Why is my cc limit so low?

kmb500

I have a Barclaycard credit card, I applied for it a couple months ago and the documents that I signed said that the typical representative limit will be £1200/month. So I signed and agreed to it. However when I got my credit card, turns out the limit is £400/month. I don't understand why my limit is a mere THIRD of what I agreed to.

I have applied to increase my credit limit to £1000/month, still less than what I agreed to, and was rejected, so now I have to wait 3 months to ask them again. I have tried asking them why it's so low and they cannot give me any reasons and cannot transfer me to anyone who could find out.

Can someone explain in plain English to me why it might be so low.

For reference, this is my first credit card and my salary is £21K. (£1350 take home per month)

thriftylass

The 1200 is not what you agreed to, it is a typical representative limit as you said yourself. You always find out once you sign on the dotted line what your actual limit will be. Maybe they started low because it is your first credit card, because of your age, your salary, do you have other debts etc etc.

kmb500

thriftylass wrote: »

The 1200 is not what you agreed to, it is a typical representative limit as you said yourself. You always find out once you sign on the dotted line what your actual limit will be. Maybe they started low because it is your first credit card, because of your age, your salary, do you have other debts etc etc.

Why would they put that number on there as representative if it's not even close to what I am going to get.

I don't get it. A close friend of mine, same age as me, applied for a credit card with Barclaycard and she has a £1200 limit, and she earns less than half of what I earn. It doesn't make any sense to me.

Anthorn

kmb500 wrote: »

I have a Barclaycard credit card, I applied for it a couple months ago and the documents that I signed said that the typical representative limit will be £1200/month. So I signed and agreed to it. However when I got my credit card, turns out the limit is £400/month. I don't understand why my limit is a mere THIRD of what I agreed to.

I have applied to increase my credit limit to £1000/month, still less than what I agreed to, and was rejected, so now I have to wait 3 months to ask them again. I have tried asking them why it's so low and they cannot give me any reasons and cannot transfer me to anyone who could find out.

Can someone explain in plain English to me why it might be so low.

For reference, this is my first credit card and my salary is £21K. (£1350 take home per month)

Representaive is both a way of attracting punters and required as an example of what can be expected. The only time I've ever got the representative credit limit and APR is with the Amex Everyday Cashback CC. All others gave me less limit and more APR. Note the word "Variable".

Two months is not really long enough to appraise you for a limit increase. Expect 4 - 6 months.

kmb500

I am only asking because my car needs £700 of repairs next week and I have no way of paying it.

kmb500

Anthorn wrote: »

Representaive is both a way of attracting punters and required as an example of what can be expected. The only time I've ever got the representative credit limit and APR is with the Amex Everyday Cashback CC. All others gave me less limit and more APR. Note the word "Variable".

Two months is not really long enough to appraise you for a limit increase. Expect 4 - 6 months.

oh ok thanks. No I haven't even finished my first month yet so haven't paid anything back. I just applied to increase it straight away because the customer service agent could not even tell me why my limit is so low.

thriftylass

kmb500 wrote: »

Why would they put that number on there as representative if it's not even close to what I am going to get.

I don't get it. A close friend of mine, same age as me, applied for a credit card with Barclaycard and she has a £1200 limit, and she earns less than half of what I earn. It doesn't make any sense to me.

It is representative, depending on circumstance. You got 400, I got 3000, so 1200 is still representative.

kmb500

thriftylass wrote: »

It is representative, depending on circumstance. You got 400, I got 3000, so 1200 is still representative.

well it just seems to me like straight up lying. Sorry i really have no knowledge of financial stuff, i don't understand credit and mortgages or really anything at all, i just feel I'm being lied to. I agreed to it believing I would be given a limit of £1200 a month.

thriftylass

kmb500 wrote: »

I don't get it. A close friend of mine, same age as me, applied for a credit card with Barclaycard and she has a £1200 limit, and she earns less than half of what I earn. It doesn't make any sense to me.

It is hard to guess how they decide. Your friend might have had credit before, a mortgage, car loan etc that show them she can handle credit. They are just cautious. As you say yourself, the car needs 700 repairs, you can't afford it. Can you postpone the car repair, use public transport, save money for the car while spending responsibly on the CC and pay it back so they see you can handle it?

kmb500

thriftylass wrote: »

It is hard to guess how they decide. Your friend might have had credit before, a mortgage, car loan etc that show them she can handle credit. They are just cautious. As you say yourself, the car needs 700 repairs, you can't afford it. Can you postpone the car repair, use public transport, save money for the car while spending responsibly on the CC and pay it back so they see you can handle it?

I know there are lots of factors but no, this is her first credit card, she has never bought a car and she has not had a mortgage or anything like that. We are both 19, neither of us have had loans before (i just asked her) and she earns £9K, I earn £21K, and we are both with Barclaycard credit. I just dont get it.

thriftylass

kmb500 wrote: »

well it just seems to me like straight up lying. Sorry i really have no knowledge of financial stuff, i don't understand credit and mortgages or really anything at all, i just feel I'm being lied to. I agreed to it believing I would be given a limit of £1200 a month.

Maybe best stay away from it then or learn about it. They did not lie to you. When I went to Barcley cards website it stated clearly "assumed credit limit". Same as the APR it is decided once they have all you information. Should all be in the T&Cs