Safe Credit limit

zerog

Lanzo wrote: »

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.

YorkshireBoy's post meant that every time you buy something with the card, put the cash into a savings account instead (which you must not touch for 18 months) and then pay it all off after 18 months, unless you get a new card and balance transfer it all.

Lanzo

zerog wrote: »

YorkshireBoy's post meant that every time you buy something with the card, put the cash into a savings account instead (which you must not touch for 18 months) and then pay it all off after 18 months, unless you get a new card and balance transfer it all.

Thank you, yes I fully understood the post by yorkshire boy, thats the type of sound advice that I mentioned earlier and am now in a position to put into practice.

thanks

Lanzo

Anthorn

bankhater_1965 wrote: »

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

I've said in several threads how irresponsible high credit limits are. To me a safe credit limit is one that can be comfortably fully paid when the statement arrives. Any amount over and above that is a recipe for bad debt if income suffers.

But just because it's there doesn't mean it has to be used!

Lanzo

I am just coming to the end of 12 months 0% interest on my Nat west card and I have applied for and been accepted by Barclaycard for 25 months at 0%. The credit limit is lower at 8k and I have a BT of 2k being processed.

I'll cancel the Nat West card and keep an eye on the Barclaycard. life is so much less stressful when you're on top of your finances.

Lanzo

[Deleted User]

What a load of b****cks. You have done well by clearing your debt and been given a healthy credit limit for your trouble. Why on earth is this a bad thing?

I'm fed up of hearing people moan about irresponsible banks this and irresponsible banks that. The bank may give someone a large limit but nobody forces people to spend every penny credit they have available. It is absolutely no different from people blaming McDonalds for making them fat. People need to grow the !!!! up and take responsibility for their own actions.

Anyway, to the OP, congratulations for clearing your debt, I wouldn't have recommend reducing the limit. I am not an expert and frankly I doubt many other on these forums are but in my experience the 'available credit' thing is largely over exaggerated. Lenders want to see that you are able to treat credit responsibly, having access to credit and not using it all is one way of displaying that responsibility.

zerog

Lanzo wrote: »

I am just coming to the end of 12 months 0% interest on my Nat west card and I have applied for and been accepted by Barclaycard for 25 months at 0%. The credit limit is lower at 8k and I have a BT of 2k being processed.

I'll cancel the Nat West card and keep an eye on the Barclaycard. life is so much less stressful when you're on top of your finances.

Lanzo

The barclaycard with 25 months 0% BT has 6 months 0% purchases. So remember that you should not spend on it after 5 months, and pay off the purchases in full as soon as they appear on the statement. It might be easier to just not spend on the barclaycard at all, which means keeping the natwest open (or getting a different 0% purchases card)

battyboimatt

What is it with old posts been resurrected lately

Deadbeat

Lanzo wrote: »

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

Well done for paying off your previous debt. Enjoy the headroom the card issuer has given you with that spending limit, and ignore those who suggest you reduce it.

iAMaLONDONER

Lazyloki wrote: »

What a load of b****cks. You have done well by clearing your debt and been given a healthy credit limit for your trouble. Why on earth is this a bad thing?

I'm fed up of hearing people moan about irresponsible banks this and irresponsible banks that. The bank may give someone a large limit but nobody forces people to spend every penny credit they have available. It is absolutely no different from people blaming McDonalds for making them fat. People need to grow the !!!! up and take responsibility for their own actions.

Anyway, to the OP, congratulations for clearing your debt, I wouldn't have recommend reducing the limit. I am not an expert and frankly I doubt many other on these forums are but in my experience the 'available credit' thing is largely over exaggerated. Lenders want to see that you are able to treat credit responsibly, having access to credit and not using it all is one way of displaying that responsibility.

Very true.. personal responsibility is what helped Thatcher win 3 elections in a row!

Lanzo

Hi There,

It wasn't my intention to cause any arguments by resurrecting an old thread, all I wanted to do was show that 12 months on from paying off my debts I was still in a good position and that I now have the knowledge and responsibility to play the banking/credit card 0% system.

I so remember the days when I had 5 credit cards all on 19%+ APR and was struggling to pay them off. Anyway financial matters are still in hand and I feel more like an accountant than a head in the sand Ostrich. (That is a good feeling).

Thank you all who have contributed to this thread.

Lanzo