MoneySavingExpert.com/Low Crefit Limits Special Briefing discussion area

Former_MSE_Dan

This discussion relates to the Special Briefing: Didn’t get the credit limit you want – DON’T ‘screw them'!

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DilbertJones

I was unhappy with my £400 limit, was expectin a couple of grand, but I only have £590 of debt to shift, i called them up and was upgraded by £100 not much but it helps.

I also had a Virgin card with £3000 i was oging to use for a Super Balance Transfer but as I forgot I had while I went on Holiday, I cancelled it after 2 months of non use, wish I never now.

Would I be able to re-apply for that card? Its been about 3-4 Months now.

Money_Man_Steve

I got turned down for the Capital One 18-month 0% balance transfer that was featured on the discussion forum here. I 'appealed' to Capital One and eventually got a card with a £6k limit and 9 months at 0%. OK, so it wasn't as good as the 18-month deal, but there was no 2% fee for balance transfers either - so I can 'borrow back' my minimum payments each month and max out the available credit on the card each time my payment clears on to the card.

My partner also got a Texaco card early this year with a pretty poor £750 limit. I appealed on his behalf, explaining that he wanted to transfer a balance of £1750-odd to their 3.9% life of balance rate. We enclosed statements from his main card which had a much higher limit. Texaco agreed to increase more than double the limit that they originally offered, to £1850.

As Martin's article says, it's worth asking - send proof of address, bank statements, payslips - it all helps to show them that you want to borrow responsibly.

Money Man Steve

dag_2

A similar thing happened to me. Remember when Sainsburys Bank had a 0% offer on purchases for 12 months? I applied - and was accepted, with a limit of £1700.

Obviously, you can't transfer balances to it - but my plan was to put my normal grocery spending on it, until it got to the limit, and only make minimum repayments on it until the 12 months expires. And meanwhile, I can make higher repayments on interest-bearing debts elsewhere.

I planned to set up a direct debit to make the minimum payments - but I forgot to actually do it. So I missed my first payment on the account. Sainsburys bank charged me a late fee, and cut my limit to £700.

Fortunately, I blagged a refund to my account for the late fee - and fortunately, the interest rate stayed at 0% - but unfortunately, I couldn't get them to put the limit back up to £1700.

I felt like telling them where to stick it - but I realised that £700 at 0% for the rest of the 12 months is better than nothing at all.

underdone

Likewise - LLoyds upped me from £1000 to £5000 with a few bank statements. I think you are better off in the long run if you make 2 or 3 applications a year only but make each one really count (taking the time to up the limits etc.)

Also I am applying for additional cards with my wife. My plan is to create enough debt vs. credit in savings accounts so that when my mortgage goes offset in about 18 months I will have a nice little head start. I am aiming for about £30Kish which I think is achievable with my other half.

What I am not clear about (slightly off topic) is whether I should close down these cards after I have used them. Can anyone point me in the direction of a thread that isn't 436 pages long?

Many thanks. :beer:

Milarky

For stoozers it doesn't matter that some outstanding debt may have to be repaid when you get a smaller than expected limit.

However smaller-than-expected limits tend to be associated with certain issuer's practices [eg Citibank] whilst outright rejections tend to be associated with other lenders' [eg Halifax]

I'd guess also that where some issuers use 'price for risk' and so offer a wide range of products with widely differing terms it is possible to get 'lucky' [and conversely, somethimes 'unlucky'] and get a much more generous outcome than with those issuers who treat all customers the same - because they have to 'get it right' more often with debtors [I was pleasantly surpised by both Barclaycard and Capital One - both of which do 'price for risk']

Rafter

MSE wrote:

After all, this website’s motto is “a company's job is to screw us all for profits, and our job is to stop them – and, if possible, to screw them back”.

I had no idea that this website was anti-capitalist?

Does that mean that hardcore moneysavers go round smashing up corporate headquarters and that moneysavers don't have pension funds and all work for the public sector or charitable bodies?

And I thought this sites costs were covered by the commission earned from some of these moneygrabbing companies?

I have no problem with highlighting overpriced products and services and getting a fair deal. The idea that all companies are evil when we rely on them for employment and investment returns to fund our old age seems a bit steep though.

Remember kids, a credit card is a flexible form of short term borrowing. Borrowing £1000's of pounds at high interest rates is bad news. The fact that a low credit limit prevents you 'screwing them back' by stoozing is hardly stupid on behalf of the banks.

Remember how these banks make their money: by charging interest and fees to people not smart enough to know better and other members of this site on the 'debt free wannabe board'. The more you screw them the more they charge these less fortunate people.

In my view much better for the regulators to step in and restrict access to over priced credit than a few vigilante money savers thinking they can take on the whole UK banking sector one stooze at a time.

R.

Richie(UK)

Hi R,

Different people have different motivating factors, I suppose.

I've only recently started stoozing. Personally, I've no interest in 'screwing them back' in the sort of vigilante manner that you describe. I'm simply making best use of the current system.

When you make 'normal' use of a credit card do you feel guilty at the 50-60 days that you get interest-free before you have to repay the amount spent? No, and nor should you - its just the way the system works.

The wording may be provocative but I think the sentiment is simply to enhance your own financial position by making use of the opportunities available, not some sort of anti-capitalist revolt.

jimclark1967

Agreed, not sure anyone's saying "companies are evil"

Just that you as an individual should take time to shop around for the best deal before handing your money over to that lucky company (whether it's interest on a loan or making a purchase)

JC

Rafter

Richie,

My comments were against the 'tone' of the moto, rather than the creative ways this site helps highlight perfectly legal ways of getting value for money.

I guess everyone has their line and stoozing '000s crosses mine. Is not sustainable and the offers are increasingly leading to people getting into very serious amounts of debt because for every money saver there are many others who simply run up more debt after doing a balance transfer and are not disciplined. If there weren't, the banks would stop the offers immediately.

Until the arrival of the American banks and the likes of Egg, new credit cards would only offer you a sub £1,000 limit and a free pen was about the limit of the offer until you had proven you could handle the debt when you would get a limit increase.

Sure people still went bankrupt, but you didn't get the binge spending and people treating credit cards as 'free' money until they get into serious difficulties as we do today in increasing numbers.

The 50-60 days interest free is paid for by the retailer through the fee they pay to the bank. I know the retailer does rather well too because I can make a purchase this month that otherwise I might have to save up an extra month for. They don't have the security risk or banking cost associated with processing cash or cheques either.

R.

PS - I don't believe that only offering a £1000 limit on a credit card is exploitation of customers by the way - more responsible lending!

jimclark1967

Rafter wrote:

PS - I don't believe that only offering a £1000 limit on a credit card is exploitation of customers by the way - more responsible lending!

Good point.

I suppose the whole thing is down to discipline - a good stoozer would happily take a £5million credit limit and still not spend a penny on the card - others would struggle to resist spending £500 of available credit they couldn't afford to pay back.

C'est la vie

JC