Is the limit credit cards offer you based on how much they think you 'need'?

Zaul22

I have a decent credit limit currently and any new card I apply for offers me a £500 or £600 limit. However since being debanked by NatWest and therefore losing the credit card, when my report updates my limit will go down by £3500. If I wait until the report updates will I get offered more than £600 because my limit will be lower than what they think I need/can handle, or will it be the same or even lower because £600 is what the banks are deciding they can risk?

MorningcoffeeIV

No, it's based on what they've willing to lend.

Having had a card closed may lower, or increase what they're willing to lend. It's all about risk.

Given you only had a very modest limit with NatWest, keep your expectations equally modest.

cymruchris

Zaul22 said:

I have a decent credit limit currently and any new card I apply for offers me a £500 or £600 limit. However since being debanked by NatWest and therefore losing the credit card, when my report updates my limit will go down by £3500. If I wait until the report updates will I get offered more than £600 because my limit will be lower than what they think I need/can handle, or will it be the same or even lower because £600 is what the banks are deciding they can risk?

What reason did Natwest give you for closing your accounts? Or are you aware of why it happened? Have there been any entries made at CIFAS? 

Credit limits will be given on a number of factors - there's no catch all easy explanation. It'll be linked to income, history, residential status and lots more. My first credit card gave me a £400 limit, and recently opened a new account with an £8k limit. Some here will have £10k/£20k limits and more. Some will have £250 limits. None of us here will be able to tell you what to expect as there are too many variables. But in general, if you've had multiple lines of credit for several years, managed very well, with a stable job/decent income - you're likely to get higher limits. If you've chopped and changed your address/bank/job and have any negative marks on your history, you'll likely get a lower limit. 

daivid

The limit on my 1st ever card represented 6months gross income which I thought was a tad over-trusting. Over the years I've had limits less than a months take home and much higher in terms of amount though none as generous when compared to my salary. 

Zaul22

cymruchris said:

Zaul22 said:

I have a decent credit limit currently and any new card I apply for offers me a £500 or £600 limit. However since being debanked by NatWest and therefore losing the credit card, when my report updates my limit will go down by £3500. If I wait until the report updates will I get offered more than £600 because my limit will be lower than what they think I need/can handle, or will it be the same or even lower because £600 is what the banks are deciding they can risk?

What reason did Natwest give you for closing your accounts? Or are you aware of why it happened? Have there been any entries made at CIFAS? 

No it was exactly the same as Bridlington getting his Lloyds accounts closed. No explanation given. They gave me 2 months notice so it happened just before the debanking scandal started. If it had happened a little bit later they might have had to give a reason. At the time it seemed weird but now that we know it's a normal thing that happens to 100s of people per week it doesn't feel as bad. 

th081

Zaul22 said:

cymruchris said:

Zaul22 said:

I have a decent credit limit currently and any new card I apply for offers me a £500 or £600 limit. However since being debanked by NatWest and therefore losing the credit card, when my report updates my limit will go down by £3500. If I wait until the report updates will I get offered more than £600 because my limit will be lower than what they think I need/can handle, or will it be the same or even lower because £600 is what the banks are deciding they can risk?

What reason did Natwest give you for closing your accounts? Or are you aware of why it happened? Have there been any entries made at CIFAS? 

No it was exactly the same as Bridlington getting his Lloyds accounts closed. No explanation given. They gave me 2 months notice so it happened just before the debanking scandal started. If it had happened a little bit later they might have had to give a reason. At the time it seemed weird but now that we know it's a normal thing that happens to 100s of people per week it doesn't feel as bad. 

Why do you think you have been debanked. It is not something the banks do at random. I think your limits will be modest. In general they like to give big limits if you already have a decent credit line - to a point