AA Credit Limit Increase - No Need To Ask!

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wiseonesomeofthetime
wiseonesomeofthetime Posts: 2,081 Forumite
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Had an AA 0% Balance Transfer card with a £4,400 limit and used it to its full potential for that BT, which is now cleared to a zero balance.

Been on £0 balance for quite a while now, so what do AA do? Increase my limit by another £4k to aid me with my card spending and management of that £0 balance, without even asking!

And we wonder why many people end up in debt and struggle to repay when they haven't the willpower to ignore this free money and feel encouraged to spend, spend, spend!

While it may make my credit utilisation look good for now, I feel it may scupper me in the future when seeking new deals.

As not seeking any further finance options at the moment, to allow a settled credit history to form again after stoozing and multiple bank switches to reap four figure rewards, will ponder about my next move over time.

What would YOU do though?

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  • [Deleted User]
    [Deleted User] Posts: 35,242 Forumite
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    I'd take it. Your current limit is quite low.

    But it needs to be whatever you feel comfortable with.
  • Shakin_Steve
    Shakin_Steve Posts: 2,701 Forumite
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    I thought the days of cc providers increasing the limit were over. I was under the impression that they at least had to run it by you first.
    I came into this world with nothing and I've got most of it left.
  • WillPS
    WillPS Posts: 3,475 Forumite
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    In the last 2 years I have had two credit limit increases from Amex, 1 from Natwest and another from Tesco - all of them unrequested but I was happy to accept.

    The Tesco account still has a promotional balance transfer on it, and they seem to offer a balance transfer every month on the remaining limit.
  • YorkshireBoy
    YorkshireBoy Posts: 31,541 Forumite
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    edited 6 March 2017 at 10:56PM
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    Shakin_Steve wrote: »
    I thought the days of cc providers increasing the limit were over. I was under the impression that they at least had to run it by you first.
    If the OP had got the same increase letter I've just got for my AA card, that's exactly what they've done. They say the increase will take effect from 1st April, if I don't call to decline it, and in my case they're doubling it from £5K to £10K.

    I'm half way through a circa 22 month fast stooz so probably still have a £4K+ balance. Will have to dig out my paperwork to see if there was a 60/90 day window for 0% no-fee BTs all those months ago. If not, then that's another £5K+ heading for the stooz pot!
  • adamh87
    adamh87 Posts: 51 Forumite
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    What can you usefully use this money for? I'm in a similar position and being offered very cheap money transfers (1.9% fee for a 12 month loan), what can you do with this - pension contributions?
  • YorkshireBoy
    YorkshireBoy Posts: 31,541 Forumite
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    adamh87 wrote: »
    What can you usefully use this money for? I'm in a similar position and being offered very cheap money transfers (1.9% fee for a 12 month loan), what can you do with this - pension contributions?
    Personally, I don't take BTs unless they're fee-free. Aren't there still 6 or 7 of these cards available?

    Others do pay the fees, and they use the funds for P2P etc, where the rewards (and risks!) are greater.
  • adamh87
    adamh87 Posts: 51 Forumite
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    Moving it into P2P seems a little risky (defaults etc). Wouldn't it be simpler to bung the money into your pension?
  • bigadaj
    bigadaj Posts: 11,531 Forumite
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    edited 12 March 2017 at 1:15PM
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    adamh87 wrote: »
    Moving it into P2P seems a little risky (defaults etc). Wouldn't it be simpler to bung the money into your pension?

    Sounds like you're not too experienced investing wise, p2p is probably slightly lower on the risk scale than equities, which is presumably what you would be putting pension contributions into. There's obviously tax relief on the pension contributions but losses can't be written off against income as can be done with p2p.
  • jonesMUFCforever
    jonesMUFCforever Posts: 28,898 Forumite
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    Nationwide seem to do do it the other way round - ie they send me a letter saying if I want to accept a higher limit then I have to telephone them.
    Did this last year but won't bother again as I only use it overseas these days.
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