card. But what percentage is that debt compared to your earnings?

A high debt ratio and a CCJ wont help.

Also a higher credit limit may lower your "score". Because you have the potential to access lots of credit which maybe beyond your means to pay
it back in a timely fashion.

You do know the score is a stupid number, mine dropped because i spent more than 50% of my cards limit even though i paid it in full when the statement arrived.

Even though my score dropped my CC company increased my limit without me asking.

Ben8282

It is impossible to know exactly why the credit limit was refused. Clearly the ccj doesn't help but beyond that it looks as if they just don't think that the conduct of your account with them and/or the conduct of your accounts elsewhere and/or the balances of your accounts elsewhere warrants an increase.

amy1695

I pay most off before my statement but leave some on there, about £20 or so just so they make some money off me. I thought if they weren't making money off me then they wouldn't want me to have more credit. So I do pay them about £3 per month.

YorkshireBoy

amy1695 wrote: »

I pay most off before my statement but leave some on there, about £20 or so just so they make some money off me. I thought if they weren't making money off me then they wouldn't want me to have more credit. So I do pay them about £3 per month.

Madness!

Wait until the statement is produced and pay the lot off.

PeacefulWaters

amy1695 wrote: »

I pay most off before my statement but leave some on there, about £20 or so just so they make some money off me. I thought if they weren't making money off me then they wouldn't want me to have more credit. So I do pay them about £3 per month.

Absolutely nuts and a waste of £36 a year.

Get bill. Clear in full. Repeat.

Superscrooge

By failing to clear your balance and paying £3 interest each month, you create the impression of struggling to make repayments on a £200 credit limit.

This together with a recent CCJ will make you look high risk and less likely to be offered a higher credit limit.

Clear your statement balance in full each month