Tips for how much credit limit to ask for in new credit card application?

Yorkshire_Pud

The bank always decides how much credit they will grant you so why do some ask how much you would like? Why not just tell you what they are happy to offer. Some do.

If you go low because you are afraid of asking for too much you get stuck. If you go high will that put the mokkers on the application because their algorithm already decided on a lower amount? But they won’t tell you that until it’s too late. 

Then after a failed application you might not be able to apply for another six months.

I’m looking for either one or two 0% balance transfer cards later in the year. One would be more convenient but I’m afraid to ask for too much so may decide to open two and ask for lesser credit limits.

grumbler

I don't remember ever being asked what limit I wanted. IIRC, they always offered the highest limit possible and I could ask to have it reduced if I wanted.

MorningcoffeeIV

Just put what you want - if it's too much, they'll just offer less.

CliveOfIndia

Yorkshire_Pud said:

why do some ask how much you would like? Why not just tell you what they are happy to offer. Some do.

Can you name a bank that lets you ask how much you want?  In all the credit applications I've made over the years, there's never been a space on the application form for you to ask how much you'd like.  I'd be genuinely interested to hear which ones let you ask.

MorningcoffeeIV

First Direct were asking when I applied about 3-4 years ago.

I put £20k down and got it.

littlemissbossy

CliveOfIndia said:

Yorkshire_Pud said:

why do some ask how much you would like? Why not just tell you what they are happy to offer. Some do.

Can you name a bank that lets you ask how much you want?  In all the credit applications I've made over the years, there's never been a space on the application form for you to ask how much you'd like.  I'd be genuinely interested to hear which ones let you ask.

Tesco bank asked me last week. 

CliveOfIndia

MorningcoffeeIV said:

First Direct were asking when I applied about 3-4 years ago.

littlemissbossy said:

Tesco bank asked me last week. 

Well I never, you live and learn !

Yorkshire_Pud

CliveOfIndia said:

Yorkshire_Pud said:

why do some ask how much you would like? Why not just tell you what they are happy to offer. Some do.

Can you name a bank that lets you ask how much you want?  In all the credit applications I've made over the years, there's never been a space on the application form for you to ask how much you'd like.  I'd be genuinely interested to hear which ones let you ask.

Lloyds Bank. Gave me what I asked for.

DullGreyGuy

It's a minority that ask it. 

I would suspect, in this day and age of responsible lending, that they will cap what they offer you to what you ask for. So if you ask for £5k and they'd have given you £7k they actually give you the asked for £5k. 

There would be a real risk of overthinking this though and speculating that if you asked for £50,000 would that in some way influence the outcome? May they think you are desperate so decline? May they think offering you £7k is pointless in that case so decline? The one thing they won't do is try and stretch to reach it. Think there is less risk in terms of putting a low value in that they'd decline you the £5k or £7k because you've put yourself down... that'd be too much speculation from them too 

Superhoopza

Plenty ask what you would like, not sure how much impact it has though.

Kim_13

I recall being asked for the minimum amount of credit that would be useful to me - presumably so that if they could not offer that amount, they could decline and save themselves the expense setting up an account, producing and sending out a card that would never be used. 

I would work out the minimum that it would be worthwhile transferring taking into account any fixed element of the fee, ask for that and see what happens. If you then don't need a second card, great (and it may be harder to get a second card with a hard search already on file.)