High income, no debt - why won't Barclaycard increase my limit?

Wyndham

the limit I would be looking for would be approx £25k - £30k

I don't think you will get anywhere near that. You may get to around £12K to £13K, so double your current limit, but I'm not sure any credit card would let you have £25K to £30K - espeically on an interest free card.

When did you apply for the card? If you've only just done it they won't raise the limit as they will have assessed based on the application. After 6 months it's worth asking - I did and got my limit raised from £6K to £9.5K.

Wyndham

Tirian said:

DullGreyGuy said

If you have a high 6 figure salary, so c£800,000 why are you using high street bank lending? 

I do not have £800k income.I have substantially over £100k, and I count that as pretty damn high.  Sorry if you don't.

I think the confusion has arisen because your original sentance of "I have a high 6 figure income" can be read in two ways - you meant one, @dullgreyguy took it to be the other.

So "I have a high 6 figure income" could mean "I have an income into 6 figures, and I consider that to be high".
But also "I have a high 6 figure income" could mean "I have an income in 6 figures, and my particular figure is at the high end of six figures (so approaching 7 figures)".

Tirian

Slinky said:

Could it be that your high income is actually working against you? See it from their view, they lend you a load of money for nearly 2 years at 0%, making nothing on it, and when it gets to the end of the deal, you pay it off in full and never use the card again. As it is, they're only risking £6.5K making no money, rather than the higher amount you want.

I mean it could be I guess. But I'm not sure really what risk they would be seeing. They make money from the interchange fees, so a higher limit would bring them more money in. The current limit I could pay off with one month's income and have enough money to meet all my current outgoings, so they must be pretty risk averse indeed if they really are worried on that front.

Tirian

Nasqueron said:

Slinky said:

Could it be that your high income is actually working against you? See it from their view, they lend you a load of money for nearly 2 years at 0%, making nothing on it, and when it gets to the end of the deal, you pay it off in full and never use the card again. As it is, they're only risking £6.5K making no money, rather than the higher amount you want.

They make money from the spending fees and hope OP doesn't pay off in time and pays interest, sometimes offers are loss leaders to get in enough people to make money

Sooo ... I need to pretend I have a lower income than I actually have in order to get a higher limit? If so That would really emphasise how perverse the whole system is! Would be quite funny if it actually worked. Don't think I'll be trying it though.

eskbanker

Tirian said:

As such I applied for the limit to be extended, but it was refused on the basis that they "have to be sure that I can afford repayments".

Now, I completely understand and agree with affordability assessments.  But I can't see how they could possibly apply here.

[...]

Any reason why they would be insisting on such a low limit, and saying that the reason they won't extend it is "affordability"? 

Isn't the emphasis here on them being convinced about affordability, i.e. they're not disbelieving your raw numbers but just wanting to build up more repayment history?

Tirian said:

I have a high 6 figure income

Tirian said:
I have substantially over £100k, and I count that as pretty damn high

For future reference, the term 'a high six figure income' would normally signify 'an income in high six figures', i.e. much closer to £999,999 than £100,000, rather than 'a six figure income that I consider to be high'!

Tirian

Grumpy_chap said:

Tirian said:

Grumpy_chap said:

Barclaycard have been tightening credit limits for many people and certainly offering lower balances than was the case historically.

The BNPL balance will not likely to be seen as favourable as that type of borrowing is often seen as an indicator of the desperate and / or poor money management.

Savings have limited influence on credit card balances as it might be your intention to spend the lot tomorrow on a new car.

You seem to have a "thin" credit file so no demonstration that you can handle credit responsibly.

NOTE: the comments above are not my views, but the type of views that lenders can take.

Thanks.  I understand the concerns over BNPL balances, but the amount is negligible ... and paying credit reliably at 0% is financially responsible, so feels like treating all BNPL balances as a negative indicator, rather than high ones seems a pretty poor approach. 

My credit file is anything but thin.  I have paid mortgage for 15 years (up until Jan 2025), no missed payments/shortfalls.  I have two other credit cards that I pay off in full every month.  I have never missed a payment on loans, or on phone contract.  

You may well be correct about the decision algorithm resulting in a poor approach, but we are in the times of the automated coded decisions and long gone are the days when a Bank Manager would actually know your finances and listen to rationale about taking an interest free opportunity as sound financial management.

Yeah, I get that absolutely.  It just seems like it would be very easy - and beneficial to the lender - to code the algorithm to better align to actual repayment risk.  

If BNPL > [x%] of income then -20 from application score 
If BNPL > [y%] of total debt then -10 from application score

That sort of thing.  But then again, from what others have said, perhaps it is more that they are actually targetting the disorganised well-offs - i.e. the ones most likely to miss a payment or to need to keep the tab open when the interest free period runs out.   

TheSpectator

What is true in this saga ia that OP is drip-feeding info. The 2 other credit cards have now been thrown into the mix - what are the credit limits on these and what are the balances - you say you pay in full every month but what balance do you accrue? 

BrimfulofSascha

It looks like you have just paid off your mortgage which will have made your credit score tank (odd but true). 

The BNPL isn't about value to income, from a lender point of view it is seen in the same way that pay day loans are seen, so it has another negative effect on your credit file.

Do you have any car finance, or a mobile phone contract, something that lenders have charged interest on.

From your point of view you seem like a safe place to store the banks money as you are good to pay it back. From the banks point of view you are a poor investment because they can't make any money from you. This is why Barclays don't want to lend you money, they can make more money elsewhere. Have you tried other card providers? have you tried the search tool on this website?

born_again

Tirian said:

I do not have £800k income.I have substantially over £100k, and I count that as pretty damn high.  Sorry if you don't.

How I came to be in my financial position is not relevant, nor is it any of your business. It is what it is.

The need for a loan is the normal reason - the renovations will cost more than the cash that I have.

I have an excellent history of using lending responsibly, not quite sure why you have invented a different scenario for your response.

Unless you have something helpful to suggest, then instead of making up non-existent scenarios based on false assumptions, maybe you could just keep quiet?  Thanks.

In the event that you actually have anything meaningful to say or suggest, the limit I would be looking for would be approx £25k - £30k

So you have 2 other credit cards (no limits mentioned) & you are expecting Barclaycard to give you a limit that is 20%+ of you annual salary.

Sorry but that is never going to happen. 

While you may have historically paid other cards in full. As a lender Barclaycard have to look at why a new customer is wanting to increase their limit so soon. Especially to such a high % of their income.
Especially when they can see  BNPL lending as well.

Red flags all round I'm afraid.

FCA would have a field day on affordability here 😶‍🌫️

Grumpy_chap

Tirian said:

Sooo ... I need to pretend I have a lower income than I actually have in order to get a higher limit? If so That would really emphasise how perverse the whole system is! Would be quite funny if it actually worked. Don't think I'll be trying it though.

No.  
If you are anything other than wholly truthful it will backfire in a messy way.

Tirian said:

perhaps it is more that they are actually targetting the disorganised well-offs - i.e. the ones most likely to miss a payment or to need to keep the tab open when the interest free period runs out.   

Absolutely.
Maximum revenue generated at minimum business / default risk