Applying for Credit Limit Increase- Impact on Credit File?

st182

Hi All,

I'm quite new to here, and I'm learning all about the workings of how to utilise credit cards, so please bear with me.

My question is simply- if I request a credit limit increase on my current credit card, and it is rejected, will it badly effect my credit rating? I have no plans to move / get a mortgage etc, but the situation I am in dictates that this could change within a matter of months- so ideally I'd like to remain as clean as possible.

The reason I ask, I have been offered a decent % rate for a money transfer which I could put to good use in the meantime.

However, I did only get this card in feb this year and I am about 80% deep already- are the chances they will just refuse me anyway? My income etc and all circumstances have not changed at all.

Many thanks in advance for any thoughts!

st :beer:

[Deleted User]

You can ask for a limit and usually lenders don't run a search on your credit file.

What is the MT card for? You do understand that there are fee's for making the transfer and also you still have to pay back the minimum each month?

You don't have a "score or rating" to be effected either.

st182

Interesting- many thanks for taking the time to reply I appreciate it. It may well be worth a try applying then if it does no harm.

This cash would be used in a savings pot which I'm trying to build up a strategy with- the rate is favourable- the fee would be eaten up (at current rates) in less than 12 months, and the 0% offer period is in excess of 18 months.

But it has just dawned on me- if I was to have the credit limit increased, I could just use the old "stooze" method (IE live off the credit card and put wages into the pot) for a few months, and in effect get the transfer for free? I think my main problem is impatience here!

As for monthly payments, I am close to shutting down my previous 0% card, so that card's direct debit and its overpayments will be going against this one- which I also plan to stop spending on very soon. Mid term plan (if home circumstances do not change) is to be unsecured debt free by the end of 2020.

Sorry for using the score or rating terminology- it's something which I don't know very much about!

[Deleted User]

Do you owe anything on the previous 0% card you’ve mentioned?

Don’t close it down though

st182

In a few weeks time I plan to have cleared the full balance of the previous card.

So, Just leave the card active but don’t use it?

[Deleted User]

Just use it from time to time to keep it active, clearing in full each month.

System

You should never "apply" for a credit increase. It smacks of credit desperation. You need to wait for them to be offered.

nick74

beany_bot wrote: »

You should never "apply" for a credit increase. It smacks of credit desperation. You need to wait for them to be offered.

I frequently apply for increases and as long as I keep the amount sensible and only put in a request every 6 months or so I'm rarely turned down. They perhaps think I'm desperate but it doesn't appear to stop my limits being increased!

st182

Thanks again for the responses everyone, great help as always. :cool:

Just to update, as it happens, I hadn't been with the provider long enough (6 months, I was in the right month so must have been a matter of days away!) to qualify for a credit limit increase, so I compromised and used an amount which was within my current limit and the money is now transferred and working for me. Doing the transfer and not the stoozing is basically so I can mentally draw a line in the sand.

This means the next step is to remove this card from my wallet, and, deep breath, start attacking the balance like I was with my previous CC- wish me luck! Thanks again, and good luck to everyone else on their next steps. :T

john1002

Also if any card provider does want to do a search they will always ask you and it will be in black and white, ones I know are Natwest so assume RBS group and MBNA although now they are under the Lloyds system suspect they don’t. Creation cards are another that do on request but don’t if they auto increase.

John

Ben8282

If I have understood correctly you have a credit card account which was opened in Feb of this year, 5 months ago, which is currently at 80% utilisation and the card issuer has made you a 0% money transfer offer for a period in excess of 18 months with a fee low enough that it would actually be worth your while to make this money transfer for stoozing purposes. You are very fortunate. Which card issuer is it?
I don't want to be critical but much of what you say is confusing. You have paid a fee which will be 'eaten up' within 12 months to make this money transfer for stoozing purposes and yet you are making overpayments on a different 0% card and speak of becoming unsecured debt free by 2020.