HSBC Online Credit Card

SparciaM

Few questions:

Firstly, I logged on today to check my statement and they have increased my credit limit by £500!! Now I never asked for this to be done and when called them up, I was told that it was because I've been running my account good and every 6 months their lending team do a sweep and decide who or who can't have a credit limit increase. Is this allowed? Will the increase effect my credit file?
I've asked them to send my some T&C's that show they are allowed to do this, as I don't think I've ever read anywhere saying they can. I know where I work (smile), we only increase limits at customers request.

Secondly, the APR on the card is 14.9% (But I pay off in full each month). How can I get this APR down, would you just ask them and see what they say? Or threat to move elsewhere? I'm not looking to 0% as I have no credit card debt to shift, I'm just looking for a good credit card for online purchases and emergencies - but my credit score isn't great (would say is a B- to a C+ so not the best).

frugglewump

SparciaM wrote:

Is this allowed? Will the increase effect my credit file?
I've asked them to send my some T&C's that show they are allowed to do this, as I don't think I've ever read anywhere saying they can. I know where I work (smile), we only increase limits at customers request.

HSBC do raise limits without asking - it happens to me frequently. At one point I was calling them every 6 months to drop the limit again.

Secondly, the APR on the card is 14.9% (But I pay off in full each month). How can I get this APR down, would you just ask them and see what they say? Or threat to move elsewhere? I'm not looking to 0% as I have no credit card debt to shift, I'm just looking for a good credit card for online purchases and emergencies - but my credit score isn't great (would say is a B- to a C+ so not the best).

When I have tried this in the past they've refused to give a permanent cut, but have offered a BT rate. The "average" APR they're advertising at the moment is 13.9% so I doubt you could get it much lowered. How long have you had the card?

SparciaM

Had the card for nearly 12 months now. Got it in Jan this year!

Are they legally allowed to increase the credit limit without telling you? And does this effect your credit limit.

Caped_Avenger

SparciaM wrote:

Are they legally allowed to increase the credit limit without telling you?

Yes, otherwise they wouldn't do it. And they will tell you that they've done it.

Tell them you don't want them to automatically increase your credit limit again in the future, and they can block the system from doing it to your account.

Yes, it will show up on your credi file, but you can call them and ask them to decrease your limit again immediately they do it.