What makes banks increase your credit card limit? Maxing it out?

pinknsparkly

I have had a Halifax Clarity card for about ten years (previously was a Halifax Rewards card that got automatically converted to a Clarity card when they stopped the Rewards). Having not had a limit increase in all that time, I assumed it was because I'd told them not to increase it unless I requested it. However, I did a money transfer on 29th June for 95% of my limit and today got a letter, dated 5th July, saying that "after careful consideration" they're increasing my limit from just under £6k to just over £7k from August. Is this likely to be a genuine coincidence or is it to do with the money transfer?

Willing2Learn

I have had great success in getting credit limit increases, by simply using the card for stuff that I have budgeted for, and then paying off the balance in full upon receipt of their statement. Occasionally I would buy big ticket items on my cards and then use a BT card with a 0% promotion so that it ends being interest free.

boo_star

Some banks offer limit increases regularly, some don't offer them at all (but will likely give you something if you phone them up.)

TSB have never offered me an increase but I suspect they would give me one if I asked. Nationwide offered me one six months after the account was opened but never offered any more when I didn't take them up on the offer. Some time later I realised I could get increases via their app rather than having to phone up so have been getting 6 monthly increases since then.

[Deleted User]

Are you using the card regularly as well?

Ergates

pinknsparkly wrote: »

I assumed it was because I'd told them not to increase it unless I requested it.

If you've previously asked them not to then they shouldn't have given you an unsolicited credit limit increase (UCLI) - if you want to make an issue of it you have grounds for complaint there.

pinknsparkly

Willing2Learn and boo_star - it's fascinating that you've had such different experiences with credit limits. I wonder if it's a combination of it being Halifax's policy and the fact that though I used the card every month, I have never previously come anywhere close to the limit as I simply don't earn enough each month to be able to pay it off at the end of the month!

GaryDexter - yes, I'd been using the card regularly as my only credit card for ten years until we (husband and I) opened a 0% purchases card in his name a few months back. Since then I've just been putting the occasional purchase on it to keep it active and on my credit history.

Ergates - I have no recollection as to whether or not I told them not to increase my limit. I simply assumed that as it hadn't been increased in all this time, I must have told them not to increase it when I originally applied. There's definitely no cause for complaint here, I'm just trying to make sense of why they've suddenly increased it out of the blue!

SnowTiger

I generally find that if I spend more than 50% of my credit limit I'm offered an increase.

I pay the outstanding balances on my cards off every month, unless they're an a 0% deal.

Credit cards are a funny game.

I moved home last year and spent quite heavily on my Aqua, Santander, Lloyds and Halifax cards to take advantage of cashback offers and 0% deals.

A short time later Barclaycard, whose balance was £0 and hadn't been used for a while, doubled my credit limit. I guess the feeds they get from the CRAs showed my spending and they wanted a piece of the cake.

Ergates

pinknsparkly wrote: »

I have no recollection as to whether or not I told them not to increase my limit. I simply assumed that as it hadn't been increased in all this time, I must have told them not to increase it when I originally applied. There's definitely no cause for complaint here, I'm just trying to make sense of why they've suddenly increased it out of the blue!

Fair enough.