Resolved Question
Does it hurt my credit score if I call the credit company to increase my credit limit?
At the moment my credit limit is at £2000 an im looking to increase it. Will the credit provider look though my credit profile if I ask them to increase my limit? Will this at all affect my credit score?
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Uk answer: This depends on a number of factors - in most instances the bank's credit card management system will have 'profiled' you itself and set a provisional credit limit. This might depend on the length of time you've had the account.
From experience, what will happen is that if you have enough account history the system will have set a new "guaranteed" limit for you, which the agent can see on the screen. so long as the credit limit you request is within that limit, the agent can increase your limit. In this case, no credit search will have been done, so this won't affect your credit reference information, however your new, higher, credit limit will be recorded against your credit file when the credit card company next 'reports out' to the credit reference agency, and this is done on a monthly basis.
If you request a higher limit, this will either be declined or referred to an underwriter to look at. The underwriter may make a credit search in order to inform his/her decision, and in this instance a credit search will be recorded by the credit reference agency. This stays on your file for 6 months. A few searches on your credit file is normal and is not viewed negatively by companies offering credit. Excessive searches are normally viewed negatively as this can be a sign of financial distress.
If you are granted a higher credit limit, and stay well within it, then this will be a good reflection of your credit worthiness in the future, as it will demonstrate your ability to other lenders to manage your credit sensibly.
You can check your credit file online for free at Experian, which is the largest of the three UK credit reference agencies. Goto: http://redo.me.uk/freecreditreport
From experience, what will happen is that if you have enough account history the system will have set a new "guaranteed" limit for you, which the agent can see on the screen. so long as the credit limit you request is within that limit, the agent can increase your limit. In this case, no credit search will have been done, so this won't affect your credit reference information, however your new, higher, credit limit will be recorded against your credit file when the credit card company next 'reports out' to the credit reference agency, and this is done on a monthly basis.
If you request a higher limit, this will either be declined or referred to an underwriter to look at. The underwriter may make a credit search in order to inform his/her decision, and in this instance a credit search will be recorded by the credit reference agency. This stays on your file for 6 months. A few searches on your credit file is normal and is not viewed negatively by companies offering credit. Excessive searches are normally viewed negatively as this can be a sign of financial distress.
If you are granted a higher credit limit, and stay well within it, then this will be a good reflection of your credit worthiness in the future, as it will demonstrate your ability to other lenders to manage your credit sensibly.
You can check your credit file online for free at Experian, which is the largest of the three UK credit reference agencies. Goto: http://redo.me.uk/freecreditreport
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Other Answers (1)
- In short I'd only like to say that, if the requested increase is more than 10%, the lender will probably request a copy of the customer's credit report from 1 or all 3 bureaus. This will cause an "Inquiry" to be added to the credit report which could subtracts points from the score for these inquiries.0% 0 Votes
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