Increase Credit Limit?

SuperHan

I have a Santander 123 Credit Card and have had it for 4 months now. When I applied for the card I was working part time with a salary of around £8,000 and had an existing credit card. I was offered a credit limit of £800.

Since then, I have started working full time, so now earn £19,500 and I have closed my other credit card/reduced my available credit balance. I thought that I would be able to increase my credit limit with Santander due to the changes of circumstances and difference in % of available credit to income.

However, when I rang Santander, I was told that any increase in limit would be offered to me via letter, it's not something I can request... But why would they offer it to me - they don't know about my change in employment/circumstances - As far as they know there's no reason for them to offer me any more!!

Is this right? Is there anyway to put a note on my account so they can take this into consideration when offering me a new limit? It seems silly that they are not interested in my new circumstances when it directly affects the credit they should be willing to offer me.

[Deleted User]

They'll probably periodically run accounts through a model to see if anyone should be offered a new limit. Ad hoc increases can be more difficult to get these days.

exel1966

SuperHan wrote: »

I have a Santander 123 Credit Card and have had it for 4 months now. When I applied for the card I was working part time with a salary of around £8,000 and had an existing credit card. I was offered a credit limit of £800.

Since then, I have started working full time, so now earn £19,500 and I have closed my other credit card/reduced my available credit balance. I thought that I would be able to increase my credit limit with Santander due to the changes of circumstances and difference in % of available credit to income.

However, when I rang Santander, I was told that any increase in limit would be offered to me via letter, it's not something I can request... But why would they offer it to me - they don't know about my change in employment/circumstances - As far as they know there's no reason for them to offer me any more!!

Is this right? Is there anyway to put a note on my account so they can take this into consideration when offering me a new limit? It seems silly that they are not interested in my new circumstances when it directly affects the credit they [STRIKE]should[/STRIKE] could be willing to offer me.

Generally you'll only be considered for an increase once you've run the account well for a minimum of 6 months.

You can appeal limits by speaking/writing to the Underwriting department and explaining your change in circumstance.
It's not unheard of for limits to be increased after supplying the necessary evidence.

I've also taken the liberty of amending your post. You're not entitled to anything.

SuperHan

exel1966 wrote: »

Generally you'll only be considered for an increase once you've run the account well for a minimum of 6 months.

You can appeal limits by speaking/writing to the Underwriting department and explaining your change in circumstance.
It's not unheard of for limits to be increased after supplying the necessary evidence.

I've also taken the liberty of amending your post. You're not entitled to anything.

Fair enough - no, I didn't think I was entitled to anything... However, I did expect to be re credit checked. I said it "should" affect the credit they're willing to offer me, because they haven't even asked what my change in circumstance is. What if I was ringing to say my job now only pays £6,000 a year and I'm no longer eligible for the card? Surely a change of circumstances means they should recheck my eligibility? I expected to be rechecked and I appreciate that this could have included a risk of decreasing my credit limit. I would have been happy to be credit checked and for it not to change. I just think it's crazy they haven't even checked!!

I imagine if I were to sign up as a new customer I would get a better offer for credit limit, just because the only credit I have available to me now is a £1,000 overdraft and an £800 credit card - just 10% of my income, compared to the 20% credit to income ratio I had when I originally applied!!

BugsyBrowne

SuperHan wrote: »

Fair enough - no, I didn't think I was entitled to anything... However, I did expect to be re credit checked. I said it "should" affect the credit they're willing to offer me, because they haven't even asked what my change in circumstance is. What if I was ringing to say my job now only pays £6,000 a year and I'm no longer eligible for the card? Surely a change of circumstances means they should recheck my eligibility? I expected to be rechecked and I appreciate that this could have included a risk of decreasing my credit limit. I would have been happy to be credit checked and for it not to change. I just think it's crazy they haven't even checked!!

I imagine if I were to sign up as a new customer I would get a better offer for credit limit, just because the only credit I have available to me now is a £1,000 overdraft and an £800 credit card - just 10% of my income, compared to the 20% credit to income ratio I had when I originally applied!!

Do a nationwide soft search with their credit card which will quote you an APR & credit limit and if it's higher then then the Santander card then it's a bonus.

exel1966

SuperHan wrote: »

Surely a change of circumstances means they should recheck my eligibility? I expected to be rechecked and I appreciate that this could have included a risk of decreasing my credit limit. I would have been happy to be credit checked and for it not to change. I just think it's crazy they haven't even checked!!

I imagine if I were to sign up as a new customer I would get a better offer for credit limit, just because the only credit I have available to me now is a £1,000 overdraft and an £800 credit card - just 10% of my income, compared to the 20% credit to income ratio I had when I originally applied!!

It doesn't work like that at all. Account holders are randomly checked at certain times to check their current credit status. Some of those checks will result in customers receiving decreased limits. What signals those checks in widely unknown, but it could be paying minimums, approaching limits, late payments, exceeding limits, average balances, not using credit etc.

Also assessed is the current card debt to card limit ratio. It has an impact. It would also be possible for you to be declined if applying as a new customer now, there are far too many anomalies to be certain.

Why wouldn't you be eligible on £6K pa ? You're thinking about this far too simplistically when it's not.

SuperHan

I appreciate the complexities of it all. I just think it seems a bit silly that the "random" checks can't be manually forced. Like I said, I'd be happy just to be checked as a 'new' customer, and have a new credit limit given, be it higher or lower. If I want to extend my overdraft on my bank account this is what happens - I don't need to wait until they randomly check if I need more, I can request it and that will force my overdraft to be reassessed then either increased, decreased, closed or to not change. I just thought the same would be true of a credit card. I don't think my limit *should* be increased, I want someone to check if it is eligible to be.

What seems even more bizarre, is that if I do have a "random" check on my account, the information they have is outdated, so would not be a true representation of my situation anyway.

And the minimum salary for eligibility of the card is £7k (Or was when I applied - I haven't checked since)


Bugsy - it was the cashback offer on the Santander that made it appealing! It's also why I'm not interested in opening another credit card. I don't need the credit, but it makes sense to spend on the cashback card if I can.

sharpy2010

I think credit increases are a bit of a joke now anyway. Four days ago I requested a new limit via Aqua's website, and they turned me down. Today I receive a letter from them telling me they've "reviewed my account and are happy to offer me a periodical increase".

Lol!!!