Virgin 0% Credit Card Limit Stress!

Simbad

After seeing the new Virgin Credit Card on this site (0% balance transfers AND spend for 24 months) I decided it would be a good idea to apply.

I currently have a Santander 123 credit card with £2100 limit which started charging me interest in November, I've spent around £1800 on the card. I wanted to ditch this card as it charges me, but I don't feel the cashback incentives really benefit me. There are also some thing I wanted to buy and do.

So I applied and was confident that I'd be excepted and that I'd be given a bigger limit. I have a good credit rating now after getting my first awful Capital One card in 2011 and paying that off, I also have another card with Santander which is £700 limit and I paid off in November.

So, I received an email today saying that I'd been approved for the Virgin Card. But, the credit limit I've been given is only £1500. The balance transfer to my other card they are paying is £1400. A bit of the £100 left over will go towards fees. So basically I have £600 still left to pay on my old card (and the yearly fee is due next month!) and a new credit card I can't even use! I'm totally gutted!

I rung up Virgin to see if anything can be done. I was told they couldn't help over the phone as they're not a bank(!) and if I wanted to appeal my limit I had to WRITE to head office!!!

The only thing I can maybe think effected the outcome is I've been in my flat a year and am using this address. Where as my Santander accounts are still under my 'home' (mum's) address. Could this effect the outcome?

Has anyone had similar issues?
Any idea what to write in the letter?

I feel totally stuck. If I need to get anything I'm basically going to have to use the credit card that I want to get rid of!

[Deleted User]

You could try one more card application. But with a highly utilised card, lenders will be cautious. Your income will also play a part.

I doubt Virgin will increase the limit for at least a few months, but you can try.

fozmcfc

Some general thoughts.

Some at 0% (in this case most) is better than none.

Why not apply for another balance transfer card, even if you get a £1000 limit on that it'll be enough.

Seems like you need to start curbing your spending, the warning signs are definitely there.

1/ You seem to be using credit cards, to simply give you more money each month.

2/ Talk of more purchases, when you owe money already that you clearly are struggling to pay back.

3/ Getting stressed over £600, so you clearly haven't the money to clear it over a couple of month period.

If you do get another card to transfer to, you really need to look at paying it off before the 0% runs out.

Your post to be honest, just comes across as someone getting out of their depth with debt.

diamonds

Update Santander etc with new address, it wont have helped.

Simbad

fozmcfc wrote: »

1/ You seem to be using credit cards, to simply give you more money each month.

2/ Talk of more purchases, when you owe money already that you clearly are struggling to pay back.

3/ Getting stressed over £600, so you clearly haven't the money to clear it over a couple of month period.

Your post to be honest, just comes across as someone getting out of their depth with debt.

Hi,

1. I don't. Haven't used my credit card in months. I'm just paying it back.

3. £600 off in a few months is quite a bit of money and I don't know many people who have would have that money spare either after bills etc.

I don't feel like I'm in debt. Like I said , those other credit cards are totally paid off and haven't been used for over 6 months.

Don't mean to come across snippy, but I just wanted to clear that up!

Dobbibill

Simbad wrote: »

I currently have a Santander 123 credit card with £2100 limit which started charging me interest in November, I've spent around £1800 on the card. I wanted to ditch this card as it charges me, but I don't feel the cashback incentives really benefit me. There are also some thing I wanted to buy and do.

Your not going to see many/any benefits if you are paying interest as they will cancel out any benefits you could have gained.

So I applied and was confident that I'd be excepted and that I'd be given a bigger limit.

Why were you confident?
What led you to believe this?

I have a good credit rating now

A Credit Rating is irrelevant. It's the data within it that lenders look at.

So, I received an email today saying that I'd been approved for the Virgin Card. But, the credit limit I've been given is only £1500. The balance transfer to my other card they are paying is £1400. A bit of the £100 left over will go towards fees. So basically I have £600 still left to pay on my old card (and the yearly fee is due next month!) and a new credit card I can't even use! I'm totally gutted!

