Improving credit ratings

tanyayoung

I received an email from Credit Karma telling me my credit rating has gone up. Yay!
I went to the website and found tips to improve my rating, there were 5 tips 4 of which I have already done. The 5th tip made me really angry because they're telling me to increase my credit limit. £4000 is more than enough for me and I don't want to raise the limits. They cover themselves  by saying don't borrow more than you can afford. It's ridiculous to encourage people to put themselves in more debt.  It's wrong.

[Deleted User]

A higher credit limit would improve how lenders see you, as it's quite low, although it would of course lower your score as it's a change to your files.

But if you are ok with a lower limit, then keep it as it is. Disregard the scores as they're not a usefully guide to anything. The most important thing is is to mange the credit you have and revolve minimal, or preferably zero, debt.

Ebe_Scrooge

tanyayoung said:

 they're telling me to increase my credit limit. £4000 is more than enough for me and I don't want to raise the limits. They cover themselves  by saying don't borrow more than you can afford. It's ridiculous to encourage people to put themselves in more debt.  It's wrong.

Having a higher limit doesn't put you in more debt - well, unless you're of the mindset that "Woo-hoo, look at all that free money I've got access to, time for a spending spree", in which case a credit card is a dangerous thing to have.  As ZX81 says, your score - and indeed, your "credit rating", to a large extent - is meaningless.  Simply concentrate on building up a history of responsible borrowing and repayment - make a few transactions on your card every month or so, only spend what you can afford, and always pay the statement in full every month.

tanyayoung

Ebe_Scrooge,

I get what you’re saying but isn’t the point that some people, who can’t control their spending, would be tempted by having that extra credit just sitting there? 
I ended up in a fair bit of debt that was mostly not of my doing, because the other person had that mind set.  It took 5 years to get myself out of that mire and get my credit rating to a reasonable level again. Now I make sure I am in control of my spending and I’m determined to not get into that much debt again. However some are not that strong and will use the credit as soon as it’s offered. 

sourcrates

Credit karma are credit brokers, and, basically they want your business, they get paid commission for introducing you to a credit card, or a loan.

That`s why they send these marketing messages, that is the hook, they are simply there to sell you something, then use your imaginary credit score as the line, the prospect of it increasing, as the sinker. 

All under the cover of improving your credit score.

Malkytheheed

tanyayoung said:

Ebe_Scrooge,

I get what you’re saying but isn’t the point that some people, who can’t control their spending, would be tempted by having that extra credit just sitting there? 
I ended up in a fair bit of debt that was mostly not of my doing, because the other person had that mind set.  It took 5 years to get myself out of that mire and get my credit rating to a reasonable level again. Now I make sure I am in control of my spending and I’m determined to not get into that much debt again. However some are not that strong and will use the credit as soon as it’s offered. 

A higher credit limit absolutely does not "encourage people to get into debt". That's ridiculous. 

If someone can't control their spending then they shouldn't have any credit cards, loans or overdrafts. Simple. 
You can't expect private companies to baby people through life. 

Most cars can easily do over 100mph. Doesn't mean you should plant your foot and drive everywhere flat out does it? Where it the outrage that cars are capable of breaking the speed limit? 

People need to learn to stand on their own two feet and make proper, adult descisions for themselves. 

MalMonroe

I find Credit Karma the worst of the bunch, to be honest. I prefer Experian and Equifax. Credit Karma is always catastrophising and telling me my credit score is 'fair' and my file 'needs some work'. It doesn't. I just ignore them because I have a small manageable debt on a 0% interest rate, I know what I'm doing but according to them I still have 'things that need fixing'. I don't. The other credit agencies don't use such tactics.

Don't let them panic you. Check your other credit reports, see what they say.

MalMonroe

Malkytheheed said:

tanyayoung said:

Ebe_Scrooge,

I get what you’re saying but isn’t the point that some people, who can’t control their spending, would be tempted by having that extra credit just sitting there? 
I ended up in a fair bit of debt that was mostly not of my doing, because the other person had that mind set.  It took 5 years to get myself out of that mire and get my credit rating to a reasonable level again. Now I make sure I am in control of my spending and I’m determined to not get into that much debt again. However some are not that strong and will use the credit as soon as it’s offered. 

A higher credit limit absolutely does not "encourage people to get into debt". That's ridiculous. 

If someone can't control their spending then they shouldn't have any credit cards, loans or overdrafts. Simple. 
You can't expect private companies to baby people through life. 

