Should I accept an offer of credit limit increase?

lgfbrown

Following Martin's advice, shortly after getting my first job out of uni I opened a LISA. Then, with the knowledge that "no credit history is as bad as a bad credit history", I got my first credit card a few months after that.

I didn't particularly need this card, but had never had any other type of credit before. I got the card with the intention to pay it off in full each month, and to build some kind of credit history for future applications/mortgages etc. I use the card for fuel related expenses, and it helps with budgeting. I've had the card for about 18 months now, using around £200 of my £500 limit in pre-Covid times. Obviously, I've spent nowhere near that for most of the last year due to travel not being permitted during the lockdown. 

Now, out of the blue, I've been offered a credit limit increase to £1400. They're asking me to "confirm some information" about my salary etc before accepting. Given this card is only to build a history, and I probably wouldn't use these additional funds, should I accept the offer? It would of course be handy to have this limit in case of emergencies, but based on my circumstances, I am unsure of the best option to take. 

Thanks in advance. 

kuratowski

Yes you should accept (assuming the salary information you have given is correct).  Use the card every month and pay off the full statement balance.  There is no requirement to use the full limit.

[Deleted User]

Yes. Accept it and any future increases.

cymruchris

Yes definitely take it - (and I'm sure you wouldn't, but......) don't get tempted to start carrying a balance on it because the credit limit is getting bigger.

Ebe_Scrooge

lgfbrown said:

Given this card is only to build a history, and I probably wouldn't use these additional funds, should I accept the offer?

Yes.  Apart from anything else, the increased limit is another positive tick on your credit history - it shows other lenders that your current lender trusts you enough to lend you more.  There's no need to utilise the increased limit, and definitely don't go spending on the card just for the sake of it.  Just carry on using it and paying in full every month.