application process - credit limit advice

G_M

When during the application process do cc companies usually tell you your credit limit? Before or after you sign the credit Agreement?

I was 'approved' on line, then sent an Agreement to sign. When I rang to ask what credit limit I was being offered I was told they could not tell me untill I signed due to the Consumer Credit Act.

Is this normal?

It seems to me similar to agreeing a price to build an extension to my house, but the builder refusing to say whether he'll include electrics, or specify the insulation included, until I sign the Contract!

PNPSUKNET

They may want todo further checks, so may need a signed agreement first. Who is the lender?

YorkshireBoy

G_M wrote: »

When during the application process do cc companies usually tell you your credit limit? Before or after you sign the credit Agreement?

In my experience, normally at the end of the online/telephone application.

I was 'approved' on line, then sent an Agreement to sign. When I rang to ask what credit limit I was being offered I was told they could not tell me untill I signed due to the Consumer Credit Act.

M&S per chance?

Is this normal?

In my experience, no.

It seems to me similar to agreeing a price to build an extension to my house, but the builder refusing to say whether he'll include electrics, or specify the insulation included, until I sign the Contract!

Not really. You have 14 days to cancel if you're not happy with the limit.

G_M

Not sure what further checks they could need. they've accepted on-line ID validation. Done Credit Reference Agency checks, approved me, so what more is there?

M&S - Yes!

True -14 days to cancel. Fair point.

But why is M&S different?

never-in-doubt

G_M wrote: »

When during the application process do cc companies usually tell you your credit limit? Before or after you sign the credit Agreement?

I was 'approved' on line, then sent an Agreement to sign. When I rang to ask what credit limit I was being offered I was told they could not tell me untill I signed due to the Consumer Credit Act.

Is this normal?

It seems to me similar to agreeing a price to build an extension to my house, but the builder refusing to say whether he'll include electrics, or specify the insulation included, until I sign the Contract!

You're speaking about M&S aren't you? Its one of the few lenders that do this and it is simply because although you meet their criteria, they are using HSBC as their issuer who deem a CCA (signed) will allow them the last possible opportunity to change their minds if things change between application and card issuance so they decide your limit at the last point, usually when you get your card.

What I mean is you'll find that no limit has been allocated as yet - will get generated when you sign.

I have though, heard rumours they don't give big limits and to stop people applying to be accepted with a silly limit (i.e. £750), then cancelling when they hear the limit they just prefer to say sorry we cannot tell you. Then again i've heard they do give good limits so it must be a thing that M&S do - i.e. annoy prospective customers lol

To call their bluff you should ring and clearly say 'I want to do a BT and without the limit and apr I cannot sign any agreement'.

They will either apply for the limit or give an indication if it has already been assigned a limit (provisional limit of course).....

CG19a

When I applied for my Barclaycard, I didn't find out my limit until I received the letter with my card attached.

stephane_2

every time I have applied to a credit card, I was always told at the end of application what would be my credit limit but I suppose some credit providers might want to do further checks before taking their final decision.

G_M

To call their bluff you should ring and clearly say 'I want to do a BT and without the limit and apr I cannot sign any agreement'.

Oh I've done this. I've spoken to 'supervisors'. I've written to them. I've emailed their 'Credit Manager' (no reply). They ALL say it's the Consumer Credit Act that forbids them from telling me the credit limit before I sign. I know this is rubbish but get nowhere.