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Credit card limit

gordon189
Posts: 2 Newbie

I have a credit card with the Halifax with a limit of £3800
I switched bank accounts to HSBC and applied for a credit card and was accepted but only £1500 limit.
I switched bank accounts to HSBC and applied for a credit card and was accepted but only £1500 limit.
My question is I only want 1 card and would prefer the HSBC with cash back.
But if I cancel my Halifax card would that increase my chance of a better credit on my HSBC card. Thank you
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Comments
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No. It would be more likely to lower it as your perceived risk increases.1
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So I should keep both and just use the one card. To be honest I could live with 1500
but it’s nice to have a cushion.0 -
I would keep both.
Your credit utilisation figure is then £5,300.
If you spend just £500 per month on the HSBC (as a sole card), that would mean that you are using 33% of your available credit.
However, with both cards open (but just using the one), £500 per month would be just 9.4% of your available credit.
Should you then wish to go for an increase in your credit limit with HSBC, in say six months time, your credit history may look a tadge healthier.
Footnote: Bear in mind that the above examples are not entirely accurate throughout the month as I am sure you will still be spending on your HSBC card while waiting for the direct debit to clear the previous one in full. But I think you get where I'm going.0 -
Found so many interesting information. Thanks for sharing-1
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