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  • FIRST POST
    • CurryCee
    • By CurryCee 31st Dec 17, 11:46 AM
    • 30Posts
    • 5Thanks
    CurryCee
    Building a Score
    • #1
    • 31st Dec 17, 11:46 AM
    Building a Score 31st Dec 17 at 11:46 AM
    Hey guys,

    I've had my one credit card since Summer 2016, and purposely set my credit limit very low at £1k to test the waters.

    Currently, the only two negatives on my Clearscore report are that the credit card limit is low, and my credit card % utilisation is relatively high.

    To me, increasing my credit limit seems like a simple fix to improve my score, but I know that increasing a credit limit could be seen as a negative, especially if my current utilisation is high (albeit the balance is cleared in full each month).

    I'm hoping to increase my score to move to a rewards credit/charge card, as my current credit card offers me nothing.

    Can anyone greenlight my thinking?

    Cheers!
Page 1
    • FestiveJoy
    • By FestiveJoy 31st Dec 17, 12:00 PM
    • 59 Posts
    • 31 Thanks
    FestiveJoy
    • #2
    • 31st Dec 17, 12:00 PM
    • #2
    • 31st Dec 17, 12:00 PM
    Hey guys,

    I've had my one credit card since Summer 2016, and purposely set my credit limit very low at £1k to test the waters.

    Currently, the only two negatives on my Clearscore report are that the credit card limit is low, and my credit card % utilisation is relatively high.

    To me, increasing my credit limit seems like a simple fix to improve my score, but I know that increasing a credit limit could be seen as a negative, especially if my current utilisation is high (albeit the balance is cleared in full each month).

    I'm hoping to increase my score to move to a rewards credit/charge card, as my current credit card offers me nothing.

    Can anyone greenlight my thinking?

    Cheers!
    Originally posted by CurryCee
    You deliberately set the credit limit low to, as you said, test the waters.

    Now you appear to be using that limit to a high percentage. If you are coinfortable with that, then a credit increase could be the solution, but as you say, that may be seen as a negative.

    You could wait a while. Many credit card companies will consider offering you a credit limit if you are seen to be using your card sensibly, especially if you are using a high percentage of the limit and paying it off IN FULL every month.

    Or if you cannot wait, why not take advantage of the credit score you currently have and get apply for a different card with a limit you would like. Lots of options out there, for those with bost good and poor credit histories.

    Enjoy the festive season reading all about the options in the MSE articles on this site, ... and all about credit scores too

    Last edited by FestiveJoy; 31-12-2017 at 12:03 PM.
    • Nebulous2
    • By Nebulous2 31st Dec 17, 12:04 PM
    • 1,884 Posts
    • 1,127 Thanks
    Nebulous2
    • #3
    • 31st Dec 17, 12:04 PM
    • #3
    • 31st Dec 17, 12:04 PM
    Unless you are on a very low income £1k is a low limit. If you trust yourself not to overspend on a credit card then I wouldn't mess about with lowering limits. Take as much as you are offered, regardless of whether you will use it or not. It shows that companies trust you with their money.

    High utilisation is less important if you are clearing it every month.

    Ignore the score, try some of the eligibility checkers, and unless you have some real issues like late payments or defaults you may well find you have a good chance of getting a reward card now.

    Otherwise there is no harm in asking for a limit increase.
    • CurryCee
    • By CurryCee 31st Dec 17, 12:52 PM
    • 30 Posts
    • 5 Thanks
    CurryCee
    • #4
    • 31st Dec 17, 12:52 PM
    • #4
    • 31st Dec 17, 12:52 PM
    Ignore the score, try some of the eligibility checkers, and unless you have some real issues like late payments or defaults you may well find you have a good chance of getting a reward card now.
    Originally posted by Nebulous2
    For some reason, in nearly all eligibility checkers I'm eligible for very few other cards. Ineligible for any Amex cards, and ineligible for any from Virgin. Is this likely because of a historically low credit limit?
    • Nebulous2
    • By Nebulous2 31st Dec 17, 1:19 PM
    • 1,884 Posts
    • 1,127 Thanks
    Nebulous2
    • #5
    • 31st Dec 17, 1:19 PM
    • #5
    • 31st Dec 17, 1:19 PM
    For some reason, in nearly all eligibility checkers I'm eligible for very few other cards. Ineligible for any Amex cards, and ineligible for any from Virgin. Is this likely because of a historically low credit limit?
    Originally posted by CurryCee
    Have you tried some of the eligibility checkers direct on company websites, as well as big ones like the MSE one?

    I don't think that is because of your credit limit.

