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Benefit in extending credit

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Comments

  • Really, MBNA have never undertaken a credit search on my cards with them when I have requested a credit limit increase. Perhaps I'm just lucky.
  • SnowTiger
    SnowTiger Posts: 4,461 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    MandM90 wrote: »
    Hi SnowTiger,

    I haven't had a warning...just came across it this morning. I do have a mortgage of £217k but I'm assuming that doesn't come into it!

    I would check where I found it but I cancelled it this morning after having a good nosy around.

    Not planning on any credit (unless it would help my credit health) until remortgage time in just under two years, so I got rid of CE and will just pay to check the report next year.

    ETA just realised my OP was a bit unclear...it wasn't a 'warning', just listed somewhere as one of the factors which dictates a score.

    Isn't it like ClearScore?: you get a list of positive and negative factors.

    When I wrote "warning" I meant a warning that it may have a negative impact on how others view your credit file.

    I think you've taken the word to mean something stronger than I meant. :)
  • Ben8282
    Ben8282 Posts: 4,821 Forumite
    1,000 Posts Combo Breaker Newshound!
    Taken in isolation this 'warning' or whatever makes no sense in your situation.
    You have a credit limit of £2300.
    You spend £200pm and repay in full.
    The maximum balance at any one time is therefore unlikely to exceed £400.
    You are therefore using at most about 17-18% of your total available credit.
  • Anthorn
    Anthorn Posts: 4,362 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Really, MBNA have never undertaken a credit search on my cards with them when I have requested a credit limit increase. Perhaps I'm just lucky.

    No I'd say you don't have an MBNA card or if you have you have never applied for a limit increase. The warning about a full credit search is on the form when you apply for a limit increase:
    Please note - By submitting this request, you authorise us to search the files of any credit reference agency we require to help us make a decision on increasing your credit.
    In fact that was the reason why I have arranged to close my MBNA card.
  • I am sorry but I have two MBNA cards and have a long term relationship with them for many years. I have never had any problem with them at all. Yes I have seen that disclaimer when you apply for a limit increases but I have always checked my credit files and they have never performed a credit check on me despite that warning. I have had credit limits totally £30k with them over two accounts. I am only saying it as I have experienced it and others can judge whether they feel I am being insincere! Why would I be? This forum is about sharing experiences and learning and I am simply sharing my experience with MBNA and telling you that in my experience with them they have not performed a credit check when I have asked for a credit limit. Once they actually declined an increase, again that didn't show on my credit file!
  • bigadaj
    bigadaj Posts: 11,531 Forumite
    Ninth Anniversary 10,000 Posts Name Dropper
    Anthorn wrote: »
    Some lenders such as MBNA perform a new hard search when a credit limit increase is requested. But we are allowed more than one new hard search in a 6 months period you know.

    You really have a problem understanding fairly simple poeces of text.

    The fact the supplier may search your credit file doesn't mean that they will, this combination of not understanding the difference between soemthing that may happen and something that definitely will, together with extrapolating your situation to others who may well have a far better credit history that you, leads to you giving our some very dodgy advice that people would be better to ignore, or at best take with much salt.
  • Anthorn
    Anthorn Posts: 4,362 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    bigadaj wrote: »
    You really have a problem understanding fairly simple poeces of text.

    The fact the supplier may search your credit file doesn't mean that they will, this combination of not understanding the difference between soemthing that may happen and something that definitely will, together with extrapolating your situation to others who may well have a far better credit history that you, leads to you giving our some very dodgy advice that people would be better to ignore, or at best take with much salt.

    As I posted in another similar thread, I'm not concerned with what they might do and not concerned what they might not do. I'm concerned with what they say they will do and that is unacceptable for me! Very simple really.
  • Anthorn
    Anthorn Posts: 4,362 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    SnowTiger wrote: »
    Isn't it like ClearScore?: you get a list of positive and negative factors.

    When I wrote "warning" I meant a warning that it may have a negative impact on how others view your credit file.

    I think you've taken the word to mean something stronger than I meant. :)

    A lot like Clearscore or more likely vice versa. Experian provides positives and negatives like Clearscore and an overall score based on those.
  • I'm sorry to say but when you enter into a credit agreement with the majority of lenders you give them the authority to search and monitor your credit history and conduct with the CRAs. I think you will find this in your T&Cs.....
  • Anthorn
    Anthorn Posts: 4,362 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    I'm sorry to say but when you enter into a credit agreement with the majority of lenders you give them the authority to search and monitor your credit history and conduct with the CRAs. I think you will find this in your T&Cs.....

    I agree with that but over more than three years with Aqua Advance and APR ranging from 34.9% to 19.9% and credit limits ranging from £250 to £7500 they have never performed a new credit search. But they monitored it. Similarly Santander, Nationwide and N & P agreed to several overdraft increases without a new credit search. But they monitored it. Currently I expect my new Lloyds Bank Platinum BT card will similarly have its credit limit increased without a new credit search.

    Perhaps MBNA don't know how credit histories work. They've already searched, they've already got it.

    I'm not saying that no lender will ever perform an additional hard credit search but if they do they will be waving bye-bye to my account because the number of hard credit searches allowed is severely limited. Again, very simple.
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