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  • comeocome 45 posts

    Not strictly a rewards based post but want to borrow the wisdom of all the credit card veterans here:

    Moved to the UK a year ago, decent job, got the following relatively quickly, but want to know how can I increase the card limit further to lower the credit utilisation ratio? Can anyone share some insights on how they got their limit raised, over what timeframe please? Thanks!

    (Don’t prefer to repay mid-month, with interest rates where it is, prefer to maximise cash flow for savings interest rate)

    AMEX 13K, got it via global expat programme before I moved here
    HSBC UK Premier 8K, probably because I got paid there..
    HSBC Expat Premier 5K
    Yonder first 1.2K, got it raised to 4K
    Barclays 3K
    Waitrose 1.2K

    JDB 4,806 posts

    Credit utilisation is only a relevant metric if you don’t pay off your statement balance each month. If you have high limits you don’t actually use it may end up being a negative as it will preclude you from getting new cards as in the current economic environment, card providers are wary of those with lots of unsecured credit lines, irrespective of salary etc.

    dougzz99 637 posts

    Credit utilisation is only a relevant metric if you don’t pay off your statement balance each month. If you have high limits you don’t actually use it may end up being a negative as it will preclude you from getting new cards as in the current economic environment, card providers are wary of those with lots of unsecured credit lines, irrespective of salary etc.

    What would you suggest is a good/expected credit utilisation. When I recently got the BAPP they gave me a limit of £1500, and I found myself clearing the bill weekly, which was irritating. But I also noticed a drop in my credit score, as a result of too higher utilisation of available credit. I realise credit scores are bogus, but there maybe some benefit in looking at the reasons for ups and downs in them, is there? Anyway, I asked Amex for a £10K limit which they granted after a couple of months. I’d say typical monthly spend is £2K, although it varies between a few hundred and say £7K depending on travel, work expenses etc. I thought £10K seemed a reasonable limit based on this?

    JDB 4,806 posts

    @dougzz99 – I don’t think there is really any good or bad utilisation rate when repaying in full each month. The credit utilisation number used by credit reference agencies is the % of credit you are not repaying.

    While some here have suggested that having lots of high (unused) credit limits is a sign of financial strength, that’s not how card providers see it. We saw a lot of complaints re rejected Barclaycard applications from very high earners; they don’t want the risk of joining a queue of big creditors. Amex too has tightened up – we have seen quite a few applications initially rejected on the basis that Amex didn’t want to extend further credit, so a rejigging of existing limits was required.

    The key is really to have plenty of room for your regular needs plus some headroom for occasional one off type expenditure but not to have a whole lot of redundant limits. This will then hopefully allow you to take advantage of attractive new card promotions.

    Card providers have got warier as in tougher economic times, quite a lot of people can blow their way through all their credit limits really quite quickly.

    zio 267 posts

    The only time I have asked for a raised limit it was a phone call. Actually from SA to Lloyd’s, iirc because i needed to pay for some hire car issues which were settled later via Amex platinum insurance. Anyway limit was I think trebled 4k to 12k. It’s whatever the company/bank is willing to do though. No one knows this except the card issuer so pick up the phone. They can only say “no”, or “call us again in 6 months”.

    comeocome 45 posts

    Credit utilisation is only a relevant metric if you don’t pay off your statement balance each month. If you have high limits you don’t actually use it may end up being a negative as it will preclude you from getting new cards as in the current economic environment, card providers are wary of those with lots of unsecured credit lines, irrespective of salary etc.

    Sorry should have been clearer. Want a low credit utilisation rate to improve my credit score. (I know it’s technically only relevant if you want a mortgage soon. Maybe in a year’s time for me…)

    Pretty sure high credit utilisation on a per card basis, not just total credit, impacts your score. Looking at you Equifax..

    I always repay in full. By the way in my case, if I repay 6 cards in full each month, does this “plus” count 6 times each month for me? Or it only counts as “one” repayment in full each month? My question is does my score improve faster because I repay my bills in full each month?

    Also I can confirm that Transunion likes it when you have a high total combined credit.

    ryaneberry 50 posts

    Credit utilisation is only a relevant metric if you don’t pay off your statement balance each month. If you have high limits you don’t actually use it may end up being a negative as it will preclude you from getting new cards as in the current economic environment, card providers are wary of those with lots of unsecured credit lines, irrespective of salary etc.

    Sorry should have been clearer. Want a low credit utilisation rate to improve my credit score. (I know it’s technically only relevant if you want a mortgage soon. Maybe in a year’s time for me…)

    Pretty sure high credit utilisation on a per card basis, not just total credit, impacts your score. Looking at you Equifax..

    I always repay in full. By the way in my case, if I repay 6 cards in full each month, does this “plus” count 6 times each month for me? Or it only counts as “one” repayment in full each month? My question is does my score improve faster because I repay my bills in full each month?

    Also I can confirm that Transunion likes it when you have a high total combined credit.

    It isn’t just relevant if you don’t pay it off in full. It ultimately is triggered when the credit agency takes a “screenshot” of your accounts. i.e. if the view is taken 1st of each month and your 100% payment hits after (say 10th) then you will be seen to utilise x% of your limit.

    if you pay off more frequently, it will reduce the chances of the view being taken when you have a balance o/s.

    Happy to be proven wrong but this is my experience

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