Fairly substantial savings = low credit limit?

j19

I have just been told by the Halifax that one of the reasons why I was given a £500 credit limit on a new credit card with them (having been a customer for nearly ten years with an excellent record) could have been because I have savings ("The underwriters think why do you need a credit card when you could use your savings? Looks suspicious.").

This smelled like BS, so I cancelled the card and lodged a complaint.

Anyone had a similar experience?

CLAPTON

a load of rubbish; in any event savings aren't shown on your credit files.

without knowing your circumstances it's impossible to say why you got the low limit
-do you already have a CC or is it your first?

in any event there is no point in cancelling it

j19

-do you already have a CC or is it your first?

I've had plenty in the past, all paid up. Never more than one at a time. My most recent one was closed and paid up a few weeks ago (it was £7000 interest free).

in any event there is no point in cancelling it

I cancelled it, the card was absolutely useless to me with a £500 credit limit. Only eight months ago I had to ask the bank to reduce my £2000 current account overdraft limit because it wasn't necessary.

CLAPTON

to maintain a good credit rating (other things being equal) it's best to have a CC, use it regularly for things you anyway buy and pay in full each month; this will show you can handle credit well.

j19

I just bought my Equifax credit profile. The profile is clean bar two late payments on a mobile phone contract in 2003 (not that I remember). Score is 450/500.

dazza.mk

JimpsEd wrote: »

I just bought my Equifax credit profile. The profile is clean bar two late payments on a mobile phone contract in 2003 (not that I remember). Score is 450/500.

More importantly does your last credit card closed 'a few weeks ago' show as settled. It may be that this has yet to be updated at the Credit Reference Agency and the decision has been based on you still having £7,000 available credit.

j19

It does show as settled.

Saints2011

Would have to agree with Clapton up top.

j19

The thing is, I've always had at least one credit card on the go and I have never missed a payment. I was applying for a very basic Halifax Rewards card (specifically for people with an existing Halifax Reward current account).

I'm a higher rate tax payer (I receive a gross salary into my account too, so it should look even better!) and have had a history with them for more than a decade.

The last credit card I had (a year ago) had a limit of £7500. The one before that was a Halifax card with a £2000 limit (only just graduated and self-employed, too). Only a couple of months ago I had to ask Halifax to take away my £2000 overdraft facility.

Perhaps I shouldn't have cancelled the card (now applying for a Post Office credit card), but I was infuriated - especially when he tried to suggest that my savings and current account balances with the Halifax probably counted against me (I think he was grasping at straws). As well as cancelling, I lodged a complaint and expect to hear back this week.

I desperately do not want to sound stroppy, I am just dumbfound by my bank.

Bongo_

I've been given a £500 limit for a Halifax Clarity card. I have significant savings relative to the limit (£15k+) but as I'm a student with a part time job my income is only £6000/year. I graduate in June and start a job in August (£18k p.a.), but applied for the card as I'm going away to Europe for a month and want to avoid withdrawal fees etc.

I'll be spending over £500 on the trip, possibly £1000-£1500. Is it worth me calling them up and asking them to raise the limit to £1500 given my circumstances?

Letfromspain

JimpsEd wrote: »

I just bought my Equifax credit profile. The profile is clean bar two late payments on a mobile phone contract in 2003 (not that I remember). Score is 450/500.

Do you mean 2003? If so, surely these would have been deleted from your record!