Moving most of your balance is better than none.

The only thing I can maybe think effected the outcome is I've been in my flat a year and am using this address. Where as my Santander accounts are still under my 'home' (mum's) address. Could this effect the outcome?

Quite possibly, have you updated the ER. Make sure all your other accounts are at the same address.

£600 off in a few months is quite a bit of money and I don't know many people who have would have that money spare either after bills etc.

I have to agree with fozmcfc, some of this indicates warning signs.

You don't feel you are in debt but cannot afford to pay off a lump sum after you have paid your bills.

Does this mean you have no savings?
You should at least have a small Emergency fund to avoid having to spend on CCs if something like a washing machine needed replacing.

You say you were surprised not to have a larger limit but say you do not have much disposal income after bills are paid.

I'm not having a pop and genuinely wish you all the best

Simbad

Thanks

Smodlet

Hi, sorry to jump in someone else's thread but this seems reasonably relevant to my issue, so hope nobody minds.

I have applied and been accepted for a Post Office credit card with a balance slightly more than I need however, I have to have funds in place in less than a fortnight and it has not arrived yet. I have read on the forum that some people have had issues with ID requirements for this card and am wondering, should I apply for just one more in case I experience delays when the blurb does arrive? (Never learned to drive, never been abroad, no-one wants to accept birth certificates these days)

This is the first new credit I have asked for in ages but I am really concerned this will already have affected my chances of getting any more, should the P.O. card not prove suitable. Any assistance would be appreciated.

Dobbibill

Smodlet wrote: »

Hi, sorry to jump in someone else's thread but this seems reasonably relevant to my issue, so hope nobody minds.

Hi Smodlet,
It is normally good etiquette to start a new thread but hopefully Simbad won't mind on this occasion.

I have applied and been accepted for a Post Office credit card with a balance slightly more than I need however, I have to have funds in place in less than a fortnight and it has not arrived yet.

What is the rush?
Are you planning on using it for a holiday that is coming up?
Are you going to start incurring interest on a balance elsewhere you are looking to transfer?

I have read on the forum that some people have had issues with ID requirements for this card and am wondering, should I apply for just one more in case I experience delays when the blurb does arrive? (Never learned to drive, never been abroad, no-one wants to accept birth certificates these days)

I don't have a PO card, so can't comment on that personally. I would advise getting either a provisional driving licence or passport for the future. It isn't waiting until your backed into a corner and have to get it, with little time for something really important. It's money well spent IMHO.

When did you apply?

What sort of response did you get? eg - we need to verify you further or congrats, your card and pin will follow shortly.

This is the first new credit I have asked for in ages but I am really concerned this will already have affected my chances of getting any more, should the P.O. card not prove suitable. Any assistance would be appreciated.

This card affecting other CC applications will depend on many things such as your income, your available credit, your utilized credit, any other debts/commitments. No-one would be able to give a 100% decision/outcome without doing an application, each lender is different.

HTH

Smodlet

The hurry is the new boiler is being fitted within the next two weeks and the current one is on its last legs. Really don't want to put them off in case it dies. I have other options but not 0% ones in place and do think £75 or whatever a passport costs is a waste of money when I will never use it except for ID purposes. Holiday? What's that? Not in a position for frivolous spending, this is dire necessity.

PO said they may or may not require ID, I will not know until the paperwork arrives and it is not five working days yet so can't really chase them. I will play it by ear. Guess I can always go with the interest-paying option and try to switch the debt to a 0% card afterwards, just wanted to get it all done it one hit, so to speak. Oh, well.

Dobbibill

PO have not given you a very conclusive answer have they. Finger's crossed they don't require any further ID and just get on and issue the card/pin ASAP for you.

I totally understand you not having the funds or thoughts for a passport at this time, while times are tough. ;

If you have other options, use those to pay for the boiler then BT the total to PO. It may mean an extra few days/week interest but nothing too long.

I hope it all works out well for you.