Why won't they increase my credit limit?

CakeCrusader

PeacefulWaters wrote: »

If the objective of the game is to get as big a credit limit as possible and pay 49.9% interest on a running balance against that limit fair enough. In my mind that's an utterly stupid thing to do.

If the objective is to use card, clear balance, pay no interest and build up a credit history that makes a mainstream issuer say "we'll take you" then that's sensible.

You're absolutely right, but what's in it for the C/C company? They get a transaction fee, but it's far better for them to encourage people to spend and pay as much interest as they can get out of them. The sub prime credit card companies aren't in business to help someone improve their credit rating so they can jump to a cheaper credit card, are they. Vanquis is owned by Provident, who is a company well known for encouraging people to take out loan after loan, never completely paying one off so they are constantly paying interest for years on end.

Rothstein

Exactly !!!

You should be offering advice on HIS situation, not your own !!!

If it's taken you 31 years to reach £60k you are at best , an amateur.....

PeacefulWaters

Rothstein wrote: »

Exactly !!!

You should be offering advice on HIS situation, not your own !!!

My suggestions would make him better off and get him to bigger limits. It's a money saving site. Not a wreckless pi$$ing always the £££s site.

If it's taken you 31 years to reach £60k you are at best , an amateur.....

I thought I'd trim back a few from the £130k limits in the stooping heydays.

CakeCrusader wrote: »

You're absolutely right, but what's in it for the C/C company? They get a transaction fee, but it's far better for them to encourage people to spend and pay as much interest as they can get out of them. The sub prime credit card companies aren't in business to help someone improve their credit rating so they can jump to a cheaper credit card, are they. Vanquis is owned by Provident, who is a company well known for encouraging people to take out loan after loan, never completely paying one off so they are constantly paying interest for years on end.

This site is not about making money for lenders. It's about using financial products for your own gain. Paying high interest when you don't have to is crazy stuff.

Ben8282

The question of how to effectively use these very low limit cards is a difficult one. When I got my first Access card I was also given a £250 limit, but that was in 1979 and the credit limit probably exceeded my monthly take home pay. So the question of spending and repaying multiple times in a month didn't arise.
But how do you effectively use such a card?
Set up a full balance direct debit and pay in full every month is excellent advice.
But where does that get you?
Spend more than about £40 in a month and by the payment due date your balance is up to the desired 30% utilisation ratio.
So all you are doing is showing you can spend and repay in full £40 pm.

I approve of the method of spending as much on cards as possible to show that you have money to spend and repay each month (but not obviously spending more than you would otherwise spend). That will get limits raised. But the idea of spending up to the limit and repaying several times a month on a low limit card comes across as pretty odd. It gives an impression that 'something not quite right' is going on. Also the payment figures would be very odd indeed in relation to the credit limit and balances I have a feeling conduct of this nature is more likely to get the account cancelled rather than the credit limit raised.

Advising people to pay interest is very odd advice. I have always believed that you should tailor your credit files according to your objectives. Advice not to repay in full but to leave a bit so as to pay interest (on the entire balance) is great advice for somebody whose ultimate objective is to obtain a high interest credit card from a provider who charges high interest rates and is happy to spend money to achieve that objective. But it also creates an impression that you were unable to pay whatever small amount was left on the card because that is what anybody would automatically think and the computer algorithm which assesses credit applications is going to be programmed to assume the same thing.

My advice to the OP would be to use the card sensibly so that she gets a statement balance of about half her credit limit, then not to wait for the payment due date but pay in full almost immediately after the statement is issued so that the balance does not increase, then continue spending about the same the next month, with some variation but with a general upward trend. Keeping this up for a few months should have the desired effect. However, this account is not considered in isolation but as part of a whole.

Rothstein

Using the card up to or near the limit 2 or 3 times within a month is simply accelerating the process, I've never had one cancelled, why on earth would the cancel it ??

As with all things financial, turnover is your God

leaving a small balance every other month won't hurt either, and paying a little interest is a very small price to pay for a credit facility

This way you have all bases covered, and your limit will increase faster

Rothstein

Peaceful Waters....I'm sorry I've not replied to your post, I'm still sniggering like Muttely at you buying a Vauxhall......

chattychappy

Rothstein wrote: »

Peaceful Waters....I'm sorry I've not replied to your post, I'm still sniggering like Muttely at you buying a Vauxhall......

Your posts are too wacky for me!

CakeCrusader

PeacefulWaters wrote: »

This site is not about making money for lenders. It's about using financial products for your own gain. Paying high interest when you don't have to is crazy stuff.

Where have I encouraged anyone to do this?? 'Poor credit' cards do not work in the same way as the ones you have, that's what I have said (over and over again). I have also encouraged the OP not to rely upon expensive debt.

27cool

I've had a CC ever since they were invented, When they sent almost everyone in country one, without them even having to apply for one.
We never used ours until we bought a freezer and thought it a good idea to pay for the food at a later date.
I have never paid any interest and get several offers a year to increase my credit limit, Which I ignore as I have no need for any larger limit.
Paying it off each month also means that I don't care what the interest rate is, because I don't have to pay any.

System

Rothstein wrote: »

This is completely wrong and simply bad advice in my experience................

I've always paid mine off in full as its a cashback card. Started out at £2000, is now £12,500 credit limit.