Advice needed: how best to change credit cards?

[Deleted User]

Hello - I wonder if anyone could help me.

I've got a Capital One credit card, but the credit limit is only £500. When I took it out I was told that it was standard for this to be set low for the first three months, but then it would be raised once I'd demonstrated good handling of the account.

This, I duly did. I've never missed a payment, but almost a year later and no review of the credit limit. I called them and they said that because I'm not using it much, they won't increase the limit.

My credit rating is fair because I have an unsecured loan for £12k and a graduate loan for £6k, but the Capital One credit card is pretty useless for me. The reason I'm not using it much is because £500 is too low a limit for the sort of purchases I want to put on there! I'd like to put some bigger household items onto the card to manage my cashflow better and spread my payments over two months rather than having to pay cash all the time!

Given that Cap One won't increase my limit, does it make sense to try and apply for a different provider, given that there's no guarantee they will do any better? If so, should I cancel Capital One first and then apply, or would having one card help me?

I had a Barclaycard with a credit limit of £7.5k around a year ago, that I cancelled. If I'd have known that card providers would only give me a limit of £500 then I wouldn't have cancelled it!

BigDave81

You can check your credit report and make sure all is in order, if so apply for another card or maybe just spend more on the Cap 1 card for a few months and ask them to reassess it after that period.

[Deleted User]

I've had the Cap 1 credit card for 8 months and have used it to the max some months and less others, always paying it off in full (apart from one month, where I paid half).

Credit Report is all in order and fine, but is 'fair' because of the high unsecured debt and also a few searches in the past 6 months (not for credit, but for checks made for IT equipment rental for my LTD business)

goonasuk

Was in the same situation, a pathetic £200 limit for over 3 years - so phoned them up and told them to shove their account where the sun don't shine. But I have 2 other cards with much higher limits to use.

[Deleted User]

Just spoke to them - I've had the card since August 08 (13 months) and they said to just wait and if I'm eligible for an increase they'll write to let me know...

...so not much point having it really, is there?

Is it possible, when applying for other credit cards, to see if there's a 'minimum' credit limit they offer? I know the maximum is subject to status and credit checks etc, but I don't want to have a search on my credit record if it means getting approved for a card, but only for a £500 credit limit.

I don't want much: perhaps £1k credit limit would do.

[Deleted User]

p.s. whenever I use MoneySupermarket or MoneyMerlin to see which cards fit my credit report, it just says Capital One are the best for me. Frustrating!

exel1966

Deleted_User wrote: »

Hello - I wonder if anyone could help me.

I've got a Capital One credit card, but the credit limit is only £500. When I took it out I was told that it was standard for this to be set low for the first three months, but then it would be raised once I'd demonstrated good handling of the account.

This, I duly did. I've never missed a payment, but almost a year later and no review of the credit limit. I called them and they said that because I'm not using it much, they won't increase the limit.

My credit rating is fair because I have an unsecured loan for £12k and a graduate loan for £6k, but the Capital One credit card is pretty useless for me. The reason I'm not using it much is because £500 is too low a limit for the sort of purchases I want to put on there! I'd like to put some bigger household items onto the card to manage my cashflow better and spread my payments over two months rather than having to pay cash all the time!

Given that Cap One won't increase my limit, does it make sense to try and apply for a different provider, given that there's no guarantee they will do any better? If so, should I cancel Capital One first and then apply, or would having one card help me?

I had a Barclaycard with a credit limit of £7.5k around a year ago, that I cancelled. If I'd have known that card providers would only give me a limit of £500 then I wouldn't have cancelled it!

Having an initial credit limit so low could possibly be because you have the 'sub-prime' card (therefore not surprising) ? or your current debt is too high or your current available credit is too high or your income is not high enough for them compared to debt.

It's also quite plausible that because you have used the card minimally they see no need for the increase. What is your normal balance per month and what exectly do YOU mean by 'I'm not using it much' ?

