New cards with widely differing credit limits - usual?

Watson

Following the advice on this site, I'm planning to do some balance transfers to reduce interest charges. I've applied for three new cards: the British Airways Amex, the Lloyds TSB Advance and the Barclaycard Platinum VISA.

So far, two of these applications have been accepted: the BA Amex with a credit limit of £4000, and the Barclaycard with £1850.

Is it usual to be given such widely differing credit limits? Has it happened because different companies use different criteria to work out these things?

Many thanks,

Watson

dc

Depends on what the "Target for the Month" is for each card, after all they are out to take money off you and your supplier of goods/services, they are anything but charitable.

I have had limits given from £1000 to £14000. It depends on the current financial climate ( including competition), their knowledge of your finances whether 1st or 2nd hand. and how desperate they are to get business,i.e. a new product launch).

For what it is worth MBNA administered cards used to give me the highest limits. But you now have to consider fees, % payable per month ( especially if you have to BT to a number of cards ).
In your position I would consider moving to a low (eg 5% ish) Life of Balance card.

Good luck
dc

Watson

dc, thanks for the reply and the info. I'm reassured to know that this is not uncommon. It will be interesting to see what limit I'm given, if at all, on the Lloyds TSB card.

> In your position I would consider moving to a low (eg 5% ish) Life of Balance card.

Clearly a case of great minds thinking alike: the BA Amex is 4.9%, the Lloyds 5.5%, both for the entire life of the balance. The Barclaycard is 0% for ten months.

Watson

tracy1234_2

Hi Watson,

Did BA Amex give you decision straight away?

Thanks.

Watson

Tracy,

No, I had to wait a couple of days, then I got a letter. Because it obviously didn't contain a card, I thought it was a rejection so I was pleasantly surprised when I opened it.

The letter gives my membership number and says that I can expect to receive the card within fourteen days. My credit limit wasn't given, but I found it out by phoning the helpline.

I assume that the card will have to be activated when I get it, so I haven't tried to do the balance transfer as yet.

I hope this helps.

Watson

tracy1234_2

Hi,

Thanks for let me know. Do you know which credit agency they used?

Thanks.

Watson

Sorry Tracy, I've no idea.

Watson