Credit cards with generous credit limits.

Derek69

Hi

after applying for some credit cards and getting accepted I couldn't believe the diffrence in credit limit:-

nationwide £5250

Tesco. £2100

both aplications forms had the same info on.

Are there cards that are known for giving bigger limits then others?

Thanks

steve1980

Depends on the individual lenders criteria.

chexum

As Tesco's 0% for purchases last longer than a year, it would seem reasonable for me that they would offer a lower limit than a generic card, or one with a 0% BT offer.

With a plain card, you pay the full balance every month, or they get some mighty interest on top of the minimum payment.

With a 0% BT offer, they get the BT fee up front, and then the monthly minimum payments. You'll either continue using the card, earning them serious money, or you keep their costs at minimum as you don't use all of their infrastucture, just a single statement monthly, paid monthly. You're less likely to do a runner, as you built up a balance with another bank, that trusted you, and they can see your repayment history. In the worst case, if you transfer the balance again, they got the transfer fee for their expenses.

With a long 0% interest for purchases, they may only get the minimum payments, and they can't tell, until the 0% is over, how reliably you can repay them, and they still need to continue risky consumer facing operations, handling refunds, complaints, etc, and you still can disappear with a slowly increasing balance. It seems to me this is the riskiest way of offering credit, no wonder this is how you get the lowest limit...

stuzhunter

the whole credit card lending criteria/credit scoring system 'thing' is a bit of a myth or a shamble..it is hit & miss..I think even though you may have a good credit history/report they may choose not to give you a card at all if they don't like your name!..I applied for an argos credit card & they gave me a credit limit of 1500..They would not increase my credit limit and infact every 3 months they would reduce my credit limit. On the other hand, I have at least 5k credit limit on all my other cards..I also applied for an Amex credit card & they gave me 8K credit limit.

BugsyBrowne

stuzhunter wrote: »

the whole credit card lending criteria/credit scoring system 'thing' is a bit of a myth or a shamble..it is hit & miss..I think even though you may have a good credit history/report they may choose not to give you a card at all if they don't like your name!..I applied for an argos credit card & they gave me a credit limit of 1500..They would not increase my credit limit and infact every 3 months they would reduce my credit limit. On the other hand, I have at least 5k credit limit on all my other cards..I also applied for an Amex credit card & they gave me 8K credit limit.

Trouble is as the banks don't indulge in how they credit score someone,this means then the public have to guess how each person is credit scored.
I myself have not got a clue how banks credit score an individual nor do anyone on this forum its all speculation,there are plenty of people on this forum who like to 'think' they know but that are no facts.

Until the banks give out their little secrets we will all be left in the dark.

lisyloo

Why would the banks give out this information?
If they did, then lots of people would manipulate their credit reports.
The point of credit history is to show your borrowing behaviour.
Lots of people are trying to manipulate them already.

BugsyBrowne

lisle wrote: »

Why would the banks give out this information?
If they did, then lots of people would manipulate their credit reports.
The point of credit history is to show your borrowing behavior.
Lots of people are trying to manipulate them already.

Exactly people are trying to manipulate them but unfortunately that leave's the like's of us to purely speculate.