Safe Credit limit

Lanzo

Dear All,

I have spent the last 2 years getting my finances in order, (yes I’ve learned some hard lessons) I cleared off all my debts in January of this year thanks to PPI claim back and didn’t owe anyone any thing (with the exception of my mortgage). I did an experian check in April which gave me a 999 rating, yeah I know this number can mean nothing but it was a nice to see something that said I was creditworthy.

Anyway, today I applied for one of the best available credit card deals, Nat west 18 months 0% (my daughter wants a laptop) and was accepted and given an £11,000 limit, yes I put my glasses on and double checked and that’s what my credit limit is . Anyway my question is, is this a safe amount of available credit to have showing on my credit history or should I in some way reduce this. Theres no way I’m gonna run up massive credit card debts again, but I was surprised to be allocated such a large credit limit (I thought those days were over.)


Any comments welcomed

Lanzo

bankhater_1965

just how irresponsible of a high street lender to let someone have a £11,000 limit

bengalknights

I would reduce it personally

bankhater_1965

it should have never been offered should it ,

jason1231972

bankhater_1965 wrote: »

just how irresponsible of a high street lender to let someone have a £11,000 limit

It's not a problem, in itself. There's a lot of fuss about banks being greedy, irresponsible and such, but less so about borrowers themselves being irresponsible!

Without context, we don't know if this is 'irresponsible' lending or not. Offering an 11k limit to someone with a good salary, minimal outstanding debt and no bad credit history (OP states they were in debt, but doesn't state if it was 'bad', unmanageable debt) is not necessarily irresponsible.

YorkshireBoy

bengalknights wrote: »

I would reduce it personally

I wouldn't.

I'd put all my essential spending on the card and make the thick end of £200 profit over the 18 months...

Slow Stoozing Profit Prediction

Data entered by the user
Credit Card Limit (pounds).............. 11000
Monthly credit card expenditure (pds) .. 600
Purchases interest rate (%) ............ 0
Introductory period (months) ........... 18
Min Monthly Payment Type ............... Percentage
Min Monthly Payment Amount (% or pds) .. 1
Savings interest rate (AER %) .......... 3
Tax rate ............................... Basic Rate

Your Results
Stooz pot balance at end of intro ...... 10045.37
Credit card balance at end of intro .... 9829.88
Tax on interest to be paid ............. 43.1
Your Profit ............................ 172.39

Created using the Slow Stoozing Calculator at https://www.stoozing.com.
Reproduced on Moneysavingexpert with permission.

Lanzo

YorkshireBoy wrote: »

I wouldn't.

I'd put all my essential spending on the card and make the thick end of £200 profit over the 18 months...

Thanks yorkshire boy I wish I was disciplined enough to try this stoozing business but I don't think it's for me. I think I'll most likely buy my daughter the laptop and pay it off interest free and also reduce that credit limit.

just some background, I'm a Nat west customer of 30 years on £35 k/year. I applied for this card via my online account and was surprised to see a fair amount of my details were already pre filled in. I think the outcome of this application would have been very much different if I applied for one of the other good deals eg Tesco, M&S or Halifax.

Regards

Lanzo

chanz4

Until its recived AVU may stop it,

fozmcfc

The adverse effect having large limits, you can have too much credit used/unused compared to your annual income.

Lanzo

bankhater_1965 wrote: »

just how irresponsible of a high street lender to let someone have a £11,000 limit

bengalknights wrote:

I would reduce it personally

bankhater_1965 wrote:

it should have never been offered should it

Chanz4 wrote:

Until its recived AVU may stop it,

Fozmcfc wrote:

The adverse effect having large limits, you can have too much credit used/unused compared to your annual income.

Seven to Ten days for the card to arrive and the account to be confirmed, I'll report back then.

Lanzo

Lanzo

The card arrive and yes the limit is 11k. I’ve asked around a few (credit worthy) friends and found that this is not an unusual occurrence if you are deemed a good risk by the CC company.

Anyway as far as I’m concerned now the limit is not the issue, now that I am in control of my finances my plan is just to maximised the advantage of having the 18 month 0% interest free period, taking on board much of the advice I have read on this forum. The thing that I will do is to reduce the limit in preparation for applying for a new card at the end of the interest free period.

For those of you that post on here thanks for reading and the help and advice you give is invaluable, I'll certainly keep using it to keep me out of trouble.


Thanks again

Lanzo