Automatic credit card limit increase affect my house chances?

GoulashKetchum

Hi,
My credit card company, virgin money, has offered me a credit limit increase from £2600 to £5200. I have my account set to automatically accept. If the new limit is applied to my account, will this go down as me applying for the credit increase on my credit files? I only ask as my wife and I will be looking to buy a house before the end of the year and don't really want a hard search this close to it. I don't need the increase as I only spend £200 a month on it but my credit karma file is saying if my credit limit was £4000+ then it would make me more attractive to lenders. Can anyone advise as Google isn't shedding any light.

PRAISETHESUN

Generally limit increases are seen as a positive as it shows lenders trust you with more money - I'd accept it personally. The increase will be reported to your credit files unless you expressly reject it. In my experience lenders don't typically perform an additional hard credit check for limit increases, particularly if they offer it rather than you requesting it, but I can't say how Virgin specifically operates as I don't have a card with them.

onlyfoolsandparking

I've never seen a 'hard' credit search on my file regarding limit increases on credit card accounts and I've been given 4 limit increases within the last 6 months, latest one being yesterday by Virgin.

I don't think you have any concerns regarding a house purchase with this increased limit offer, just accept the increase and providing you pass all the other tests, affordability, income etc and are using a good mortgage broker when your wanting to buy your house you'll be fine.