Should I accept credit card limit increase

james_09

I’m looking to remortgage in October and need to make sure nothing negatively impacts my credit rating or affordability before then.

I have an Amex card (credit limit £7k) and visa credit card (limit £11k).

I spend about £1k to £3k a month across these two cards, which is paid off in full each month.

Amex have just sent me a letter saying they will automatically increase my limit from £7k to £15k unless I opt out.

I don’t need a this limit increase and it will have no impact on my spending whether I accept it or opt out.

My question is if I leave it to increase automatically will it negatively, positively or have no impact on my credit rating/affordability.

Thanek

Ben8282

Accept the ncrease

sillyhilly

There is no harm in accepting.

Your credit utilisation score will thank you for it

System

It will, slightly, increase your credit files standing. As it will decrease your credit utilisation ratio.
Depending on how much credit you actually use the increase may be trivial or fairly significant.

SlovakianGuy

Credit limit increase is generally a positive thing.

Not only it will lower your credit utilisation ratio, but also shows future lenders that your credit card issuer trusts you enough to offer you more credit. That's surely a positive thing.
They don't even need to do a search on your file, so there will be no negative mark added to it.


The only possible bad scenario that comes to my mind is, if your overall credit limit is very high relative to your low income. I've read somewhere that people with low income who have huge amounts of credit available to them, do not look so good in the eyes of lenders. But I'm not sure if this is true.