Amazon New Day won't increase credit limit

[Deleted User]

Ebe_Scrooge said:

mjm3346 said:

Maybe paying in full each month doesn't make you enough of a money maker for them

This is almost certainly not the case.  Credit card companies make the vast majority of their income from the fees they charge the retailer every time you make a purchase (which is why most car dealers won't accept cards, they get charged a pretty hefty fee from the card company).

Yes, of course if you don't clear in full and have to pay interest, that's a little bit of extra profit for the card company - but it's peanuts compared to the income they get from merchant fees.

To be technical here, they don't make the vast majority, but they do make a significant sum - data I saw from the US suggested it's about 20-40% depending on issuer. In the US AmEx made about $12.6bn in 2019, $8.62bn from interest rates and $4.04bn from interchange income. Chase it was about $51.66bn interest, $20.37bn interchange for example

sleepyjones

New Day's contract with Amazon expires in January next year and isn't being renewed, dunno if that maybe has something to do with them not lending more at the moment?

All customers will be moved onto the "Pulse card".

older_wiser

Every credit card is different amazon have just lowered my usual 12 months balance/cash  transfer offer to 3 months interest free 

while sainsbury have just increased my usual balance/cash  transfer from 18 months to 24 months interest free 

interesting comment from sleepyjones regarding newday losing the amazon credit card do we know who will replace them ?

sleepyjones

More info here : https://www.moneysavingexpert.com/news/2022/03/amazon-classic-and-platinum-credit-cards-will-be-scrapped-from-j/

or

https://www.moneyexpert.com/news/amazon-classic-and-platinum-credit-cards-to-be-axed-next-january/

"The Mirror reports that NewDay exited the partnership because it wasn’t lucrative for the company."

wiseonesomeofthetime

Thanks. I have an Amazon Platinum credit card, which is not being currently used due to the Chase 1% cashback promotion, and had somehow missed (or forgotten) this development.

With 700-something points on there, I will need to consider whether to re-use it, to hit the 1,000 points mark, or just let it die.

I have plenty of other credit card options atm tbf.

4justice2

Has anyone had any info direct from New Day about the card closure? The press articles were two months ago, and though I've had emails from New Day about various offers, nothing direct from them about the future of the card or what happens to unused points?

[Deleted User]

Your points expire Jan 23 and your account will be converted to a Pulse card.

4justice2

Deleted_User said:

Your points expire Jan 23 and your account will be converted to a Pulse card.

Thanks for that. Have you received any new information direct from New Day then? I've read the press releases from March and they say cards will be converted to Pulse cards from Jan 2023 but it hadn't been decided what happened to any unused points below the 1000 normal redemption. 

[Deleted User]

Those points will be lost.

mpsamuels

DD92 said:

Does any one know why I can't increase my credit limit and if there is anything I can do about it? Its an Amazon New Day mastercard

I feel like I'm in a similar position (make a solid income, regularly over pay on a not excessive mortgage, never missed a payment elsewhere) and have exactly the same experience with New Day. I get the impression they are just very tight with their credit limits.

I've got an Aqua card (provided by New Day) that they haven't ever allowed over £3k limit in the 2-3 years I've had it. In that time I've acquired two other cards (for their 0% purchase rate, I'm not swimming in credit card debt!) that happily allowed £10k+ each time.

As a few others have suggested, the easiest answer is likely to be to just take a card from someone else.

On a slightly unrelated note, I'd suggest taking another card elsewhere and closing the New Day card anyway as some recent events on my account have raised some serious security concerns for me. They issued and allowed spending on a card that they claim they've no knowledge of ever existing!