Very limits

InsideInsurance

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.

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.

They cannot see providers but they can see account type (loan, credit card, mail order etc).

For credit cards you can look at the APR and the limit to have an estimate of if this is a prime or sub prime product. As a rule catalogue companies as a whole were considered subprime

Certainly in my day when looking at interest rates, 20% and below were prime, 25% and above were subprime and anything between the two were more in the grey area.

If you are trying to build your credit rating you are possibly better doing so with a credit card rather than mail order company but these things are swings and roundabouts and ultimately all lenders have their own preferences and so there is never a "right" answer

chanz4

TheGenerus1 wrote: »

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.

very is 39.9 , and yes next and argos are strict lenders

TheGenerus1

chanz4 wrote: »

very is 39.9 , and yes next and argos are strict lenders

As I said in my original post, most catalogue companies if not all, carry a subprime rate.

I understand Argos and Next may be more strict then Shop Direct accounts like Very and Littlewoods, but to me they still carry a subprime APR rate.

Look at InsideInsurance post about where he thinks prime ends and subprime starts. I am in total agreement with his view that prime ends at 20%, 21-24% is a grey area and 25% and above are subprime rates.

I don't agree with your view that Argos and Next rates can't be considered subprime just because the lender is stricter in it's potential customer criteria.

aldredd

SnowTiger wrote: »

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

Mine is something daft, like 8,500 - most expensive item I've bought was a bed a few years ago (maybe 800)

Will soon be calling to have it reduced though - was just waiting until I'd paid bulk other CC debt first, as it was 'helping' keep my used:available ratio in check!