Advice: Managing and increasing limit

in Credit Cards
13 replies 1.8K views
So ive just been given an overdraft by halifax of £1500 and a clarity credit card which is decent as i am going to Mexico for 14 nights in august 2019.

What I would like is how do i use my Credit Card or Overdraft so that I am able to increase this limit asap? my credit card atm is £800 which im sure is pretty low. My goal is to get it close to 5k asap just for in case of emergency and purchases that i can pay back slowly. Any advice?


  • zx81zx81 Forumite
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    Use it regularly and clear in full. Be aware that it's likely to take a year or two to get it to to.

    It would probably be quicker to apply elsewhere in a year or so in the hope of getting a higher limit.
    2.9K Posts
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    Use the card and pay it off in full each month (set up a direct debit so you don't forget). You should start to get offered increases after 12-24 months - depending on the CC provider (I've gone from a £250 limit to the dizzying heights of £600 after 6 months with the Tesco Foundation card myself XD). As has been mentioned, you'll probably have better luck applying for brand new cards with a higher limit from a different lender rather than asking your existing provider to increase your limit.

    You could probably do the same with your overdraft, but I'd avoid that as there are typically daily fees associated with using it. Use the CC instead to achieve the same result.
  • DobbibillDobbibill Forumite, Ambassador
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    Use for regular purchases - set up a DD to pay in full - never use more than 40% of your limit in any statement period so you don't get too close/exceed your limit. Repeat.

    Don't use your OD unless it's unavoidable - it indicates you are unable to manage on your budget and will cost you to use. ;)
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  • I think it's different for everyone and relies on much more than paying off in full every month (I could be wrong of course).

    I have never paid off in full but have regularly overpaid then had gaps where I just paid minimum (usually when I'm on 0% deals) and my credit limits on the various cards I carry are 7k, 10.5k, 15.5k, 16.7k and 25k, some cards started as low as 2.5k and went to 10.5k and my biggest started at 16.1k jumping to 25k.

    I think there's a lot more to it than we'll ever know as my trying to get Barclaycard to pull their finger out with a decent deal for me proves!
  • edited 29 August 2018 at 9:39AM
    SuperHanSuperHan Forumite
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    edited 29 August 2018 at 9:39AM
    Halifax are notoriously stingy with credit limits too.

    Despite them being my main current account and joint account provider, the Halifax Clarity is my lowest limit card by quite some way - it's about 75% of the limit of my next lowest card with a limit of £5,800, and about 30-50% of the limit of most of my other cards.

    On that basis, even if they do increase, I'd say it's unlikely you'll get £5,000 with Halifax any time soon - and almost definitely not before your holiday.

    As others have said, looking for another card may make the most sense.

    *edited to add* In balance to onlyfool's post - I have limits of £5.8k (Halifax), £8k (New Day), £15k (Amex), £21k (MBNA) and an Amex charge card which reliably informs me it would let me spend at least £20k. I pay in full every month, and cycle £2k-£3k through credit cards monthly.
  • [QUOTE=_*edited_to_add*_In_balance_to_onlyfool's_post_-_I_have_limits_of_£5.8k_(Halifax),_£8k_(New_Day),_£15k_(Amex),_£21k_(MBNA)_and_an_Amex_charge_card_which_reliably_informs_me_it_would_let_me_spend_at_least_£20k._I_pay_in_full_every_month,_and_cycle_£2k-£3k_through_credit_cards_monthly.[/QUOTE]

    I've found Halifax to be stingy on offering regular deals (I have to phone them to find them??) but not on credit limit??? As I said I think there's much more to it than we'll ever know but I definitely agree about the "upping to 5k limit" I don't see that happening any time soon.
  • SncjwSncjw Forumite
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    What is your income and do you have any other debts
  • T-G-CT-G-C Forumite
    591 Posts
    I can't see them increasing from £800 to £5000 in 12 months. You could open a card with another provider, but could then be suck with another low limit. If you have a high debt utilization or other negative factor influencing lenders to grant smaller amounts, it could prove extremely difficult to get the amount that you are looking for. As most lenders do not reveal the credit limit until after the full credit check, it makes the process even tougher.

    Between now and next August, would it not it be more practical and sensible to place a chunk of your monthly income into a savings account for the trip? This will ensure you have the desired amount to go with without relying on a lender and means it doesn't have to be repaid when the excitement is over.

    Even putting £450 per month in a savings account will accumulate, by August 2019 to around £5400 which is your target and more. Like I said, no repayment needed afterwards either! You should consider this option, depending on your monthly income and whether this is affordable. Although if £450 per month is not affordable to save, it doesn't seem sensible to take out over £5000 in credit either, as interest will be accumulating each month and could end up paying back much more than originally borrowed.
    Advice provided from this account does not consist of any professional knowledge. For professional debt advice, please contact either National Debtline or StepChange. Advice may consist of personal experience, opinion and/or informational sources.
  • You state you want access to more credit for "emergencies". Your best bet would be to apply for additional cards as time goes by. Assuming your history is fine you should be accepted - but the limit you get will likely depend on your stated income.

    If you want a card that operates like Clarity overseas, consider Santander Zero.
  • A4445A4445 Forumite
    1.1K Posts
    I don’t find Halifax stingy with their limits, I applied for a Clarity Card and got a started with a limit of £4K that’s more than enough for my needs.

    Creation everyday card were more generous starter with 5k and increased to 8k in the first 12 months.
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