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  • FIRST POST
    • bighitter4654
    • By bighitter4654 7th Jul 17, 1:55 PM
    • 15Posts
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    bighitter4654
    Virgin CC limit increase
    • #1
    • 7th Jul 17, 1:55 PM
    Virgin CC limit increase 7th Jul 17 at 1:55 PM
    I have received a letter from Virgin to say that unless I reject their offer, they will be increasing my limit from £13k to £18k in August. I have no intention of utilising the extra credit (my balance at the minute is approx 3k). However, I just wondered if the extra credit being available is good for my rating? I currently have a mortgage offer and expect to complete towards the end of August, obviously I don't want anything impacting that. If I ignore the letter and just allow them to increase it, will they do another credit search because that's something I want to avoid? The letter just says they have reviewed my account blah blah blah
Page 1
    • zx81
    • By zx81 7th Jul 17, 1:56 PM
    • 14,402 Posts
    • 15,199 Thanks
    zx81
    • #2
    • 7th Jul 17, 1:56 PM
    • #2
    • 7th Jul 17, 1:56 PM
    It depends on your income, limits and balances.
    • bighitter4654
    • By bighitter4654 7th Jul 17, 2:02 PM
    • 15 Posts
    • 1 Thanks
    bighitter4654
    • #3
    • 7th Jul 17, 2:02 PM
    • #3
    • 7th Jul 17, 2:02 PM
    Income is approximately 40k and the balance, like I say, is 3k. It's on 0% until early next year and my intention is to just pay it off by then. Just wondered if the new limit was a good or bad thing really
    • bengalknights
    • By bengalknights 7th Jul 17, 2:13 PM
    • 4,182 Posts
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    bengalknights
    • #4
    • 7th Jul 17, 2:13 PM
    • #4
    • 7th Jul 17, 2:13 PM
    So effectivly you would be able to utilise over 50% of your net income as debt, some lenders would see this as a risk.
    • MallyGirl
    • By MallyGirl 7th Jul 17, 2:14 PM
    • 2,099 Posts
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    MallyGirl
    • #5
    • 7th Jul 17, 2:14 PM
    • #5
    • 7th Jul 17, 2:14 PM
    my Experian report (free to me before anyone criticises) has my highest limit (£18k) as a positive factor
    • bighitter4654
    • By bighitter4654 7th Jul 17, 2:17 PM
    • 15 Posts
    • 1 Thanks
    bighitter4654
    • #6
    • 7th Jul 17, 2:17 PM
    • #6
    • 7th Jul 17, 2:17 PM
    So effectivly you would be able to utilise over 50% of your net income as debt, some lenders would see this as a risk.
    Originally posted by bengalknights
    I guess from the conflicting opinions nobody is really sure
    • zx81
    • By zx81 7th Jul 17, 2:27 PM
    • 14,402 Posts
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    zx81
    • #7
    • 7th Jul 17, 2:27 PM
    • #7
    • 7th Jul 17, 2:27 PM
    If you only have the one card, I would accept the increase. It you had other available credit, perhaps not.

    However, it would be wise to have at least one back up.
    • bighitter4654
    • By bighitter4654 7th Jul 17, 2:45 PM
    • 15 Posts
    • 1 Thanks
    bighitter4654
    • #8
    • 7th Jul 17, 2:45 PM
    • #8
    • 7th Jul 17, 2:45 PM
    If you only have the one card, I would accept the increase. It you had other available credit, perhaps not.

    However, it would be wise to have at least one back up.
    Originally posted by zx81
    Thanks for that. Yes, I only have the one card. The only other credit I have is approx 7k on a personal loan I took out for my car with Zopa at 3%. Regarding a back up, I am fortunate enough to be in a great company share scheme at work in which I have a decent amount saved. I could always access that in an emergency but I like to leave it if possible for the dividends and the fact that it's my nest egg
    • zx81
    • By zx81 7th Jul 17, 2:47 PM
    • 14,402 Posts
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    zx81
    • #9
    • 7th Jul 17, 2:47 PM
    • #9
    • 7th Jul 17, 2:47 PM
    I meant a back up card, for when yours is declined at 2am at a petrol station in the middle of nowhere.
    • bighitter4654
    • By bighitter4654 7th Jul 17, 3:05 PM
    • 15 Posts
    • 1 Thanks
    bighitter4654
    I meant a back up card, for when yours is declined at 2am at a petrol station in the middle of nowhere.
    Originally posted by zx81
    Hahaha yeah, I don't suppose my shares would do me much good in that particular situation

