Credit limit?

edited 30 November -1 at 1:00AM in Credit Cards
4 replies 1.1K views
TranquilTranquil Forumite
67 Posts
Third Anniversary
edited 30 November -1 at 1:00AM in Credit Cards
Hi,

I applied for a balance transfer card via the credit club and it said my application had been accepted and they would post the interest rates and length of promotional offers etc to me. I received this information (‘pre contractual information’), however it didn’t state a credit limit.
I called the company, as obviously I need to know the credit limit for a balance transfer.
The person I spoke to said they can’t tell me the credit limit until I’ve ‘applied’ by signing the documents and returning to them. However I noticed that if I return the documents, I will then receive a credit card within a few days. I’m confused by their use of the word ‘application’ as in my mind, I have already applied and this is the information of the card they can offer me which I will receive (with an unknown limit) when I return the document signed.
So basically what I’m asking is - is it normal to only receive a credit limit after you have fully opened an account? I don’t want to open an account and physically receive a credit card only to realise the limit is not enough. Thanks!

Replies

  • A4445A4445 Forumite
    1.1K Posts
    Yes M&S wouldn’t tell me what my limit was had to wait for the card. Amex don’t say when you apply but if you call they will tell you.
  • Ben8282Ben8282
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    Tranquil wrote: »
    I don’t want to open an account and physically receive a credit card only to realise the limit is not enough. Thanks!
    I will answer only this part of your question.
    Presumably you are paying interest on a balance on another card. If you don't get the credit limit that you want from this lender, whoever they may be, what makes you think that you will get a higher limit elsewhere? You might of course but equally you might get a lower limit elsewhere. Accept whatever limit you get and transfer as much of the balance as possible to the new card. You will still be saving money on the interest you are currently paying.
  • maxximus75maxximus75 Forumite
    539 Posts
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    If you don't get the limit you need to do the full transfer, apply for a different card elsewhere and split the balance transfer across two cards.

    Or as the above post said, you'll be saving interest with whatever you can transfer over.

    As with most credit cards, if you are accepted you don't usually find out your credit limit until they account is fully opened and the card sent out.

    The only bank that gives you an indication of limit for a credit card before applying is Nationwide. They have a soft check so doesn't show on your credit report until you actually decide to apply. I did this a month or so ago and the limit they indicated on the soft check was exactly what I got after I had applied.
  • T-G-CT-G-C Forumite
    591 Posts
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    They are being intentionally difficult in my opinion. Most lenders use electronic signing now and there is no legal requirement for them to withhold that information until the credit agreement is signed.

    A potential reason for withholding the credit limit until the documents are signed, is to prevent you from backing out if the limit is lower than expected. You still have the right to terminate the agreement of course, but it is a bit more hassle than simply exiting the application screen.
    Advice provided from this account does not consist of any professional knowledge. For professional debt advice, please contact either National Debtline or StepChange. Advice may consist of personal experience, opinion and/or informational sources.
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