Should I accept a credit limit increase?

Willing2Learn

beanybot wrote: »

Poor "template" advice from the regulars here unfortunately of "accept the limit" without really thinking about the individuals circumstances...

Anyone who says "I am trying to pay off the balance (obviously) and not using the card" on a 500 limit! should absolutely NOT accept the increase. this will likely lead them to more debt.

When the OP said "I am trying to pay off the balance", I thought that they are using the entire credit limit each month because the credit limit is so small. I thought that an increased limit will remedy that problem. I definitely did not believe that the OP meant they were struggling.

Now I have re-read the post again, I think your interpretation of the OP is probably correct and that the OP is struggling to repay the £500 balance due. On that basis I agree with you. The OP should definitely decline the credit limit increase until they have learnt how to manage a monthly budget.

@OP,
You should only be paying for transactions on the card on stuff that is in your normal monthly budget. Stuff that you could pay with cash if you wanted. Stuff like budgeted groceries and travel costs. Then you will be able to start paying off the balance in full each month and paying zero interest. If you budget this way for 6-12 months with success, then you would be in a position to accept an increased limit sometime in the future. Learn how to manage credit first.

MABLE

rhysevans256 wrote: »

Hi,

Apologies if my question has been answered elsewhere - I couldn’t find anything so here goes with my first post...

After finding myself in a bit of financial troubles a few years ago with credit cards maxed out, I have recently taken out a credit building card that had a £500 limit. The card company has now offered a credit increase to £1,000. I am trying to pay off the balance (obviously) and not using the card, but how would the credit increase, if accepted, affect my poor credit score? Would it improve it as the proportion of utilised credit would be lower, or worsen it as there would be more credit available to me?

Thanks in advance for any advice ����

Stay clear. You are trying to pay off the existing balance and no doubt this is at a very high interest. Also if you are near the limit then this will not bold well on your credit file.

And please people I know the credit score does not mean anything other than an educational device.