Credit limit query - credit report

katie4

Hi
One of the main issues on my file is low utilization rate, if thats what it is called?


I am wondering if i increase my limit will this improve my utilisation (% of limit used) on my credit file? so long as i dont use the extra which i dont plan on doing


thanks

Willing2Learn

Hi,

How much is your limit now?
And what's your current balance?

There is no harm in asking for a higher limit...just be careful...only spend within your budget...

katie4

Willing2Learn wrote: »

Hi,

How much is your limit now?
And what's your current balance?

There is no harm in asking for a higher limit...just be careful...only spend within your budget...

limit now is £3600 and balance £3400

National_Debtline

Hi Katie


Low utilization of your credit means that the balance of your debt is low compared to the amount of credit you have available. By increasing your credit limit you will lower the utilization rate further, unless you start spending more.


Is the issue that you have a high utilization rate? This would mean you are using all or most of your available credit and could indicate financial difficulties. There is a useful article from Experian on how credit utilization affects your credit file here https://www.experian.com/blogs/ask-experian/how-utilization-rate-affects-credit-scores/.


Edit - Sorry for the cross over on our messages, I can see from your second post above that it is an issue of high utilization of credit. You could try increasing your credit limit but bear in mind you might be turned down. Also be very careful not to fall into the trap of spending more if you a higher credit limit.

Best wishes


Susie
@natdebtline

Willing2Learn

Ouch...that is nearly all used up...are you paying minimum payments or are you in control? If I were struggling to make minimum payments I would not ask for an increase. So it all depends I guess...