Refused increase to my credit limit

diska

I've just come off the phone to RBS after failing to increase my credit limit on my credit card.

I'm finding it a bit bizarre as I have a low limit as it is and I've been paying off the balance each month for a good few years. I even did one of the £2 credit checks a few weeks ago which all looked positive to me.

They say a letter is sent in the next 7 days to confirm the rejection, my question is does it actually go into any reasons why I was denied or is it just a generic fob off?

Tixy

Probably just a generic fob off.

Just a couple of thoughts - do you have a lot of unused credit on other cards/credit accounts etc? or a high level of other debts? Or if you happen to also bank with RBS do you have an overdraft that you use every month?

jonesMUFCforever

If the credit search you did showed no adverse information can you not apply for one new card?

rb10

Low income?

Not on electoral role?

These can lead to declines when applying for credit.

chanz4

long period of debt also.

mandragora_2

I have no debt, pay off my credit card every month, own my own home outright, earn plenty to keep the wolf from the door, have more than 6 months salary in investments.

I asked for an raise in my credit limit so I could buy a new car (I'd pay it off straight away and had the cash in an investment account - I was just hunting the cash-back credits on the card). I've done this before with big purchases, including previous cars and holidays, and have also turned them down when they've tried to raise my credit limit, as I neither wanted nor needed it. So I was expecting them to out the request through on the nod. They turned me down. The reason they gave was that it was a 'big jump' from my current limit, and it was in vain to point out that it was still less than they had offered me in the past. I just think the systems have changed from a couple of years ago, and it's not surprising given the stick they've taken for their debt-pushing habits in the past.

haras_nosirrah

I think the problem is that you won't be making them any money by using their cash back and paying off in full thereby not earning them any money from interest. They would rather give the money to someone who will increase their profits

Dabooka

What's your current limit and what did you want it raising to?

exel1966

diska wrote: »

I've just come off the phone to RBS after failing to increase my credit limit on my credit card.

I'm finding it a bit bizarre as I have a low limit as it is and I've been paying off the balance each month for a good few years. I even did one of the £2 credit checks a few weeks ago which all looked positive to me.

They say a letter is sent in the next 7 days to confirm the rejection, my question is does it actually go into any reasons why I was denied or is it just a generic fob off?

RBS have discretion to refuse a limit increase no matter how well you run your account, no matter how perfect your credit history is. They don't have to give a reason for the refusal and probably won't, but they 'obviously' think your associated risk is too high to warrant an increase at this time based upon your current circumstances.

Either try again in a few months or if your history is as positive as you think apply for another card elsewhere.

diska

Thanks for the replies all.

The increase I was looking for was from £550 to £750. I've got the usual things for me, listed on the electoral role, been employed in same company for 5 years on reasonable wage, no other debts etc.

Though as others say it looks like as I don't really make them any money from interest payments, is probably held back from me. The operator was trying to see if I wanted to increase my overdraft or get another short term loan.

To be honest the only reason I was looking at increasing is to cover myself for my application for the Olympic games, though decided now that I'm just going to take the hit on my debit card.