Credit Limit

jrm

Hi all.

I applied to HSBC onlline and was accepted for their credit card. When the 'stuff' came through in the post today it shows a Total Charge for Credit of £327.67. Now I think I know what it means, but can anyone tell me what my likely credit limit will be ? Thanks.

:T

Milarky

Total charge for credit is an industry-standard illustration (think "Summary Boxes") setting out what it would cost to borrow a standard sum of money today and repay it over 12 equal instalments assuming that is only at the card's standard (or 'go to') rate.

As such it can be ignored because no one getting a new card should be using it that way - it's just a comparison device between all credit cards (Ignore it)

YorkshireBoy

Lenders normally base the 'total charge for credit' figure on their standard APR and a credit limit of £1,500...unless they know your personal APR and credit limit at the time of writing to you.

At 15.9% APR (HSBC's typical rate), and a £1,500 credit limit, this figure would be £123.71.

If they've given you their typical APR, then your total charge for credit figure of £327.67 would equate to a credit limit of (roughly) £4,000.

If you're on a higher APR (website says 15.9% to 22.9% APR), your credit limit will be somewhat less than £4,000.

Zebedee69

Hope its not 22.9%:rolleyes: