NEW: Got questions about energy? Put them to Gary and Andrew from MSE's Utilities team during our energy-themed 'Ask An Expert' event. Check back here from Tuesday 9 August, 12pm

Credit card limit

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


Replies

  • zx81zx81 Forumite
    35.3K Posts
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    Forumite
    No. It would be more likely to lower it as your perceived risk increases.
  • gordon189gordon189 Forumite
    2 Posts
    First Post
    Newbie
    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. 
  • wiseonesomeofthetimewiseonesomeofthetime Forumite
    1.4K Posts
    Tenth Anniversary 1,000 Posts Photogenic Name Dropper
    Forumite
    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.
  • Anna265Anna265 Forumite
    4 Posts
    Photogenic First Post
    Newbie
    Found so many interesting information. Thanks for sharing <3
Sign In or Register to comment.
Latest MSE News and Guides

Homes, hornets & high heels

This week's MSE Forum highlights

MSE Forum

Kids eat for 'free' or £1 this summer

Little ones can enjoy hot meals for less

MSE Deals