Predicting new credit card limit

Monkey_B

Like many, I only really use a credit card for the cashback and the extra protections it offers. I use it for pretty much all spend (with my partner doing the same on an additional card), paying off in full every month. I’ve had a Santander 123 credit card for a while and it was good to start with, but the fees went up and the cashback limits came down, so I’m thinking of switching to a Natwest Reward card which would give me at least double the cashback.

I have a £6k limit on my Santander card, which is way more than I need the majority of the time, however it has come in handy on occasion and I’m reluctant to lose this (going off on a tangent; it has always bugged me that my statement comes through at the start of the month but the direct debit is paid at the end of the month. For people who use their card for everyday spending, this means you need a limit that is equivalent to two months spend plus a bit more for the odd big purchase).

I’m in a bit of a quandary. I could go ahead and apply for the Natwest card, but there doesn’t seem to be any way of predicting what credit limit you will get. Presumably this is affected by whatever other credit you have available, so you could make a case for closing the Santander card before applying for the Natwest card, but then I’m left high and dry if Natwest will only give me a piddly limit.

Is it possible to make an informed prediction on what credit limit I might be offered? For added context, I have a good credit history, don’t have any other loans/finance etc, decent salary, and also have a Halifax Clarity card with a £4k limit, which I only use to buy Christmas and birthday presents for my partner, and when I go abroad which is hardly ever these days (maybe worth getting rid of this card, or asking for the limit to be reduced?).

One option would be to just get the Natwest card and, if I can’t get them to give me a decent limit, cancel it after a couple of months. Is this going to flag me up as some kind of reckless maniac on my credit file?

Ta

jimbo26

Not really as nobody knows the criteria lenders use.

On a separate note you can probably change your statement date, most lenders will let you. In fact a quick Google search reveals Santander will let you

"If you’d like to change your payment due date and the date we send you your statement, please call us on 0800 9 123 123."

eskbanker

I read it that OP's issue is more that there's a long gap between statement date and DD collection date, rather than specifically the time of the month. Many see this as a good thing, but for those who see it as a problem, there's nothing to stop them from paying off statements immediately after they're generated, albeit this can't be done by DD....

Ben8282

It is not possible to predict the credit limit on the new card.
If it is insufficient you will have to split your spend between your existing Santander card and the new Natwest card.

mostlynice

Lloyd's, Halifax and MBNA will tell you your credit limit through their eligibility checker

[Deleted User]

mostlynice wrote: »

Lloyd's, Halifax and MBNA will tell you your credit limit through their eligibility checker

They give you an indication.
Not a full and final decision.

IvanDP

I think it's a complete lottery.
I recall a previous thread discussing the Tandem Credit Card.
One of the posters on that thread (with a significantly better credit history than myself) was offered a card with a lower credit limit and higher APR than I got.
Sometimes I think they just make up the numbers lol

[Deleted User]

IvanDP wrote: »

I think it's a complete lottery.
I recall a previous thread discussing the Tandem Credit Card.
One of the posters on that thread (with a significantly better credit history than myself) was offered a card with a lower credit limit and higher APR than I got.
Sometimes I think they just make up the numbers lol

Each lender has their own levels and criteria for affordability, risk, client profiling etc

Monkey_B

Thanks for the responses.

I decided to go ahead and apply and have been offered a credit limit of £13k, which seems completely mad but will easily serve my purposes.

Next step will be to ditch the Santander card.

I'm wondering whether I should voluntarily lower the £13k limit as I don't need it. I'm thinking ahead to when I need to remortgage in a few years, and what effect a £13k limit might have on that

Nebulous2

The main effect it will have is to demonstrate that a lender trusts you sufficiently to give you a decent limit.

blue.peter

Monkey_B wrote: »

I'm wondering whether I should voluntarily lower the £13k limit as I don't need it. I'm thinking ahead to when I need to remortgage in a few years, and what effect a £13k limit might have on that

Don't.

Leaving it high and only using a comparatively small amount of credit demonstrates that you're not desperate for credit.