Credit limit increases

The_Boss

How long should you wait inbetween requests? I had a £6k limit with MBNA but reduced it to £2k a year ago. Then in either February or March of this year I successfully requested an increase to £3k, but I want to increase this to £4k before I call them up and ask to be put through to closures in order to get a good balance transfer deal.

Also, any idea how often accounts are reviewed? Morgan Stanley used to give me an increase every 6 months, but again a year ago I reduced my limit from £5.5k to £2k. They havent upped it since and I'd rather not have a search on my file for the sake of an extra £500-£1000 increase in credit limit.

humfer

Pretty sure every 6 months is standard. However some (think Nationwide) can raise them at any time I seem to remember reading somewhere. I suppose it depends on the card company and who they get their money from. I presume (and its only a presumption) that card companies that are part of banks will being willing to raise credit limits higher, more often ..... but don't quote me on it....

Moggles_2

In my experience it varies, as with almost everything else, between lenders.

I successfully requested an increase to £3k, but I want to increase this to £4k

Do you have any other credit cards issued by MBNA? This bank will sometimes reduce the credit limit on one or more of your MBNA cards, in order to give you a corresponding increased limit on the credit card you would like to use more.

The_Boss

Moggles wrote:

In my experience it varies, as with almost everything else, between lenders.



Do you have any other credit cards issued by MBNA? This bank will sometimes reduce the credit limit on one or more of your MBNA cards, in order to give you a corresponding increased limit on the credit card you would like to use more.

No, just the bmi one. Its my fault for reducing the limits down to the bare bones in the first place, and then only requesting a £1k increase earlier in the year when they would probably have topped it up again.

Moggles_2

At least you realise the cause now and know the pitfalls to avoid from here on.

Its my fault for reducing the limits down to the bare bones in the first place, and then only requesting a £1k increase earlier in the year when they would probably have topped it up again

Thanks for posting. Perhaps cardholders who contemplate reducing their credit limits will think again, when they see your post. Also, Snow Angel's thread below.

~~~~~~
To return to your original question, MBNA is a very competitive organisation. Shifting a balance to a rival card usually concentrates the bank's attention wonderfully!

If this isn't an option and you've set your heart on an extra £1000, I'd ring and ask. Lenders cannot search your credit file without your express permission. You can always drop the idea, if you're told a credit search will be required.

Very best
M

M_Thomson

Moggles wrote:

If this isn't an option and you've set your heart on an extra £1000, I'd ring and ask. Lenders cannot search your credit file without your express permission. You can always drop the idea, if you're told a credit search will be required.

Very best
M

Hi,
It's in the terms and conditions of all credit card issuers that they can search your credit file any time they want too if you have a card with them. Depending on the lender, they will often do this if you request a credit limit increase. They don't have to tell you if they do that.

Moggles_2

They don't have to tell you if they do that.

Many thanks, MT, for pointing this out.

On the few occasions I've asked for an increase - mostly Citi Cards and Morgan Stanley, if memory serves - I was informed when a credit check was necessary and given the opportunity to reconsider. Obviously, I was lucky.

YorkshireBoy

The Boss,

Agree with M Thomson that you give them carte blanche to check with the CRA's anytime they like to 'manage your account' when you sign on the dotted line. Many card providers expressly state this, although (after a quick look) I can't see it as clearly in the MBNA T&C's as it is with other providers.

Indeed, I've negotiated 4 repeat offers with an MBNA run card, and each time they've credit searched* before giving their decision on credit limit increases. Crucially, for you at least, they never offered me the choice as to whether I had a search or not. Moreover, my limit increases were in the range 20-30% - you're asking for 33%. I think you should prepare yourself for a search.

Finally, in my experience, MBNA seem to search Equifax only for limit increase purposes, whereas they searched Experian only for our initial applications.


* The only time I got a limit increase without a search was 6 months into my initial MBNA 9 month introductory period when they gave me an unsolicited increase - and told me about it on my statement.

The_Boss

Good stuff. One thing I'm thinking of to aid me is to pay off a lot on my MBNA card before requesting the increase - hopefully that will help me.

I dont know whether to enter the amount of an increase I want or to leave it blank and see what they offer. I'm assuming that if they cant match my requested limit that they will still give me something of an increase if its possible.

YorkshireBoy

The_Boss wrote:

I dont know whether to enter the amount of an increase I want or to leave it blank and see what they offer. I'm assuming that if they cant match my requested limit that they will still give me something of an increase if its possible.

If you ask for 'an increase' by phone, they'll ask you "do you have a figure in mind, or shall we see what the most you can have is?"

To me, as a stoozer, there's only one answer to that question!! You, however, may wish to just ask for what you 'need'.

The_Boss

YorkshireBoy wrote:

If you ask for 'an increase' by phone, they'll ask you "do you have a figure in mind, or shall we see what the most you can have is?"

To me, as a stoozer, there's only one answer to that question!! You, however, may wish to just ask for what you 'need'.

Ok. I was going to do it online rather than on the phone. Since I want this for a pending balance transfer offer, I'll not give a figure and see what they do. Then I'll get onto Morgan Stanley and ask for an increase before my credit file has been updated with the new MBNA balance.