Approved for Virgin 0% but with very low limit.

Smoothape

I was recently approved for a 0% 27 month Virgin credit card and was surprised to see the limit was so low at only £500. My Experian credit score is 912 (I know it's meaningless). I have a credit card with Barclays with £1600 limit that I haven't used in a year but took out and used frequently to build my score initially over 3 years ago. I have recently paid off a mobile contract and have an open contract for a £1000 finance that is almost paid off as well (only something like £90 left). My gross salary is 19000+ (gross annual earnings about 24k outside of salary). No ccjs or poor credit marks.

So I'm really surprised that Virgin has given me what is essentially a beginner's credit card.

Anyone have any insight as to why it's so low? And with such a low limit should I stick to the 30% utilisation?

I do not use credit cards for emergencies or to purchase things I can't afford. Effectively I only took this out to further improve my credit but being capped to £150 (30% utilisation) and incrementally paying off such a low amount over 27 months seems really silly. The cashback perks aren't really very good either. Anyone have any insight or advice?

Anthorn

Look at your available credit and not the amount of credit you have. It could be that your available credit compared to your income is high and if so will flag you as a high risk.

It could be that the way your manage rolling credit (credit card) accounts flags you as not exactly the type of customer Virgin Money wants but they've been kind in giving you something and will see how you get on.

It could be that they have made a mistake. Try ringing them and asking for a higher limit in which case they might want to know what you need the money for and/or how you will use the money.

Smoothape

I don't really need a high limit. I'm only trying to build credit and a healthy finance history really because I want to try and get a mortgage in 6 months to a year or so. Tonight I used the Barclays app to instantly raise my Barclays limit to £2000 but I will never use it and probably never use that account again.

Will utilising 35% of a 500 limit consistently for 27 months in any way improve my credit? More than likely they will raise the limit after 6 months automatically I'm thinking.

wiseonesomeofthetime

Smoothape wrote: »

Tonight I used the Barclays app to instantly raise my Barclays limit to £2000 but I will never use it and probably never use that account again.

Why would you do this?

Virgin will now see that your available limit is even higher in proportion to your earnings and may also see this as someone being desperate for credit, although from your posts you clearly are not.

I would follow the previous advice offered and ring Virgin and see if CS will consider a credit limit increase NOW, before the Barclays increase is visible on your credit report.

More likely though, Virgin will offer to review the account and limit in six months' time.

Good luck.

adindas

Smoothape wrote: »

I was recently approved for a 0% 27 month Virgin credit card and was surprised to see the limit was so low at only £500. My Experian credit score is 912 (I know it's meaningless). I have a credit card with Barclays with £1600 limit that I haven't used in a year but took out and used frequently to build my score initially over 3 years ago. I have recently paid off a mobile contract and have an open contract for a £1000 finance that is almost paid off as well (only something like £90 left). My gross salary is 19000+ (gross annual earnings about 24k outside of salary). No ccjs or poor credit marks.

So I'm really surprised that Virgin has given me what is essentially a beginner's credit card.

Anyone have any insight as to why it's so low? And with such a low limit should I stick to the 30% utilisation?

I do not use credit cards for emergencies or to purchase things I can't afford. Effectively I only took this out to further improve my credit but being capped to £150 (30% utilisation) and incrementally paying off such a low amount over 27 months seems really silly. The cashback perks aren't really very good either. Anyone have any insight or advice?

I also wonder the way the algorithm is working :

I check it I have almost zero chance to get Virgin Money Credit Card and I have many RSA account with them. I am aware that the algorithm does not include the saving account with them.

I also tried with TSB CC also have almost zero chance to get TSB Credit Card and I have current account with them for about 4 years now.

I the meanwhile I have almost 100% chance with Lloyd TSB and Tesco CC.

Is there any good explanation of this ???

starM

May be they have offered you a lower limit because you don't have long term credit history and you only have 1 credit card with low credit limit.

My experience with Virgin - I have had 80% available credit comparing to my salary but I was still accepted for Virgin with 6k credit limit.

Dobbibill

What 0% offer is on the Virgin card? Purchases or balance transfer?

If it's not for a large purchase then why have you opened a purchases card? You could use your BC regularly and pay off in full each month.

If it's a BT - why did you open a BT card when you don't have a balance elsewhere to move?

Why would you have a BC but not use it - why did you stop using it over a year ago but used it over 3 yrs ago to build your history?
You have now got a gap in your history of using a CC so Virgin may have only given you a small limit as they are not sure about your reliability to pay.

Kim_13

I can understand that you might feel disappointed (it is essentially a beginner's limit after all) however I would avoid applying for anything else given that you'll be going for a mortgage in the near future, as credit searches take a year (Equifax and Experian) or two years (the CallCredit agency) to be removed from your credit files.

Low utilisation of an individual card tends to be more important when the card has a high limit, however I would avoid carrying a balance prior to your mortgage application and repay in full.

Unless Virgin stated a minimum credit limit if accepted of more than £500, they are unlikely to up it right away.

Smoothape

Dobbibill wrote: »

What 0% offer is on the Virgin card? Purchases or balance transfer?

If it's not for a large purchase then why have you opened a purchases card? You could use your BC regularly and pay off in full each month.

If it's a BT - why did you open a BT card when you don't have a balance elsewhere to move?

Why would you have a BC but not use it - why did you stop using it over a year ago but used it over 3 yrs ago to build your history?
You have now got a gap in your history of using a CC so Virgin may have only given you a small limit as they are not sure about your reliability to pay.

It was a purchase card. I still occasionally used the Barclays card however only for uncertain purchases that I felt iffy about the seller in case I needed a refund. I would never carry a balance with such a high interest card from Barclays. I also had an open phone contract and a finance on some equipment (both paid of or very close to paid off right before applying for the Virgin card).

My credit score has raised immensely to "excellent" on Experian 975/999 after getting the Virgin card so it must have had some good effect despite the low limit.

I will most likely use the Virgin card for a move to a new rental property would utilise it over 90% of its overall amount.

[Deleted User]

Your credit score is no indication of anything.

Try not to get anywhere close to your limits unless you're clearing in full each month.

Smoothape

Deleted_User wrote: »

Your credit score is no indication of anything.

Try not to get anywhere close to your limits unless you're clearing in full each month.

What harm is there in utilising 100% of a low limit card and making minimum payments until I feel like clearing it in full? It is 0% for 27 months. May as well make use of it. Only utilising 30% of a £500 limit seems rediculous.