Low limit hurting credit score

Bdiddy

Hi all,

About 2 years ago I applied for my first credit card with Tesco, one specifically to help me build my credit score. It came with a £400 limit.

Two years later (after paying my credit card off in full each month), my credit score has increased but now stalled as one of the negative factors on my score states that that the credit limit is quite low and another factor is that I use probably 50% - 60% of the credit available each month.

Tesco won't increase the limit given the type of card it is so I need advice please as to my options.

Is it best that I apply for a different type of card with Tesco as I already have an account with them? Can I apply for a credit card anywhere I choose?

Will opening a new account further hinder my credit score?

Any advice graciously received

Ben8282

I assume you have a foundation card.
The maximum credit limit is £1500 so if Tesco won't increase your limit above £400 then that is more likely due to the conduct of the account rather than they type of account.
If Tesco are refusing to increase your limit on the existing card beyond £400 applying to them for another card really doesn't seem a good idea to me.
Yes of course you can apply anywhere you choose. Use the eligibility checkers on this site to help you.
Are you interested in getting a new credit card with a higher limit or improving your credit score just to look at the score?

PeacefulWaters

Ignore the number. The world is hung up on credit reference agencies allocating them a random number.

What nasty things are there on your credit report? How old are they?

Yes, you can apply for other credit cards.

Bdiddy

Thank you,

As so mentioned, I do pay my bill off in full each month and always have done, perhaps the activity that's unfavourable is the fact that I would use 50% - 60% of the credit available each month?

I would like a new card with a higher limit but I suppose I've been obsessed with building a credit score this past couple of years and to some extent I would like to see it continue to rise.

I think I'm worried about applying for and receiving a new card that comes with a limit that's just as low

Ben8282

Just apply and stop worrying.

Bdiddy

There is only 1 negative factor on my credit score and that is that my credit limit is low.

Another negative factor was that I use a high proportion of the credit available but I have eliminated that from the report over the last 2 months

The_Real_Cheddar_Bob

you wont know something if you don't try and find out. Apply for a credit card, use MSE's credit matcher if needs be.

Ben8282

I wouldn't worry unduly about the high utilisation if you are paying in full every month. With such a low credit limit you don't really have much choice but to use a high % of the limit in order to put any sensible amount of spending through the card at all.

20aday

It is possible to hold more than one credit card with Tesco Bank-I opened a Foundation account first, ran it for six months, then applied for one of their 0% offerings.

The initial limit with the Foundation card was £250 before they increased the limit to £600 so am surprised yours has remained stagnant (unless there's something untoward on your credit reports).

Have you tried your own bank at all, besides the MSE 'soft search' tool?