Does credit limit increase mean that my credit rating is improving?

timetogrowup89
timetogrowup89 Posts: 535 Forumite
in Credit file & ratings
Hi,

I took out a vanquis card and capital one card to try and improve my shocking rating...
(At the same time have also been paying off all defaulted accounts on my file)

Both cards are paid in full monthly and both have recently increased my limit. Does this mean my credit worthiness is improving?

I know it takes time for defaults to fall off my credit file, but Im hoping to improve things so that when they are gone I can save up a deposit and apply for a mortgage.

Thanks :)
March 2013 LBM so here goes....PAID OFF £6944! Unfortunately have built it all back up again! Amounts to be added up soon! Scare myself into action! 30/05/2018 LBM 2
«13

Comments

  • InsideInsurance
    InsideInsurance Posts: 22,460 Forumite
    First Post Combo Breaker
    Whilst some do external scoring the majority of automatic increases are done based on internal metrics and not the data held by CRAs
  • SpendyMcSpenderton
    SpendyMcSpenderton Posts: 63 Forumite
    Yes it does mean, slowly but surely your credit is improving. Any increases do appear on your credit file and show that you have been using your credit responsibly :)
  • timetogrowup89
    timetogrowup89 Posts: 535 Forumite
    Even if its only slowly increasing Im happy with that, in no rush, just glad to know its making some impact.. :)
    March 2013 LBM so here goes....PAID OFF £6944! Unfortunately have built it all back up again! Amounts to be added up soon! Scare myself into action! 30/05/2018 LBM 2
  • BugsyBrowne
    BugsyBrowne Posts: 5,697 Forumite
    Sorry don't agree with any of above.
  • timetogrowup89
    timetogrowup89 Posts: 535 Forumite
    BugsyBrowne wrote: »
    Sorry don't agree with any of above.


    So does it just increase depending on your history with that credit account rather than your overall credit worthiness?
    March 2013 LBM so here goes....PAID OFF £6944! Unfortunately have built it all back up again! Amounts to be added up soon! Scare myself into action! 30/05/2018 LBM 2
  • Mulder00
    Mulder00 Posts: 508 Forumite
    First Anniversary First Post
    Well, with just paying everything on time, your credit rating will definitely improve over time. Just a word of caution, increased credit limits will actually have a negative impact on your total rating with most companies, so if you can live without the increased limits, then ask your credit card companies not to automatically increase your limits. (The negative impact isn't detrimental, but since you want to improve your credit score, keep your credit limits low).
  • Mulder00
    Mulder00 Posts: 508 Forumite
    First Anniversary First Post
    timetogrowup89 wrote: »
    So does it just increase depending on your history with that credit account rather than your overall credit worthiness?
    The reason for the increase is most likely just the way you've conducted your accounts with that company, but this is visible to any future potential lenders, so of course this improves your "credit score" with any of these lenders because they will see how well you've paid back your current debts.
  • timetogrowup89
    timetogrowup89 Posts: 535 Forumite
    Mulder00 wrote: »
    Well, with just paying everything on time, your credit rating will definitely improve over time. Just a word of caution, increased credit limits will actually have a negative impact on your total rating with most companies, so if you can live without the increased limits, then ask your credit card companies not to automatically increase your limits. (The negative impact isn't detrimental, but since you want to improve your credit score, keep your credit limits low).

    Thanks. I don't need the increased limit. I just buy petrol on it and clear it each month so that it shows regularly on my credit file. Will phone them and ask for increase not to be added
    March 2013 LBM so here goes....PAID OFF £6944! Unfortunately have built it all back up again! Amounts to be added up soon! Scare myself into action! 30/05/2018 LBM 2
  • BugsyBrowne
    BugsyBrowne Posts: 5,697 Forumite
    Defaults littered on your credit file and the highest APR credit card on the market increases your limit only means one thing profits even if you're paying in full.

    If you now apply for say a Halifax credit card you'll get declined right? Why because your credit hasn't improved fact.
  • Mulder00
    Mulder00 Posts: 508 Forumite
    First Anniversary First Post
    BugsyBrowne wrote: »
    Defaults littered on your credit file and the highest APR credit card on the market increases your limit only means one thing profits even if you're paying in full.

    If you now apply for say a Halifax credit card you'll get declined right? Why because your credit hasn't improved fact.
    I disagree with this. Replace the word "fact" with "enough" above. An improvement is an improvement is an improvement. It might not be enough for immediate credit, but it's not simply a case of good credit and bad credit. Every month that the OP repays cards on time will improve their chances of getting credit in future.
This discussion has been closed.
★ ★ ★ Meet your Ambassadors

Categories

  • All Categories
  • 343.2K Banking & Borrowing
  • 250.1K Reduce Debt & Boost Income
  • 449.7K Spending & Discounts
  • 235.3K Work, Benefits & Business
  • 608K Mortgages, Homes & Bills
  • 173.1K Life & Family
  • 247.9K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards