My bank wont increase credit limit

aj3001

My Bank, HSBC, of whom I have been a customer for over 5 years with, want me to hold their credit card for 6 months before they increase it to check my account behavoir, now I have two maestro cards with them, one of which has an overdraft which I have had for about 6 months, is this usual?

I could understand if it was a different financial institution who didn't know me but these guys know my history! 6 months with an over draft on the acount which I have never once gone into, never gone overdrawn in the past 5 years!

MrsD_4

As far as I am aware if it is a new cc it is quite normal for the bank to monitor your cc usuage for 6 months before they increase your limit.

james10999

I know it's really frustrating, but i think the 6 month rule is standard across the industry.

I have held a Sainsburys Credit card for 3 years with a credit limit of £3,500 and paying the bill off every month.
I went to apply for a Natwest credit card to earn air miles instead of nectar points and they only gave me a limit of £475! I complained and never got anywhere and was always given the 6 month rule. After 6 months, i complained again and didn't get an increase.

In pure frustration, i canceled the Natwest card, and opened an Egg Money card. I was warned (by people on this board...) that this card wouldn't give much of a limit as it is meant as a flexible, positive and negitive balance card, however they gave me a limit of £4,000

It still baffles me how companys can give one person £4,000 one time, and £475 limits the next.

If you want my advise, complain in 6 months. If you don't get anywhere, switch to a another card!

aj3001

I don't really have an issue with the 6 month rule in general, but HSBC can review my account useage for the past 5 years, which includes credit facilities

aj3001

Oh yeah, they also want me to take in 2 forms of identification before I actually get the credit card! I'm finding this all rather interesting, they are treating me as a new customer

Wyndham

aj3001 wrote:

Oh yeah, they also want me to take in 2 forms of identification before I actually get the credit card! I'm finding this all rather interesting, they are treating me as a new customer

Lots of 'bank based' credit cards are acutually underwritten by someone else. For example, I had an Abbey one, but it was actually MBNA who ran the card. I wonder if that is what you've come across, and the card provider are asking for extra id as you are a new customer to them.

It sucks though!

The_Boss

When they say they want to check your account behaviour, they mean on the credit card - not on your bank account.

They need to see how you handle the existing level before they can up it. If you didnt manage the terms and conditions with one limit, how would you manage with a higher limit?

Phoenix79_2

Wyndham wrote:

Lots of 'bank based' credit cards are acutually underwritten by someone else. For example, I had an Abbey one, but it was actually MBNA who ran the card. I wonder if that is what you've come across, and the card provider are asking for extra id as you are a new customer to them.

It sucks though!

HSBC underwrite their own cards (and underwrite other cards as well).....they are not a tin-pot bank like A&L and Abbey who have to farm the responsibility out to someone else.

The_Boss

james10999 wrote:

I know it's really frustrating, but i think the 6 month rule is standard across the industry.

I have held a Sainsburys Credit card for 3 years with a credit limit of £3,500 and paying the bill off every month.
I went to apply for a Natwest credit card to earn air miles instead of nectar points and they only gave me a limit of £475! I complained and never got anywhere and was always given the 6 month rule. After 6 months, i complained again and didn't get an increase.

In pure frustration, i canceled the Natwest card, and opened an Egg Money card. I was warned (by people on this board...) that this card wouldn't give much of a limit as it is meant as a flexible, positive and negitive balance card, however they gave me a limit of £4,000

It still baffles me how companys can give one person £4,000 one time, and £475 limits the next.

If you want my advise, complain in 6 months. If you don't get anywhere, switch to a another card!

In this case, the fact you built up a bit of good credit history via the NatWest card was looked at positively by egg. Without having that card, you may not have got such a good limit from them.

I agree though - strange that NatWest had no interest in upping it.

bengal-stripe

aj3001 wrote:

My Bank....want me to hold their credit card for 6 months before they increase it to check my account behavoir

You've neither told us your given limit, your monthly income nor whether you have other debts somewhere else.

The limit given, might be already high for your particular circumstances. Why do you need the increase so desperately?

aj3001

limit of £1500, annual income of £12k

I wanted a limit of at least £3k to transfer some money from other accounts to