Very limits

samtoby

I know lots of people won't be interested but anyway -

Just called Very to see if they would raise my limit as I want to buy something large taking advantage of their 0% for 12 months offer.

I was put through to the under writing team. He stated my behaviour score with them was nearly at the point where I would be eligible for monthly credit limit increases.

He told me the system works by offering a credit limit every three months if the account is used as long as it remains with in limits. After you have got a complete behaviour score it then raises your limit monthly if you ask for it (i.e call up) or on average every 6 months by their systems.

So if you have set up an account as long as you do not miss a payment you could be eligible for a limit increase every three months if your really lucky every month!

I got this to improve my credit and from my initial start limit I have got those green lights and bought items and paid them on the0%

InsideInsurance

samtoby wrote: »

I got this to improve my credit and from my initial start limit I have got those green lights and bought items and paid them on the0%

Be careful of what you are attempting to do etc.

For a start, whilst you do get interest free credit with catalogue companies they traditionally charge more for the items in the first place and so it is not necessarily cheaper. For example our friends TV is £1099 at Very and £900 online and so for the facility of interest free credit they had to pay nearly £200!

When I worked for a catalogue company it was cheaper for us to write off damaged sofas etc from our own brand range delivered to anywhere outside of england/ southern scotland than it was for us to collect it!


Secondly, whilst things may have changed, lenders didnt used to like seeing catalogue companies on peoples credit history even if they are straight green as they were sub prime. It could be this has changed in recent years but I would be surprised.

Of cause there is an arguement that 2 years of well run sub prime debt is better than no history but at least with credit cards etc the other lenders cannot tell if it is prime or sub prime other than guessing by the limit where as mail order is explicitly called out in its own right

shortcrust

In my experience Very will often increase your limit automatically to accommodate new purchases. So, for example, if you have a limit of 1000 with 700 available, the system may well allow you to purchase a 1000 pound item on credit. Your limit will magically increase to something like 1600. They seem to like to always leave people with a little bit more to spend on credit.

The only stuff I buy from Very is Apple stuff which is sold at the standard retail price. Pretty much everything else is seriously over priced.

shortcrust

InsideInsurance wrote: »

Secondly, whilst things may have changed, lenders didnt used to like seeing catalogue companies on peoples credit history even if they are straight green as they were sub prime. It could be this has changed in recent years but I would be surprised.

Of cause there is an arguement that 2 years of well run sub prime debt is better than no history but at least with credit cards etc the other lenders cannot tell if it is prime or sub prime other than guessing by the limit where as mail order is explicitly called out in its own right

That's interestingly worrying! Do other people agree? I expect to be looking for a mortgage in a couple of years and I have a Very and a Woolworths credit account. Would I be wise to ditch them?

SnowTiger

shortcrust wrote: »

In my experience Very will often increase your limit automatically to accommodate new purchases.

They seem to increase my limit every time I buy something. It's currently a whopping £5,800, although I only have a BNPL outstanding balance of about £65, which has to be paid off in January (to avoid interest).

I'm hoping they'll send me a few good deals during the next few months. They usually do when I haven't spent anything with them for a while. :T

samtoby

As far as I am aware when you apply for credit the provider you are requesting it from can not see who your credit is with just your limits.

I may be wrong, I will ask my mortgage advisor friend. Green lights are green lights to me and it's enabled me to get credit I couldn't before. It's all about building my credit worthiness to me.

TheGenerus1

samtoby wrote: »

As far as I am aware when you apply for credit the provider you are requesting it from can not see who your credit is with just your limits.

Catalogue companies are listed as Mail order accounts on credit files and not under credit card accounts.

It is true that potential lender cannot see which financial provider your credit card accounts are held with, but they can assume that a majority of the accounts that appear as a mail order type account, will be a catalogue account.

As they are carrying a subprime APR rate, you can only guess that they would not look to good on a credit file (but this up for speculation).

As InsideInsurance had said in his post, a well run subprime account is better than having no history at all.

chanz4

TheGenerus1 wrote: »

Catalogue companies are listed as Mail order accounts on credit files and not under credit card accounts.

It is true that potential lender cannot see which financial provider your credit card accounts are held with, but they can assume that a majority of the accounts that appear as a mail order type account, will be a catalogue account.

As they are carrying a subprime APR rate, you can only guess that they would not look to good on a credit file (but this up for speculation).

As InsideInsurance had said in his post, a well run subprime account is better than having no history at all.

I dont agree, even next / argos card displays as this and they aint subprime

john1002

For me Next like me and gave me an account, but Very didnt. Who knows how these things work.

john

TheGenerus1

chanz4 wrote: »

I dont agree, even next / argos card displays as this and they aint subprime

Next catalogue = 25.9% APR
Argos = 29.9% APR

To me these are classed as subprime rates.

I'm interested to know Chanz, where do you think prime rates end and subprime rates start?:)

Obviously from your post, Argos 29.9% APR is prime in your eyes, so I can assume from this that you think that the mid 30% APR is where prime stops and is incidently where Capital one, Aqua, Luma credit building cards for high risk customers reside.

samtoby

I think that Very are the easiest out of the group to get but that's my opinion. I have tried to get another in the group but that declined.