Should I accept a credit limit increase?

MaryLegs_

Hi all! 

Looking for advice as I have read conflicting information:

I have a Capital credit card (for people with bad credit ratings) currently spending no more than 25% each month and paying it off in plenty of time in order to gradually help my credit history. They have now given me the option to extend my credit from £750 to £1k. Is there any reason I shouldn’t do this? Am I wrong to think that the more credit a company makes available to you, the more attractive you are to lenders? 

Thank you in advance,

[Deleted User]

Accept the increase.

Don't limit yourself to 25% of the credit limit if you're clearing in full.  Spend what you need and demonstrate you can handle credit maturely.

Ebe_Scrooge

I'd accept the increase.  It shows lenders that other lenders trust you enough to offer you more credit.  The effect on your credit-worthiness will be marginal at best, but it certainly won't do any harm.  The problem you sometimes hear of is where people have access to tens of thousands of pounds-worth of credit across multiple cards - the idea being that they could in theory max out all the cards and have no realistic way of repaying it.  But if this is your only card, such a relatively low limit won't cause any issues.

jet01

With a relatively low starting limit and having no other cards I would definitely take the increase. It will demonstrate you are managing your account well and if you continue with your existing spending patterns then your credit utilisation levels will go down which is a positive for most lenders. 

abc.xyz

Accept it. Cap One increases come once in a blue moon.