In this video I uncover the typical reasons why credit card companies give credit limit increases and go into some depth on how different credit limit increase strategies are executed.
If you ever got an increase to your credit card limit or still waiting, the process may well seem like a big black box - the customers don't have any way of controlling it and one day the magic letter may arrive telling you that you have been chosen!
Let's take off the wraps and go through the different ways in which credit limit increases may be given.
00:00 Introduction
00:35 Batch Credit Limit Increases
04:09 Marketing Message Promising An Increase
05:03 Individual Credit Limit Increase Strategies
07:36 Portfolio Limit Management
09:20 Random CLI Testing
11:25 Summary
If you ever got an increase to your credit card limit or still waiting, the process may well seem like a big black box - the customers don't have any way of controlling it and one day the magic letter may arrive telling you that you have been chosen!
Let's take off the wraps and go through the different ways in which credit limit increases may be given.
00:00 Introduction
00:35 Batch Credit Limit Increases
04:09 Marketing Message Promising An Increase
05:03 Individual Credit Limit Increase Strategies
07:36 Portfolio Limit Management
09:20 Random CLI Testing
11:25 Summary
This vid was entertaining and informative thanks 🙂
If I have a credit card with a low limit like £250 is it ok to spend say £150 because the limit is so low or should i stick to 30% or less
I got a tesco credit card in April this year with starting limit of £250 in August my limit was increased to £600 and now November my limit has again increased to £900 both times I received a letter advising that I have been offered a limit increase which will be applied within 30 days. I am really happy 😊 but unclear on what I doing well so I can continue doing well. I have not missed any payments on my credit history for nearly 2 years . Rebuilding my credit after CCJ in 2020 and Defaults in 2018 and 2019
Hello mate, thanks for the great video. I have a credit card with a £1500 limit, and have managed it well for a couple of years. I’ve just been offered a credit limit increase to £4000. I feel the natural instinctive thing is to accept it, however the £1500 limit I have now is more than enough and I doubt I’d ever make any transactions over around £1000.
Will accepting the increase, but not fully utilising it affect my credit file in a negative way?
Thanks!
Hello had a question recently been approved credit card and was asked to choose to automatically increase my credit or for me to notified before an increase would go ahead and I opted for it not to be automatically credited was this the correct responses for me to choose or should have I have asked for it to be automatically increased. ( I do wish to gain increase?)
Thank you just got a limit increase after 4 months managing card alot better after watching your videos liked and subscribed
Hi Sasha, would appreciate any opinions. Scenario: an individual has been approved of say £3-4000 but only intended to have the credit limit of £1200 when applying for their first card with an estimated use of £250-300/monthly. Would there be any possible issues having been automatically approved of the high limit or is it fine to be using that low utilisation from the get go. The sole purpose of the card is to build a credit history.
Hi Sasha, very good info you’re giving out. I was just wondering what happens when you don’t want a credit increase (I have switched off automatic credit increases on my account)? My credit utilisation is at 20-30% and that’s all I want to spend with my income. If my credit limit goes up I would have to spend more money to achieve the same credit utilisation. Does it look bad if you haven’t accepted any credit increases or when lenders look at my credit history will they see that my credit limit hasn’t gone up at all and see that as a bad thing? Should you just accept these credit increases as it’s a sign that you’re a good credit user?
Hey, question about the opposite. I got a text from Aqua today:
‘We have decreased the limit on your Aqua card to £1500.00 as we feel it is more suitable for your level of use. A letter will follow shortly.’
They say in the online letter I can phone ASAP to discuss have £2850 reinstated.
Is that worth doing? I don’t use the card much but I’m worried what impact it could have on my total credit utilisation on my Credit Report and how other lenders might view this decrease.
EDIT: They reinstated the old limit.
Good informative video. No need for all the little snippets though. Kinda silly
i had an increase from hsbc recently and i have no idea why
My NatWest credit limit is £10100, but my Barclays really offended me with £100 credit limit and it’s been years they’ve never increased it automatically.
My income is good and my credit score is 975/999
My CL history with Amex is a bit weird?
I got the Amex Cashback Everyday in the summer of 2019, with a limit of 1.6k or so. 6 months later (right before CV19 exploded), I requested and was granted a CLI from 1.6k to 10k. That's a 6-fold increase! This CL stayed constant for over a year until a month ago when I received a letter from Amex saying they would increase my CL from 10k to 12k. Isn't this an odd very small increase?
Aye nice kitchen 😂
Been with capital one over 12 months had a £200 starting limit …not had an increase even tho I’ve paid on time every time ….
Why would you refuse the credit increase is there something bad about having a high limit even if you dont use it?
What would be a reasonable credit usage on a credit card? I read somewhere that between 15% and 30% (but strictly under 30%) would be the best, is that right?
Brilliant, thank you. Wish I’d found your channel before wasting hours on google getting nowhere looking for answers.
Have you had a credit limit increase recently? Share some detail and which type of Credit Limit Increase it is!