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  • FIRST POST
    • WillPS
    • By WillPS 17th Mar 17, 4:34 PM
    • 189Posts
    • 86Thanks
    WillPS
    New Barclaycard Credit Limit
    • #1
    • 17th Mar 17, 4:34 PM
    New Barclaycard Credit Limit 17th Mar 17 at 4:34 PM
    I've currently got the following cards -
    • Natwest Student - £500 limit, not used regularly for years (just put the occasional banana on it to keep it alive for the long account history)
    • Barclaycard Cashback - £3000 limit (was my daily card until about 18 months ago, keeping it alive for the account history and the offers they send out)
    • Amex Plat Cashback - £3200 limit (my daily card, paid in full every month)
    • Natwest Reward - £2100 limit (use daily where Amex not accepted, paid in full every month)
    • Tesco Balance Transfer - £4000 limit, £2200 balance
    • Halifax Balance Transfer - £4000 limit, £3400 balance
    • Amex Plat Charge Card - took for an upgrade offer and will be cancelled as soon as I hit the anniversary (haven't been charged the fee yet) just keeping it open for the perks until then
    • MBNA Virgin White - £1200 (no longer used, took for a sign up bonus which I achieved in Jan)

    I've applied for the Barclaycard Hilton HHonors card this week, again purely for the sign up bonus. My current intention is to spend the £750 to get the free night and then either ditch it completely or let it stay dormant.

    To my surprise, I've been offered a huge £6k credit limit. I have absolutely no intention of spending that much (and plenty of much better cards to spend it on if I did) - so my question is should I immediately request a credit limit decrease? With that new card I'd have over half my salary in credit limit. Or would such a massive amount of unused credit reflect well on me?

    Also, should I start pruning some of the newer cards (like the MBNA one) which I have no intention of using? I intend to buy a house in around 14 months time.
    Last edited by WillPS; 17-03-2017 at 4:37 PM.
Page 1
    • cooltt
    • By cooltt 17th Mar 17, 9:07 PM
    • 551 Posts
    • 295 Thanks
    cooltt
    • #2
    • 17th Mar 17, 9:07 PM
    • #2
    • 17th Mar 17, 9:07 PM
    lol,......
    • A4445
    • By A4445 17th Mar 17, 9:52 PM
    • 596 Posts
    • 276 Thanks
    A4445
    • #3
    • 17th Mar 17, 9:52 PM
    • #3
    • 17th Mar 17, 9:52 PM
    I have over double my salary as available credit. I don't hold a balance and pay in full every month. I've had most of the cards for offers and don't have any,issues getting new cards.
    • WillPS
    • By WillPS 18th Mar 17, 10:00 AM
    • 189 Posts
    • 86 Thanks
    WillPS
    • #4
    • 18th Mar 17, 10:00 AM
    • #4
    • 18th Mar 17, 10:00 AM
    lol,......
    Originally posted by cooltt
    Cheers.
    I have over double my salary as available credit. I don't hold a balance and pay in full every month. I've had most of the cards for offers and don't have any,issues getting new cards.
    Originally posted by A4445
    Thanks, it was more the mortgage application I was worrying about, do I need to be worried?
    • Shakin Steve
    • By Shakin Steve 18th Mar 17, 11:48 AM
    • 881 Posts
    • 639 Thanks
    Shakin Steve
    • #5
    • 18th Mar 17, 11:48 AM
    • #5
    • 18th Mar 17, 11:48 AM
    I don't know but, if I were a mortgage lender and saw that you could go on a £13000 spending spree if you threw a wobbler, I would crap myself.
    I came into this world with nothing and I've got most of it left.
    • KILL BILL
    • By KILL BILL 18th Mar 17, 2:10 PM
    • 2,082 Posts
    • 1,280 Thanks
    KILL BILL
    • #6
    • 18th Mar 17, 2:10 PM
    • #6
    • 18th Mar 17, 2:10 PM
    Cheers.

