Question from a newbie.

katykay_2

Morning.
If I apply for a credit card, (i've never had one before), what sort of credit limit could I expect to start with? I need to get some money together, and my salary/outgoings won't give me much of a personal loan.
Thanks for any constructive advice.

[Deleted User]

Probably sub £1k. But could vary widely.

When you say you need to get some money together - for what? ie is this a purchase or cash? How long do you need the money for?

A card may not be your best option.

katykay_2

Not cash. Can afford to pay up to about £500 back a month. £1k is no help at all. I'm looking for 15-20k.

blitzboy

As above, if your salary won't allow much in the way of a personal loan then it will be a similar story on a credit card, probably £500-£1000 initial limit.

But there is no written rule for it and every lender will treat it differently. You may get declined by one lender while another will give you a £3000 limit.

I've always found barclaycard generous with their limits so perhaps look into the barclaycard initial? I think there is a pre -eligibility checker for it too so you can see if you are likely to get it based on your earnings etc without having your credit file searched fully.

BillJones

katykay wrote: »

Not cash. Can afford to pay up to about £500 back a month. £1k is no help at all. I'm looking for 15-20k.

You'll likely need a salary of around £40k for that to happen (assuming you don't have any debt to start with).

chattychappy

MBNA also seem good with credit limits.

The main problem is that if you have never had a CC before, you will likely only be able to get one that has a high interest rate and perhaps no promo deals. So aside from the limit issue, you could find it expensive. Do the maths before taking the credit to ensure that you don't drown.

In general, CCs are only good for borrowing if:
1) you are on a promo deal (eg 0% on purchases); or
2) it is short term, a couple of months or so

Else most people pay them off in full each month (so no interest) as it helps them regulate their monthly cashflow, as a way of spending when overseas, or for consumer protection reasons (S75).

SuperHan

I have a household income of around £50k, my salary makes up just under half of it. I've only been working on that salary for about 1.5 years, but I took great care as a student to get overdraft/credit cards/finance and pay them back on time, so I have a good credit rating, and I have a mortgage which is paid on time every month.

None of the credit cards I have have given me a limit > £2k [£800 with Santander, which I have had since before getting a full time job, and £1,700 with MBNA which I applied for aftermy mortgage, and after working for around 8-9 months]. I haven't requested one from my bank, who I imagine would give me a bit more (but I don't need more), but I think you will struggle to find someone who will lend you £15k without you having any real prior credit history....

cats2012

We have a very strong household income and the highest we've been given so far is £8000 on a BT card.

My first ever card was £1200 and that was with my bank, first different lender one was £2k a year or so later.

exoteric

katykay wrote: »

Not cash. Can afford to pay up to about £500 back a month. £1k is no help at all. I'm looking for 15-20k.

I agree with the advice about trying Barclaycard - I've got a credit limit of £15k on a Platinum card, but my income is £60k+ so it all depends. But to be honest for that sort of money you probably need a personal loan.

Fingerbobs

katykay wrote: »

Not cash. Can afford to pay up to about £500 back a month. £1k is no help at all. I'm looking for 15-20k.

You will be extremely lucky to get anywhere near a £15k limit on any card.

I've had many credit cards over the years, with an impeccable credit history, and the highest limit I have ever had in my whole life was £11,300, way back in 2008 (I keep a spreadsheet of such things!).

Between £2000 and £6000 has become the typical range for me in recent years.