Increasing credit limit

jonten

Hi everyone,

I've been banking with NatWest for about 6 years, and in the last year I finished my university studies and got a well-paid job. Given that I was now on a good salary (and accruing business expenses which get paid off every 4-6 weeks) NatWest recommended I upgrade my credit card from their student card (£500 limit) to one of their 'proper' ones so I could get a more practical credit limit.

So I closed down my student card and opened a Gold card, fine - except they've kept my credit limit on the new card at £500. This is really quite annoying, and defeats the whole point of changing cards.

I see on the credit card services section of their website, I can request a credit limit increase with immediate answer. My questions are:

1) Does increasing a limit entail a new credit search (I'm trying to build up a good credit score and so want to avoid non-essential searches)

2) If not, is there anything to lose by requesting an increase through their website? Eg, is there an "increase limit" maximum (or something) by which I can only request one upgrade every six months or so, so if request an increase straight away I'd be stuck on £500 for the next six months or so?

Thanks for your help

stephane_2

Sometimes it does involve a search but not always, difficult to say....as for the limit increase you can request one once the account has been open for 6 months and very 6 months after that....I used to be with Natwest and got their platinum cc with same limit of £500...also had bank account, healthy saving with them and they always declined any increase despite getting credit with other lenders, at the end I closed all my banking with them...they are a bunch of losers..

powerone

If they do a credit search & you fail there really is nothing to loose. Try on the web site and you shall find out.

[Deleted User]

if you have a good income and low credit then why not just apply elsewhere for a 2nd cc?

chexum

jonten wrote: »

1) Does increasing a limit entail a new credit search (I'm trying to build up a good credit score and so want to avoid non-essential searches)

Usually not - that is, if the NatWest already sends CAIS ("Insight") information to the CRAs, about the monthly status, including payments/repayments, number of cash withdrawals, not just the monthly balance, then they are receiving a monthly feed of your other credit activity (except maybe searches?), so they normally won't need to search your files again.

jonten wrote: »

2) If not, is there anything to lose by requesting an increase through their website? Eg, is there an "increase limit" maximum (or something) by which I can only request one upgrade every six months or so, so if request an increase straight away I'd be stuck on £500 for the next six months or so?

There is lot to lose, usually no credit increases can be requested more often than every 6 months, and the first can only be granted 6 months after account opening. If you use the automated ways on the online account, noone will look at your request, but the automated systems, and you won't be able to request it again in 6 months.

jonten wrote: »

So I closed down my student card and opened a Gold card, fine - except they've kept my credit limit on the new card at £500. This is really quite annoying, and defeats the whole point of changing cards.

I would think this is just an oversight, they must have made a search, and maybe they haven't yet seen the card as settled. If the initial credit limit is not suitable, the best approach would be to talk to someone (maybe the underwriters?) explaining your circumstances that you have just told - you wanted a higher limit than was available with the old card, but that's now closed, and it seems you now wouldn't get any increase for a too long time.

This is the only way to avoid a useless search or request.

If they still say no, you still have other options - as I've heard Sygma, and apparently even Halifax can be generous these days if you have a reasonable credit history.

Sygma Bank Credit Cards
https://forums.moneysavingexpert.com/discussion/2558195

jonten

woodbine wrote: »

if you have a good income and low credit then why not just apply elsewhere for a 2nd cc?

I didn't have a permanent UK address until the beginning of 2010 (when I moved abroad NatWest allowed me to keep my bank account with them, so they have a good history with me which other lenders won't have) which makes getting other credit cards difficult, despite a good income.

Eg I took the Barclaycard online approval test and they said that none of their cards were "appropriate" for me, even the Initial one. Maybe it's worth still doing the proper Barclaycard application though, as I satisfy the criteria on their website (income over £10k, electoral roll) - or would their test thing give a fairly definitive answer?

Chexum - thanks for your advice. I'll call up customer service on Monday to check whether this was an oversight or not.