Normal c/card limit for £12k income? offered 4k!!

dobbie82

I had a barclays credit card when I was in uni, limit of £300, no missed payments, but I cancelled it as I didnt need it.

few years later I applied to capital one as ebay, aol and many other companies only accept credit cards not debit cards. Was given a £200 limit. In 2.5 years I havent missed a payment but went over limit 2 months in a row because I didnt realise that if I went to £201, they charge £12 but still only take the minimum £5 payment from my bank. (I presumed theyd take the £12 charge too)

Anyway, despite asking for an increase in my limit, it hasnt happened, and with my monthly outgoings a £200 limit is pointless, so am cancelling the card.

I applied to My bank for a credit card, hoping for a £1500 limit so as to be able to use it for all my outgoings and pay off at the end of each month but was given a £4000 limit!

I only earn £12k a year as I only work part time, they know this, is this not a bit irresponsible? I have a loan with them and have never missed a payment with that, and have banked with them since I was in school so have a good record with them but it feels like they are trying to get me into debt! (they have offered a £1500 overdraft too, I have not been overdrawn for over a year and even then it was within my agreed £500 overdraft)

Would it look odd if I asked to reduce it to £1500 as come Christmas the available credit will be tempting!

Thomas_Crown

dobbie82 wrote: »

I only earn £12k a year as I only work part time, they know this, is this not a bit irresponsible? I have a loan with them and have never missed a payment with that, and have banked with them since I was in school so have a good record with them but it feels like they are trying to get me into debt! (they have offered a £1500 overdraft too, I have not been overdrawn for over a year and even then it was within my agreed £500 overdraft)

Would it look odd if I asked to reduce it to £1500 as come Christmas the available credit will be tempting!

They are trying to tempt you to spend loads of money that you havn't got & get into debt & then pay them lots of lovely interest.

I think you have taken a very responsible attitude to this & I agree with what you said about reducing your credit limits. Do you really need a £1,500 overdraft? If you do not intend using it except for emergencies then get it reduced to £500 or even less. You are obviously worried about being tempted to spend too much of the credit limit on your credit card so I would get your bank to reduce that to £1,500 - £2,000.

If you don't have a reasonable sum for use in case of an emergency, then try
& build one up gradually month by month & reduce your overdraft to £50.
Don't worry what your bank thinks about you reducing your credit limit. If they ask, just say you are being ''prudent''.

Lavendyr

Hi It would not be at all odd or unusual to ask them to reduce your credit limite, it's a perfectly reasonable (and sensible) request. Of course, as said above, they want you to spend as much as you can and then give them lots of interest, but they cannot refuse to drop your credit limit if you ask for it.

RayWolfe

Whilst I agree with the general thrust of this discussion it does lead one to ponder on the question of the infantalisation of society. Here is someone with the right attitude saying oooh protect me from myself.
Because you have a high limit does not mean you have to use it ... so don't use it, but if there ever is a real emergency it is there for you.

Lavendyr

RayWolfe, I absolutely agree. I have a £1000 credit limit on my credit card but limit myself to spending £100 per month on it, which I then pay off in full each month - and therefore I have £900 there in case I might need it (which in some situations - car MOT costing £500 more than expected for instance - I have). In principle, I am completely in agrement with you.

However I also think that if you *know* that you won't/can't exercise the willpower to resist spending available credit, it is only sensible to restrict that credit. The OP sounds as though s/he doesn't think s/he could resist spending the credit if it was there - so I think the best thing to do is to get that credit taken away.

dobbie82

Lavendyr wrote: »

RayWolfe, I absolutely agree. I have a £1000 credit limit on my credit card but limit myself to spending £100 per month on it, which I then pay off in full each month - and therefore I have £900 there in case I might need it (which in some situations - car MOT costing £500 more than expected for instance - I have). In principle, I am completely in agrement with you.

However I also think that if you *know* that you won't/can't exercise the willpower to resist spending available credit, it is only sensible to restrict that credit. The OP sounds as though s/he doesn't think s/he could resist spending the credit if it was there - so I think the best thing to do is to get that credit taken away.

Pah, £500? try £700 :eek: This years MOT has to go on the card, never had a Garage bill so high!!

Thanks for your replies (and keep them coming anyone whos lurking) Just thought it was an awful lot of "available credit" to give someone.

will just keep the card at home when I go shopping for the day!