Credit card limit 19 September 2020 at 9:52AM in Stoozing: free cash from credit cards 4 replies 263 views

gordon189

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.

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

zx81

No. It would be more likely to lower it as your perceived risk increases.

gordon189

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. 

wiseonesomeofthetime

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.

Anna265

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