Does anyone know what the criteria is for getting credit card limit increased?
Does anyone know what the criteria is for getting credit card limit increased?
Original post by Kutie Karen
Does anyone know what the criteria is for getting credit card limit increased?
Need and affordability.
If you have £1000 limit, but never use more than £200 of that limit, you haven't demonstrated need. If you often max-out you card, then you have.
Credit card companies have an obligation (and a financial incentive) to ensure you can afford the debt. So they might use information about your past payment history, questions about your other financial commitments, and/or a credit check to establish what they think you can afford.
Original post by DataVenia
Need and affordability.
If you have £1000 limit, but never use more than £200 of that limit, you haven't demonstrated need. If you often max-out you card, then you have.
Credit card companies have an obligation (and a financial incentive) to ensure you can afford the debt. So they might use information about your past payment history, questions about your other financial commitments, and/or a credit check to establish what they think you can afford.
If you have £1000 limit, but never use more than £200 of that limit, you haven't demonstrated need. If you often max-out you card, then you have.
Credit card companies have an obligation (and a financial incentive) to ensure you can afford the debt. So they might use information about your past payment history, questions about your other financial commitments, and/or a credit check to establish what they think you can afford.
On the flip side if you are regularly maxing out the card it could indicate you need credit each money and actually prevent you from getting credit.
Usually card providers if you are keeping up your payments and clearing in full/maintains the card well will every 6-12 months may offer increases naturally.
Amex are the most generous - but as above your income and affordability is also taken into account. You can always ask and see - usually apps will let you do this. Some companies will conduct another hard search to do so - some won’t.
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