Do I have a good chance of getting a new credit card with a decent limit?

StinkyMonkey

I am thinking of getting a new CC with a 0% purchase deal in the coming months, as I am planning to have some significant expenditure from March onwards. My concern is whether I already have too much credit and thus I might be accepted for a new card but might be offered a small credit limit (I would like to get at least 4-5K to meet my upcoming needs). My current salary and credit details are:

Salary ca. 50K with 6K put into pension (salary sacrifice, so it seems as if I am being paid 44K).
Existing CC-1: Limit ca. 4.5K almost zero balance
Existing CC-2: Limit 6K, ca. 0.5K balance
Existing CC-3: Limit 11K, ca. 0.5K balance
Existing CC-4: Limit 4K, ca 1K balance (on 0% till end of 2014, to be repaid by that time).
All four CC are with different providers. Total credit limit: ca. 25K.

Any new CC will be with a new provider.

My questions are:

- Does it matter how many cards I have?
- Does it matter how much credit I already have (esp. in relation to my salary)?
- Does it matter that I do not generally have massive balances on the cards (in the past, I may have had up to 4K balances, but never missed minimum payments, etc.)
- Does it matter if I apply next year for a card with a provider I had been with in the past (it was another 0% purchase deal that came to an end in the summer of 2013 and then I cancelled the CC)
- Would it be good practice to cancel any of the existing CC before I apply for the new one?

Thanks in advace.

Paully232000

StinkyMonkey wrote: »

I am thinking of getting a new CC with a 0% purchase deal in the coming months, as I am planning to have some significant expenditure from March onwards. My concern is whether I already have too much credit and thus I might be accepted for a new card but might be offered a small credit limit (I would like to get at least 4-5K to meet my upcoming needs). My current salary and credit details are:

Salary ca. 50K with 6K put into pension (salary sacrifice, so it seems as if I am being paid 44K).
Existing CC-1: Limit ca. 4.5K almost zero balance
Existing CC-2: Limit 6K, ca. 0.5K balance
Existing CC-3: Limit 11K, ca. 0.5K balance
Existing CC-4: Limit 4K, ca 1K balance (on 0% till end of 2014, to be repaid by that time).
All four CC are with different providers. Total credit limit: ca. 25K.

Any new CC will be with a new provider.

My questions are:

- Does it matter how many cards I have?
No,
- Does it matter how much credit I already have (esp. in relation to my salary)?
I would not say that in relation to your salary you have too much credit
- Does it matter that I do not generally have massive balances on the cards (in the past, I may have had up to 4K balances, but never missed minimum payments, etc.)
No, is more important how you have used them in terms of paid on time, never been over-limit
- Does it matter if I apply next year for a card with a provider I had been with in the past (it was another 0% purchase deal that came to an end in the summer of 2013 and then I cancelled the CC)
No, I think the majority of cards have a 6 month max limit on when you can get a card of the same type and still get deals
- Would it be good practice to cancel any of the existing CC before I apply for the new one?
If they are of no use to you in terms of points, BT offers, cashback etc then you may as well cancel them as even taking into consideration some people say that the % utilization has an impact on future credit this would not be a consideration in your case.
Thanks in advace.

my personal opinion based on what you have said

grumbler

StinkyMonkey wrote: »

- Does it matter how many cards I have?

Not really.

- Does it matter how much credit I already have (esp. in relation to my salary)?

Yes

- Does it matter that I do not generally have massive balances on the cards (in the past, I may have had up to 4K balances, but never missed minimum payments, etc.)

Yes, normally it's good.

- Does it matter if I apply next year for a card with a provider I had been with in the past (it was another 0% purchase deal that came to an end in the summer of 2013 and then I cancelled the CC)

See: When I do regenerate as a 'new customer'?

- Would it be good practice to cancel any of the existing CC before I apply for the new one?

With (available credit)/(income) ratio close to (bigger than?) 50% this is something to think about. However, people with big salaries can often get 100% because their disposable income is much bigger.

StinkyMonkey

Paully232000
Thank you for taking the time to respond. What would you consider as "having too much credit" in relation to salary? 75%? More?

grumbler
Thank you for your responses. When you are referring to "people with bigger salaries", would you include my 50K in that 'category'?

Paully232000

StinkyMonkey wrote: »

Paully232000
Thank you for taking the time to respond. What would you consider as "having too much credit" in relation to salary? 75%? More?

grumbler
Thank you for your responses. When you are referring to "people with bigger salaries", would you include my 50K in that 'category'?

Your welcome, from personal experience I wouldn't even say that 75% is too much credit to be able to get other CCs for BT, cashback etc. In the recent past I have had well in excess of my salary in available credit and have never had problems getting additional credit. I have, at last, closed a few but it is still around 100%. The last CC i got was about 3 months ago with a limit around £5K for the last of my BT amounts. They all sit in my drawer and I only use two cards on a regular basis for day-to-day spend.

Others will disagree I am sure.

grumbler

StinkyMonkey wrote: »

would you include my 50K in that 'category'?

£50K I would. Not sure about 100% for £44K.

StinkyMonkey

grumbler
Would you consider it disingenuous if I would indicate a salary of 50K when applying for a new CC (in light of salary sacrifice etc.)?

grumbler

TBH, I don't know.

Chino

StinkyMonkey wrote: »

grumbler
Would you consider it disingenuous if I would indicate a salary of 50K when applying for a new CC (in light of salary sacrifice etc.)?

It would be disingenuous because that gross 50k isn't available to you to repay any debts you might have. That's the problem with salary-sacrifice arrangements.

Thrugelmir

StinkyMonkey wrote: »

My questions are:

- Does it matter how many cards I have?

There's a view that 4 lines of credit should be adequate for most people. Still early days of this becoming a regulation. As the FCA have yet to address credit cards (along with unsecured lending in all it's guises). Having addressed mortgages and still chewing their way through Payday lenders.

- Does it matter how much credit I already have (esp. in relation to my salary)?

Yes

- Does it matter that I do not generally have massive balances on the cards (in the past, I may have had up to 4K balances, but never missed minimum payments, etc.)

Lenders have analytical tools that dissect credit agency data. Enabling lenders to profile your behaviour and trends.

- Does it matter if I apply next year for a card with a provider I had been with in the past (it was another 0% purchase deal that came to an end in the summer of 2013 and then I cancelled the CC)

That's a matter for the provider.


- Would it be good practice to cancel any of the existing CC before I apply for the new one?

Why do you hold credit cards that you have no intention of using?

Thanks in advace.

............

grumbler

Chino wrote: »

It would be disingenuous because that gross 50k isn't available to you to repay any debts you might have.

Is it not the case for any gross income that we always declare when applying?