What is the correct thing to do?

nm1213

I've been in the UK for 2 years now, and have been living at the same address. Am on the electorial roll, and have cards from two companies (Lloyds and Barclays). I've had these cards for about a year now, and have processed roughly £14,000 through them, while never being late, and always paying my balance off in full.

I am a little worried about all the posts stating their card limits have been slashed, and feel that the same may happen to me. My barclaycard only has a limit of £260, which leaves me with the Lloyds card as being my only true card. I require a substantial limit because of work related travel expenses, and to pay my tuition for part time university. I don't want to be stuck.

I am about to move to a new flat in December, and figured I would apply for a new card before the move. I've read here that this is a good time to apply rather than doing so after a move. With this in mind, I've applied for an Amex Red card. Are my chances decent at getting it?

I was also thinking of applying for an HSBC mastercard as a backup for when Amex is not accepted. Right now I have to rely on my Barclaycard (low limit), or a Lloyds Mastercard (part of the amex/mcard duo, that if the limits are slashed, then I'm in trouble). Should I apply for the HSBC immediately now that I've submitted for the Red Amex? Or should I call Barclaycard and ask them for an increase. The current card is an initial, and I don't think they go up much anyways.

My current total credit limits amount to about 1/6th of my total income if that makes a difference at all, with a 0 balance currently. Also, I have no debts what so ever, and enough savings.

So, my four questions:

1. Are my chances decent at getting the Amex, and how can I improve them?
2. Should I apply for the HSBC card immediately after the Amex?
3. Rather than step 2, should I ask Barclaycard to give me something more suited to my needs?

Thanks in advance!

N.

cruzier

I would'nt apply for HSBC after Amex. Although what made you go for an American Express?

If you are declined and barclays will not increase your limit, I would ask yourself why? Perhaps you have more than you earn a year or not enough credit? If existing lenders won't increase I am not sure on the chances of getting a new card.

Its not a good idea to apply multiple times as lenders can see this as a way of obtaining loads of credit.

nm1213

Hey,

Thanks for the response. I have not asked for an increase from Barclaycard yet, and even if they were to give me the highest limit possible, it would only be £2000, which is much less than I need for my business trips.

As for current limits, I am still at 1/6th of my income, with a zero month to month balance.

Why did I select Amex? Because if I move on to a different country, it makes it easier to transfer your credit record there. Furthermore, where I stay in Hotels, etc... there has never been a problem with Amex.

N.

cruzier

If you feel your rating is good enough, why not ask Barclays to upgrade your account to their platinum?

Same with lloyds, if its that good can you not just ask for an upgrade which offer higher credit limits?

I am sure that if your rating is good enough, that if and when your lenders do, do a review there will be no reason to reduce your limit.

If however, they see multiple applications for credit, any late payments etc then they may feel that you are more of a risk now and reduce your limits.

Always best to talk to current lenders before applying for new credit, as they know you better and can see how you manage your finances.

Chris

PasturesNew

nm1213 wrote: »

Hey,
which is much less than I need for my business trips.

Why not get a business card then?
Shouldn't mix personal with business.... gets blurred and harder to keep straight.

nm1213

There are a couple of reasons why I am hesitant to approach current lenders.

1. Barclaycard seems to have a habit of slashing limits at random. Why get a new card with them if they are known for this?
2. I have only been with my current lenders for one year, and in this country for two. I am sure this affects me negatively even though in the year that I've had credit, I have not been late or ever had a balance.

Basically I don't want to jeopardize the facilities I have in place right now, while building up contingencies in case my current lenders decide to go sour on me.

Perhaps I am being overly cautious?

N.

nm1213

PasturesNew wrote: »

Why not get a business card then?
Shouldn't mix personal with business.... gets blurred and harder to keep straight.

I don't travel enough to warrant this, but when I do travel, my minimum spend is about £5k per trip. My company of course pays me back in full as soon as I submit my invoices, but has no corporate card facilities for my particular department.

For those whose job depends on travel, corporate cards are offered, but I am in a position where my job officially does not entitle travel, but yet I have to.

Until my current facilities, I would just pay by visa debit, which is still doable, but why do that when I can earn points, build up a good credit rating, and so on.

N.