Capital one credit limit increase

fozmcfc

I believe looking at the credit card pages on MSE, the fluid card is the best card for anyone looking for an MBNA card.

You can even try the pre-application checker, to give you an indication of likelyhood of acceptance.

https://creditcards.moneysavingexpert.com/?czgup

My experience of MBNA is, have a Virgin card for 4.5 years, started at 16.9% APR and is still 16.9% APR. Limit started at £6000, now £6800.

There is no hard and fast rule for APR's or limits with credit cards, every person who life circumstances and usage will determine APR's and limits.

There are numerous factors which will determine it, my situation since getting my card, has not changed at all.

My situation since getting the card, same employment, same living arrangements, outgoing money committment very similar and no black marks on my credit reports.

Usage wise, in all the time, I've had the card, I haven't gone close to the limit, I haven't held any balance other than at 0%.

Perhaps that is why my APR hasn't changed and the limit has only just recently increased. I'm not seen as a risk customer and I'm not seen as someone they will earn £20 + every month in interest off.

I dare say if I had become unemployed, moved several times in a short space of time or held a high balance attracting interest, my APR would have gone up, as I would be a risk customer and also someone they could earn interest out of.

I do find it quite annoying how card companies seem to up APR's for customers who are only paying minimum amount each month and clearly struggling to pay the debt off.

I would like to see them advise the customer, that they are concerned that the customer is nearly at the limit of the card and unless they reduce the balance to below 90% of the limit within 3 months, the card will be closed and needed to be paid off at the current APR.

Anyone who is paying the minimum only and at the limit, should be looking at cutting the card up anyway.

Maestro.

guesswho2000 wrote: »

By all means take advantage of their offers, but be wary of carrying a balance with an MBNA issued card.

guesswho2000 wrote: »

Rate jacked. MBNA are the king of this practice my Virgin card, when I had it, started at 10.9, ended at 34.9!

My Platinum and AAdvantage MBNA cards are currently on their typical rates; hopefully any rate jack won't matter, I'll be closing the platinum once the 20 month 0% expires, and the AA is for airline miles!

Interesting. I am currently carrying a small balance on said MBNA card, be interesting to see when the 0% period ends (and I've paid it off) if they rate jack it. I always pay in full on non 0% cards but it would still be a shame to see 15.9% go up.

fozmcfc wrote: »

I do find it quite annoying how card companies seem to up APR's for customers who are only paying minimum amount each month and clearly struggling to pay the debt off.

I would like to see them advise the customer, that they are concerned that the customer is nearly at the limit of the card and unless they reduce the balance to below 90% of the limit within 3 months, the card will be closed and needed to be paid off at the current APR.

Anyone who is paying the minimum only and at the limit, should be looking at cutting the card up anyway.

I completely agree and I think you and I may have covered this subject before. I think it's ludicrous that these companies can essentially push people further into debt. Sure, people shouldn't borrow outwith their means but sometimes it's not easily helped and not for huge amounts either.

Gold_bullion

With all of the banking debacle and government sound bites from the PM such as implying your energy company will in future seek to always put you on the lowest tariff, it's amazing that the credit card companies are allowed to get away with charging such high rates. They have had their charges for late payment, etc, capped and must now apply any repayment to the highest interest portion first rather than last as they used to do, but they are still allowed to charge whatever interest rate they like.

High rates do not necessarily imply the company thinks you are high risk. My credit rating according to Equifax is "excellent" on their scale and I have never paid MBNA any interest, at one point holding 4 of their cards at the same time. As I recall the rate always was high on this Platinum card and I've had it since they first did business in the UK. Presumably if they thought I was high risk they would have cut the limit down during one of the many periods it has had a zero balance over the years.

gazman100

fozmcfc wrote: »

I do find it quite annoying how card companies seem to up APR's for customers who are only paying minimum amount each month and clearly struggling to pay the debt off.

I would like to see them advise the customer, that they are concerned that the customer is nearly at the limit of the card and unless they reduce the balance to below 90% of the limit within 3 months, the card will be closed and needed to be paid off at the current APR.

Anyone who is paying the minimum only and at the limit, should be looking at cutting the card up anyway.

You can do that - you don't have to accept the APR increase. If you phone them and tell them you don't accept the change in conditions they are obliged to lock the APR at the current rate but you can't add any credit to the account. I learnt this from the MSE mail out! :money:

In fact I did this in 2010 with a sizable Virgin (MBNA) CC balance when they tried the same thing. As I turned out they didn't go ahead with interest increase but I believe the account even stayed live (offered balance transfers etc - never actually used the card again though).

You-kip

Gold_bullion wrote: »

With all of the banking debacle and government sound bites from the PM such as implying your energy company will in future seek to always put you on the lowest tariff, it's amazing that the credit card companies are allowed to get away with charging such high rates. They have had their charges for late payment, etc, capped and must now apply any repayment to the highest interest portion first rather than last as they used to do, but they are still allowed to charge whatever interest rate they like.

High rates do not necessarily imply the company thinks you are high risk. My credit rating according to Equifax is "excellent" on their scale and I have never paid MBNA any interest, at one point holding 4 of their cards at the same time. As I recall the rate always was high on this Platinum card and I've had it since they first did business in the UK. Presumably if they thought I was high risk they would have cut the limit down during one of the many periods it has had a zero balance over the years.

Unfortuantly your Excellent on Equifax has no relevance of how a lender would score you also a lender wouldn't see your score nor would they care.

You can be discharged BR and be on Jobseekers and get an excellent score off these scammers like Equifax & Experian.

Gold_bullion

I agree that your Experian or Equifax "score" has no direct relevance to how an organisation scores you, but most lenders use these agencies to check your credit and repayment history, which incidentally in Equifax's case now includes the amount you have paid off a credit card in every month going back to 2011 I think it is.

Equifax records publically available court information such as bankruptcy and CCJs so I think it unlikely you would get an excellent score as a discharged bankrupt, depending on how long ago it was of course. CRAs don't record income or savings in any way, so the only way a lender knows your income is from what you tell them and they can check this with your employer.

The reality is that you have to care what these "scammers" as you call them have on file for you, as lenders and insurers almost always use them very early in the application process.

Experian_company_representative

Most lenders obtain data and scores from the credit reference agencies, but what you have to remember is the score you can get just looks at your credit report. While this is based on how typical lenders will rate your credit report, lenders have access to and therefore score a wider selection of data, such as your income and of course the credit report details of anyone you're financially connected to. And all of this is done with their lending policies in mind. So the scores you can get with your credit report are not meaningless - they are a guide to part of the picture.

James

You-kip

Experian_company_representative wrote: »

Most lenders obtain data and scores from the credit reference agencies, but what you have to remember is the score you can get just looks at your credit report. While this is based on how typical lenders will rate your credit report, lenders have access to and therefore score a wider selection of data, such as your income and of course the credit report details of anyone you're financially connected to. And all of this is done with their lending policies in mind. So the scores you can get with your credit report are not meaningless - they are a guide to part of the picture.

James

Its impossible for yourselves to represent a scoring guide to someone's credit report when many important data used when scored by a lender is NOT used by your scoring which in many ways it can be seen as very meaningless.

Its basically like someone pricing up a valuation for a Car & not asking for the mileage & then saying mileage dont matter.