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Paying in Full
xgingerx
Posts: 591 Forumite
in Credit cards
Hi, just wondering from peoples experiences.... would you say paying your credit card balance in full each month has affected you getting credit limit increases in a good or bad way?
Thanks
Thanks
Dmp Mutual Support thread member No 82
0
Comments
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In a good way.
And it avoids paying interest which is far more important3 -
If you don't pay off in full every month it looks like you can't afford the lifestyle you are leading so you are far less likely to get more credit given, if anything they might consider reducing your limit2
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With my sub-prime card paying in full each month saw a few limit increases.
With my own bank's CC they gave me a decent limit to start with, but haven't yet increased it.Mortgage started 2020, aiming to clear it in 2026.1 -
Different lenders have different policies. If you start with a decent limit many of them don't increase it, in my experience. Nationwide is an exception to that, they had a programme of offering increases every few months, which required me phoning to accept them.1
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I was getting regular increases with my Halifax and Sainsbury's cards for a while, they have stopped but I have put in manual requests twice on the Halifax of £1000 a time and both went through without issue. Barclays (for my BT card) periodically bump it up as I use that.1
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I've been paying in full for a couple of years each and every month. Sometimes there are auto limit increases, sometimes requested ones that go through, and sometimes a big fat no. But I'm ok with all - it's a long term journey rather than a short term race.2
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Nebulous2 said:Different lenders have different policies. If you start with a decent limit many of them don't increase it, in my experience. Nationwide is an exception to that, they had a programme of offering increases every few months, which required me phoning to accept them.There's no need to phone them to accept an increase now. There are alternatives. But what they won't do is apply the offered increase automatically. I was offered one a few months ago (letter dated 20 August). The letter said this:I'd had that card about six months or so at the time, and paid it off in full every month.1
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Deleted_User said:If you don't pay off in full every month it looks like you can't afford the lifestyle you are leading so you are far less likely to get more credit given, if anything they might consider reducing your limit
Before my lightbulb moment I carried balances of several thousand pounds on my cards for years, obviously not paying off in full, and yet I kept getting offered credit limit increases, and even loans. Never had a limit reduction.
They were making money money off me with all the interest I was paying, and probably wanted to suck me into more credit. Or might be because I always paid well over the minimum, who knows.1 -
I think the decisions they make are so complex that it's random to us mere observers.
My advice would be to make your own decisions based on what you know, paying off in full saves you money. This is moneysavingexpert.com after all.
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longtimelurker2020 said:This wasn’t my experience at all.
Before my lightbulb moment I carried balances of several thousand pounds on my cards for years, obviously not paying off in full, and yet I kept getting offered credit limit increases, and even loans. Never had a limit reduction.
They were making money money off me with all the interest I was paying, and probably wanted to suck me into more credit. Or might be because I always paid well over the minimum, who knows.0
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