Salary required to get a credit card with more than £500 credit available?

GoldenShadow

I don't know if I'm just best sitting on my hands until I have a graduate/full time job, I imagine I might be!

I have a student credit card with HSBC which has a limit of £500 and I'm pretty sure that limit can't be increased. I am a full time student and work part time which gives me about 6K a year.

Its annoying in that there are several things of higher value which I am unable to buy myself and have to get my OH to use his credit card for and I pay him back, instances where you're buying on credit for the safety net not because of a lack of money.

Its just frustrating because then I can't buy anything for him, I wanted to buy us a surprise trip away for our anniversary etc and its just annoying being unable to with a limit of £500 credit. Would also like more available so that I could put the dog's vet bills on it (he's an expensive devil) and then pay it off.

I'm reluctant to just ring HSBC because when I could increase my student overdraft they kept encouraging me to apply for more than I wanted to, and so I don't think they will take into account that I potentially just don't earn enough to get anymore..!

Any advice, am I best waiting until I eventually have more than 6K earnings?!

izools

If the £500 credit card is the only line of credit you have at the moment and it's paid in full each month you shouldn't have much difficulty obtaining a higher limit elsewhere, presuming of course you have no adverse credit history like defaults or missed payments, and you've had the HSBC credit card for over 12~18 months (less and you haven't built up much credit history).

Here are some credit cards that have low minimum income requirements:

http://www.money.co.uk/credit-cards/low-income-credit-cards.htm

Please note that meeting the minimum income criteria won't automatically mean you've been approved, you have to have a decent credit history too

I would imagine that assuming you have a good credit history you'll get a limit higher than £500 but it won't be much higher given your income; maybe a grand or so?

The Nationwide card would be a good bet as the first one to look at as they tell you the credit limit you will actually be given before you submit the full application - by way of a soft search - so if they say for example they'll only offer a £600 limit you can cancel the application at that point without leaving a "hard search" on your credit file.

macman

Based on an income of just 6K, the credit limit is based on concerns as to how you would service the debt. If the card is in your name only, it doesn't matter what your OH's income is.
You say you're 'pretty sure' it can't be increased, but have you actually asked?

izools

macman wrote: »

You say you're 'pretty sure' it can't be increased, but have you actually asked?

Student credit cards tend to have a hard cap on the credit limit:

http://www.hsbc.co.uk/1/2/credit-cards/student-credit-card

"Upto £500 credit available"

Herbalus

The minimum requirement for Tesco is £5,000 per year, though I don't know their policy on accepting students.

The way I got around inability to get mainstream cards as a student was to open a House of Fraser mastercard. They are awful products and in my opinion, not responsible lenders, so you stand a better chance of being accepted. Some stores are pressured into selling them. I needed a higher limit than £500 with Natwest, so I bought something for £30 at House of Fraser (my 10% discount for taking the card was a massive £3 off!), and was accepted for a £1,000 limit.

If none of these work and you would consider changing student bank accounts, the Bank of Scotland student account has a credit card with a £1,000 limit. Not guaranteed of course, but it's the only student account that allows limits that high.

GoldenShadow

I managed to find the page just after I posted, says 'up to £500 credit' on the page. I thought it was restricted but wasn't aware if it could be increased with time similarly to the student OD, evidently not!

I was automatically given the credit card when I opened my student account, I didn't have a job at the time. I know there are options for low income credit cards, but I guess what I'm asking is whether the likelihood of being refused as a student with a 6K income is very high?

I don't want to apply for stuff I'm very likely to be declined for, it would just be helpful, that's all! Its not because I'm broke, but things like V Festival tickets I was unable to buy because the cost of the four was more than £500 and I wasn't prepared to buy them on my debit. I finish my degree January 2014, so not that far off, but most graduate schemes begin in September so that's September 2014 potentially, with a £500 credit card.

I've read Tesco are a bit tight on who they give credit cards too, I had a letter from Vanquis once but I tossed it in the bin expecting to get a flat no! My MacBook Pro finance is in my OH's name because they reckoned I would be declined 10 months interest free finance on the £1300 earning what I do.

Maybe I'll just have to suck it up a bit more?!

izools

Run through the Nationwide Pre-Application checker and see what it offers you.

They perform a soft search and give you an offer of limit and APR based on the results - if you proceed (i.e. are happy with the APR and limit) only then do they leave a full credit search footprint.

If you cancel the application at that point you haven't affected your credit worthiness at all and no other creditor will know you've applied elsewhere.

Let us know how you get on

TheEffect

I'm a student and got a CapitalOne Progress card 2 years ago in my first year. It was initially a £500 limit, but on the 4th statement they increased my limit to £800. This is my only credit card now.

I also had a Flybe card with a £1000 limit (now closed) and as mentioned above, I have used the Nationwide pre-check application which gave me a £1200 limit, but the APR was too high so I didn't go ahead with it.

zerog

My HSBC student card limit was increased to £1000 on request in my second year. In my 5th year they unilaterally increased it to £1500, possibly because I regularly maxed it out each month (always paid in full)

Gentoo365

Although this may not be possible in all circumstances you can ask to pay a small amount (e.g. £100) on the credit card and the remainder on the debit card.

This means that you are still covered for the full amount under the Section 75 rules. see:

http://www.moneysavingexpert.com/shopping/section75-protect-your-purchases#deposit

As a student you may be able to increase your limit just by asking. As the decision is more about 'account conduct' than 'salary', so if you always meet your minimum payment and your accounts with that bank show good conduct they may just increase it anyway.

GoldenShadow

Thank you for all the replies

I just did the Nationwide bit online and I could apply for a maximum of £1800 at 15.9% APR with 0% on purchases for six months. My HSBC one is currently 18.9% from what I recall...

I might give HSBC a call, I'm just concerned that they might encourage/allow me to apply for something like £1000 which is double what I have now, even if the odds of being refused are quite high?! I get the impression with the Nationwide one that it tailors the maximum lending as to what they are likely to approve..?

Would have to ring Nationwide anyway, half the questions on the application I can't be convinced on my answer! As in, when did I open my bank main current account?! I don't know so I put the earliest date I remember having it but I don't know if I need to know exactly when or not. I also don't know what my earnings actually are, I put down what they were until a few weeks ago but now our entire pay system has changed but I haven't actually seen/had my updated contract to know what it is officially. And I listed myself as a part time employee, although I'm actually a student as well.

I am terrible with forms, oh dear!!