Approved for Virgin 0% but with very low limit.

A4445

I've utilised a full limit on card because of a good offer it didn't do any harm. I can't see using 450/500 being bad, they have given you £500 to spend.

Dobbibill

Smoothape wrote: »

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.

The harm would be one transaction a penny over your limit could cause you to lose the offer, incur a charge and have an over-limit marked on your credit file.


You need to be very accurate if you play close to limits.

chattychappy

Always best to send a quid more than the minimum to avoid a "minimum payment" marker on the credit reference file. This may or may not be negative (the fact you are on a promo is also noted), but it certainly won't be positive.

d123

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

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

Your Barclays limit isn’t much more than a beginners card either, when I signed up for Barclays earlier this year (for a 0% offer they had) my opening limit was £6k. I’m semi-retired so don’t have a huge income either.

AllieKat

I think Virgin are strict. I want their travel card in the rainbow design, but all I can get are 'not eligible' on their own and other pre-qual sites. Now, to give you an idea of how strict they are, I have:

- American Express Rewards Credit Card - £7,500 limit
- American Express Platinum Cashback Everyday - £3,000 limit
- Barclaycard Freedom Rewards - £5,250 limit
- Halifax Clarity - £1,500 limit
- MBNA Everyday Plus - £3,500 limit
- Aqua Reward - £3,950 limit

That's £21,250 in combined credit limits spread across multiple lenders. It's well within my annual income (one metric for too much available credit), but plenty to show excellent management of credit. All cards are paid off in full every month, I haven't touched current account overdraft in my life. No missed payments, anything.

'Not eligible' - yeah, Virgin Money are picky. That's their right, but just... based on my experience, just be glad you even can get the card!

Nebulous2

Virgin are expanding, trying to build market share and that means lending money to people.

https://www.ft.com/content/189e79c0-29b6-11e7-9ec8-168383da43b7

My experience has coincided with that. I got a long-term 0% money transfer card in December last year and a couple of months ago added a 0% 27 month purchases card.

Smoothape

d123 wrote: »

Your Barclays limit isn’t much more than a beginners card either, when I signed up for Barclays earlier this year (for a 0% offer they had) my opening limit was £6k. I’m semi-retired so don’t have a huge income either.

The Barclaycard was my first credit card and started with a 1.2k limit. I took advantage of a 0% 3 month offer to start and afterwards would pay my rent with it and clear it in full the month afterwards until the rental agency wanted an additional 3% for credit card payments. In the mean time I financed a premium mobile phone and some equipment totalling close to 2k on 0% interest (they are paid off now and I'll never buy a premium phone again. Died only 2 months after paying off).

Before I applied for the Virgin card my salary has increased, my employment went from working for temp agencies to working a permanent position in the finance industry so I am still surprised virgin gave such a low limit. When I applied for financing on the equipment it was more than the Virgin credit card and 0% with v12 for 24 months. My overall open/available credit is only about 10% of my overall income.

I suppose Virgin are quite strict. Their security login protocol and the fact they do not have an app makes me think they have made their processes as convoluted as possible to entrap people into failing to pay on time.

The virgin card is pretty handy though. I still wonder what the impact will be if I utilise it close to 100%. I am not careless enough to go a cent over the limit.

Dobbibill

Smoothape wrote: »

I still wonder what the impact will be if I utilise it close to 100%. I am not careless enough to go a cent over the limit.

As long as you cross reference every transaction with the credit card statement - and ensure even if transactions are not pending yet you allow room for them..... just in case they debit late, you'll be fine.

ic

Smoothape wrote: »

Their security login protocol and the fact they do not have an app makes me think they have made their processes as convoluted as possible to entrap people into failing to pay on time.

I had no trouble setting up a direct debit as part of the application process to make payments automatically to my Virgin card, just like any other credit card. As for login it seems quite straight forward to me - and they offer extra protection via one-use SMS codes for authorising transactions like additional balance transfers.