In your situation I'd try elsewhere, but KEEP the Capital One initially as there's no guarantees that you'd be accepted anywhere else or that you'd get a Capital One card again.

MBNA's/Virgin's range of cards may be best suited to you, they are known to give more generous limits to those with a decent history.

Any application will be recorded, but a decline is not marked as such.

[Deleted User]

My balance each month varies. For the first three months I used it a bit (£100) and paid it off in full each month, to demonstrate good management of the account. Since then my balance has varied from £150 - £450 by the end of the month. Most months I've paid it off in full, apart from twice when I had £450 on there, and I cleared half.

The reason I have the low credit limit - I was told - is that it's standard practice now to have a 'probationary' period for new cardholders. I was advised that it would be reviewed after three months if I managed my account correctly, but this 'review' didn't seem to result in a rate increase.

I just visited Barclaycard, which I used to have (in 2006 - closed since then) and they have a pre-eligibility check that uses your credit report but places an 'unrecorded enquiry' - it allows you to see whether you will be approved without affecting your credit rating. It said I was declined straight away, but I'm not sure whether this is because of my credit rating or because I'm a previous Barclaycard customer.

Looks like I'll just have to accept it!

exel1966

Deleted_User wrote: »

My balance each month varies. For the first three months I used it a bit (£100) and paid it off in full each month, to demonstrate good management of the account. Since then my balance has varied from £150 - £450 by the end of the month. Most months I've paid it off in full, apart from twice when I had £450 on there, and I cleared half.

The reason I have the low credit limit - I was told - is that it's standard practice now to have a 'probationary' period for new cardholders. I was advised that it would be reviewed after three months if I managed my account correctly, but this 'review' didn't seem to result in a rate increase.

I just visited Barclaycard, which I used to have (in 2006 - closed since then) and they have a pre-eligibility check that uses your credit report but places an 'unrecorded enquiry' - it allows you to see whether you will be approved without affecting your credit rating. It said I was declined straight away, but I'm not sure whether this is because of my credit rating or because I'm a previous Barclaycard customer.

Looks like I'll just have to accept it!

No, it's not standard practice to have such a low limit at all unless you have a poor rating or have a sub prime card. Do you ?

Yes, all cards have probationary periods where you have to demonstrate your financial management prior to getting a rate increase. It can vary between 3-12 months.

Your usage would suggest an average balance in the time you've had the card of £300, therefore it's fairly easy to see why Cap 1 don't consider you need a higher limit.

The Barclaycard pre-check is worthless and means very little ! That check is done with Call-Credit, but in reality all applications are checked using Experian or Equifax (proper established CRA's). Being a previous Barclaycard customer is irrelevant if you managed your account properly. If you didn't or very recently closed that account then it's very relevant.

[Deleted User]

exel1966 wrote: »

No, it's not standard practice to have such a low limit at all unless you have a poor rating or have a sub prime card. Do you ?

Yes, all cards have probationary periods where you have to demonstrate your financial management prior to getting a rate increase. It can vary between 3-12 months.

Your usage would suggest an average balance in the time you've had the card of £300, therefore it's fairly easy to see why Cap 1 don't consider you need a higher limit.

The Barclaycard pre-check is worthless and means very little ! That check is done with Call-Credit, but in reality all applications are checked using Experian or Equifax (proper established CRA's). Being a previous Barclaycard customer is irrelevant if you managed your account properly. If you didn't or very recently closed that account then it's very relevant.

My credit rating was 'good' at the time of application (890, I think?) and certain nothing adverse on there (no missed payments, searches in past six months).

My average balance is £300, but that's because I only have a limit of £500 and the kind of items I want to use a credit card for cost more than that. We're doing up the kitchen at the moment and having to pay cash for everything. Whilst I can afford it, I'm self-employed so would rather put things on my card and pay the balance off over a couple of months, rather than taking the hit in one go, just to make sure I save some cash for the business.

I definitely don't have the sub-prime card. It's just the regular capital one card.