    Thanks, it was more the mortgage application I was worrying about, do I need to be worried?
    Originally posted by WillPS

    yes if you have cards which exceed your salary irrespective wether the credit is used or not it will put up red flags
    • 20aday
    • By 20aday 18th Mar 17, 5:27 PM
    • 2,032 Posts
    • 855 Thanks
    20aday
    • #7
    • 18th Mar 17, 5:27 PM
    • #7
    • 18th Mar 17, 5:27 PM
    Personally I'd ditch both your MBNA and American Express Charge Card-in terms of your HH Barclaycard (which I'm surprised you've been given as BC tend to decline second applications) it might be worth holding onto once you've earned your free night as they tend to send out 0% deals on both balance and money transfers from time to time.
    It's not your credit score that counts, it's your credit history. Any replies are my own personal opinion and not a representation of my employer.
    • Ben8282
    • By Ben8282 18th Mar 17, 8:33 PM
    • 1,989 Posts
    • 863 Thanks
    Ben8282
    • #8
    • 18th Mar 17, 8:33 PM
    • #8
    • 18th Mar 17, 8:33 PM
    £6K is not a huge credit limit.
    • A4445
    • By A4445 18th Mar 17, 9:16 PM
    • 596 Posts
    • 276 Thanks
    A4445
    • #9
    • 18th Mar 17, 9:16 PM
    • #9
    • 18th Mar 17, 9:16 PM
    Personally I'd ditch both your MBNA and American Express Charge Card-in terms of your HH Barclaycard (which I'm surprised you've been given as BC tend to decline second applications) it might be worth holding onto once you've earned your free night as they tend to send out 0% deals on both balance and money transfers from time to time.
    Originally posted by 20aday
    I've recently been given a second barclaycard, so it's not impossible.
    • Marchitiello
    • By Marchitiello 18th Mar 17, 9:39 PM
    • 248 Posts
    • 89 Thanks
    Marchitiello
    Regard the Hilton Barclaycard:

    I posted this in the summer, but even when you were "allowed" only one Barclaycard, they confirmed that you would also be allowed a partner Card (e.g. Hilton ).

    Now they removed any reference to not allowing a second card and I know someone that has just been given a second Barclaycard (both platinums).

    The Amex Platinum Chargecard offer benefits that if used are extremely good, so not comparable.

    If not used, I would ditch the MBNA Virgin and depending on how hold is your second older card, would also ditch the NatWest student card. I was in a similar position as I had a NatWest Duo card (originally the Air Miles scheme the. Moved to Lloyds TSB) from the time I had a student account with NatWest, but my Barclaycard was also few months younger, and as the NatWest never increased by credit limit, I decided to ditch them. As you use the NatWest reward, if you are going to close the student, when you call them ask them to close it but also transfer the £500 credit limit to your other card, many issuers allow this
    Last edited by Marchitiello; 19-03-2017 at 11:12 AM.
    • 20aday
    • By 20aday 19th Mar 17, 6:11 AM
    • 2,032 Posts
    • 855 Thanks
    20aday
    I've recently been given a second barclaycard, so it's not impossible.
    Originally posted by A4445
    Ah, I didn't know that, from what I've read on here some posters have made second applications and have subsequently been declined.

    Sorry
    It's not your credit score that counts, it's your credit history. Any replies are my own personal opinion and not a representation of my employer.
    • WillPS
    • By WillPS 19th Mar 17, 9:29 PM
    • 189 Posts
    • 86 Thanks
    WillPS
    I don't know but, if I were a mortgage lender and saw that you could go on a £13000 spending spree if you threw a wobbler, I would crap myself.
    Originally posted by Shakin Steve
    Well Amex Chargecards don't have any credit limit - and their online checker indicates I'd be able to put £10k+ of spending on that...!
    £6K is not a huge credit limit.
    Originally posted by Ben8282
    Maybe not but it's much more than I was expecting given my other credit accounts!

