Given a low limit on credit, should I apply for another one?

Chris_derby

Hi,

I’ve just put a deposit down on a campervan and was looking to fund the rest of the campervan by part 0% interest credit card, and the rest cash as this seems the cheapest way not having to pay as much interest (just a 0.8% surcharge fee).

I’ve applied for the M&S 0% interest credit card (20 months), been accepted but only been given a £2,000 limit. I was hoping for around £10,000.

Should I apply for a different card, I think TSB have got a similar one at the moment. Or should I ask M&S for a credit limit increase? Or is there any other low interest way I can get the funds?

Thanks for reading and your help!

[Deleted User]

No point in asking for an increase at this stage but you could apply elsewhere.

What is the seller charging you the surcharge for?

Chris_derby

Deleted_User said:

No point in asking for an increase at this stage but you could get apply elsewhere.

What is the seller charging you the surcharge for?

Ok, going elsewhere might be better he better option as I’ve still got to go through a credit check if I ask for an increase with M&S.

I’m not sure, should the seller not be doing that? He said they accept credit card, but he thought there was a 0.8% fee on top. Saying that though, they didn’t charge me anything extra for putting the deposit down.

[Deleted User]

It's no longer lawful for them to charge a fee for paying by credit card, unless it applies to all payment types.

You wouldn't go through a credit check if you asked M&S for an increase. It's just massively unlikely you would get it.

Chris_derby

Deleted_User said:

It's no longer lawful for them to charge a fee for paying by credit card, unless it applies to all payment types.

You wouldn't go through a credit check if you asked M&S for an increase. It's just massively unlikely you would get it.

Just done abit of Googling and looks like your spot on. I’ll have to be careful of that when making the final payment.

She said on the phone it would be a credit check, I cant see why that is required as they’ve already done that initially when applying.

Cheers for your help.

jay1804

Chris_derby said:

Deleted_User said:

It's no longer lawful for them to charge a fee for paying by credit card, unless it applies to all payment types.

You wouldn't go through a credit check if you asked M&S for an increase. It's just massively unlikely you would get it.

Just done abit of Googling and looks like your spot on. I’ll have to be careful of that when making the final payment.

She said on the phone it would be a credit check, I cant see why that is required as they’ve already done that initially when applying.

Cheers for your help.

I think because your application decision was automated, so they probably have to do another credit check and get the underwriting team to have a look at it manually  - Just a thought .

Chris_derby

jay1804 said:

Chris_derby said:

Deleted_User said:

It's no longer lawful for them to charge a fee for paying by credit card, unless it applies to all payment types.

You wouldn't go through a credit check if you asked M&S for an increase. It's just massively unlikely you would get it.

Just done abit of Googling and looks like your spot on. I’ll have to be careful of that when making the final payment.

She said on the phone it would be a credit check, I cant see why that is required as they’ve already done that initially when applying.

Cheers for your help.

I think because your application decision was automated, so they probably have to do another credit check and get the underwriting team to have a look at it manually  - Just a thought .

You could be right, might be worth giving them a call. Although just checked my credit file, I’ve got a decent score but it says my credit card & loan affordability is very weak and weak. I don’t know why as I have savings, but I can’t seem to see them on my file.

PRAISETHESUN

Chris_derby said:

jay1804 said:

Chris_derby said:

Deleted_User said:

It's no longer lawful for them to charge a fee for paying by credit card, unless it applies to all payment types.

You wouldn't go through a credit check if you asked M&S for an increase. It's just massively unlikely you would get it.

Just done abit of Googling and looks like your spot on. I’ll have to be careful of that when making the final payment.

She said on the phone it would be a credit check, I cant see why that is required as they’ve already done that initially when applying.

Cheers for your help.

I think because your application decision was automated, so they probably have to do another credit check and get the underwriting team to have a look at it manually  - Just a thought .

You could be right, might be worth giving them a call. Although just checked my credit file, I’ve got a decent score but it says my credit card & loan affordability is very weak and weak. I don’t know why as I have savings, but I can’t seem to see them on my file.

Credit reports are just that - reports about your credit accounts. Lenders don't ever see your savings from your credit files since they are not reported there. Your "score/rating" is also not seen by lenders so it has no bearing on how likely you are to be accepted for an increase or a new card with another lender - in future I'd pay less attention to these pointless marketing gimmicks and focus instead on the actual contents of your files. Lenders will use the contents of your file and any other info they have on you (eg. if you also bank with them) to make their decisions against their own lending criteria.

Personally I think it's unlikely you'll be offered an increase on a brand new card, but you never know unless you ask. At the bare minimum you can put as much as you can on the 0% card, and settle the outstanding balance another way. Make sure to keep an eye on any extra fees that the seller might try and charge, as discussed above.

cymruchris

You could apply for another card - but that would also unlikely come with a 10k limit no matter what savings you have in the bank. Savings don't show on credit reports as they are not credit. Most lenders start with a reasonably low limit until they know you and your spending/payment behaviours. Remembering that each application has a hard search, so if you then decided to apply for a third card, as the second only gave you £1500 limit - you'd end up going in a downward spiral. Better to spend, use and pay back in full each month for 4-6 months and then request a raised limit, but that's not ideal if you want to buy your van NOW. Can the purchase wait until next summer?

FinanceFerret

Paying in cash would be your cheapest option

floppydisk1

It is getting more  unlikely by the day to get 10K or anywhere near that limit on a brand new card. What about using your 2k card as interest free loan ( as that 's what you wanted it for )  use your savings for the rest and then instead of paying off interest free loan for longer you can build back your savings instead ?