credit report, largest credit limit too low? - HotUKDeals
We use cookie files to improve site functionality and personalisation. By continuing to use HotUKDeals, you accept our cookie and privacy policy.
Get the HotUKDeals app free at Google Play

Search Error

An error occurred when searching, please try again!

Login / Sign UpSubmit

credit report, largest credit limit too low?

£0.00 @
Clearscore is showing a negative on my report for my largest credit limit being too low. I have one credit car with a fairly low limit, but a loan etc which is much higher. To remove this mark am I b… Read More
1iam5mith Avatar
7m, 1w agoPosted 7 months, 1 week ago
Clearscore is showing a negative on my report for my largest credit limit being too low. I have one credit car with a fairly low limit, but a loan etc which is much higher. To remove this mark am I better off applying for a higher limit card or asking the current provider to up my limit? I never spent to the limit, I use it sometimes just so it's active.
1iam5mith Avatar
7m, 1w agoPosted 7 months, 1 week ago
Options

All Responses

(4) Jump to unreadPost an answer
Responses/page:
#1
Think of it like this, if you have a credit card with a limit of £500, spending £100 on it means you are using 20% of your available credit. A £100 spend on a £5000 limit is a 2% usage rate. Both are a £100 spend, but one will affect your credit score more than the other. If you can, up your limit with the same card, don't apply for another one.

Edited By: ThePasty on Dec 14, 2016 00:48
#2
ThePasty
Think of it like this, if you have a credit card with a limit of £500, spending £100 on it means you are using 20% of your available credit. A £100 spend on a £5000 limit is a 2% usage rate. Both are a £100 spend, but one will affect your credit score more than the other. If you can, up your limit with the same card, don't apply for another one.
That makes sense.. thank you
#3
ThePasty
Think of it like this, if you have a credit card with a limit of £500, spending £100 on it means you are using 20% of your available credit. A £100 spend on a £5000 limit is a 2% usage rate. Both are a £100 spend, but one will affect your credit score more than the other. If you can, up your limit with the same card, don't apply for another one.

Which situation is better in terms of credit management?
#4
jimbo001
ThePasty
Think of it like this, if you have a credit card with a limit of £500, spending £100 on it means you are using 20% of your available credit. A £100 spend on a £5000 limit is a 2% usage rate. Both are a £100 spend, but one will affect your credit score more than the other. If you can, up your limit with the same card, don't apply for another one.
Which situation is better in terms of credit management?

If you've only the one credit card with a high credit limit yet use only a tiny fraction, you are seen as low risk as, although you could spend all of it, you choose not to. Therefore any future lender won't worry about you instantly maxing out any credit and not getting it back off you.

Post an Answer

You don't need an account to leave a response. Just enter your email address. We'll keep it private.

...OR log in with your social account

...OR comment using your social account

Thanks for your comment! Keep it up!
We just need to have a quick look and it will be live soon.
The community is happy to hear your opinion! Keep contributing!