It's a tough one in some ways CIF.

The fact of the matter is that unemployed people will, from time to time, need to borrow money just like everyone else.

So long as lending is affordable I don't really see an issue with it. That opens up another big can of worms though!

Well that's my credit limit now increased to £2,500[:0]

I actually had a sharp intake of breath when I seen the email. Thankfully it doesn't kick in till AFTER Christmas removing any thought of temptation.

Hi CIF.

You do have the option to tell them to reduce it back to what it was.

Holding a higher credit limit with one lender might make you seem more risky to a potential new one. That's because your capacity to borrow more and expensively has been enhanced by the credit limit increase.

Yeah they do make that clear that the option is there.

I note other posters have said that it can help with getting more credit though, as it affects the ratio of borrowing against the limit. Seemingly it looks better if you are only utilising around 1/3 of your available borrowing. Apparently that can increase your score.

Increasing my score is important as I want to remortgage at some point.

When it comes to credit ratings so many things are unclear and finely balanced aren't they CIF?

One mortgage lender might see your credit extension as being a risk, another might see it as evidence of creditworthiness. They'll make their own assessment (or score) based upon information/opinions like this and the information that goes into any application that you later make.

Remember though that all mortgage lenders have to take close account of affordability. Any credit balances you have (not limits - actual balances) are highly likely to reduce the amount that any mortgage lender would be prepared to advance to you as they have to factor in the contractual repayment of them.

So properly managing credit balances might help some people by improving their credit score, but might leave some other people unable to borrow what they need because of an affordability calculation that factors them in.

I was told by someone from Experian that it is often helpful to someone's creditworthiness if they have a high limit but are only using a small proportion of it. I guess it shows that you aren't desperate to use whatever credit you can get.

Lol it sure is TDA. Anything else this complicated usually comes with a manual!

My plan is to go and see a specialist broker about one year after my TD drops off. Hopefully I will have started to build a useful credit history by then and be able to get some more specific pointers.

Kevin- yes I have read the same thing elsewhere. Some people suggested a third. Apparently having open credit accounts that aren't being used go against you.

My Experian report says a positive factor on it is that I haven't used much of my available credit, and a negative factor is that the value of my highest credit limit is low. That seems to suggest they think having a high limit but not using it is a good thing.