    Not sure it's a good idea though to apply for another card just at the moment until I'm in the new house. I thought I was being smart opening another bank account for the benefits, until I read of the potential pitfalls on here regarding the effect on credit rating
    Last edited by bighitter4654; 07-07-2017 at 3:08 PM.
    • bigadaj
    • By bigadaj 7th Jul 17, 7:13 PM
    • 10,803 Posts
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    bigadaj
    Thanks for that. Yes, I only have the one card. The only other credit I have is approx 7k on a personal loan I took out for my car with Zopa at 3%. Regarding a back up, I am fortunate enough to be in a great company share scheme at work in which I have a decent amount saved. I could always access that in an emergency but I like to leave it if possible for the dividends and the fact that it's my nest egg
    Originally posted by bighitter4654
    Comoany share schemes can be good but they are also very risky. Single companies can go bust, values can certainly fall, and concentrating risk by having your employment and potentially a large proportion of your savings in one place isn't ideal.
    • bighitter4654
    • By bighitter4654 8th Jul 17, 12:02 AM
    • 15 Posts
    • 1 Thanks
    bighitter4654
    Comoany share schemes can be good but they are also very risky. Single companies can go bust, values can certainly fall, and concentrating risk by having your employment and potentially a large proportion of your savings in one place isn't ideal.
    Originally posted by bigadaj
    Generally speaking I would agree with that, except my employer (BAE Systems) matches every share that I purchase, plus they are purchased before tax and NI contributions so there would have to be something of a disaster for participating employees to lose money. The trend of BAE shares has historically been very much up
    • PeacefulWaters
    • By PeacefulWaters 8th Jul 17, 12:09 AM
    • 7,310 Posts
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    PeacefulWaters
    Generally speaking I would agree with that, except my employer (BAE Systems) matches every share that I purchase, plus they are purchased before tax and NI contributions so there would have to be something of a disaster for participating employees to lose money. The trend of BAE shares has historically been very much up
    Originally posted by bighitter4654
    I thought that about my HBOS shares before they fell over 98% in value.

    Maximise the match. Sell and diversify as soon as it's tax efficient to do so. The risk of having your employment and savings in the same barrel is spectacularly high.
    • bigadaj
    • By bigadaj 8th Jul 17, 9:40 AM
    • 10,803 Posts
    • 7,100 Thanks
    bigadaj
    Generally speaking I would agree with that, except my employer (BAE Systems) matches every share that I purchase, plus they are purchased before tax and NI contributions so there would have to be something of a disaster for participating employees to lose money. The trend of BAE shares has historically been very much up
    Originally posted by bighitter4654
    As peaceful waters says diversify as soon as possible.

    BAE are certainly a large company, but one subject to more political risk than most. A huge part is dependent on uk government defence spending, and they will be a company very much affected by Brexit.
    • Ben8282
    • By Ben8282 9th Jul 17, 6:07 AM
    • 2,071 Posts
    • 914 Thanks
    Ben8282
    So effectivly you would be able to utilise over 50% of your net income as debt, some lenders would see this as a risk.
    Originally posted by bengalknights
    Maybe. My available credit was almost equal to my annual income when I last applied for a card. I was accepted with a 7k limit which pushed my available credit a few k over my annual income.
    my Experian report (free to me before anyone criticises) has my highest limit (£18k) as a positive factor
    Originally posted by MallyGirl
    It is.


    Accept the credit limit increase. Your total available credit will still be less than 50% of annual income. You are still far from the point where you need to worry about having applications rejected because you have too much available credit. Having a high limit shows that you can be trusted with a high limit and high limits tend to bring high limits on future applications, although the limits you are offered will start to decrease as you obtain more cards. For example, the 7k limit I was given on my last application was lower than the limit I was given on the application prior to that.
    The individuals who need to worry about this sort of thing are those who fill up a high limit card, say 18k, then expect to be able to apply for another card and be immediately given an 18k limit to transfer 18k, which of course doesn't happen. Unless you are planning something like that, then don't worry too much on this point.
    What is more important is balances and utilisation ratio. Your new credit limit will give you a good utilisation ratio of 16.6% and £3k debt at 0% is insignificant with your level of income.
    I think you may have misunderstood about 'back up'. By 'back up' the poster was referring to a back up credit card to use in case you should be unable to use your one and only credit card for some reason, not to financial back up if you are unable to pay your bill.
    Last edited by Ben8282; 09-07-2017 at 6:12 AM.
    • bighitter4654
    • By bighitter4654 10th Jul 17, 7:24 AM
    • 15 Posts
    • 1 Thanks
    bighitter4654
    Thanks for the replies, very much appreciated. I will accept the limit rise.
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