What determines a CC limit?

anon_ymous

If you look at my past threads youll notice that I've got a Lloyds Platinum credit card with a limit of 3K (one that Im using just to build my credit atm), and I've been reading this subsection of the forums and the wider internet, where some people have had limits of around £250 and some have limits in tens of thousands.

Just to clarify; Im a student that's banked with Lloyds for around a year or two, where my student loan comes in to (around 7.7K a year), where I have some money saved in to it, alongside the student loan though I have no job, live with my parents (when I don't live in rented accom) and as far as I remember, Im not registered on the electoral roll

anon_ymous

Would this be relevant to us?
https://blog.creditkarma.com/credit-cards/how-a-credit-card-limit-is-determined/

It's a US based site

[Deleted User]

Basically a combination of risk and affordability

Tixy

Income is a big factor, (for some lenders thats just salary, for others all income, some its just an indivduals income, other lenders will take into account household income)
Existing debt as a percentage of income
Existing available credit
Credit history in general
Credit history of rolling credit accounts

Being a student you will probably assessed under slightly different criteria - although that said it doesn't sound like you have a student card.

Your limit initially seems quite high for your situation given what you've posted - but the matrices they use are complex and obviously all the factors they know about you have led to that limit being offered).

GLA-LHR

Taking tentative steps to a) determine my credit-worthiness, and b) rebuild my score (problems 6+ years ago, then no history), I applied for a Cap1 Visa. Got it - £200 limit. Since that went okay, 2-3 months later I applied to my bank and without hesitation got c£9k limit - 1/4 salary.

I guess that to Cap1, I pose a significant risk (no real history in last 6 years, unknown to them, and by applying for a Visa, 'self-declaring' as a poor bet). To my own bank, with whom I've had a relationship for 15 years or so, and who know how I manage my affairs, I am much less of a risk.

anon_ymous

I suppose that dealing with my own bank may have helped, even though I've only been with them for around 1 and a half years!

jen245

I had only been banking with Natwest for 11 months, when they gave me a credit card with a £5400 limit. It's a mixture of a lot of factors including previous credit history, income, how you manage your bank account, time at address etc etc.

iAMaLONDONER

waqasahmed wrote: »

If you look at my past threads youll notice that I've got a Lloyds Platinum credit card with a limit of 3K (one that Im using just to build my credit atm), and I've been reading this subsection of the forums and the wider internet, where some people have had limits of around £250 and some have limits in tens of thousands.

Just to clarify; Im a student that's banked with Lloyds for around a year or two, where my student loan comes in to (around 7.7K a year), where I have some money saved in to it, alongside the student loan though I have no job, live with my parents (when I don't live in rented accom) and as far as I remember, Im not registered on the electoral roll

Well done mate!

So you have 2 accounts with them?

anon_ymous

iAMaLONDONER wrote: »

Well done mate!

So you have 2 accounts with them?

Erm, I've only got the one Lloyds account and I've closed that particular card down. I now have three credit cards, from other companies