Negative factor on file due to new credit card

dane1986

Hey guys, just received a new credit card to help me improve my credit score. It’s come up on the report as a negative factor saying. “ your highest single credit limit is £900”

I’m confused by this, is it because it’s quite a low amount it’s considered negative? I don’t understand what it mean.

Thanks.

sourcrates

dane1986 wrote: »

Hey guys, just received a new credit card to help me improve my credit score. It’s come up on the report as a negative factor saying. “ your highest single credit limit is £900”

I’m confused by this, is it because it’s quite a low amount it’s considered negative? I don’t understand what it mean.

Thanks.

Thats because it dosent mean anything.

I`ll ask you a simple question, "Do you borrow money from a credit reference agency" ?

Answer : No you don`t.

All these little subliminal messages are designed to make you start worrying about your made up credit score, its all part of their marketing stratagy to convince you to buy there credit improvement products, its a simple marketing gimic, no more, no less.
All the CRA`s do it, its a sourse of extra money for them, playing on peoples gulability, trying to make a little number increase in size, which they make happen as they see fit, its all a massive con.

[Deleted User]

TLDR - your score isn’t used by lenders in the real world.

They ignore it, in fact don’t even see it.

You should follow suit.

boo_star

dane1986 wrote: »

I’m confused by this, is it because it’s quite a low amount it’s considered negative? I don’t understand what it mean.

Low limits would tend to indicate that lenders don't trust you all that much.

Having said that it's not that there's much you can do about it. Just run the account properly and accept any limit increases when they're offered.

PixelPound

So is this your only card? You have little/no credit history so the card provider has limited exposure with a lowish limit, other providers may look at your existing credit as a factor and that you only have a low limit card can be seen as a negative. Then again not having the card could be a negative too.

All you can do is use the card regularly, pay off in full each month after the statement (best way is to set up a DD) after 6 or 12 months if you don't get a credit limit increase, ask for one. The important thing is to show you can be responsible with credit and less of a risk.

gionnetto

dane1986 wrote: »

Hey guys, just received a new credit card to help me improve my credit score. It’s come up on the report as a negative factor saying. “ your highest single credit limit is £900”

I’m confused by this, is it because it’s quite a low amount it’s considered negative? I don’t understand what it mean.

Thanks.

If you only have one credit card, and the limit is below 100, then yes, it's considered a negative. Just use it to build credit history, and sooner or later your credit limit will be upped, or you will qualify for a card with a higher limit.

[Deleted User]

gionnetto wrote: »

If you only have one credit card, and the limit is below 100, then yes, it's considered a negative. Just use it to build credit history, and sooner or later your credit limit will be upped, or you will qualify for a card with a higher limit.

It's not a negative at all - don't worry

cymruchris

Use it - pay in full - use it - pay in full - rinse - repeat - rinse - repeat. Over time your limit will likely raise, your pattern of managing credit will improve - your ability to get another card will increase. It all takes time, and patience. There's no magic potion sadly - but you're on the right track.