Vanquis

Grumpy_Shunter

Since my AD from BR, I was lucky enough to apply and then be accepted for a Vanquis CC. Fantastic I thought. I'm on the road to rebuilding my CS.

4 years later and after 4 years of regular use and paying off the full amount each month without any problem what-so-ever, and re-building my CS nicely, I'm still on a £250 credit limit!!

Ok, while £250 is ok for some/most, I'd rather have just a little more in case of emergencies, ie car stuff, appliance things, or any sort of emergency.

I signed up for clear score 12 months ago. No way I was going to pay Equifax £15 for basically the same information. Anyway, last month I noticed I have been offered some 'pre-approved' credit card offers. One of them was from a former creditor in BR.

What the hell I thought. So, after 1 minute or so filling in a few details, I have been accepted for a Capital One Platinum CC with a credit limit o £1000, which is more than enough for any emergency.

I'm now very happy with my financial situation - but, the question remains; why haven't Vanquis ever offered me any sort of credit limit increase in 4 years, after 4 years of impeccable credit housekeeping?

I know it doesn't matter now, but I wouldn't mind some sort of theory or other people's thoughts.

CakeCrusader

4 years later and after 4 years of regular use and paying off the full amount each month without any problem what-so-ever, and re-building my CS nicely, I'm still on a £250 credit limit!!

^^ this. They are not making money from you if you're clearing it in full every month, so why should they up your limit? There's nothing in it for them, is there. Think about it.

Grumpy_Shunter

Good job I've ditched them then, isn't it!!

bigadaj

CakeCrusader wrote: »

4 years later and after 4 years of regular use and paying off the full amount each month without any problem what-so-ever, and re-building my CS nicely, I'm still on a £250 credit limit!!

^^ this. They are not making money from you if you're clearing it in full every month, so why should they up your limit? There's nothing in it for them, is there. Think about it.

Well they are still making merchant fees.

OP - they've helped build your credit back to the point where you can source better deals so it's solved your initial problems so I wouldn't worry about it.

Grumpy_Shunter

bigadaj wrote: »

Well they are still making merchant fees.

OP - they've helped build your credit back to the point where you can source better deals so it's solved your initial problems so I wouldn't worry about it.

No worries here, bigadaj. I'm very happy with my current financial situation, especially with my new CC limit!

CakeCrusader

bigadaj wrote: »

Well they are still making merchant fees.

OP - they've helped build your credit back to the point where you can source better deals so it's solved your initial problems so I wouldn't worry about it.

Have you seen their interest rate?? That's how they make their money, the merchants fee is spare change in comparison. It's not in their best interest for a customer to pay their outstanding balance in one go because they don't earn any interest.

Well done, Grumpy

bigadaj

CakeCrusader wrote: »

Have you seen their interest rate?? That's how they make their money, the merchants fee is spare change in comparison. It's not in their best interest for a customer to pay their outstanding balance in one go because they don't earn any interest.

Well done, Grumpy

Yes.

For mainstream cards the majority of their income stream is derived from merchant fees rather than interest paid. This will differ for cleric builder cards, though even that is balanced to the extent that the people who theoretically pay the highest interest charges are also likely to be those who defailt on the capital, it's rarely pure profit without risk.

Like insurance companies any card issuer will have a blend of customers, and getting the right blend reduces risk and increases profit.