asking two credit card providers for a limit increase at the same time - bad idea?

joeyd2006

Hi MSE forum!
 
I'm working on improving my credit score and am now in a good position, with low utilisation rates. The credit score app I use tells me the next step is to increase my credit limit from it's current £6,500 (spread over 3 cards) to £15,000.

Would it look bad on my credit history to request an increase from 2 of those providers at the same time, to try and speed up the process? If both can be done via soft search might that be ok? While it's not getting an additional financial product per se, I'm wondering if that double request might reflect poorly.

I'd be extending the limit purely to improve my credit score, no risky spending intended.

Any thoughts appreciated!

[Deleted User]

It's fine to do, but never do anything to change the score, which isnt a real indicator of anything and not used in lending.

Instead, manage your finances to look good to lenders.  Too much credit will make you look high risk.  Not enough makes you look untrusted by lenders.

Your limits are low, so perhaps ask one lender for an increase. And don't worry when the score drops if you get the increase.

Nebulous2

What is it you want to achieve? Referring to improving credit score is a red rag in this group, but putting that aside, is there an ultimate aim, such as a mortgage? 

Lenders like stability. Being on the electoral roll, in stable employment, paying bills on time, every time, not just most of the time. Not carrying too much debt. 

Ive never asked for a credit limit increase. I don’t like messing with what the lenders give me. Even worse is asking for a decrease. If you need a bigger overall limit my inclination would be to apply for another card. However for both the increase and a new card I’d say “Now is not the time.” Lenders are tightening credit and will be paying attention to anyone asking for more at the present time, in case it is a sign the person is in trouble. 

joeyd2006

Thanks both, the overall goal is to be in a strong position with lenders when I get to the point of getting a mortgage.

I've got those things ticked off, my utilisation on each card is below 10% and my payment history is flawless, but I'm of the understanding that having a higher credit limit and not using it makes you look like a responsible lender. 

I guess I'm just wary of asking both at the same time for an increase, and whether I should space the requests out, I'm not in a rush.

[Deleted User]

joeyd2006 said:

I'm of the understanding that having a higher credit limit and not using it makes you look like a responsible lender. 

It can make you look a responsible borrower, rather than a lender.

When you're clearing in full, utilisation isn't an issue.  Spend what you need to, rather than trying to out guess a CRA algorithm.

D3xt3r5L4b

How does a “credit score app” know that increasing your limit will help in any way?

Willing2Learn

Credit score apps are all singing and all dancing.  Did you not know?  (joke)

Alex9384

I'm pretty sure it is Credit Karma recommending you to increase the limit to £15,000.

Anyways, is there an ideal credit limit-to-income ratio?

The credit limit on all my cards combined now matches my annual net income. Is it a good thing? Should I try to slightly increase my limits or decrease them? Or leave them just as they are?

Willing2Learn

I'd recommend that you leave your limits as they are.  It will provide evidence, to any potential lender, that you can successfully manage credit accounts.

Alex9384

Willing2Learn said:

I'd recommend that you leave your limits as they are.  It will provide evidence, to any potential lender, that you can successfully manage credit accounts.

OK, thanks. Nationwide offers me limit increases regularly, which I always accept as (in my opinion) it shows that the lender trusts me enough to offer me more credit. But on the other hand, it may also look like I'm asking for the increases myself. There's no info on my credit files about the reason behind the limit increase, yeah?

Alex9384

When I'm thinking about it now.. If the limit increase is not followed by the increase in monthly spending, then it should be considered a good thing. At least that's my logical conclusion but I may be wrong.