Have M&S made a mistake

Gordon_the_Moron

I have just applied for the &more card, they offered me a credit limit equal to between 9 and 10 months wages, I live at home with my parents and it is more than treble any credit limit I've been offered before, have they made a mistake?

tom188

Not necessarily, they may have used some different criteria to others that allowed you the higher limit. Ive had credit cards giving me nearly my annual income before (MBNA) for example.

sicker

Don't live up to your user name. If you can handle that credit limit responsibly well and good. Just be CAREFUL.

John

anniecave

If you live with your parents they may assume you have lots of disposible income so you can borrow lots and afford to pay it all back with your lots of income because you aren't paying anything in rent, council tax, gas electric or phone etc.

Or actually they hope you will spend lots and not be able to afford to pay it back all at once and they can start charging you lots of interest....

So as the above poster said, use the credit responsibly.

YorkshireBoy

Just a thought...M&S generally ask for 'household income'. You didn't include your parents income on the form did you? :rolleyes:

Robert_Sterling

YorkshireBoy wrote:

M&S generally ask for 'household income'.

& More fool them then.

Gordon_the_Moron

Why does household income matter, my parents aren't liable if I default on payments.

I have no intention of living up to my username lol (I pinched the username off another forum because I think its funny)

I am careful and responsible with my money, it just worries me that if I was to use all my available credit without having any savings minimum payments would swallow over 70% of my income. Just a good thing I am responsible, I don't think the lenders are allowing that...

tryhard_2

hi gordon
you can always ask them to reduce the credit limit if you want

Gordon_the_Moron

No I'm happy with it, I am going to do a super balance transfer and put the money in an ISA (earning more than 3.9%) and pay off a couple of 0% cards running out of their 0% with the rest.

hot_chick_2

You lucky so and so.

Just be sure you don't spend it.
Make it work to earn you lots of money:j

3.9% till paid off is the cheapest loan you may ever get:beer:

CopperPlate_2

Gordon_the_Moron wrote:

Why does household income matter, my parents aren't liable if I default on payments.

I think it's normally for use when it's one half of a couple that's applying for a card - that way the lower income earner can capitalise on the higher income earner and hopefully get the card with a decent limit. I think it probably demonstrates that, although the applicant might not earn heaps, there is someone else bringing money into the 'house' and they might use that extra 'income source' to decide on the appropriate credit limit. All my own supposition, so if anyone is involved in such decisions I'll happily defer to a greater knowledge.

Not sure if it was designed for a child/parent relationship though as, as you said, your parents aren't responsible for any debt you end up with.