Could my credit limit increase?

Could my credit limit increase?

author: Helen Fox

By Helen Fox

If you’re wondering what sort of credit limit you can expect and whether it’ll increase, we’ve answered your questions here.

What credit limit can I expect when I open my account?

With the Ocean Credit Card, you can expect a minimum credit limit of £200 and a maximum limit of £8,000. The limit you receive will be based on a number of things, like your credit history, how much disposable income you have, and the amount of debt you’re already  managing.

Will I receive a credit limit increase with my Ocean Credit Card?

You may be offered credit limit increases on your Ocean Credit Card if you’re eligible for them. You can increase your chances of being offered a credit limit increase by showing you’re a responsible borrower. To do this, you should:

  • Make all your repayments on time and in full
  • Repay more than the minimum payment due (if possible)
  • Never spend beyond your current credit limit

If you do these things consistently for several months, you might find that you become eligible for a higher limit. You could be eligible for up to two credit limit increases each year.

Do I have to accept a higher limit?

A higher credit limit can come in handy for emergencies or spreading the cost of larger purchases. But, it also means you can run up a bigger balance, which could take longer to pay back and cost more in interest. Before you accept a limit increase offer, make sure you’re confident you can manage a larger credit limit.

If you’ve been offered a higher limit and you’re worried you’ll spend more than you can afford, don’t worry. You’ll always have the chance to turn down a credit limit increase if you don’t want it, before it gets applied to your account. This won’t affect your eligibility to be considered for future credit limit increases.

Can I reduce my credit limit? 

If you’re not happy with your Ocean Credit Card limit, and would like to decrease it, simply give our partners at Capital One a call on 0344 481 2812, or +44 1159 938 002 (if calling from outside the UK).

Why is my credit limit small? 

Got a smaller credit limit than you were expecting? This could be for a number of reasons, including:

  • You’re already borrowing a high amount
    If you’ve already got a large credit limit on another account, like an overdraft or another credit card, you could receive a smaller limit. This is because there’s a risk you could struggle to keep up with your existing payments, and these new ones, if the amount you’re borrowing increases. 

  • You’ll be financially stretched if you take on more debt
    If your current income and outgoings mean you already don’t have much left over, then there’s a risk you may not be able to make large credit repayments. In this situation, you could be given a smaller limit to help keep your payments affordable.

  • Your credit history isn’t perfect
    Ever missed monthly payments, or defaulted on a credit agreement? If your credit history includes things like this, you could receive a smaller credit limit. 

  • You’ve never borrowed at all
    If you’ve not used much credit before, and aren’t named on your household bills, then you may have what’s known as a “thin credit file”. This means there isn’t enough information available in your credit report to decide whether you’d be able to make the payments on a high credit limit. In this situation, you may be given a smaller limit to see how you get on.

Disclaimer: We make every effort to ensure that content is correct at the time of publication. Please note that information published on this website does not constitute financial advice, and we aren’t responsible for the content of any external sites.

Author Profile Image: Helen Fox

Helen Fox

Personal Finance Editor

Helen is a personal finance editor who’s spent 11 years (and counting!) in the finance industry. She creates content on everything money with the goal of getting people thinking – and talking – about their finances in ways they may not have done before.

Could my credit limit increase? Could my credit limit increase?