    Regard the Hilton Barclaycard:

    I posted this in the summer, but even when you were "allowed" only one Barclaycard, they confirmed that you would also be allowed a partner Card (e.g. Hilton ).

    Now they removed any reference to not allowing a second card and I know someone that has just been given a second Barclaycard (both platinums).

    The Amex Platinum Chargecard offer benefits that if used are extremely good, so not comparable.

    If not used, I would ditch the MBNA Virgin and depending on how hold is your second older card, would also ditch the NatWest student card. I was in a similar position as I had a NatWest Duo card (originally the Air Miles scheme the. Moved to Lloyds TSB) from the time I had a student account with NatWest, but my Barclaycard was also few months younger, and as the NatWest never increased by credit limit, I decided to ditch them. As you use the NatWest reward, if you are going to close the student, when you call them ask them to close it but also transfer the £500 credit limit to your other card, many issuers allow this
    Originally posted by Marchitiello
    Thank you for the advice.

    The Natwest Student Card was opened in September 2008, so has a full 6 year history. The Barclaycard was opened in December 2013, so has 3 and a bit years of history on it. My gut is that it's probably worth keeping that one open, what do you think?

    I'll definitely get the MBNA Virgin card closed down. I'll keep the Amex Platinum card open until renewal as its essentially 0 cost insurances until then.

    Do you think I should shut down the Hilton card once it's paid out its bonus? Or should I shrink the credit limit down and keep it open?
    Last edited by WillPS; 19-03-2017 at 9:52 PM.
    • Marchitiello
    • By Marchitiello 19th Mar 17, 9:54 PM
    • 248 Posts
    • 89 Thanks
    Marchitiello

    The Natwest Student Card was opened in September 2008, so has a full 6 year history. The Barclaycard was opened in December 2013, so has 3 and a bit years of history on it. My gut is that it's probably worth keeping that one open, what do you think?

    I'll definitely get the MBNA Virgin card closed down. I'll keep the Amex Platinum card open until renewal as its essentially 0 cost insurances until then.

    Do you think I should shut down the Hilton card once it's open? Or should I shrink the credit limit down and keep it open?
    Originally posted by WillPS
    About the NatWest : general advice would suggest to keep it open, however I personally think that as it will still show on your credit file as settled account for the next 6 years and your other cards will have larger credit limit and also be open, it should not be too much of the problem.
    Edit to add a second thought: why don't you call NatWest and ask them if you can upgrade your oldest card to a NatWest Rewards, and also move the credit limit from the other rewards CC and close that one? This way your oldest account become usable and the most used where they do not accept Amex you can reduce the amount of credit accounts open.

    Regarding Hilton: I do not think closing it will be better: spend on it, earn the free night voucher and use it for at least a week end at the Grand Hotel Montesol Ibiza or Waldorf Astoria Amsterdam (their best properties in Europe) or at least a night at the Park Lane or Syon park properties in London.

    I have said this a few time but I have witnessed a conversation about my credit file between the customer facing mortgage manager and the internal underwriters of the bank: 7 cards, 120% of salary in Credit limit and all they seamed concerned about at the end was the amount of outstanding balances, and even then they struggled to interpret that although it was high every month, it was paid in full the following month...(it included a large portion of travel business expenses, so it looked I spent more then I earned net every month ).
    Last edited by Marchitiello; 19-03-2017 at 10:02 PM.
    • john2054
    • By john2054 26th Mar 17, 5:10 AM
    • 163 Posts
    • 29 Thanks
    john2054
    nice cards. keep them all open. except for the mbna card, close that one. that is my advice anyway!
    • mrmagooooooo
    • By mrmagooooooo 27th Mar 17, 10:12 AM
    • 93 Posts
    • 66 Thanks
    mrmagooooooo
    I don't know but, if I were a mortgage lender and saw that you could go on a £13000 spending spree if you threw a wobbler, I would crap myself.
    Originally posted by Shakin Steve
    I have Waaaay over my salary available to me in credit if i wished to use it. I have no issues getting more credit so i cant see how lenders see this as an issue. (recently took out a AMEX Gold chargecard for the rewards and no issues there.)

