100% pre approved balance transfer but limit is less than what I asked for?

HHHJJJ111_2

Hi MSE

I was 100% pre approved with virgin money for a 26 month 0% balance transfer which I decided to take on. After completing the application, I was told that the amount I was approved for was almost half than my balance transfer amount requested. The application has been approved and I've got the email confirming this but I am not sure what happens next. 

To give some example figures - I asked for £9200 balance transfer (which I entered in the MSE site to get the pre approved status as well as on the virgin money application) but upon completing the application on the virgin money site, it said my limit was £5400? what happens to the difference of £3800 - I assume that will stay on my current credit card at the high interest rate? I don't want to open another card straight after this virgin money one as I think that might be detrimental to my credit score.

would virgin money increase the credit limit to match the balance transfer amount requested that was 100% pre approved? has anyone else been in this scenario? 

Brie

This is often the case with new cards where you are offered a high limit or a long period but end up with something less.  I agree that you don't want to apply again for anything too soon.

Yes the money will stay on the original card at the higher rate.  

You could try leaving it all for a month and then checking if the original card offers you a 0% money transfer.  Bit of a faff but you could do a MT and then pay off some of the card, do another MT etc to see if you can get rid of the higher rate portion.  Obviously you'll get a fee for each transfer but my guess is that it will be much less than the high interest currently charged.  

You might also try waiting a couple of months to see how your VM card is running and ring them and ask about an increase.  If that doesn't work then you might wait a couple of months and try to get another card but given that you have the original card's credit limit plus the VM card's the next card will likely be much less again than VM if you get it at all.  Don't forget it's not just the credit that you use that is looked at but how much credit you could use.  That's the important thing that a bank looks at - not your credit score which only you see.

Brie

Oh and stating the obvious - don't use any card with a 0% deal for any purchases as they'll be charged at a high rate from day 1 of the purchase.  Only card I know of that doesn't do this is M&S.

horsewithnoname

Transfer what you can, and apply for one more card. At least it will reduce the amount of interest you pay, and any ‘damage’ to your made up credit score won’t last - what are you saving’ your credit score for?