Unsecured Debt Issue (Credit Card Limit Increase)

OverRated

Hi All,

I went to increase my credit limit on my Tesco Credit Card today from £2,500 to £5000... just about to pay for a holiday, flights and the same for the family (they don't have a credit card so using for protection).

I did the increase online which got rejected so I called up to ask and they told me it is because I have more unsecured debt that my annual salary of £31K.

My creditexpert report tells me that:

1) Car on Hire Purchase of £17,711
2) 0% balance of £7,787 on Barclaycard
3) £264 on my tesco card (it was £1499 today but paid it off).

I also have a mortgage but that shouldn't count?

The only other card I have is Santander Card but it has a zero balance.


I don't understand?!?!

Tixy

They may have meant debt and available credit that you could use? would that come to more than your income?

You could just pay for a deposit on credit card to obtain the protection and have the family pay the remainder direct themselves as a solution maybe.

bengalknights

Its very likely due to your income to credit ratio being close to 100%, where as most providers prefer it closer to 75% before lending anymore.

OverRated

Tixy wrote: »

They may have meant debt and available credit that you could use? would that come to more than your income?

You could just pay for a deposit on credit card to obtain the protection and have the family pay the remainder direct themselves as a solution maybe.

Only if you take the car on hire purchase into account otherwise it is rather low. The car MUST be a factor in this... is it normal to include that in unsecured debt?

bengalknights

OverRated wrote: »

Only if you take the car on hire purchase into account otherwise it is rather low. The car MUST be a factor in this... is it normal to include that in unsecured debt?

Yes as technically hp is like an unsecured loan even though they can reclaim the car.

Tixy

OverRated wrote: »

Only if you take the car on hire purchase into account otherwise it is rather low. The car MUST be a factor in this... is it normal to include that in unsecured debt?

Normal to include it affordability calculations certainly - they explained it badly on your call to them but overall I wouldn't be surprised that you couldn't get any additional credit on the figures you have given.