One of those threads again i do apologise....

aleph_0

I've followed quite a few threads like this, which seem to provide a whole range of opinions. I was wondering if anyone had any useful sources. As far as I can understand it, the main claims are:

- If one has 'too much' available credit (relative to income), lenders should(*) (not should, not will!) be concerned.
- If one has a high debt/income ratio, lenders should be concerned
- If one has a high debt/available credit ratio, lenders should be concerned(*)

(* unless this is due to stoozing, but how can lenders tell the difference?)

These claims can overlap/contradict, in that high available credit

Most opinions given then seem to be based on these, but with different views on what reasonable/too much might be. We also seem to have built up a supply of anecdotal evidence as to which companies are more/less generous with limits - e.g. I believe Halifax are generally quite generous at one end, but Tesco are quite tight.

I guess some posters might also have knowledge of a companies internal system, and could be posting opinions based on that, but obviously can't give details of what they know?

sistafromanothermista

I think i might be more confused now than when i started....:rotfl:

DH card (0%) also ends but in Feb so he is going to need to do one before me. However, he is now working for an agency so will be limited by CC companies who don't ask this question! (looks like Natwest or Nationwide) Then will need a limit high enough to cover his BT!! He has never had problems with credit in the past and at one time had 3 cards each with 10-15k limit on each :eek:
Now he only has the one card with an 8k limit which by the time he needs to do the BT will be down to 3-4k
So the options are; if he gets a 0% card with a high enough limit on he'll transfer my balance and his. If he doesn't then just transfer his and i'll have to apply for mine!

What a minefield!


To reduce limit or not reduce limit....that is the question

jen245

I've got more than 50% of my salary in available credit, and was recently accepted for a Barclaycard Platinum, adding another £2.5k, so I don't buy the theory that 50% of your salary in available credit is a negative. It's how you manage it that counts, so I'd go for another card if i was you OP, and I wouldn't reduce your limits either

sistafromanothermista

Thanks jen245 :T That's really encouraging. I think i'll give it a go (in April) and see what happens.

Paully232000

I would have to second what jen said, and can only go for my own circumstances.

I had 133% of my salary in available credit and have recently applied for a barclaycard and they gave me an extra 50% of my salary in available credit.

Even thought i dont use anything near the limits (in fact most have a balance of £0) I have never got round to closing them even though I know I should, and will, it is possible to get over (well over) 50% of salary in available credit.

sistafromanothermista

Thanks for that. I think i'll give it a go.