Can the bank automatically increase your credit limit?

Andrew_Ryan_89

Hey guys,

I have a credit card with a £1,000 limit which I mainly use for work expenses. I wanted to keep it at £1,000 to stop me spending much more on stuff that aren't work expenses or necessary. However, I get a letter in the post today from my bank saying they are increasing my limit by £500.

I don't want it and being from a banking background, never did I think a bank could increase your limit with your authority. Especially considering it is more than 30 days since I opened the credit card and usually increasing the limit after then usually requires another credit check.

Typical banks, when you don't want money they are more than happy to throw it at you but when you are actually in need the door gets shut.

[Deleted User]

They don't do it automatically. They write to you and give you the chance to opt out.

It's your choice.

Marcio45

Basically the credit limit increase is automatic. Normally they give about a month's notice. On the letter it should say that if you want to opt out just give them a ring to cancel the limit increase.
To be fair, having a credit limit of a few thousand is normally good for your credit history, but as you say you are not sure if you can control yourself and spend more than needed. Do ring them and cancel the increase.
also, as its the bank offering the increase it doesnt normally involve a credit check.

PeacefulWaters

Andrew_Ryan_89 wrote: »

Hey guys,

I have a credit card with a £1,000 limit which I mainly use for work expenses. I wanted to keep it at £1,000 to stop me spending much more on stuff that aren't work expenses or necessary. However, I get a letter in the post today from my bank saying they are increasing my limit by £500.

I don't want it and being from a banking background, never did I think a bank could increase your limit with your authority. Especially considering it is more than 30 days since I opened the credit card and usually increasing the limit after then usually requires another credit check.

Typical banks, when you don't want money they are more than happy to throw it at you but when you are actually in need the door gets shut.

Yes they can do it.

Yes you can reject it.

Yes they receive/supply CRA data about you without the need for a search. You've already authorised this.

Yes, I think your banking background has taught you little.

Yes, I think you're ranting without cause.

EarthBoy

Andrew_Ryan_89 wrote: »

I don't want it and being from a banking background, never did I think a bank could increase your limit with your authority. .

What sort of banking background? Banks have been increasing credit limits for donkey's years, they all do it, and I find it difficult to believe that you didn't know this if you had even a small amount of experience in a bank.

[Deleted User]

EarthBoy wrote: »

What sort of banking background?

River banks, perhaps?

MadMat

You can have a banking bankground and know !!!! all about the retail side of things. I worked in cheque clearing for 10 years, I know all about the 3 day cycle and how to operate and maintain a 3890 reader/sorter but wouldn't know the first thing about credit cards . . .

Mat

Smodlet

Relevant banking experience, perhaps?... My bank have done this three times that I recall, might be four. First time I opted out, before I woke up to the fact that unused credit is the best way to get credit, the other times I let them go ahead just to look good.

It's been said enough times already: If you can't control yourself, opt out; if you can, leave it and look good, too.

pvt

Andrew_Ryan_89 wrote: »

...when you don't want money they are more than happy to throw it at you...

They are not throwing money at you - they are just informing you that they are increasing the amount you can borrow from them, should you need it.

If you feel it is a security risk, or that you're incapable of controlling your spending, then ask them to leave it at £1,000.