Should I increase my credit limit?

papaface

Hey


I've read on here that generally if can increase your credit limit you should take the opportunity to do so, as long as you don't get into a situation where you're unable to pay it off completely and quickly i.e after 1 or two months.
I currently have an excellent credit rating according to Experian (988) and whilst I appreciate that it's just a number, I do want to make sure I am able to get credit as and when I may need it and also have as much access to credit as I can for a rainy day.

At the moment I have my mortgage, one loan which has less than £500 left to pay on it and I have a £500 credit limit on my barclaycard which has a grand total of £14.99 on it :rotfl:


In a few months time, potentially next year I will be looking to take out a large loan for home improvements and with this in mind I dont want to scupper my chances of being accepted for this loan if I were to increase my barclaycard limit.


So I guess my question is, what effects your INability to get credit more?
a) your overall existing access to credit i.e. if I had £14.99 balance on a £4k credit card limit
or

b) your actual use of the existing credit facilities you have. i.e if I had a £3,500 balance on a £4k credit cd limit
or
c) something else



Thanks

[Deleted User]

You have a really low limit which will be a reflection of your higher risk, so should you be offered a limit increase, accept it.

I'd also try for another card. You need to start building some decent history if you want lenders to view you more positively.

Also clear the loan as soon as you can.

papaface

Deleted_User wrote: »

You have a really low limit which will be a reflection of your higher risk, so should you be offered a limit increase, accept it.

I'd also try for another card. You need to start building some decent history if you want lenders to view you more positively.

Also clear the loan as soon as you can.

Thanks. If I'm not offered an increase, should I apply for one?

[Deleted User]

You can ask, but generally you'll need to wait to be offered one.

If you do ask, lose the loan first.

papaface

Deleted_User wrote: »

You can ask, but generally you'll need to wait to be offered one.

If you do ask, lose the loan first.

I've been onto the barclaycard portal and it's giving me the option to specify my increase. It also says that my request to increase will not effect my credit score.

• Your request to change your credit limit won’t affect your credit score or interest rate
• If your request is approved, we’ll apply your new limit instantly
• If we can’t raise your credit limit to the amount you’d like, we may offer a smaller increase – and this offer will be the same, whether you apply online or over the phone

I'm keen to stay with Barclaycard because I'm aware I have a really low interest rate and I've had the Platinum card for quite a few years now, which I believe is around 8%.

[Deleted User]

papaface wrote: »

It also says that my request to increase will not effect my credit score.

They wouldn't know if it does or not. And it wouldn't matter if it did.

What they presumably mean is, they do neither a hard nor soft search.

[Deleted User]

If you request a high amount then it will likely come back with a lower counter offer.

No harm in trying.

papaface

I've increased it to £1,000. I thought it would have let me select a higher amount than that but obviously not. I suspect it's because my spending on it is faily minimal and I always pay it off at the end of the month, no exceptions.