How to work out credit card limit

NicolaH_2

Hi. I've looked everywhere but can't seem to find the thread on how to work out what the credit card company are going to give you as a credit limit, when you receive the initial letter stating amount charge for credit.

Can anyone help?

Thanks..

jamalfatty

Dont believe you can work it out, the example they give you in the letter is exactly that, an example. It's usually based on amount of around £1000-£1500 and is just to give you an idea of what it may cost you if you borrowed that amount.

You wont know the credit limit until the company actually tells you the exact amount.

wyebird

Most of them are examples . the M&S credit agreement is accurate though.

NicolaH_2

Thanks for replying. I read a thread where it says that x amount is charged for credit if you borrow and repay e.g. £1,500 over the period of 12 months. It was a percentage calculation. Can't find it anywhere..

E.g. £434.50 interest charged based on £1,500 borrowing and repaying over 12 months. The first figure changes in relation to the credit limit you're going to receive.

YorkshireBoy

http://forums.moneysavingexpert.com/showpost.html?p=3356253&postcount=180

Beware though, that the tabulated list is based on a 15.9% APR (typical) rate. To calculate for any other APR you'll have to use the Excel tools described in the post.

swayze

wyebird wrote: »

Most of them are examples . the M&S credit agreement is accurate though.

That one if a definitely an example.