    Go back to basics -no need to answer these questions here, but as a check for yourself:-

    Are you on the electoral roll at your current address?
    Are there gaps in your ER history?
    Do you have any late / missed payments?
    Any defaults?
    Do you have other open accounts, like mobile phones?
    How long have you held your current account?
    Are you employed on a permanent contract?
    How long have you been with the same employer?
    Any financial associations with others? If so what is their history like?

    Credit card companies like stability, known quantities and above all regular payers. No surprises.
    • cjmillsnun
    • By cjmillsnun 31st Dec 17, 5:29 PM
    • 602 Posts
    • 734 Thanks
    cjmillsnun
    • #6
    • 31st Dec 17, 5:29 PM
    • #6
    • 31st Dec 17, 5:29 PM
    Amex and Virgin can be some of the strictest in their acceptance criteria.

    I would suggest looking at Barclaycard, Capital One, Aqua or Marbles. All do soft searches to check eligibility before you make a formal application. They don't have the same nice low interest rates as some of the others, however if you pay IN FULL every month, this doesn't matter as you will not incur any interest.
    • CurryCee
    • By CurryCee 8th Jan 18, 4:25 PM
    • 30 Posts
    • 5 Thanks
    CurryCee
    • #7
    • 8th Jan 18, 4:25 PM
    • #7
    • 8th Jan 18, 4:25 PM
    I think I've got to the bottom of it using Experian. Apparently, a combination of a low credit limit and high credit utilisation is working against me.

    To this end, once I've paid off my balance, does anyone know how many months it'll take before this'll bring my score back in line?

    Also, with regards to increasing my credit limit on my current credit card, what reasons should I give for increasing my limit? Will "wanting to remedy my credit score" be seen as a viable reason to increase my credit limit for them?
    • zx81
    • By zx81 8th Jan 18, 4:29 PM
    • 17,240 Posts
    • 18,326 Thanks
    zx81
    • #8
    • 8th Jan 18, 4:29 PM
    • #8
    • 8th Jan 18, 4:29 PM
    Ignore the score. You can tell people it's whatever number you want. No one will ever know.

    Lenders will view you more positively if you're not maxing out your limits. If you want a higher limit, just ask them. They're not likely to interrogate you on it.

    But bear in mind, if your limits are too high, that can also deter lenders.
    • DCFC79
    • By DCFC79 8th Jan 18, 4:33 PM
    • 31,903 Posts
    • 20,091 Thanks
    DCFC79
    • #9
    • 8th Jan 18, 4:33 PM
    • #9
    • 8th Jan 18, 4:33 PM
    I think I've got to the bottom of it using Experian. Apparently, a combination of a low credit limit and high credit utilisation is working against me.

    To this end, once I've paid off my balance, does anyone know how many months it'll take before this'll bring my score back in line?

    Also, with regards to increasing my credit limit on my current credit card, what reasons should I give for increasing my limit? Will "wanting to remedy my credit score" be seen as a viable reason to increase my credit limit for them?
    Originally posted by CurryCee
    You ask for a limit increase, no need to mention remedy your credit score, just say its for some big purchases eg a tv for example or multiple purchases.
    • CurryCee
    • By CurryCee 8th Jan 18, 9:40 PM
    • 30 Posts
    • 5 Thanks
    CurryCee
    Ignore the score. You can tell people it's whatever number you want. No one will ever know.

    Lenders will view you more positively if you're not maxing out your limits. If you want a higher limit, just ask them. They're not likely to interrogate you on it.

    But bear in mind, if your limits are too high, that can also deter lenders.
    Originally posted by zx81
    The score doesn't bother me, so much as not being currently able to access to the best rewards cards.

    As I said, I only really set a low limit to test the waters of credit. Had I known a high utilisation would negatively affect my score—despite it being paid off every month—I would have opted for something higher.
    • CurryCee
    • By CurryCee 8th Jan 18, 9:42 PM
    • 30 Posts
    • 5 Thanks
    CurryCee
    You ask for a limit increase, no need to mention remedy your credit score, just say its for some big purchases eg a tv for example or multiple purchases.
    Originally posted by DCFC79
    Thanks! What would a sensible limit increase be, given that my current limit is £1,000?

    Also, do you know how long it may take to get my credit score up once I'm approved for a higher limit?
    • zx81
    • By zx81 8th Jan 18, 10:01 PM
    • 17,240 Posts
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    zx81
    The score doesn't bother me, so much as not being currently able to access to the best rewards cards.
    Originally posted by CurryCee
    The point is though, you can't use the score as a measure of what credit you may be able to access.

    Yours score will drop once you increase your limits because they react negatively to change - yet lenders will see it as a good sign.

