High Credit limit?

robgoingcrazy

I applied for the Barclaycard 0% 20 month transfer card the other day, at their "pre-check" page I was given a 90% chance of being accepted, so duly applied and was instantly accepted.

I put my self employed income at £10,000. Well, I hope I did.

Because I got the card today and they've given me a limit of £6600, which seems high in relation to my income. Is it usual to give such a high credit limit compared to income? I appear to have an excellent credit rating, have never been refused credit, or missed any payments, etc... I have a few other cards, though none have such a high limit, and I have a bit of spending on them in the £100s, rather than thousands, in relation to the limits.. The limits are like 3k, 4.2k, 2.5k on those cards...

What I am wondering is if, due to fatigue/eye blur, I might have slapped an extra zero on my income and simply not noticed? :eek: Or does the limit seem reasonable, bearing in mind my income and credit rating?

lisyloo

It does seem high but I don't think limits are always related to just income.
I've certainly been asked in the past what other limits I had so they may well be guided by the amounts you've successfully managed in the past.

BugsyBrowne

robgoingcrazy wrote: »

I applied for the Barclaycard 0% 20 month transfer card the other day, at their "pre-check" page I was given a 90% chance of being accepted, so duly applied and was instantly accepted.

I put my self employed income at £10,000. Well, I hope I did.

Because I got the card today and they've given me a limit of £6600, which seems high in relation to my income. Is it usual to give such a high credit limit compared to income? I appear to have an excellent credit rating, have never been refused credit, or missed any payments, etc... I have a few other cards, though none have such a high limit, and I have a bit of spending on them in the £100s, rather than thousands, in relation to the limits.. The limits are like 3k, 4.2k, 2.5k on those cards...

What I am wondering is if, due to fatigue/eye blur, I might have slapped an extra zero on my income and simply not noticed? :eek: Or does the limit seem reasonable, bearing in mind my income and credit rating?

You could be on a 100k a year but if your rolling about with debts up to your eye balls you will get a low credit limit.

DizzleUK

You say you put an income of £10k pa (or at least you hope you did).

Personally, I would be inclined to think you put something else (£100k in error perhaps?).

This is for 2 reasons....

1. The website says you need a minimum income of £20k pa to apply.

2. Nobody in the right mind would give someone who earns £10k a year (which is less than NMW on a full time job) a £6600 limit ESPECIALLY when you have other cards already totalling £10k in limits.

Something has gone rather wrong here.


*ADDITIONAL*

If your income is £10k and your current cards total £10k, I would not expect to be accepted for any more cards anyway, however good your credit rating may be. In fact, I would be inclined to get rid of one of your cards to bring your available credit to income ratio down a little.

Saucepot

Income is only one factor in card limits. About 15 years ago I had a relatively low income job but spent on a card for company expenses I claimed back at the end of the month. The card limit was increased to factors above my annual income simply because a lot of spending was going on the card that was paid off each month.

DizzleUK

Saucepot wrote: »

Income is only one factor in card limits. About 15 years ago I had a relatively low income job but spent on a card for company expenses I claimed back at the end of the month. The card limit was increased to factors above my annual income simply because a lot of spending was going on the card that was paid off each month.

TBF that was 15 years ago. These days CC companies don't generally go throwing credit limits about willy nilly any more. Agreed, income is only one factor, but given the information provided in this case, it is quite likely the OP declared in income far in excess of £10k pa.

As I have mentioned already, £10k pa doesn't even qualify the OP for the card in question.

BugsyBrowne

DizzleUK wrote: »

TBF that was 15 years ago. These days CC companies don't generally go throwing credit limits about willy nilly any more. Agreed, income is only one factor, but given the information provided in this case, it is quite likely the OP declared in income far in excess of £10k pa.

As I have mentioned already, £10k pa doesn't even qualify the OP for the card in question.

I think it just all boils down to their credit rating, my mate didn't qualify for a barclaycard card but it didn't stop them giving him a 3.5k limit.

As long as they see the applicant has perfect credit history don't think they are fussed how much you earn.

robgoingcrazy

star-fire wrote: »

I think it just all boils down to their credit rating, my mate didn't qualify for a barclaycard card but it didn't stop them giving him a 3.5k limit.

As long as they see the applicant has perfect credit history don't think they are fussed how much you earn.

This seems to be the case. Slightly panicked by some of the posts above, I decided to check, so went through my application form again, got to the bit about income, and looked what came up on the autocomplete - which was 10000 not 100000 (I double checked). With hindsight I would have assumed there is some system in place that would flag up a declared £100,000 income when all my previous applications have been much lower than that...

Either Barclays are not in their right minds, or it's more down to the credit history etc as others have been saying. Over the years I've managed a huge amount of credit without going crazy or ending up missing payments etc. I'm wondering if it's also down to the fact I specifically ticked a box that this card was for balance transfers? I did 2 cards there and then, but have others with balances on that I will now transfer knowing I have the limit to be able to do so - maybe that was the idea behind giving me the larger limit. Of course I won't be making any purchases on the card so won't be going near the limit anyway...

Thanks for the replies, at least I know if it is an error, it's theirs and not mine, and in a way seems to highlight the strength of my credit rating/history (I've not always earned a meagre 10k, I am currently putting myself through Uni so am spending reduced hours actually working on my business)

BTW when I looked at the Bcard last week, it did seem to mention the 20k minimum earnings - but couldn't find it today? Also I definitely put 10k in the "initial check" form they have, and it said my best bet was the platinum barclaycard with a 90% chance of acceptance, so either their system broke, or they have changed the 20k criterion?

Thanks for the replies

robgoingcrazy

Mind you reading through some of the stories of Barclaycard applications being accepted then cancelled, I think I will sit on it for a while - I may yet be told I don't meet the criteria, lol...

Venusflytrap

DizzleUK wrote: »

This is for 2 reasons....
1. The website says you need a minimum income of £20k pa to apply.

Not a criteria that Barclaycard strictly follow apparently. I was pre-approved for a Barclaycard plat. and got accepted on a p/t salary of just over £11k. However, I do agree that a £6600 limit against an income of £10k is a tad reckless.

Btw, just joined MSE (after weeks of hovering) - very useful site.

the_insider

Anyone else waiting for the mis-sale complaint in a few years?
If you think the limit is too high ask them to reduce it.