Virgin CC limit increase

bighitter4654

bigadaj wrote: »

Comoany share schemes can be good but they are also very risky. Single companies can go bust, values can certainly fall, and concentrating risk by having your employment and potentially a large proportion of your savings in one place isn't ideal.

Generally speaking I would agree with that, except my employer (BAE Systems) matches every share that I purchase, plus they are purchased before tax and NI contributions so there would have to be something of a disaster for participating employees to lose money. The trend of BAE shares has historically been very much up

PeacefulWaters

bighitter4654 wrote: »

Generally speaking I would agree with that, except my employer (BAE Systems) matches every share that I purchase, plus they are purchased before tax and NI contributions so there would have to be something of a disaster for participating employees to lose money. The trend of BAE shares has historically been very much up

I thought that about my HBOS shares before they fell over 98% in value.

Maximise the match. Sell and diversify as soon as it's tax efficient to do so. The risk of having your employment and savings in the same barrel is spectacularly high.

bigadaj

bighitter4654 wrote: »

Generally speaking I would agree with that, except my employer (BAE Systems) matches every share that I purchase, plus they are purchased before tax and NI contributions so there would have to be something of a disaster for participating employees to lose money. The trend of BAE shares has historically been very much up

As peaceful waters says diversify as soon as possible.

BAE are certainly a large company, but one subject to more political risk than most. A huge part is dependent on uk government defence spending, and they will be a company very much affected by Brexit.

Ben8282

bengalknights wrote: »

So effectivly you would be able to utilise over 50% of your net income as debt, some lenders would see this as a risk.

Maybe. My available credit was almost equal to my annual income when I last applied for a card. I was accepted with a 7k limit which pushed my available credit a few k over my annual income.

MallyGirl wrote: »

my Experian report (free to me before anyone criticises) has my highest limit (£18k) as a positive factor

It is.


Accept the credit limit increase. Your total available credit will still be less than 50% of annual income. You are still far from the point where you need to worry about having applications rejected because you have too much available credit. Having a high limit shows that you can be trusted with a high limit and high limits tend to bring high limits on future applications, although the limits you are offered will start to decrease as you obtain more cards. For example, the 7k limit I was given on my last application was lower than the limit I was given on the application prior to that.
The individuals who need to worry about this sort of thing are those who fill up a high limit card, say 18k, then expect to be able to apply for another card and be immediately given an 18k limit to transfer 18k, which of course doesn't happen. Unless you are planning something like that, then don't worry too much on this point.
What is more important is balances and utilisation ratio. Your new credit limit will give you a good utilisation ratio of 16.6% and £3k debt at 0% is insignificant with your level of income.
I think you may have misunderstood about 'back up'. By 'back up' the poster was referring to a back up credit card to use in case you should be unable to use your one and only credit card for some reason, not to financial back up if you are unable to pay your bill.

bighitter4654

Thanks for the replies, very much appreciated. I will accept the limit rise.