    What is your income and what debt as you currently carrying? You need to balance these factors with your limit.
    • DCFC79
    • By DCFC79 8th Jan 18, 10:38 PM
    • 31,903 Posts
    • 20,091 Thanks
    DCFC79
    Thanks! What would a sensible limit increase be, given that my current limit is £1,000?

    Also, do you know how long it may take to get my credit score up once I'm approved for a higher limit?
    Originally posted by CurryCee
    It takes time and patience.

    As ZX says re any debts you have will play a part in any credit limit.
    Last edited by DCFC79; 08-01-2018 at 10:50 PM.
    • Gary_Dexter
    • By Gary_Dexter 8th Jan 18, 11:11 PM
    • 1,288 Posts
    • 736 Thanks
    Gary_Dexter
    If the score doesn't bother you then why are you worried about increasing it again?
    • CurryCee
    • By CurryCee 9th Jan 18, 11:48 AM
    • 30 Posts
    • 5 Thanks
    CurryCee
    The point is though, you can't use the score as a measure of what credit you may be able to access.

    Yours score will drop once you increase your limits because they react negatively to change - yet lenders will see it as a good sign.

    What is your income and what debt as you currently carrying? You need to balance these factors with your limit.
    Originally posted by zx81
    I see your point now. I always just assumed that a general rule of thumb was that a higher score was better than a lower score.
    • CurryCee
    • By CurryCee 9th Jan 18, 11:52 AM
    • 30 Posts
    • 5 Thanks
    CurryCee
    If the score doesn't bother you then why are you worried about increasing it again?
    Originally posted by Gary_Dexter
    I recognise I was being a little naive, but I wanted the highest score possible, which in my mind would've given me the best deals on reward cards.

    As I don't carry any other debt (aside from student loan debt), the only reason my score isn't optimal is due to my low limit and high utilisation.

    As I'm paying off my bill in full each month, remedying my card situation would, in my mind, make for an optimal outcome.

    So it's not the score that bothers me per se, but the fact that I don't have access to certain cards.
    • Gary_Dexter
    • By Gary_Dexter 9th Jan 18, 12:55 PM
    • 1,288 Posts
    • 736 Thanks
    Gary_Dexter
    I recognise I was being a little naive, but I wanted the highest score possible, which in my mind would've given me the best deals on reward cards.

    As I don't carry any other debt (aside from student loan debt), the only reason my score isn't optimal is due to my low limit and high utilisation.

    As I'm paying off my bill in full each month, remedying my card situation would, in my mind, make for an optimal outcome.

    So it's not the score that bothers me per se, but the fact that I don't have access to certain cards.
    Originally posted by CurryCee
    All of which is nothing to do with your score.

    You can borrow some of mine if you like, but bear in mind if the wind changes direction you may see it drop again

    All that matters is the data on your files - make sure you're on the electoral roll, if you have a CC pay off the balance in full each month, get a contract mobile etc. and over time you'll see your options increase (albeit with a decreasing score)
    • CurryCee
    • By CurryCee 9th Jan 18, 1:31 PM
    • 30 Posts
    • 5 Thanks
    CurryCee
    All of which is nothing to do with your score.

    You can borrow some of mine if you like, but bear in mind if the wind changes direction you may see it drop again

    All that matters is the data on your files - make sure you're on the electoral roll, if you have a CC pay off the balance in full each month, get a contract mobile etc. and over time you'll see your options increase (albeit with a decreasing score)
    Originally posted by Gary_Dexter
    But I am on the electoral roll (and have been for >3 years at my current address). My CC balance is paid in full each month, as is my mobile contract that I've had for the past two years.

    Forgive my persistent ignorance, but as far as I can tell I'm doing everything right. If a high utilisation vs low limit has no effect on my score, I don't know of any other factors that could be working against me, yet these credit soft checks still seem to think I have a low chance of success across the board when applying.

    Potentially because I've only had my current credit card for just over two years?
    • zx81
    • By zx81 9th Jan 18, 1:34 PM
    • 17,240 Posts
    • 18,326 Thanks
    zx81
    Who have you applied to and been declined from to date?

    Your low limit may concern some lenders but there is no reason why you shouldn't be able to move up the ladder.
    • CurryCee
    • By CurryCee 9th Jan 18, 4:08 PM
    • 30 Posts
    • 5 Thanks
    CurryCee
    Who have you applied to and been declined from to date?

    Your low limit may concern some lenders but there is no reason why you shouldn't be able to move up the ladder.
    Originally posted by zx81
    No one, this is my first credit card. The limit I set myself was £1,000, and I've had it for just over 2 years.

    I haven't applied for any others (only soft checked offers using various eligibility calculators), and haven't been declined credit before.
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