Increased credit limit

chieffy72

Recieved a letter form Halifax Mastercard:

Great news-we're increasing your credit limit.

In view of the way you've managed your account we're pleased to tell you that we intend to increase your credit limit to £2250.(An increase of £750)

Now bearing in mind that I've been pretty much at my £1500 limit for the majority of the time,making regular payments but usually either the minimum amount or just a little over,then soon spending on it to take me back up to my limit (no lectures please,plan is to be credit card and overdraft free in 9 months) does this display 'responsible lending' by the Halifax/Mastercard?

silentkiller

I have no advice but wanted to add I am in the same boat - paying literally minimum or just over each month and then spending right up to the limit. And also I got a letter the other day to say my Credit limit was being increased by £250.. And that was an Aqua Mastercard.. so who knows..

But if I'm honest, I don't see you being debt free in 9 months if you take the increase.

dmlambert

Same here. It seems whenever I make a large payment they always up it. I spose what the credit card companies see is that you keep making the minimum payments, which is a lot of interest, which is where they make their money. Bigger credit limit, bigger interest. I guess thats what their thinking anyway?

Dabooka

Best bet is to call them and decline it.

If you're not disciplined enough to reduce your current limit, it'll not be long before you spend it and then struggle with the extra payments. Especially if they then up your apr.

chieffy72

I'm just a bit gobsmacked by the wording: "In view of the way you've managed your account..." Er,what,not very well you mean!!

dmlambert-That's the point I'm making,lenders are supposed to be adhering to new responsible lending guidelines,quite clearly they're not.

silentkiller-Don't worry,I'm not taking the increase,have declined it,found out you can also request that your card issuer doesn't increase your limit in the future unless you specifically ask them to. If all goes to plan I'm in line for a decent wage and bonus in October and April so should be able to pay overdraft off in one month and card in the other.

silentkiller

chieffy72 wrote: »

I'm just a bit gobsmacked by the wording: "In view of the way you've managed your account..." Er,what,not very well you mean!!

dmlambert-That's the point I'm making,lenders are supposed to be adhering to new responsible lending guidelines,quite clearly they're not.

silentkiller-Don't worry,I'm not taking the increase,have declined it,found out you can also request that your card issuer doesn't increase your limit in the future unless you specifically ask them to. If all goes to plan I'm in line for a decent wage and bonus in October and April so should be able to pay overdraft off in one month and card in the other.

That is good to hear Chieffy

Dabooka

One other thing, if they do up your apr you can decline that too (although it closes your account until it's paid off in the normal manner), so keep on eye on your post!

MoneyWasting_Expert

Have to laugh. I had a Barclaycard Platnium that has been at 19.9%APR for 3 years, was never cleared, payments were late, some missed no change. Now the card is cleared, used for everyday spending, has a DD set up to pay in full each month and I got a letter today saying that the interest goes from 19.9% to 24.9% by Septembers Statement.:T

JaymesKenin_2

I had that with Vanquis. I started with £250, it quickly went to £750 and then £1,500!
I phoned and asked them to reduce my limit to £700, which they did... two months later it's back up to £1,500 again!
So now I'm requesting a limit reducing of £250 every time I reduce my balance by that much, it seems to be working.

ihateyes

when you pay above minimum payment, and dont use credit card cheques or cash advance, this will increase your customer score which will increase you limit every so months

chattychappy

chieffy72 wrote: »

Now bearing in mind that I've been pretty much at my £1500 limit for the majority of the time,making regular payments but usually either the minimum amount or just a little over,then soon spending on it to take me back up to my limit (no lectures please,plan is to be credit card and overdraft free in 9 months) does this display 'responsible lending' by the Halifax/Mastercard?

Of course it is responsible lending. You have demonstrated that you are able to keep to the terms and conditions and meet the repayment requirement. Since you are at the limit, it seems reasonable and good commercial sense to offer you a higher limit which you are free to accept or decline. And if you accept it, you don't have to use it.