Credit Limit Increases
 

Hi all,

I understand that from 1 July 2012 changes to the National Consumer Credit Protection Act 2009 mean that credit providers cannot send invitations to customers unless the customer has previously provided their consent to be offered limit increases.

I have recently been sent a variety of letters asking for my consent to receive offers. I have about 7 credit cards (I collect FF points and sign up when there are offers on and then don't use the card!).

I consented out of curiosity really and in the last 2 weeks I have received the following;

Card 1: Main card - used daily for points purposes paid in full each month - originally 15K limit (in case I need to rush back to UK for emergency etc). New offer: 33K

Card 2: Secondary card - back up to card 1 when I travel - 5K limit, zero balance. New offer: 15K

Card 3: Unused - current limit 3K. New offer: 8K
Card 4: Unused - current limit 1K. New offer: 5K
Card 5: Unused - current limit 2K. New offer: 5K
Card 6: Unused - current limit 1K. New offer: 5K
Card 7: Unused - current limit 3K. Waiting to hear from them!

Now I have a good job but I don't know that I can service 71K at 19%! Seems a little irresponsible.

Any one else getting silly offers? Do you think they're being irresponsible or is it totally down to personal responsibility? I think many people will be tempted with the increases in living costs.

NB. I have declined all offers and actually cancelled cards 3-6. I'm keeping my first two and the last one is good for travelling with. I think a limit of 23K combined is sufficient for my needs!

Re: Credit Limit Increases
 

omg ow do you manage so many credit cards? :eek:
I only have 3 - Amex (main) and 2 MCs. I even asked to have my credit limits lowered.

When you take out mortgage later on you will find it difficult to increase loanable amount with so much credit card limit!

Re: Credit Limit Increases
 

You're the one who applied for 7 credit cards, so I don't think looking at potential total credit limit for all of them is really appropriate. Most people would have 1, maybe 2 at most.

It would be your responsibility if you chose to increase all, or any, limits after any offer received based on your permission for offers to be made.

Re: Credit Limit Increases
 

Exactly. Bit of a strange point to make when you actually have 7 credit cards.. :blink:

Re: Credit Limit Increases
 

+1

Re: Credit Limit Increases
 

I guess I didn't explain myself very well (and possibly having so many cards distracted from the point).

As I said, I took out the cards when they had bonus offers on FF points. I only use one of them. I have now closed all but 3. More normal I suppose - obviously not as many points whores around as I thought! Just me!

My initial thoughts were that having been inundated over the past week or two with news of price increases, job losses and people struggling to make ends meet, that it is likely that these offers (if they are being made widely) may draw people in who are desperate - and unlike the UK credit system they don't take into account your earnings or other borrowings (or potential borrowings) when they offer the limit increases.

I fully appreciate that I am responsible for accepting any increase - but I just felt if I had been in a more tenuous position I might have been tempted - which is obviously good for the banks.

It was just a thought.

commonwealth - thanks, yes I knew about that with the mortgage - I'm still saving towards a deposit so when the time comes I'll cut down to one card with a lower limit. Cheers.

Re: Credit Limit Increases
 

One of the cards I have has sent me texts every day this week telling me to make sure I opt in for increases. The card is full, minimum payment gets done on it every month, certainly not a good candidate to be offering increases too - yet this is the third time this year I've been deluged with texts from them about increasing the limit. The previous twice, after answering the text I then just have to tick a box on their website and the increase would go through, no income checks, nothing.

It must be very very easy for people who are desperate for instant cash to just agree to everything and keep getting deeper into debt because of it.

Re: Credit Limit Increases
 

Actually you are exactly the ideal person to offer increases to.

Remember, the idea of the credit card company is to make money, not offer a service. Someone who racks up the interest payments, and could get stung for a missed payment = payday for the credit card company.

Re: Credit Limit Increases
 

well i keep hearing about everyone getting money thrown at them

i applied for a credit card with westpac for a measly $500 limit that i wanted just as a back up card for me and the wife just in case a card failed or got lost

told them to sign it up as being paid off in full by direct debit every month as i only wanted it as back up

turned down..... even though between us we earn over 100k a year .... how do they work that out

self employed sucks not just over here but also back in the uk

i wouldnt mind but i have kept open my uk credit cards ...just in case ... credit limit between the 3...... 50k GBP

Re: Credit Limit Increases
 

In this case, I would guess they decided it wasn't worth the effort of administering the account.

Re: Credit Limit Increases
 

no they done all the input into the computer whilst i sat there

COMPUTER SAYS NO !!!!!

Re: Credit Limit Increases
 

Perhaps the computer knows more than the person inputting the details.

Of course it is not a credit risk, the fact is that it is not worth the admin. There is more than one criteria for giving credit cards.

Try again for a higher amount and don't say you will pay it back every month and see what happens. ;)

Re: Credit Limit Increases
 

thats the thing though

didnt want to reapply as if they so no again it starts to look bad .... well it did back home ..... you know turned down for credit used to go against your file

even though i dont actually need it ..... just want it for back up

Re: Credit Limit Increases
 

I've got little or no sympathy for people that get caught out with Credit Card overdraft. Simple fact for the most part they are greedy, impatient live for today people.

I've been offered these, I'm pleased the bank gives me this option. I simply ignored the offer. I dont see what the fuss is about.

Only one facet of the Credit industry is really explotive, thats the one day loan people. They definitely prey on the vulnerable, with their excess charges and their target market. Something should be done about those.

Two totally different markets... The live for today buy everything shiny and new credit card users, compared to the live day to day no food in the cupboard behind in the rent, no job, no hope, day loan users. Guess who pays the most fees.

Re: Credit Limit Increases
 

I applied for an increase on my main card (Woolworths). I pay it off in full every month but my credit limit of $12k isn't enough to buy 5 x return airfares to the UK - I got turned down. I guess I'm also the sort of customer they don't need.