Credit Noodle advising higher credit limit

phillw

finalfantasist said:

Don't forget to go out and get yourself a mortgage too, that's another one of their very helpful recommendations.

I'm not sure I'd say it was a recommendation..
WHY THIS IS IMPORTANT

Of course, it’s not as simple as going out and getting a mortgage if you don’t have one at the moment. But you should be aware that having a mortgage is an additional indicator of financial stability. Evidence of stability is an important factor to lenders who usually consider homeowners less of a risk.

Other than that they told me I'd opened too many accounts, which I don't think I'd disagree with.

Sandtree

LW7 said:

My Credit Karma report went down a bit and they recommend I up my limit past £15k to increase my score.

Is this recommended?

Recommended by who and for what purpose?

You have to remember that in the UK your "credit score" is a number independently calculated by each company using their own algorithm. When you apply for credit and the lender goes to the credit reference agency they don't get the score that you see if you subscribe to that agencies service.

So Credit Karma says the score they show you will go up if you get a higher limit... so what? They know their algorithm and so no reason to think that isnt true but no one in the world other than you will see that number. 

How would lenders react if you had a higher limit? That depends, credit is about balancing opposing priorities and you have to consider many things at the same time. Lenders do like it when they see that others trust you with high limits but they have to ask themselves how affordable would the debt be if you maxed out all of your lines of credit so you cannot consider the limit in isolation but has to be considered in conjunction with affordability.