Increasing Credit Limit Before Applying for Remortgage

Caitykinss

Hello,

I have a Halifax Clarity Credit Card that I’ve had for around 4 years. I rarely use it, only for spending abroad and bigger purchases and always pay back at the end of the month. At the moment my credit limit is £1000. We have booked an expensive holiday and would like to put the £3750 balance on my credit card for protection (I have the cash to immediately pay off), so am thinking of applying to increase my credit limit. I’d first like advice on what to request as an increase - £2000? £4000? My salary hasn’t altered since I initially applied for the card. 

Secondly, my mortgage fixed deal is due to run out in August and I am about to apply to remortgage to a new deal. Will increasing my credit limit affect my application? 

I have no other credit cards or loans. 

Thank you

Ebe_Scrooge

The usual advice is not to make any changes to your credit circumstances in the run-up to a mortgage application.  That said, an increase to a well-established line of credit will probably have a negligible affect.

But to be absolutely safe, belt&braces, I'd be tempted to leave it as it is.  Remember that you only need to put a small portion of the total cost (even 1p will do) on credit card to benefit from S75 protection.

MrFrugalFever

You only need to put 1p on your credit card and the whole lot is protected, no need to increase limit.

martinbainbridge1975

thought it was £100 on a card for the section 75 cover?

MrFrugalFever

martinbainbridge1975 said:

thought it was £100 on a card for the section 75 cover?

The total invoice value needs to be over £100.01 and no more than £30,000. By simply paying a small amount on credit card, they are covered. If the OP wanted to be absolutely certain, they could put say £150 deposit down on CC then the rest DC.

martinbainbridge1975

interesting to know, thanks for that

Caitykinss

That’s brilliant, I wasn’t aware of that. I assumed it only protected the amount spent on the card. I’ve already paid the £250 deposit on credit card, but I’ll pay another £150 on it to be safe and then the rest of debit card. 

Thank you everyone.

[Deleted User]

Caitykinss said:

That’s brilliant, I wasn’t aware of that. I assumed it only protected the amount spent on the card. I’ve already paid the £250 deposit on credit card, but I’ll pay another £150 on it to be safe and then the rest of debit card. 

Thank you everyone.

You don't need to pay any more "to be safe". 

You can't get any safer than you currently are.

longjohnjohnson

Caitykinss said:

Hello,

I have a Halifax Clarity Credit Card that I’ve had for around 4 years. I rarely use it, only for spending abroad and bigger purchases and always pay back at the end of the month. At the moment my credit limit is £1000. We have booked an expensive holiday and would like to put the £3750 balance on my credit card for protection (I have the cash to immediately pay off), so am thinking of applying to increase my credit limit. I’d first like advice on what to request as an increase - £2000? £4000? My salary hasn’t altered since I initially applied for the card. 

Secondly, my mortgage fixed deal is due to run out in August and I am about to apply to remortgage to a new deal. Will increasing my credit limit affect my application? 

I have no other credit cards or loans. 

Thank you

If you're remortgaging with the same provider and are not asking for additional lending they won't credit check you anyway.

[Deleted User]

Keep in mind that with holidays, S75 is all well and good but you must get travel insurance now - that is far more likely to pay out and cover things, S75 might take months to refund things and the bank will argue the refund for as long as they can.