Credit Increase good or bad idea

jamesdid · 23 February 2021 at 4:14PM

Hi, I have been offered a credit increase, not huge, but to give some context.

A few years ago I lost my job to a long term illness. I have now recovered, about 18 months ago I applied for a credit card, so as long as my recovery continued as expected, when I went back to work I had some credit history, previously no issues, and was accepted for a basic card (£1K). I use it every few months for a reasonable purchase £500ish, and pay off in full the following month. I have been offered an increase of £1000.

I am now near the point of looking for a job, great timing, but my expectations are low in terms of salary given my situation, which isn't a problem, I have little outgoings.
So in your helpful opinions, would my accepting the increase be seen by future lenders as a positive or a negative?

Thanks in advance.

[Deleted User] · 23 February 2021 at 4:20PM

With such a low limit, it can only be positive to accept an increase.

[Deleted User] · 23 February 2021 at 4:20PM

It would be a positive as your utilisation would go down (provided you don't increase your spending).
£500 of debt on £1000 card looks worse to an algorithm than £500 on a £2000 card

MovingForwards · 23 February 2021 at 4:22PM

Accept it, don't need to use it.

jamesdid · 23 February 2021 at 4:28PM

fast replies, many thanks. seems like I should accept. I don't intend to use, and have no need to change my spending habits. I just want a safety net available before I start to draw down on a pension. (15 years or so).