    When i applied for my mortgage 3 years ago i was in the same position. I was carrying around 3k on my credit cards in total. The only request from the lender was that these be paid off before completion.

    If you have a ropey credit history and have over your salary available to you in credit then i can see this being an issue. If you are proven to be a responsible borrower then i see nor have i encountered any issue.
    • WillPS
    • By WillPS 27th Mar 17, 10:33 AM
    • 189 Posts
    • 86 Thanks
    WillPS
    Sweet.

    MBNA card is gone now, Hilton card is open and in use.

    Interesting that they offered you to pay off your balance before completion. As well as my BTs (which I will pay off this year, well before any mortgage applications) I see a balance on my credit report relating to my monthly spending (always paid in full). Is it worth allowing them to go dormant for a month or two before attempting a mortgage application so they can see they're not carrying anything?
    • Marchitiello
    • By Marchitiello 27th Mar 17, 3:43 PM
    • 248 Posts
    • 89 Thanks
    Marchitiello
    As far as you can explain/ask them to get a closer look to Both balances and payment, I am not sure it is worth keeping them dormant and loose potential points/rewards. My understanding is that payments are not immediately visible vs outstanding balances...

    Have you tried to consolidate your NatWest cards as suggested by me earlier in the thread?
    • WillPS
    • By WillPS 27th Mar 17, 5:24 PM
    • 189 Posts
    • 86 Thanks
    WillPS
    As far as you can explain/ask them to get a closer look to Both balances and payment, I am not sure it is worth keeping them dormant and loose potential points/rewards. My understanding is that payments are not immediately visible vs outstanding balances...

    Have you tried to consolidate your NatWest cards as suggested by me earlier in the thread?
    Originally posted by Marchitiello
    I haven't but I do intend to ring and see what they'll do. It's all complicated slightly by the fact I have a supplementary card on the Reward but not on the Student card, but that is just another form to ask for I guess.

    Thank you for the tip! It hadn't occurred to me before.
    • john2054
    • By john2054 1st Apr 17, 7:10 PM
    • 163 Posts
    • 29 Thanks
    john2054
    To be honest, i wouldn't just go by what strangers on the internet tell you. You have to use your own judgement as well. But whatever you do, DON'T rely on bank employees advice, cos they no warped information, and can seriously damage your file, by making numerous applications, or reducing your credit limit, for example. Both of which have happened to me, in moons gone by.
    • earlywormgetsthebird
    • By earlywormgetsthebird 8th Apr 17, 2:41 PM
    • 28 Posts
    • 10 Thanks
    earlywormgetsthebird
    Please just remember that not all lenders assess credit the same way. What may seem sensible to one lender, may appear to be an act that's too cautious or even questionable, to another. There are lenders, in other words, who could view your own lowering of credit as a sign that you've too much credit available to you already, and that you yourself are concerned about all the credit that's already available to you, so that you want to control that credit available to you, i.e., that you can't be tempted to spend too much... To some lenders, that is surely a negative in itself.

    It's best always to show that you are completely comfortable with all the credit that's available to you, that you never overspend, that you have a proven track record of being excellent at controlling your own spending, and that future lenders have nothing to worry about.

    In other words, to some lenders - it's not so much the amount of credit that's available to you, that matters, as much as the way you've demonstrated how you've historically and responsibly handled all that credit. Just be aware of that.

    Sometimes to lower your own credit, is to cut your nose off to spite your face, or thereabouts...

    Does anyone else believe that another viable option is indeed, instead of seeking to lower your credit limits and then continuing to maintain all those cards, to simply close out (prune!) some of the OP's lesser used accounts instead?

    HTH
    Last edited by earlywormgetsthebird; 08-04-2017 at 3:03 PM.
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