Offered an increase

Jami74

I have had my first credit card for 18 months. I got it to build my credit history (as I had none). I simply use it for groceries and pay it off in full every month.

They have offered me an increase from £1500 to £4500. I am very pleased because it seems like my credit history building is working. However, I am never going to need that many groceries in a month and I could never afford to pay that amount off every month. The APR is 29.9% so I would not spend more on it than I could afford to pay.

I would love a card with a big limit and a promotional rate (either 0% purchases or 0% money transfer) which I would use to over pay my loan (currently £4k @ 6.7%). I was planning to wait until the autumn to apply for one. If I don't halt this credit increase, might that impact my ability to get a higher limit card when the time comes? I don't have a very big salary.

[Deleted User]

Take the increase

MovingForwards

Take the increase.

Not sure who your provider is but my marbles one has offered me a 0% balance transfer for 6 months as either a money or balance transfer. So you never know, yours might do a similar offer soon.

T-G-C

Whilst I would advise to take the increase like others have, for the benefit of having a larger credit offering, which other lenders take as a positive indication, you do also have to consider the fact of whether or not this extra credit will be of a temptation to you.

If you start eating into an amount of credit that you cannot afford to clear each month, then interest starts to be charged and depending on how much is re-paid each month, the balance increases. You should only take this increase if for the sole purpose of the above mentioned benefit of having it and are confident that you will not use it. Maxing out the credit limit, especially for more than a short amount of time will have a negative effect and undo the clearly fantastic work you have done so far.

cjv

It can be useful to have a card with a decent limit available.

For example, if you are not eligible for a new purchase card, but you are eligible for a balance transfer card you could use your current cards limit for the purchase, then transfer the balance to a new card to take advantage of a long interest free period (small fee would be payable).

cymruchris

Assuming you are not tempted to use it except for real emergencies - definitely take it.

Jami74

T-G-C wrote: »

you do also have to consider the fact of whether or not this extra credit will be of a temptation to you.

It won't. It's my groceries card and I am not tempted to overspend on groceries. In fact I can't imagine being tempted by anything enough to borrow at that interest rate.

cjv wrote: »

It can be useful to have a card with a decent limit available.

For example, if you are not eligible for a new purchase card, but you are eligible for a balance transfer card you could use your current cards limit for the purchase, then transfer the balance to a new card to take advantage of a long interest free period (small fee would be payable).

That is an excellent idea! Thank-you. At the moment I don't need to make any big purchases but useful if I do in the future.

JayMawds82

Take it. You'll have a boost for decreasing your credit available usage. Just stay disciplined with usage.

System

Two options.

Take the increase. If you are worried it might make you spend more than you can afford cut up all your credit cards and bin them.

System

You could see what other offers the issuer has as they might be able covert your existing account over.

As other have said, take it if you are confident that you'll not be tempted to spend what you don't have.

Might also be valuable to get S75 cover on something high value and just pay off

Cisco001

the APR for the card seems high.

Would you consider getting an additional card with lower APR?