credit limit issues

Beverley

I've had a House of Fraser credit card for several years now.  always pay the bill immediately and in full I originally took it out for the 10% introductory offer when I was buying some clothes and saved £50. 

I enjoyed accumulating the points whiche were converted into vouchers and began to use it for every purchase as a way of accruing the vouchers. As a result I got two James Lakeland coats completely free. 

It has been frustrating at times as the credit limit is just £5k so I've occasionally made payments mid month so ensure I can still use it.

Unfortunately, my prepaid currency card was stolen when I was in the USA. I got it blocked but had to rely on my credit card until I returned to the UK. I paid the hotel bill which took me over the credit limit (for a few hours!) This was the second time in a year that I'd gone over the credit limit. I called and sorted it immediately and asked if I could raise the limit but was told that I now had a black mark against me for breaching the credit limit. 

My annual income isn't great as I'm retired (just a couple of rental incomes) but, courtesy of my late husband, I also have a very healthy bank balance. 

Would it be worthwhile to switch to another credit card or should I wait until after this 'black mark' clears? Is there an optimum percentage of my limit that I should use in order to improve my credit rating?

According to Experian (which I've just joined and so warns that my credit score might not be up to date), my credit score is just 867 out of a possible 999 which it says is 14 points from a good score. Why is it so poor? I'm solvent, have no debts and always pay my bills on time. I have a mobile phone contract and am registered for Council Tax. What else do I need to do?

[Deleted User]

Your score isn't a real one and not used in lending so don't worry about Experian's comments.

Lenders will be assessing you on your circumstances and credit history.  You could try for a new card, but if your income is low, you may not get a higher limit than currently.

Check your three credit files to see what appears on each. You might want to give it a few months of clearing in full and not breaching the limit, to give yourself the best chance. As long as you're clearing in full, your utilisation isn't an issue. 

born_again

Forget the credit score from Experian. No lender gets to see that. All they will look at is your credit history & income to debt ratio.

Could be best to ask who you bank with if they would offer a credit card. If not then either use your debit card for some of your normal living expenses & save the credit card for other things. But always keep a eye on the limit & make payments to ensure you do not get close to the limit. 👍

Sandtree

If you are paying the card off with savings rather than income what do you actually need it to be a credit card for? Are you looking for S75 protection? Rewards like airmiles/cashback/clubcard points? Just a timing thing for any notice to get money out of savings?

Admiral_Barbarossa

Recently I was in the US and could make transfers to my credit and prepaid cards using my apps without any bother at all. I do this all the time in the UK!

Beverley

Sandtree said:

If you are paying the card off with savings rather than income what do you actually need it to be a credit card for? Are you looking for S75 protection? Rewards like airmiles/cashback/clubcard points? Just a timing thing for any notice to get money out of savings?

I like the points I accrue. 

Beverley

Deleted_User said:

Check your three credit files to see what appears on each. 

Who are the three companies? I know of Experian and Equifax. Which is the 3rd?

eskbanker

Beverley said:

Deleted_User said:

Check your three credit files to see what appears on each. 

Who are the three companies? I know of Experian and Equifax. Which is the 3rd?

TransUnion/Credit Karma: https://www.moneysavingexpert.com/loans/check-free-credit-report/#free