Hi all

I have just opened a Santander 123 account i have a decent amount of money i have read all the pros and cons im very good with my money and i wanted some of you kind peoples advice on stoozing.

I have just received my 23 month in interest free credit card from Santander 0 percent balance transfer and cash back on spending.

My main question is my limit on the card is £4600 which is a little low but the thing on my mind is if i go high say get another card or try and higher limit on this one will it effect my ability for credit? i.e if i go for a mobile phone contract ect.I would very much appreciate your knowledge on this just to iron the fine wrinkles i am curious of.

Replies

  • HerbalusHerbalus Forumite
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    depends on your other circumstances and also lenders' criteria. Sorry that sounds like not answering the question, but if you earn £40k then obviously there's a lot more scope for further borrowing than if you earn £20k. It's helpful to look at your available credit as a % of total income, and some lenders are happier with higher %s than others.

    Santander won't allow you to increase your limit within first 6 months, though you can appeal. I'd just spend until you reach your limit and then get another card.
  • YorkshireBoyYorkshireBoy Forumite
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    Herbalus wrote: »
    I'd just spend until you reach your limit and then get another card.
    I wouldn't (:)) for two reasons:

    Firstly, applying for another card whilst you're maxed out on this one could result in either rejection or a useless credit limit.

    Secondly, all fuel and supermarket spending should continue to be put on this card, so you continue to enjoy 1-3% cashback, even if that means overpaying to free up some available credit for the following month (which is what I have to do!).

    Any other spend, ie not fuel, supermarket, or department store, could go on the other card though (again, as I do), which, ideally, you should obtain before your Santander utilisation becomes too high.
  • HerbalusHerbalus Forumite
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    I wouldn't (:)) for two reasons:

    Firstly, applying for another card whilst you're maxed out on this one could result in either rejection or a useless credit limit.

    Secondly, all fuel and supermarket spending should continue to be put on this card, so you continue to enjoy 1-3% cashback, even if that means overpaying to free up some available credit for the following month (which is what I have to do!).

    Any other spend, ie not fuel, supermarket, or department store, could go on the other card though (again, as I do), which, ideally, you should obtain before your Santander utilisation becomes too high.

    I can't fault your logic. Although I reached £2,750 of my £3,000 123 limit after four months last week and got £4,300 with post office. So theory is not everything, but good nonetheless :)
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