Why is my cc limit so low?

thriftylass

If you are only 19 why already going down the route of credit. It's an endless cycle. Save, budget, don't start spending money that is not yours. Just some friendly advice from experience.

kmb500

thriftylass wrote: »

If you are only 19 why already going down the route of credit. It's an endless cycle. Save, budget, don't start spending money that is not yours. Just some friendly advice from experience.

I don't use my credit card at all, I don't like the idea of spending money that I don't physically have. But I got it because I heard a guy from this website talking about how it's good to get a credit card early on and build up a credit rating.

And as it happens 1 month after I get the card I need to pay £700 on my car.

I am saving and budgeting by the way. Trying to save up as much as I can. Next year I think the government is doing a scheme where they will give you 25% interest if you get a new savings account so that will help too.

[Deleted User]

If you don't use your card, there's no point in having it. You need to use it to demonstrate you can handle credit.

thriftylass

That's good, sounds like you are actually quite switched on about things and trying to to things right financially. I am sorry if i misjudged you. Just use the card responsibly and built up your credit rating. Hope you get the car sorted.

I think the 25% "interest" is the Help to buy scheme where the government will boost your saving by up to £3000 pounds (25% of 12k solely saved for house purchase)

TheEffect

Credit is not a right.

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.

They are required by law to state the representative APR etc. Your friend's credit limit has no baring on what you will get. The exact criteria of how your limit is worked out is kept secret, so you will have no way of knowing whether you got a lower limit simply because you live in a different area, have lived at your house for 1 month less etc.

kmb500 wrote: »

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

Kudos to Barclaycard for this reason alone. You've shown you cannot pay a £700 bill, so they've done the right thing in not giving you any more credit that you cannot afford.

kmb500 wrote: »

Sorry i really have no knowledge of financial stuff

I suggest you spend some time researching this, and understanding about 'financial stuff'. It'll assist you and your bank balance in the future.

Anthorn

TheEffect wrote: »

Kudos to Barclaycard for this reason alone. You've shown you cannot pay a £700 bill, so they've done the right thing in not giving you any more credit that you cannot afford.

Conversely, if he can afford to pay the £700 bill why would he need to credit card?

jonesMUFCforever

Anthorn wrote: »

Conversely, if he can afford to pay the £700 bill why would he need to credit card?

S 75 cover, cashback or points and up to 56 days interest free period to name just 3.

KRB2725

Every credit card company uses an assumed £1200 limit to show a representative example. There is nothing to say you will be offered this amount. They have not lied.

Smodlet

£1200 "representative"... it means as much and as little as saying the average salary in the UK is £26/27k. I have never earned close to that in my life; few do. Just shows how much the privileged few must be receiving to bump the average up to that amount, don't you think?

I receive considerably less than £1200 per month yet can borrow three times that. How? Because I am much older than you, have been on the planet and around the block more times than you can imagine and, more to the point, have proved myself responsible when it comes to borrowing. You are 19. Perhaps your friend has a guarantor while you do not, who knows? Who cares? It is like saying, "Why do I have diabetes when she does not? We are the same age and live next door to each other." "Why do I have blue eyes yet hers are brown?" You cannot possibly know all of your friends circumstances and even if you did, it could be as simple as the fact that she applied to a different credit card provider who has different criteria.

I second the poster who said you should not be even thinking of credit cards at your age. All you are doing is abdicating responsibility for your finances. Credit cards should be used for emergencies only, not as a way of life. When/if you learn to be responsible with money, you will find it much easier to borrow it.