How much of the credit limit should you spend to get a higher credit limit increase?

Fila_2

I just opened a Capital One Basic credit card to help build my credit. They gave me a £500 limit and after 3 months, they will increase my limit if I pay on time. My question is: How much of that credit should I be spending in these 3 months in order for them to increase my limit most? For example, if I spend around £450 of my limit every month and pay back in full every time I receive the credit card bill, will that help increase my credit limit more?

Also, after they increase the credit limit in the 3rd month, when will they increase the limit again? And if I pay the credit card company back after every purchase, would it help build my credit more than just paying back in full every month when I get the bill?

Zebedee69

Wouldnt even bother mate. Its a crap card at 34.9% APR and they have never increased my limit after 7 months. The good news is iv a Lloyds Duo Airmiles card and an Egg Card on their way to me this week......

Forget the rasing your limit crap and use the card to gain a better history paying off the balance every month and moving from the sub prime market on to more mainstream products. You wont get a bean from Cap 1.

I will cancel my Cap 1 card this week and il see if they do anything special to keep my business.... Cant see them doing anything though:rolleyes: and anyway, I hate the Cap 1 stigma ie: Everyone who knows about the card will assume iv rubbish credit when I use it lol:D I cant wait to move into the mainstream lol! Cant wait for my new cards lol!

taless

Hi Fila,

To answer your question, if your aim is to increase your credit limit with Cap1, using a huge proportion of the credit limit is a good idea. Just do make sure you never exceed the limit suddenly!

I think you don't have to worry about paying Cap1 each time after every purchase. Just make sure your full payment reaches Cap1 before the payment due date.

I would say after 6 months or so, try apply to other credit card companies, those that offer a more reasonable APR. When that time comes, I would suggest not maxing up your Cap1 credit card, so that other card companies won't be alarmed at your used/available limit ratio.

(Note: This is my personal view - max the card out if intending to increase credit limit from same company; if applying from another company, make sure there's a healthy difference between used credit & available credit limit. Do correct me if I'm grossly wrong here!)

Fila_2

Hi taless, thanks for the reply. I think you are right about not using much of the credit when applying for another card in the future because I have read an article about that.

I have searched the forums but can't find any answers regarding how much of the credit should be used in order to get a higher increase in the limit so hope more people can elaborate on this.

taless

I have read an article at MSN Money about trying to use your credit card as much as possible (within the limit) to increase your credit limit. However, that article is written for the United States, not sure if it will apply over here in UK.

Personally I think it does. Banks love customers who pay interest, but on the other hand, they have to make sure the debt in the end is recoverable. If you're using £450 each month and paying £450 each month without problems - you would have fulfilled their criteria about being a non-risky customer. They may think that by offering you say £1,000 credit limit, perhaps you will in the end not pay in full each month, allowing them to earn interest? Just my guess though

Zebedee69

Fila,

You will get a raise if you use the card decently ie: Pay atleast the minimum off every month.

Reaching your limit is a hard game to play as the limit is only 500 you could find yourself going over very easily. Be carefull!

Would be ace if you can post after a few months.... See if they give you anything more.....