why wont asda increase credit limit???

F_Bear

annoyed with asda credit at the moment. we're booking our wedding abroad for oct and want to pay for everything with the cc for the 1% cashback and security.

we earn combined £50,000 with a modest mortgage on a £150k house. we pay in full evry month and have done for the last 2yrs roughly spending £1200 on it.

the limit at the mo is £5k so i asked for it to be increased to £10k. pretty simply i thought but no, knocked back by customer services for no reason except 'the computer works out if your eligable and will let you know'??

emailed them saying increase please and outlined the above............roughly same generic email sent back! i understand responsable lending is required but ive got the money sat in my bank!!

rather annoyed and think guna vote with my feet and get another cashback card

shortcrust

It's just the way it goes, is it? Lenders decide credit limits, not customers and 5k to 10k is a big increase in one go. Decisions can seem arbitrary but it's not a personal slight so only vote with your feet if it's in your best interests.

Gels

Why don't you get your OH to apply for an Asda card?

When I applied I also got a £5k credit limit. My OH was interested and I immediately applied for one for him too, who also got a £5k limit.

Obviously, dependant upon your own circumstances, but just a suggestion.

CLAPTON

5k is a reasonably generous limit for an individual earning around 25k

Fruit_and_Nut_Case

Why not spend £5000 one month and £5000 the next instead of £10000 in one big splurge?

parksajj

Could it be because you have other cards? Maybe too other cards backed by creation or maybe loans?

MABLE

F_Bear wrote: »

annoyed with asda credit at the moment. we're booking our wedding abroad for oct and want to pay for everything with the cc for the 1% cashback and security.

we earn combined £50,000 with a modest mortgage on a £150k house. we pay in full evry month and have done for the last 2yrs roughly spending £1200 on it.

the limit at the mo is £5k so i asked for it to be increased to £10k. pretty simply i thought but no, knocked back by customer services for no reason except 'the computer works out if your eligable and will let you know'??

emailed them saying increase please and outlined the above............roughly same generic email sent back! i understand responsable lending is required but ive got the money sat in my bank!!

rather annoyed and think guna vote with my feet and get another cashback card

Its probably because you are heavily indebted already. No good earning £50k if you are spending £50,001 a year already.

SuperHan

I'm in a similar place with Santander... £50k household, £150k mortgage, card used to about 70% each month and paid back fully... But Santander have only offered me £800, and if I want an increase I will have to wait until the system decides so. I actually requested an increase when my income went from £8k to £22k, but they actually didn't want to know that my income had increased.

I asked how they would be able to make a decision on any future increase without all the information, i.e. a significant increase in salary, but they didn't really have an answer, and wouldn't take the information about my increase as they had nowhere to save that info.

pjread

It's really not worth the energy getting annoyed at Asda over it.

As others have said, household income 50k I assume means you're around 25k, which would make the 10k you're requesting around 40% income without looking at any other credit...

Personally I'd be shocked at a lender giving me a limit 40% of my gross income and would view it as a bit reckless - not because I personally would go and spend to the limit, but because they would be enabling the behaviour, and if they do this across a thousand people a fair minority may well do. Maybe I'm wrong but I don't think I've had a card with more than 20% gross income, and I certainly wouldn't see that as a reason for anger.

Can't you just put half the expense on the credit card, then make a payment to clear it, then put the rest on if you are only interested in cashback/s75 protection rather than actual credit per se?

iAMaLONDONER

SuperHan wrote: »

I'm in a similar place with Santander... £50k household, £150k mortgage, card used to about 70% each month and paid back fully... But Santander have only offered me £800, and if I want an increase I will have to wait until the system decides so. I actually requested an increase when my income went from £8k to £22k, but they actually didn't want to know that my income had increased.

I asked how they would be able to make a decision on any future increase without all the information, i.e. a significant increase in salary, but they didn't really have an answer, and wouldn't take the information about my increase as they had nowhere to save that info.

You got a Santander credit card with an income of 8K?! Was it the 123 card?