Best time to ask for a credit card limit increase ?

AnotherJoe

Let's say, non hypothetically that my card limit is £5k, my spending this month £4500 and the bill will be paid in full (as it is every month)
Should I apply for an increase now, whilst i still owe the £4500, or after I've paid the bill? What will the algorithms favour?
FWIW Reason it's so low is that was the initial sum I got allocated and as I had several cards I wasn't bothered but now I do most spending through the card for the cashback and once in a while there are some out of the ordinary payments which bump it up to the limits.
Do the algorithms favour someone who pays off every month or someone who wants an increase whilst they owe a lot on the grounds they may not pay it off and thus incur interest ? Anyone know?

System

Never "ask" for an increase. Wait for it to happen.

[Deleted User]

It varies by lender, but generally, you'd probably be more likely to get the increase if your balance is lower.

AnotherJoe

beany_bot wrote: »

Never "ask" for an increase. Wait for it to happen.

Well I've been waiting a year and it's not happened, (had the card 3 years I think) unlike years back when indeed you'd just get increases without asking. And generally each month I am spending 3.5-4K.
It's John Lewis. Maybe they are different?
Now, if it was Barclays and I took all the loans they offer me unsolicited pretty much every week I could run off to a non extraditable country and be well sorted.

Nasqueron

You can ask certainly, one off doesn't matter in the grand scheme of things. They will judge it on past behaviour as well as earnings, other debt etc

AnotherJoe

Yes you can ask on the website via a form without needing to phone, so I'd presume it will be judged by an algorithm not a person, hence me wondering what the algorithm favours. Close to the limit, or paid off ?
This is the third occasion I've had the "you are close to your limit" message so I guess its not going to happen automatically. I think I'll wait on the grounds that if their algorithms are set to increase limits for high spenders they would have done it by now. I'll give it til next week when the payment goes out and then ask.

System

I very much guess paid off.

[Deleted User]

Who is the card with?

I asked for an increase on my Amex Gold Card a few days ago that was within 90% of the limit (I use it for work expenses and have done a lot of travelling this past month) and they doubled my limit.

So yes it is worth asking rather than waiting - the worse they can say is no.

AnotherJoe

John Lewis finance.

Nebulous2

Unsolicited limit increases certainly don't seem as common as they once were. Last year I paid off a big chunk of 0% debt to apply for a mortgage and it triggered two limit increases.

On that very limited sample I'd guess paying off the balance first would be best.

I'm also of the view that algorithms don't prioritise ways of making money from you, which many people suspect. I think they're much more biased to making sure the lender's money is safe.

The_Analyst

beany_bot wrote: »

Never "ask" for an increase. Wait for it to happen.

This! When a CC Company deems you eligible for an increase, they will offer you one.
I took out a BA Amex in July last year with the intention of spending everything on it (and paying it in full of course) to take advantage of the Air Miles. I got a call in November of that year asking if I wanted an increase from 10k to 16k - this was purely based on my spending and the fact I had been clearing the balance every month