Whats wrong?

Curently I have a egg credit card which I have had now for a month. My credit limit is £750 which to be honest I feel is quite poor. anyway I ended uo with the card, I know I am only a month into it but I requested to up my limit and they refused.....im not to sure why.

in my 23years young I have had the following credit.

HSBC loan £2000....paid 8months then had another £2000 loan with HSBC paying the first one off.

Northern rock loan for £4000...had for 3 months and then paid off.

PC on 0% finance.

All these were paid off with ease and no problems.....

currently I have a Northern Rock loan for £7000 and the egg credit card for £750....which I have used £650....

So is this a low limit at £750...or based on the bove do you think what I have is reasonable......thanks for your times....

Comments

  • Galstonian
    Galstonian Posts: 1,292 Forumite
    You should check out your credit files from Equifax and Experian and make sure you are on the electoral register at the your current address. Perhaps the fact that you already have £7650 of debt may be why but often all requests are turned down until they see how you operate the account for 6 months or so.
  • Tabasco
    Tabasco Posts: 139 Forumite
    I am no expert or anything but if I owe £7000, it would take me some belt tightening for a good few months to pay off.

    Mind you, you did say you paid off £4000 in 3 months so must be well off one way or another.....may be you are a high fly young exec or something

    With regard to the limit, Egg is strange, they offered me £2K and I withdrew £1500 (BT) and use the rest on and off, never miss a payment. I tried to up it to £5K, failed, £4k, failed, even £3K failed! (each try a month apart)...have given up and 0% is about to run out....so time to pay it off and wait for the anniversary offer!

    Somehow, some people in here don't seem to have much problem upping their limits...strange.
  • johnllew
    johnllew Posts: 1,928 Forumite
    Did you use the £7k NR loan to pay off your other loans? If so, your debt seems to be increasing dramatically and may be the reason why the credit limit on your Egg card is low.

    Perhaps you need to start planning how to control & reduce your debt rather than increasing your available credit?
  • Kazza242
    Kazza242 Posts: 2,167
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    snakey wrote:
    Curently I have a egg credit card which I have had now for a month. My credit limit is £750 which to be honest I feel is quite poor. anyway I ended uo with the card, I know I am only a month into it but I requested to up my limit and they refused.....im not to sure why....

    So is this a low limit at £750...or based on the bove do you think what I have is reasonable......thanks for your times....

    You're not the only one in this situation snakey. I applied for and received my Egg card in early December, like you I was also given a £750 credit limit.

    I tried upping the rate to £2,000 a couple of weeks ago and was declined. I figured this happened because I've had the card less than 3 months, which is the most likely reason I can think of.

    When I applied for a Morgan Stanley Platinum card I received a £5,000 credit limit and I've got a £5,000 credit limit on my Barclaycard (although the Barclaycard has a £0.00 balance), as I always paid each bill in full and on time every month for 6 years before switching to Morgan Stanley.

    I owe under £1,000 on my Morgan Stanley Platinum card - which I intend to pay off completely next month as the 0% offer ends. I suspect that I'll be able to successfully increase my Egg CC limit next month or the month after.
    Please call me 'Kazza'.
  • Reaper
    Reaper Posts: 7,277
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    snakey wrote:
    I know I am only a month into it but I requested to up my limit and they refused.....im not to sure why.
    That's why. The reason a company might up your limit is because they have looked at your account and are happy that you have been regularly meeting the repayments on time. It is completely pointless to ask for an increase after less than a month because you have no history for them to look at.

    No card will give you an increase until you have been with them 3 months and many will expect you to have been with them 6+ months before considering it.

    The only (rare) exeption to this is lodging an apeal about your initial limit on the basis they are not aware of all the facts. You would need to supply them with details of income, debts, stability of jobs/address etc or whatever is required targeted to the thing you think might be causing the problem. You may well need documentary evidence too.
  • thaylock
    thaylock Posts: 234 Forumite
    Sounds to me like you pay your debts off too quickly so the credit card companies aren't making much money off you.

    People like you are their worst customers, they want people who will take years to pay off the debt which helps them increase their profits.

    About 7 years ago I purchased a car, put half down in cash, other half on a low interest loan, I had no other loans or credit cards. The first loan company refused to lend me the money, why ? because I had always paid previous loans off within a couple of months, so to them I was a bad proposition.
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