Credit limit vs balance transfer

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robfranklin
robfranklin Posts: 21 Forumite
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Hi all,

just applied for the Sainsbury's 0% 42 month balance transfer cc and requested a BT of£2250.

On being accepted was offered an estimated credit limit of £1200 though, does anyone know if this will be the actual limit, or will that change when the agreement comes through?

Seems a bit odd to offer less than the transfer value requested, or at least not flag it online!

Thanks!
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  • [Deleted User]
    [Deleted User] Posts: 35,242 Forumite
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    Was that figure on acceptance, or the representative limit?

    Limits are often lower than requested. Otherwise, we'd all have billions of pounds worth of limits.
  • robfranklin
    robfranklin Posts: 21 Forumite
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    On final page, it said you've been accepted, you'll have to sign credit agreement to send back to us. And on there it said working on an estimated credit limit of £1200. This was after all details filled in.
  • [Deleted User]
    [Deleted User] Posts: 35,242 Forumite
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    Wait and see what you get. Don't reject if its less than you want.
  • robfranklin
    robfranklin Posts: 21 Forumite
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    Don't reject? Even if it's a lot less?
  • Anthorn
    Anthorn Posts: 4,362 Forumite
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    robfranklin wrote: »
    Seems a bit odd to offer less than the transfer value requested, or at least not flag it online!

    Actually very common. If you have given the card number and expiry date to transfer a balance from and they cannot transfer the full requested amount they are likely to transfer a reduced amount in accordance with the limit after allowing for fees and any maximum percentage of credit limit allowed for BTs.
  • robfranklin
    robfranklin Posts: 21 Forumite
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    Anthorn wrote: »
    Actually very common. If you have given the card number and expiry date to transfer a balance from and they cannot transfer the full requested amount they are likely to transfer a reduced amount in accordance with the limit after allowing for fees and any maximum percentage of credit limit allowed for BTs.

    That's really interesting to know, how would you suggest going forward here then, assuming I am just transferring £1200 of £2250, definitely wrong to apply for another BT on such short notice, or is credit file only impacted if I actually accept the sainsburys card?
  • Anthorn
    Anthorn Posts: 4,362 Forumite
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    robfranklin wrote: »
    That's really interesting to know, how would you suggest going forward here then, assuming I am just transferring £1200 of £2250, definitely wrong to apply for another BT on such short notice, or is credit file only impacted if I actually accept the sainsburys card?

    Your credit history gets impacted due to the credit search. You could use your 14 days right to cancel and try for a different card but then you'll get another credit search.

    It could be that as previously suggested the £1200 is the representative value used by law to illustrate the effect of the APR. Perhaps wait until you get something in writing with regards to the limit.
  • robfranklin
    robfranklin Posts: 21 Forumite
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    Anthorn wrote: »
    Your credit history gets impacted due to the credit search. You could use your 14 days right to cancel and try for a different card but then you'll get another credit search.

    It could be that as previously suggested the £1200 is the representative value used by law to illustrate the effect of the APR. Perhaps wait until you get something in writing with regards to the limit.

    Thanks, I was just interested that when accepted, it then said to quote "we estimate being able to offer you £1200 as a credit limit."
    Thanks for your help though, in your opinion does this value commonly change after approval? Fingers crossed it's just automated in a way and it will get flagged and the credit limit boosted.
  • [Deleted User]
    [Deleted User] Posts: 35,242 Forumite
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    robfranklin wrote: »
    Don't reject? Even if it's a lot less?

    The search is already done.

    So you now have the choice of saving some interest or no interest.

    Some is generally better than none.
  • robfranklin
    robfranklin Posts: 21 Forumite
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    Deleted_User wrote: »
    The search is already done.

    So you now have the choice of saving some interest or no interest.

    Some is generally better than none.

    Fair point there, the rest i'll probably consolidate elsewhere!
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