Accept a credit card limit increase?
Discussion
Just picking PH's collective brains; my credit card company have written to me offering to increase my limit by a grand (to £9.5k). I use the card for a few bits here and there or a slightly larger purchase where the protection might come in handy but I always pay it off in full each month. I don't ever get anywhere near my limit either, I think the most it's had on it at any one time in the last year was about £1.5k.
Would accepting an increase I don't need look good or bad in terms of credit reports? My scores are already excellent but I'm just curious as to what effect it might have.
Fwiw I don't plan to increase it.
Would accepting an increase I don't need look good or bad in terms of credit reports? My scores are already excellent but I'm just curious as to what effect it might have.
Fwiw I don't plan to increase it.
I don't think it will make any difference. If you had a sizeable balance on the card it could actually increase your rating as it would work out as less of a percentage of the total balance is used.
I have a £12.5K limit on mine and like you only use it for purchases on the internet for the protection and then pay it off. This is pretty much the only reason I keep it as well as being useful when hiring cars.
Other than that, I can borrow money on it at 0% for 18 months with a 3.5% fee which possibly could be handy in an emergency. It would also be a way cheaper way to buy a car than taking dealer finance.
I suspect I am the worst type of customer ever for a credit card company, this is probably why they have not increased my limit in over ten years as like you they used to increase it every year or so without me asking.
I have a £12.5K limit on mine and like you only use it for purchases on the internet for the protection and then pay it off. This is pretty much the only reason I keep it as well as being useful when hiring cars.
Other than that, I can borrow money on it at 0% for 18 months with a 3.5% fee which possibly could be handy in an emergency. It would also be a way cheaper way to buy a car than taking dealer finance.
I suspect I am the worst type of customer ever for a credit card company, this is probably why they have not increased my limit in over ten years as like you they used to increase it every year or so without me asking.
Funk said:
Just picking PH's collective brains; my credit card company have written to me offering to increase my limit by a grand (to £9.5k). I use the card for a few bits here and there or a slightly larger purchase where the protection might come in handy but I always pay it off in full each month. I don't ever get anywhere near my limit either, I think the most it's had on it at any one time in the last year was about £1.5k.
Would accepting an increase I don't need look good or bad in terms of credit reports? My scores are already excellent but I'm just curious as to what effect it might have.
Fwiw I don't plan to increase it.
Accept it, it helps with your credit utilisation.Would accepting an increase I don't need look good or bad in terms of credit reports? My scores are already excellent but I'm just curious as to what effect it might have.
Fwiw I don't plan to increase it.
Sarnie said:
Accept it, it helps with your credit utilisation.
I always accept credit card limit increases when they come along. Sometimes it actually impacts my credit score negatively because it takes the utilisation below 1% which then means I'm not using enough of my limit. Credit scores can be strange things.It is normally worth accepting limit increases though.
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