Is a 10K+ limit hard to get?

Zelie

withabix wrote: »

Barclaycard have recently reduced the credit limit on one of my cards to a massive £350 :rolleyes: and raised the APR to something similar to a store card!!

I hardly ever use the damn thing (mid-2008 sometime!). It's now so useless I don't even take it out of the house!!

Admittedly, I was up the creek without a paddle 7 years ago, but I'm now probably as creditworthy as you can be (no bad history at all remains on my credit file). I actually have healthy savings as well - for the first time in my 39 year life!!

John Lewis on the other hand increase my limit automatically every 3 months...

As for the OP's 'problem', I would say that getting a new card with a £10k limit in the current financial climate will be hard if not impossible on your salaries - purely because the lenders credit and affordability score targets have been raised quite a bit to minimise their risk exposure.

What about borrowing from your mortgage lender (if they will lend, of course)? Many lenders will give you a 'home owner loan' at their SVR or your current mortgage rate, over a term to suit you (eg 1-5 years). That's how I finance my car for work, which is then paid for by car allowance from my employer. At current interest rates, this is probably the cheapest feasible borrowing route.

Why not just put your weekly shop on it? So long as you have a direct debit set up to immediately pay it all off you'd be fine. And it's a good way to show you've borrowed money each month and repaid it - if you need your credit limit to rise then that might be a useful way.

rodent

ytfcmad wrote: »

This is the exact reason why we are in the !!!!, allowing people credit to levels they should never ever of been offered based on earnings.

So.......if you dont base on earnings ...exactly what do you think lenders ..should base on ?


The Rodent

TFD_2

rodent wrote: »

So.......if you dont base on earnings ...exactly what do you think lenders ..should base on ?


The Rodent

I think he's saying it should be based on earnings, but not a £10K limit so somebody on just £25K a year.

animox

I just got a 0% card with Halifax it a NSPCC Charity Card, so I presume my huge balance is doing some good some how. Anyway they gave me 11K, mu earning are a little higher but worth a try.

happy hunting;)

naijapower

Definitely, most cc based your initial limits on your earnings.
But as time goes on and you make payments, no issues, remain a good customer, your limit can increase to a very very high level which may noy be proportionate with your income. The systems trust you based on your repayment history and length of time with the cc, hence it able to offer you a generous limit.
I think it is left for the customer to advise the credut card company that they feel the limit is too high for their current circumstances etc

rodent

naijapower wrote: »

Definitely, most cc based your initial limits on your earnings.
But as time goes on and you make payments, no issues, remain a good customer, your limit can increase to a very very high level which may noy be proportionate with your income. The systems trust you based on your repayment history and length of time with the cc, hence it able to offer you a generous limit.
I think it is left for the customer to advise the credut card company that they feel the limit is too high for their current circumstances etc

If you show that you have financial acumen and can manage your finances properly then there is no issue.

People who cant manage their finances should be identified a lot sooner then they are and clearly not given such big credit facilities, but not to the detriment of us that can!

The Rodent

ytfcmad

TFD wrote: »

I think he's saying it should be based on earnings, but not a £10K limit so somebody on just £25K a year.

Correct, what I'm saying is mortgages have (in the main) been based on tight lending multiples, going outside the historical x3 /x3.5 lending multiples is one reason why people have credit for mortgages they were never going to afford long term and end up in debt via this rout.
Credit cards have been even more lax, giving big limits straight off, up limits for no good reason, ignoring multiple card holding (massive overall credit limits).
Mortgage companies don't go offering you (in comparison) massive sums of extra borrowing just for paying on time for a few years or whacking big sums into your account without asking just to tempt you.
At least with a house you stand a chance of getting your money back or possibly making a few bob.
Unless you have a lot of bad luck in your life there is no sensible reason for having a card with a limit of half your annual salary.

NickX

ytfcmad wrote: »

Unless you have a lot of bad luck in your life there is no sensible reason for having a card with a limit of half your annual salary.

Hmmm, don't agree. The higher the limit the better for anyone participating in stoozing

ytfcmad

True, but you would have/need a good credit rating in the first place.

missk_ensington

TFD wrote: »

I think he's saying it should be based on earnings, but not a £10K limit so somebody on just £25K a year.

It isnt the banks responsibility to constantly shelter us from temptation, it is our own responsibility to only take on manageable debts! I have a capital one card with an £8,000 limit, another for £5000, and another for £3300 but on my current monthly income of about £800-900 (starting up a new business at the moment) I wouldnt dream of utilising nearly £17,000 of available credit!

Eve should never have taken the apple, regardless of the serpents temptation.