Credit limits on 0% purchase cards

Anonymous101

Me and my partner are thinking of booking a rather expensive holiday shortly. We wouldn't usually take on circa 9k of additional debt but it suits us that we go on this trip now rather than in another 18 months or so that it would take us to save for such a holiday.

We're exploring the cheapest ways to finance this short term and have been looking at a 0% purchase credit card each. One for flights circa £5,500 and the other for hotels circa £3,500.

However I've seen that most 0% purchase cards have a indicative credit limit of £1,200. So my question is whether this is a typical maximum credit limit for such a card or whether our circa £5k was possible or not. I'd be interested to hear people's experience of this.

Thanks, Anon.

N.B. I have one existing credit card with a credit limit of £17.5k that I recently used to pay off a car finance. Other half has one with 4k credit limit with no balance.

[Deleted User]

The £1200 isn't an indicative credit limit - it's a representative example, governed by regulation. Actual limits may be much higher or lower.

£5k is certainly easily achievable for the right candidate.

Nebulous2

£1200 is an example balance which credit card companies have agreed to use to provide consistency and to calculate APRs. It bears no relation to what you will actually get.

What you get depends on the company you apply to. Historically MBNA have been one of the best, though they are in the midst of a takeover which may be distracting them just now.

Virgin have given me a limit of over £10k recently, but as my circumstances are unlikely to closely match yours, you could get more or you could get less.

Anonymous101

I understand about different circumstances etc however wasn't sure why the £1,200 was used as an example. Thanks for explaining.

I suppose the difficultly with this is that we know the limit we need (to book the flights for example) but we don't know the chances of being given a credit limit to achieve this. Even though we both have good credit history.

MallyGirl

Anonymous101 wrote: »

N.B. I have one existing credit card with a credit limit of £17.5k that I recently used to pay off a car finance. Other half has one with 4k credit limit with no balance.

you already have a CC with a high limit so you know the answer really. The right candidate can get a high limit - and what you are seeking is not particularly high. What matters is how much debt you currently have vs your outgoings/income. You haven't given the detail on that so no one could answer.
My highest limit is Barclaycard but Amex, MBNA and Virgin have all given limits over £10k

Nebulous2

Anonymous101 wrote: »

I suppose the difficultly with this is that we know the limit we need (to book the flights for example) but we don't know the chances of being given a credit limit to achieve this. Even though we both have good credit history.

The very best cards may be more difficult to get. If you think you can repay it in 18 months then you might not need a 40 month 0% deal for instance. It might also be worth avoiding the company you already have a card with if you are carrying a large balance from the car.

With the current rates on personal loans don't automatically discount them. Particularly if you are able to stick to a short-term. You could take a longer term say 3 years to give you a cushion and pay it off early.

john1002

Try one of the credit card eligibility checkers like nationwide that give you APR and limit you will get before applying.

John

Anonymous101

MallyGirl wrote: »

you already have a CC with a high limit so you know the answer really. The right candidate can get a high limit - and what you are seeking is not particularly high. What matters is how much debt you currently have vs your outgoings/income. You haven't given the detail on that so no one could answer.
My highest limit is Barclaycard but Amex, MBNA and Virgin have all given limits over £10k

That's fair comment.
As a couple we only have a mortgage and my car debt (currently £15k on the Virgin card) That accounts for circa 35% of our joint net income. Other outgoings are general living expenses nothing particularly out of the ordinary which add up to circa 40% of our income leaving 25% or there about's disposable.

Candyapple

List of best purchase cards here:
http://www.moneysavingexpert.com/credit-cards/best-0-credit-cards?&_ga=1.6335537.2013741368.1483449854#sainsburys

Use eligibility calc here:
https://www.moneysavingexpert.com/eligibility/