credit limits science?

rward69

hi all

i really get the feeling that there is no science behind credit limts.....

debate......


my limits total more than my income of between 30-40k yet i got £6200 with the BOS nspcc card last month whilst getting only £1000 with the hsbc online card.

debate...

:-)

R

Milarky

Of course they [the CC companies] won't tell us exactly what they do to decide and do not yet share all this information - or insist on its being used in the same way.

They can therefore 'do their own thing' up to a certain point so I guess your assumptions are 'scientifically' plausibly based on the 'known facts'  ;D

From what I gather, interest rates here are dictated to an extent by rates 'over there'. It is noticeable [to me at least] that the same personal loan figures crop up [like 'borrow £8000'] from different lenders. This suggests that they have periodic allocations of money at fixed interest rates and are trying to 'parcel' them out on a first-come-first-served basis.

And as with personal loans so too with 'creditelasticity' as it were. Sometimes they may be particularly indulgent with giving larger credit limits and sometimes they may be fairly stingy. [Aren't Barclaycard and Capital One becoming renowned for this?] The pressure to develop a 'scientific' approach to all this will probably come not from within the 'industry' but instead via government initiatives as they wake up to personal credit difficulties.

[dunno - what do others feel?]

Gotabiscuit

My experience has been that I get low credit limit with cards attached to established banks (eg HSBC, Halifax, RBS/Mint).

However, I'm aware that some people have very high credit limits on cards issued through traditional banks - but often these have been built up over time.

I've had my highest credit limits from the 'new boys' (eg Egg, MBNA and Capital One).

Unbelievable_2

I don't think there is any scientific approach to limit setting but there is no doubt that my limits have been significantly enhanced by my partner's earning capacity. Our credit reference files are almost identical even though we have applied for different cards (and not applied for additional card holder). My lowest limit by far was £2,200 with Mint - when I provided bank statements (showing husband's income BTW) they upped it to £5000. (Still my lowest, but not bad considering I'm a 'homemaker' (hehe - sorry, that word always makes me chuckle ;D)

monkeyboy72

I recently applied for and was accepted to the capital one no hassle platinum card 5.9%, I was absolutely gobsmacked to be given a credit limit of £6000, i didnt have any other cards or transfer any balances, and believe me when I say I earn quite a bit under the national average!, now where did I see that plasma tv again....