Most cars can easily do over 100mph. Doesn't mean you should plant your foot and drive everywhere flat out does it? Where it the outrage that cars are capable of breaking the speed limit? 

People need to learn to stand on their own two feet and make proper, adult descisions for themselves. 

Sadly, a higher credit limit really does encourage people to get into debt. I've been there. And so have many others on this site. 

Yes, many people can't control their spending and sadly, we are not all as sensible as you. Young people are especially susceptible. 

Yep, again you may be right, people do need to stand on their own two feet but sometimes humans just aren't that wise. And we learn the hard way. I learned the hard way but now I'm able to budget and stand on my own two feet but you really have no idea what other people may be going through, so maybe just don't be too quick to judge. Many of us on here are here because we have been through horrible experiences that led to financial difficulty. We come here for advice and a bit of sympathy and kindness. We're all only human. You have been lucky, obviously, but a lot of us haven't. 

Thrugelmir

Malkytheheed said:

tanyayoung said:

Ebe_Scrooge,

I get what you’re saying but isn’t the point that some people, who can’t control their spending, would be tempted by having that extra credit just sitting there? 
I ended up in a fair bit of debt that was mostly not of my doing, because the other person had that mind set.  It took 5 years to get myself out of that mire and get my credit rating to a reasonable level again. Now I make sure I am in control of my spending and I’m determined to not get into that much debt again. However some are not that strong and will use the credit as soon as it’s offered. 

A higher credit limit absolutely does not "encourage people to get into debt". That's ridiculous. 

Allows people to drift into increasing levels of debt. Then life changes suddenly and it becomes a problem. 

Malkytheheed

MalMonroe said:

Malkytheheed said:

tanyayoung said:

Ebe_Scrooge,

I get what you’re saying but isn’t the point that some people, who can’t control their spending, would be tempted by having that extra credit just sitting there? 
I ended up in a fair bit of debt that was mostly not of my doing, because the other person had that mind set.  It took 5 years to get myself out of that mire and get my credit rating to a reasonable level again. Now I make sure I am in control of my spending and I’m determined to not get into that much debt again. However some are not that strong and will use the credit as soon as it’s offered. 

A higher credit limit absolutely does not "encourage people to get into debt". That's ridiculous. 

If someone can't control their spending then they shouldn't have any credit cards, loans or overdrafts. Simple. 
You can't expect private companies to baby people through life. 

Most cars can easily do over 100mph. Doesn't mean you should plant your foot and drive everywhere flat out does it? Where it the outrage that cars are capable of breaking the speed limit? 

People need to learn to stand on their own two feet and make proper, adult descisions for themselves. 

Sadly, a higher credit limit really does encourage people to get into debt. I've been there. And so have many others on this site. 

Yes, many people can't control their spending and sadly, we are not all as sensible as you. Young people are especially susceptible. 

Yep, again you may be right, people do need to stand on their own two feet but sometimes humans just aren't that wise. And we learn the hard way. I learned the hard way but now I'm able to budget and stand on my own two feet but you really have no idea what other people may be going through, so maybe just don't be too quick to judge. Many of us on here are here because we have been through horrible experiences that led to financial difficulty. We come here for advice and a bit of sympathy and kindness. We're all only human. You have been lucky, obviously, but a lot of us haven't. 

Problem is it isn't just a case of empathy and all is well. 
Lowering credit limits because some people can't control themselves, actually hurts sensible people. It limits what other people can do and borrow. It affects other peoples lives. So maybe don't be "too quick to judge". 

Malkytheheed

Thrugelmir said:

Malkytheheed said:

tanyayoung said:

Ebe_Scrooge,

I get what you’re saying but isn’t the point that some people, who can’t control their spending, would be tempted by having that extra credit just sitting there? 
I ended up in a fair bit of debt that was mostly not of my doing, because the other person had that mind set.  It took 5 years to get myself out of that mire and get my credit rating to a reasonable level again. Now I make sure I am in control of my spending and I’m determined to not get into that much debt again. However some are not that strong and will use the credit as soon as it’s offered. 

A higher credit limit absolutely does not "encourage people to get into debt". That's ridiculous. 

Allows people to drift into increasing levels of debt. Then life changes suddenly and it becomes a problem. 

Like I said, my car "allows" me to drive through a village at 130mph. 

Should I blame the car manufacturers for this? or the other motorists who don't have this urge to abuse what is infront of them?