Minimum credit limit - explain

Spud42_2

Can someone please explain minimum credit limit to me please. In easy to understand terms.

I am looking to get a 0% credit card and have been offered one with a fixed minimum credit. Not sure if I should take it. 

retiredbanker1

A bit more information please - who has offered you a card and what limit are they offering you?

bengal-stripe

There is no such thing as a minimum limit on a credit card. The 'limit' is the maximum you can have outstanding at any given time.

People get high or low limits (sometimes only £200) based on the assessment the bank reaches about a new applicant. This based on what the bank knows (or can find out) about a new potential client and his/her history of handling credit. 

DullGreyGuy

bengal-stripe said:

There is no such thing as a minimum limit on a credit card. The 'limit' is the maximum you can have outstanding at any given time.

There are on certain prestige cards, I mean if they gave you an AmEx Platinum with a £250 limit you wouldn't even be able to pay the £650 annual fee 

Spud42_2 said:

Can someone please explain minimum credit limit to me please. In easy to understand terms.

I am looking to get a 0% credit card and have been offered one with a fixed minimum credit. Not sure if I should take it. 

Your question could do with some more flesh on the bones... certainly some companies ask when you apply what credit limit you would like as a minimum, more comparison sites do than issuers though. Certainly on the later some ignore it as have said I want a £5k limit, NW showed as pre-approved but when repeating the same on their site they were offering c£3k

Spud42_2

I need to pay for some unexpected vet bills for my dog. Insurance is not willing to pay out. (long story, have contested. Still won't budge) I need to pay around £2000 and I filled out the soft search on MSE for 0% card that asked what was the max amount I would need ie., £2000 and NW came back with pre-approved stating a Minimum Credit limit of £2000. Others said minimum credit limit on application.

1. Does this mean I can't spend more than £2000? (in which case why is it not max credit limit?)
2. or I have to spend £2000?

I don't know how much it will be but have estimates from the vet that it will be no more.

eDicky

Spud42_2 said:

and NW came back with pre-approved stating a Minimum Credit limit of £2000.

Could it mean that you can expect to be given a credit limit of at least £2000, as a minimum..?

penners324

It's a marketing gimmick. It's predicting those cards will give you at least £2k as a credit limit 

DullGreyGuy

Spud42_2 said:

I need to pay for some unexpected vet bills for my dog. Insurance is not willing to pay out. (long story, have contested. Still won't budge) I need to pay around £2000 and I filled out the soft search on MSE for 0% card that asked what was the max amount I would need ie., £2000 and NW came back with pre-approved stating a Minimum Credit limit of £2000. Others said minimum credit limit on application.

1. Does this mean I can't spend more than £2000? (in which case why is it not max credit limit?)
2. or I have to spend £2000?

I don't know how much it will be but have estimates from the vet that it will be no more.

It means you, in principle, would be given a limit of £2,000 or more which means it could be £2,000 or it could be £5,000 or it could be £20,000 hence its at minimum of £2k limit. You're under no obligation to spend anything.

If you do a soft search on NW's own site they will give you an indicative limit rather than a minimum limit. 

Spud42_2

Thank you @DullGreyGuy thats really helpful and clear for me.
I will go onto the NW site and see what comes back.

km1500

Just another point - I assume you have made a formal complaint to the insurance company?

If you have then you can always escalate it to the financial ombudsman

https://www.financial-ombudsman.org.uk/consumers/complaints-can-help/insurance/pet-insurance

You may, of course, have already done this.

You could also ask the vet if they will accept a payment plan

rors_mce

On the credit card eligibility checker there is reference to a minimum credit limit. What does this mean?