# Should I always increase my credit card limit?



## UltraTempest (12 Sep 2020)

Have my AIB platinum credit card for the last while. Every 6 months I always increase the credit limit, it’s at 10k at the moment. 

In my mind, instant access to a larger loan whenever needed is a good thing. Should I continue increasing it? How will this affect my credit rating?

I am a considering applying for a mortgage soon, could a higher credit limit have negative impact?


----------



## Johnno75 (12 Sep 2020)

UltraTempest said:


> Have my AIB platinum credit card for the last while. Every 6 months I always increase the credit limit, it’s at 10k at the moment.
> 
> In my mind, instant access to a larger loan whenever needed is a good thing. Should I continue increasing it? How will this affect my credit rating?
> 
> I am a considering applying for a mortgage soon, could a higher credit limit have negative impact?


There’s no harm in having a high limit and it costs nothing extra, so long as you’ve a nil balance or pay off the credit card debt before the interest kicks in. It’s a handy thing to have for short term credit in both hard times or in an emergency as a credit line of last resort. I’ve a €25k limit. I don’t use it and my balance is nil, but once upon a time it was a lifesaver for me when I needed access to a large amount or credit and I couldn’t rely on the banks for a loan or overdraft.


----------



## Laughahalla (13 Sep 2020)

Banks can look at it two ways. One , you are good at managing your credit if you use a low percent of your limit or they can also look at it as risk as they know you could have a blowout and have a potentially large liability to pay.


Having such a high limit is dangerous. If you spend to your limit you will be paying it back forever. Moments of weakness happen the best of us at times.

You don't need such a high limit. I'd argue that you don't need a credit card at all. I got rid of mine earlier this year. I haven't once said to myself " you know, I really miss my credit card" not once did it even cross my mind.

I'd advise to get rid of your credit card altogether and just use your debit card. You have the same charge back protection as the card is issued by the same company Visa or MasterCard.  I had two Debit card charge backs this year and the money was back in my account within a week.


----------



## Brendan Burgess (13 Sep 2020)

Hi UT

I don't know if credit card limits are reported on your credit record?  It never occurred to me that they might be and that they might be a factor in a mortgage application. I doubt it.

Your payment record would be what is important. 

If you are bad with money and pay interest on your credit card, tear it up.

Otherwise, you should _not _get rid of your card  particularly now as you are about to buy a house.  You may need access to credit for unexpected expenditure. 

Throughout Askaboutmoney, you will see people suggesting that you need 6 months expenditure in cash as an emergency fund.  If you have a credit card with a big unused limit, then you won't need that emergency fund and you can use the cash to pay down your mortgage.

Brendan


----------



## michaelm (13 Sep 2020)

Probably more that 10 years ago now and I can't remember the specifics, but reducing my credit card limit was a condition for granting me a loan.


----------



## Laughahalla (14 Sep 2020)

Your credit limit shows on your credit report from The Central credit register.
As of a couple of years ago, Any line of credit greater than 500 euro appears on it and will be questioned by the bank.( KBC certainly ask about every line of credit, even a littlewoods line of credit whether used or not)






						Central Credit Register|Central Credit Register
					

The Central Credit Register (CCR) is being established by the Central Bank of Ireland, under the Credit Reporting Act 2013.




					www.centralcreditregister.ie


----------



## Brendan Burgess (14 Sep 2020)

Thanks Laugh

I must apply for my own report. I haven't done so for some time.

Brendan


----------



## Laughahalla (14 Sep 2020)

It's a worthwhile exercise for everybody to do ( and it is free of charge)  I did it recently after being questioned on a switcher application and found out that I had a little-woods line of credit for €750. Must have requested that at some stage in the past but had totally forgotten. 

It also showed that I had a line of credit (Unused overdraft) with with a bank account that was closed a year previously. The credit register showed the account was still open. It was only corrected after I got in touch with the bank in question.


----------



## bbari1 (19 Sep 2020)

Laughahalla said:


> It's a worthwhile exercise for everybody to do ( and it is free of charge)



How do you apply for one? TIA


----------



## Brendan Burgess (19 Sep 2020)

[broken link removed]

You need to fill in an online form.
Print it off
Sign it
Scan it.
Send it and 3 other ID documents to them.

It took me about 10 minutes to do.

I haven't got an answer yet though.

Brendan


----------



## NoRegretsCoyote (20 Sep 2020)

Laughahalla said:


> . I got rid of mine earlier this year. I haven't once said to myself " you know, I really miss my credit card" not once did it



Have you tried to hire a car with a debit card?


----------



## Laughahalla (20 Sep 2020)

NoRegretsCoyote said:


> Have you tried to hire a car with a debit card?


Yes, prior to this year even I was using my debit card to hire cars in Lanzarote twice and in Tenerife with a debit card. Autoriesen is the name of the company, turned out to be the cheapest option too.





						Car hire in Tenerife | Autoreisen
					

Are you looking for a cheap car hire in Tenerife? Our more than 25 models of cars will be waiting for you at Tenerife-South or North Airport.



					autoreisen.com


----------



## hfp (21 Sep 2020)

I think credit reference searches might work differently in NI to ROI, but last time I did a search on my own history the report stated that one of the reasons my score was so high was that I have high available credit - about £9k across 3 cards, but a low balance - rarely more than 1k and paid off every month in full.


----------



## Bronte (21 Sep 2020)

How does Amex work as regards the credit limit (as it has no limit).


----------



## Paul M. (7 Oct 2020)

Bronte said:


> How does Amex work as regards the credit limit (as it has no limit).



I don't think American Express are issuing cards (charge or credit) in Ireland anymore. My understanding is that the way it works in the US is that they report the statement balances instead.


----------

