Ideal Egg Money credit limit?

CannyJock

Helping someone else set up their stooze now that I'm converted.

They've just been given a decent credit limit on their Egg Money card.

My initial reaction was to suggest they reduce this to free up potential credit limits on other cards.

Then I wondered how that would look if they were going to do a BT to the Egg Money card on their application form?

Or is the best bet not to mention Egg Money on the application form and just deal with that once the application has been accepted?

Many thanks in advance for your thoughts.

YorkshireBoy

JohnDocherty wrote: »

My initial reaction was to suggest they reduce this to free up potential credit limits on other cards.

Good idea, unless they have a very good salary and/or lots of work expenses and/or no other slow-stooz cards in their deck. Personally, I think since you'll be clearing any balance in full each month you only need two months normal spending plus a small safety margin on Egg Money. Be aware though, that if initial Egg Money limits are lowered there is no guarantee that they can be raised again later...and usually they aren't!

Then I wondered how that would look if they were going to do a BT to the Egg Money card on their application form?

That would only be an issue if you were chatting on the phone to an underwriter who had your credit report summary on screen (as I have done once, and you have to have your wits about you when that happens!). However, even then, the provider name is not shown on the lenders search of your file so unless you help them marry up your balances with providers they'll never know which is which.

Or is the best bet not to mention Egg Money on the application form and just deal with that once the application has been accepted?

It's my opinion that it doesn't matter what you put on the application form; the lender (or more accurately their scoring criteria) will only agree to grant you a credit limit they are comfortable with, and for that reason I usually leave off the BT request and deal with it once the limit is known.

CannyJock

Ta much, sounds like a plan.

wayoflife

CannyJock wrote: »

Helping someone else set up their stooze now that I'm converted.

They've just been given a decent credit limit on their Egg Money card.

My initial reaction was to suggest they reduce this to free up potential credit limits on other cards.

I thought this until I applied for a Virgin card. they asked me what other cards I had, which I told them. They also asked what my limits were, to which I replied by asking if they checked this automatically. They said that they didn't!

Then I wondered how that would look if they were going to do a BT to the Egg Money card on their application form?

Or is the best bet not to mention Egg Money on the application form and just deal with that once the application has been accepted?

Deal with it when its sorted, dont think on it too much. Mention that you would like to transfer some money directly to your Egg card, as you would like to free some money up.

Many thanks in advance for your thoughts.

I would say that theres 2 trains of thaught on this. I think, as with anything there are your two extremes...

too much credit (i.e. £10k on 5 different cards and not using them)

too little credit (putting it right down to say £500 then another company will look and think why were you given such a low limit)

I would say if it falls anywhere between this then dont worry about reducing your limits too much, in my experience It hasnt ever been a problem

cheers