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How do my credit limits impact my score?

It may be a personal choice, but a low credit limit can suggest to lenders that you're less comfortable with higher limits and not making larger repayments on time.

Using most, or all, of the available credit may also negatively impact your credit score as it can indicate that you are financially stretched, even if your limit is quite low. If you want to keep your score high and your credit report in good shape, you should try to use less than 50% of your available credit limit.

How can I increase my credit limit?

This can be done by asking your lender to increase your credit limit, but you may see a temporary dip in credit score as a hard credit search may be recorded and if this occurs, it will leave a mark on your credit report. If you decide to increase your limit, you should try to use less than 50% of your available credit.

Asking for a very high limit may indicate that you desperately need the funds, which can make you appear financially stretched.

I don't need a credit card or borrowing at the moment. Why do I need to borrow to improve my credit score?

A credit score is a representation of how well you manage your debt. Using a credit product prudently can demonstrate how responsible you are to a lender when making a credit application in future.

If you submit multiple requests for credit within a short space of time, it can indicate that you are struggling financially, and it may have a considerable impact on your ability to secure credit in future.

Most lenders will provide you with an option to complete an eligibility check before applying for credit. This will give you an indication of how likely you are to be accepted for credit and will not normally involve a hard credit check. Please note, an eligibility checker is not a guarantee of lending and a full credit check, which will leave a mark on your credit file, may be necessary if you go ahead and apply afterwards.