Extending limits

ToonReiver

This is probably a silly question but if you don't ask you don't know...

I've been trying to reorganise my money during lockdown, partly because it's a good idea and partly because I want to be prepared for any potential redundancy in the forthcoming recession. I'm trying to make sure I save as much as possible, clear as much debt as I can and get what debt does remain on 0% interest (I know there is a strong argument for not saving when you have debts but I really don't want to get out of the saving habit so I'm trying to strike a good balance between saving and paying).

In sorting this I've just received a new credit card with 0% on balance transfer to take my debt off my old credit card. Now I want to make sure I have as much credit available to me as possible in case I find myself without a job and want to make sure I have the maxed out limits for both my old card and my current account overdraft. Is it likely though that applying for a new card and two extended limits in quick succession would have a negative effect on my overall credit rating?

[Deleted User]

It depends on the lender. Some may view it as a sign of higher risk, so not.

It depends on the overall picture.  But avoid maxing out your limits.

george9071

If i was you after this don't do anything else to affect your credit score again for a good while but as PP said it does depend on the lender have a chat with them and see what they say.

ToonReiver

george9071 said:

If i was you after this don't do anything else to affect your credit score again for a good while but as PP said it does depend on the lender have a chat with them and see what they say.

That's kind of my instinct too. The lender on my old card offered me extended limits a few times and I've generally said no to them (though it was a long time ago, I'm still scarred mentally from how irresponsible I was when I had a student credit card) but given the conditions we find ourselves in now I'm starting to wonder if that was such a good idea!

[Deleted User]

You should generally accept limit increase, unless you have a spending problem.

It shows lenders that others trust you.