Halifax refuses credit limit increase request but offers super balance transfer?

Venusflytrap

I called Halifax in July and asked for a limit increase on my Clarity card from £600 to £1000. I explained that it would offer me and my husband more flexibility when on holidays together (booking hotels, flights and spending on the card). Their answer was "No" as a CRA had flagged me up as being a "high risk client". I asked for more details on the decision and all I got back was "we cannot disclose any more; speak with your CRA". So I contacted Experian and Equifax and they both tell me that I have an excellent credit record (all greens, balances paid in full and on time) and cannot see why I was refused. also that they do not send info to lenders flagging up clients as low or high risk etc.

My only missed payment was back in 2005; I currently have 3 CCs - Amex Nectar (£659/£2600 limit), Barclaycard Plat (£100/£1000) and the clarity (£7.50/£600) and my total p/t income is circa £14.5k. All balances to be paid in full before due date and no other debts.

Today I received a letter from Halifax offering me a guaranteed super balance transfer or a BT at 7.9% for 18 months (no other fees). How am I supposed to take this? I was too high risk for a £400 limit increase but low enough risk for a SBT?

I am tempted to call again and ask that they reconsider my request as I neither need a BT nor SBT offer!

What do you all think?

BoGoF

Offering you a SBT transfer doesn't change the risk though, the availabe credit is still the same.

I would say the problem is your level of available credit. If you were to max out all 3 cards could you pay them?

YorkshireBoy

Venusflytrap wrote: »

also that they do not send info to lenders flagging up clients as low or high risk etc.

Yes they do...google 'consumer indebtedness index' (CII) for more information.

I currently have 3 CCs - Amex Nectar (£659/£2600 limit), Barclaycard Plat (£100/£1000) and the clarity (£7.50/£600) and my total p/t income is circa £14.5k.

The criteria for p/t employment customers may be 25% or so of your income as available credit...and you exceed that.

I was to high risk for a £400 limit increase but low enough risk for a SBT?

Not sure what point you're trying to make here? You can either spend your £600 limit on purchases or send (almost) £600 cash to your current account...Halifax don't care. What they're not happy about is letting you have £400 more (a near doubling of your limit) than you've already got.

Just out of interest, I assume you've had the card longer than 6 months? Also, what's your partner's (assuming you're financial associated?) credit history like?

Venusflytrap

BoGoF wrote: »

Offering you a SBT transfer doesn't change the risk though, the availabe credit is still the same.

Quite right, however they are offering to release my limit in cash for a lower rate. How are they confident that I will or can pay back?

I would say the problem is your level of available credit. If you were to max out all 3 cards could you pay them?

If maxed out (which is highly unlikely... touch wood) I would be able to pay back over 70% of the whole on the spot. Lenders looking at my credit history and spending habits can deduce that I do not present as a spend thrift and, where in terms of risk the judgement may vary, I do not think that lenders only lend to people who are able to pay back all of their limits at once. There are no guarantees even with a high earner.

I am requesting a £400 increase which will bring my overall exposure still well below 50% of my income. Surely this should work in my favour?

Venusflytrap

YorkshireBoy wrote: »

Yes they do...google 'consumer indebtedness index' (CII) for more information.The criteria for p/t employment customers may be 25% or so of your income as available credit...and you exceed that.Not sure what point you're trying to make here? You can either spend your £600 limit on purchases or send (almost) £600 cash to your current account...Halifax don't care. What they're not happy about is letting you have £400 more (a near doubling of your limit) than you've already got.

Just out of interest, I assume you've had the card longer than 6 months? Also, what's your partner's (assuming you're financial associated?) credit history like?

Just saw your post...will look up CII.

Didn't know that it was 25% for p/t employees; if so then Halifax's decision makes more sense.

Had the card for 13 months; my husband's history is spotless - only one CC (Barclaycard Plat £1750 limit) which he uses sparingly.

opinions4u

I currently have 3 CCs

All of which allow you additional spending against current balance.

Can you see the risk for a lender?

How am I supposed to take this?

You owe £7.50 on a limit of £600. That leaves some leeway as far as I can see.

Venusflytrap

opinions4u wrote: »

All of which allow you additional spending against current balance.

Can you see the risk for a lender?

You owe £7.50 on a limit of £600. That leaves some leeway as far as I can see.

What I take away from all comments is that I am better off reducing my existing limit on (one of) the other two cards to increase my chances of approval.

I will consider halving the BC Plat, give it 6 months and then reapply.

Thanks everyone.

YorkshireBoy

Venusflytrap wrote: »

Didn't know that it was 25% for p/t employees

I didn't say it was...I said it "may" be, ie I was speculating as to possible reasons for the increase refusal that's all.