Too much credit?

pin

OK hears my situation.

I have two cc's I use on a regular basis: Conran and Nationwide. Both of them have limits of £6k each.

I also have an Egg card limit of £7.5k (presently on anniversary stooze).

I also have an RBS card limit of £5k (stoozing).

Finally have an HSBC card limit of £500.

Therefore my total credit is £25k.

I never reach my limit with the Conran and Nationwide cards. However I have once with the Conran. However I do like the buffer, just in case I need to make an extra spend.

I'm planning on ditching the Conran and getting an Egg Money card (basically both offer 1% cashback). Reason for ditching the Conran is so that I can take advatage of various MBNA card offers and can't do at present with their one card only rule.

Problem is a few months ago I applied for an Amex platinum (for cashback) and got rejected. Their reason was I have too much credit in relation to my salary (£45k).

I will be paying off my RBS card at the end of May, therefore reducing my credit by £5k. I will keep my Egg card, for the next anniversary offer.

What are my options? Should I actually reduce the limits on my Conran card and Nationwide card?

BTW I will need to wait until May before I get my Conran card cashback.

Thanks for any help offered (and hopefully you understand what I've written!!)

grumbler

Just a thought.

Egg Card used to pay high cashback in the past. And what now? 0.1%. I don't believe that Egg Money will pay 1% forever. I wouldn't close Conran card, but just reduced the limit.

pin

grumbler wrote:

Just a thought.

Egg Card used to pay high cashback in the past. And what now? 0.1%. I don't believe that Egg Money will pay 1% forever. I wouldn't close Conran card, but just reduced the limit.

Thing is, I can't get another MBNA card if I keep the Conran card.

I'm probably going to reduce the limit of both the Conran and Nationwide card to probably £4k each though.

grumbler

pin wrote:

Thing is, I can't get another MBNA card if I keep the Conran card.

What do you need another MBNA card for? With £75 BT fee they are almost useless now.

YorkshireBoy

I'd close Conran after the cashback is paid, then go for Virgin.

Egg Money has other benefits, in addition to whatever cashback rate is paid.

Re the 'too much available credit' - this is just Amex's opinion. I currently have over 200% compared to salary, and had over 180% when I was accepted for my last card. Each lender will take a different view, and some can be persuaded to take 'your' view with a good appeal letter.

Having said that, I am very fortunate in that I have a large credit limit with my own bank provided card (that isn't reported to the CRA's), so I don't need high limits elsewhere 'just in case'. Therefore, I always make sure that any limits I have elsewhere are *working* for me. If I'm not using the available credit I reduce/eliminate it. You may have your own reasons for wanting to retain high limits but are you really *sure* they need to be so large?

pin

grumbler wrote:

What do you need another MBNA card for? With £75 BT fee they are almost useless now.

I want to get the BMI card for the 20,000 free BMI miles (and then will probably close the card anyway). Not caring about BT fees etc anyway.

Re the 'too much available credit' - this is just Amex's opinion. I currently have over 200% compared to salary, and had over 180% when I was accepted for my last card. Each lender will take a different view, and some can be persuaded to take 'your' view with a good appeal letter

Tried that with Amex, didn't work!!

If I'm not using the available credit I reduce/eliminate it. You may have your own reasons for wanting to retain high limits but are you really *sure* they need to be so large?

No, I'm not sure I need it, however, like I said, like the buffer. Basically my spending month to month can vary, so in one month I will spend £500 and in the next month I can easily spend £5,000. However I will probably reduce my credit.

The_Boss

With the bmi offer, you still have to pay the tax. And with them bringing in their Tiny fares, the miles might only work out to a value of about £30-£70. Wouldnt you prefer to use a search on a 0% balance transfer and save a lot more?

pin

The_Boss wrote:

With the bmi offer, you still have to pay the tax. And with them bringing in their Tiny fares, the miles might only work out to a value of about £30-£70. Wouldnt you prefer to use a search on a 0% balance transfer and save a lot more?

I'm well aware of that, however they have some great fares when you mix the miles and some cash.

lisyloo

I applied for Egg money recently and got turned down.
Might have been because I'd just stoozed £20K from Egg and Abbey National.

I then appealed (because the initial decision is just a computer).
Someone called me and asked me lots of detailed questions and I got the card.

I think there is a reasonable chance you would get the card if you went down this avenue even if you get the "computer says no".

the_blue_angel

cant understand how such a big amount can be built up on a credit card

grumbler

Have you ever heard about Stoozing ?