Upgrading Barclaycard Initial to Barclaycard

stephane_2

byebyedebt wrote: »

So you actually demonstrated that you are a bit of a risk, because firstly you have maxed out your cards twice. The fact that you paid it down to 0 twice creates the impression that you have irregular income, it doesn't neccessarily show that you are good with credit.

You have to look at it from the banks point of view. If you are maxing the card twice in six months, does that indicate a problem?

It used to be a status thing, Ive got a bigger limit than you etc. Now it is seen as a liability.

You are wrong it has nothing to do with having or not irregular income but actually shows that you are able to manage your credit within it's limit and repay it within a reasonnable amount of time....

DizzleUK

Yes I think I may end up keeping my Capital One card with it's mini limit (I expect to get it to £200 in 4 months time and then never get a raise ever again, in line with most other C1 Classic customers on here) for those times when you're in a shop (or worse petrol station) and something goes wrong with the card of choice.

byebyedebt

stephane wrote: »

You are wrong it has nothing to do with having or not irregular income but actually shows that you are able to manage your credit within it's limit and repay it within a reasonnable amount of time....

On that basis he would have got an increase...which he didn't. He got a decrease. Steady borrowing would have helped, but maxing the card out twice in six months wont. It indicates possible irregular income or variable ability to pay, ie balancing cards. Maybe if he maxed the card once only he would have been ok, particularly if steady sums were being paid monthly, or even if a single repayment was made.

stephane_2

Plenty of peoples here have had their credit limit slashed within the last few months and most did not max out their account and some had been with same provider for many years.....with impeccable repayment history and high regular income

izools

byebyedebt wrote: »

On that basis he would have got an increase...which he didn't. He got a decrease. Steady borrowing would have helped, but maxing the card out twice in six months wont. It indicates possible irregular income or variable ability to pay, ie balancing cards. Maybe if he maxed the card once only he would have been ok, particularly if steady sums were being paid monthly, or even if a single repayment was made.

Yeah indeed, my old Halifax One card had it's limit increase by 50% regularly every six months running it in the fashion that I currently run my barclaycard - but then again I did end up defaulting on that back along They had also decreased my APR from 19.9% to 12.9% over the course of 18 months and given me a repeat offer... Ahh the yonder days of over-zealous lending.

I've now stopped spending on the Barclaycard and am making steady repayments of over 10% of the balance each month. I will continue to do this until next year I'll call them again and find out if this is what they prefer

The limit makes no bones to me, but I'd like to be trusted with a lower APR We'll see come newyear!

woody01

byebyedebt wrote: »

On that basis he would have got an increase...which he didn't. He got a decrease. Steady borrowing would have helped, but maxing the card out twice in six months wont. It indicates possible irregular income or variable ability to pay, ie balancing cards. Maybe if he maxed the card once only he would have been ok, particularly if steady sums were being paid monthly, or even if a single repayment was made.

Sorry but you are wrong.
Having a card nedar its limit is seen by a lender as a good thing as they are making money from you.
Paying it all off is seen as a bad thing, as they make nothing.

Anyone actually considered that the reason people arent getting credit increases is that they are simply not earning enough or are just a poor credit risk?

I have a Barclaycard Platinum, and the limit was £7.8K when i first got the card.
Limit after 6 months went to £9.4K.
If i have used 90% of that would you say i'm a bad risk? Probably you would!
But remember peoples earnings are different. I am earning £4-5K per month, and alot of the money on there is expenses (for when my Corporate AMEX can't be used <---rubbish card).

byebyedebt

woody01 wrote: »

I am earning £4-5K per month, and alot of the money on there is expenses (for when my Corporate AMEX can't be used <---rubbish card).

Do you pay it off every month? Is so your payment profile would indicate that you are a lower risk than someone who regularly does not.

At the same time I suspect you make a lot of transaction, each of which makes the bank money in transaction fees.

So you are paying off, and regularly turning over merchant fee profits. You are considered to be a lesser risk and more profitable.

The OP does not pay off every month. Profitable on interest payments, which would have been great during the boom, nowever now he is a credit risk as he is more likely to default.

Then there is the person with the steady job, maybe a 10K limit but only use around £500 a month and always pays on time. Not particularly profitable for the bank. However the bank still has to insure their 10K limit, and more importantly the bank is trying to reduce its exposure and liabilities. Therefore the bank cuts the credit limit. This is the person identified by Stephane a fw posts back. The sort of person who is never late, earns a lot and regularly spends.

The rules of credit have changed. High limits, and low repayments are seen as riskier overall. Before they were great customers, very profitable. But now they are risky. Borrower loses job and cant make min repayments. Bank loses 10K as they go bankrupt, or enter a repayment plan at £1 per week. Three years ago, this type of person would probably have gained a higher credit limit. Just like building a pack of cards, however now the house is falling down.

TFD_2

woody01 wrote: »

Sorry but you are wrong.
Having a card nedar its limit is seen by a lender as a good thing as they are making money from you.
Paying it all off is seen as a bad thing, as they make nothing.

From a risk point of view...... no.
From a profit point of view...... yes.

Lenders want to make money. They also want to avoid people defaulting.

woody01

byebyedebt wrote: »

Do you pay it off every month? Is so your payment profile would indicate that you are a lower risk than someone who regularly does not.

At the same time I suspect you make a lot of transaction, each of which makes the bank money in transaction fees.

So you are paying off, and regularly turning over merchant fee profits. You are considered to be a lesser risk and more profitable.

The OP does not pay off every month. Profitable on interest payments, which would have been great during the boom, nowever now he is a credit risk as he is more likely to default.

Then there is the person with the steady job, maybe a 10K limit but only use around £500 a month and always pays on time. Not particularly profitable for the bank. However the bank still has to insure their 10K limit, and more importantly the bank is trying to reduce its exposure and liabilities. Therefore the bank cuts the credit limit. This is the person identified by Stephane a fw posts back. The sort of person who is never late, earns a lot and regularly spends.

The rules of credit have changed. High limits, and low repayments are seen as riskier overall. Before they were great customers, very profitable. But now they are risky. Borrower loses job and cant make min repayments. Bank loses 10K as they go bankrupt, or enter a repayment plan at £1 per week. Three years ago, this type of person would probably have gained a higher credit limit. Just like building a pack of cards, however now the house is falling down.

No i do not pay it off in full every month. I pay off chunks when i get around to put expense claims in, and i also use it for personal things aswell.

It's a myth that paying off every month makes you more attractive to the lender.
From experience, if you have between 65-90% of your balance used, lenders do look more favourably at you as you are making them money.
Also, if you have a minimum payment for example of £200 and you make a payment of 15-20% more, this also works well in your favour.

From a risk point of view...... no.

Almost right but i see your point.
Alot of it depends on what your income is aswell. £9K on a CC is nothing if you are earning £75K a year.
It's a huge sum though if you earn only £17K a year.

chexum

zoned_out31 wrote: »

Just a quick post to say that I phoned I didn't ask for an increase in credit limit or anything but as I have a small balance on the card I think thats a pretty good result?

BTW, as I wrote earlier, the online banking claims you can't have a higher limit if "you have.. already raised the limit". If you haven't, just got a new card, maybe you can ask them now

I'm happy to report though that they seem to consider 9 July more than 6 months away from 8 January :cool: (Maybe it can be even shorter, does anyone know?)