What will my limit be? - newbie

BadBehaviour

I was approved for the M&S Credit Card with 15 months 0% interest on purchases - first card ever. I was very surprised as in my application I did put I earn 5K a year.

Anyway, I received the credit agreement today and the APR shows as 20% (the representative one was around 16%), but I can't see clearly what the limit is. It just says the amount repayable, based on borrowing £1200, is such and such including the interest at the simple rate.

Does that mean the limit is £1200? Sorry, if it is a stupid question.

CLAPTON

1,200 is a standard amount that all CCs use to illustrate minimum repayments and interest incurred

it has no relationship with your actual credit limit.

BadBehaviour

Thanks, but then how do I know what it is? I am sure I didn't find the info anywhere on the agreement.

CLAPTON

it will probably arrive with the actual card

BadBehaviour

I see. Thanks for the reply.

MallyGirl

yes - it arrives in the letter with the card. This only comes once you have signed and returned the credit agreement. Very antiquated compared to most others now.

iAMaLONDONER

BadBehaviour wrote: »

I see. Thanks for the reply.

If you're too impatient to wait you could phone and ask!

Fruit_and_Nut_Case

NormaHanrahan wrote: »

No this is not the limit of your credit card. The limit is depend on your actual credit card. 1,200 is a standard amount that all CCS use to illustrate minimum repayments.

Thank you for joining the forum just to repeat an answer already given three days ago. Or are you really here to pimp your own homepage?

CLAPTON wrote: »

1,200 is a standard amount that all CCs use to illustrate minimum repayments and interest incurred

it has no relationship with your actual credit limit.

BadBehaviour

iAMaLONDONER wrote: »

If you're too impatient to wait you could phone and ask!

It's not about being impatient... I just thought they would tell me along with the interest rate.

I'd rather not call... I hate talking on the phone unless it's absolutely necessary.

When I said "Thank you for the reply" I didn't mean it in a sarcastic way!

Anthorn

BadBehaviour wrote: »

It's not about being impatient... I just thought they would tell me along with the interest rate.

I'd rather not call... I hate talking on the phone unless it's absolutely necessary.

When I said "Thank you for the reply" I didn't mean it in a sarcastic way!

Strictly speaking I agree with you: How can you possibly accept their offer if you don't know what the credit limit is? But not many of them do that. The reason is most likely that initially you go through an automated credit scoring with points added or taken away based on your application and a credit search. But then a real living person looks at that and decides on the credit limit. They won't do that until you have agreed to their TOS.