credit limits

scottygirl_2

i am totally new to all this although ive been browzing around the boards for many weeks now and hooked on it all. my queiry being new to all this credit thing is how do different credit financial institutes come to your credit limit.for example i have a morgage and last year got credit from next this started with a £300 limit 6 months later increased to £600 and now 1 year on is £4000. 6months ago applied and was accepted for a egg card creit limit £500. if i was to go and buy a tv on finance now how would i know what limit i could go for

vwman_3

Credit limits make me laugh sometimes, talking to a friend last night, he has a Barclaycard with a £2000 limit on it, he has had the card for 12 years, he has requested a credit limit rise every 6 months for the last 4 years and its been refused, he has never gone over the limit, and never been late with payments, always paid on time and always leaves a small balance on the card of £100-£150.
His last request for a rise was in December and again refused, he then decided to apply for another card and early in January got a B/T Virgin card with the 9 month deal.
He wrote to Barclaycard and asked them to close the account after the balance had been paid off, next thing he knows Barclays are on the phone asking him why, he tells them it's because they will not raise the limit, there and then on the phone they are offering him a limit of £7.5k (Virgin gave him a limit of £4k)
He refused their offer, then on Monday they phoned again and offered him a £9k limit plus upgrade which he has now accepted, what a carry on.........

Rafter

Limits and limit increases are set by computers based on various rules that are different for every bank or finance company out there.

However, the banks want you to be able to pay the debt back.

The limit will generally be set based on your income, regular outgoings such as mortgage, other debts, whether you are married, how long you have been with your bank or with that credit provider etc etc.

The reason the Barclaycard increase wasn't approved is lost on me, but maybe because they were holding out of date salary details they thought that £2000 is all you could reasonably afford.

Also, why when you only ever carry over a few £100 would you suddenly be requesting an increase?


Scottygirl. Suggest you get Next to reduce your credit limit - why would you need £4k to spend at next, and that much spare credit may count against you.

Financing a telly through instore credit is likely to be really expensive. You may be better off with a loan or even better a 0% credit card.

You may get a better credit limit from your own bank who will know how you have been managing your current account.

Good luck.

R.

HGLTsuperstar

Go one better, cancel the Next card. Store cards are not economical at all!