Credit limits

Houser0546

Hi is there a general rule of thumb for home much credit banks can lend applicants? I'm talking unsecure debts here such as loans and credit cards.

Presumably if somebody had say £20000 worth or debt already they couldn't apply for £10000?

Thanks

[Deleted User]

Not really, no.

It varies massively by lender and borrower and Income plays a big factor.

Willing2Learn

They would assess an application, looking at existing contractual obligations and income.

Houser0546

Income would be £29000 and already have a mortgage with all the usual bills. I had £21000 of outstanding debt and was given a credit card with a limit of £9100.

Ben8282

Houser0546 wrote: »

Income would be £29000 and already have a mortgage with all the usual bills. I had £21000 of outstanding debt and was given a credit card with a limit of £9100.

Are we supposed to say well done or are you complaining and looking to make an irresponsible lending complaint?
What is the purpose of this post?

Houser0546

The purpose of the post is to ask advice if anybody know how much banks should and shouldn't lend people. Pretty straightforward I thought?

Willing2Learn

Houser0546 wrote: »

I had £21000 of outstanding debt and was given a credit card with a limit of £9100.

Are you saying that you have £21,000 of unsecured debt and then got a card with a £9,100 limit? As long as your creditors have made 'reasonable and proportional' affordability and credit sustainability checks, then it is probably fine.

Are you struggling with maintaining your unsecured minimum contractual payments, plus mortgage payments on top? Is that what you are asking?

Edit: I have also just replied to your other thread, which you made on the incorrect forum board (DFW Challenges).

glennstar

Houser0546 wrote: »

Income would be £29000 and already have a mortgage with all the usual bills. I had £21000 of outstanding debt and was given a credit card with a limit of £9100.

You don't need to know what %age of disposable income ratios the banks are obliged to adhere to in order to make an irresponsible lending claim. If you think you are a victim then jump in.

Having read your other posts it appears you are exactly the sort of person the FCA had in mind when introducing these safeguards. If the numbers you quote are correct (and you call the 29k income but don't really say if it is gross or net - so assuming it's net) your unsecured debt appears to be running ~72% of total income. There isn't a responsible Lender around who would contemplate lending you money in those circumstances.