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.

Re: Credit Limit Increases
 

That's a very simplistic way to look at things OE. For some people a credit card is the only way they can pay bills or put food on the table. i.e. for those who already live a paycheque to paycheque existence losing a job means they have no income and their only hope of paying rent or eating is to use a credit card. It's pretty difficult for someone making a poor wage to get themselves back out of the credit card debt cycle. It's not just greedy or impatient people who find themselves in trouble.

Although I do agree about the one day loan industry being exploitive.

Re: Credit Limit Increases
 

We got four returns this time last year for a lot less than $12k with Air Asia.

Re: Credit Limit Increases
 

Cool. I don't think they go to the UK anymore.

Re: Credit Limit Increases
 

Just had a quick look.dont think theu do.we flew to Paris.think the stopped that one too.sorry.

Re: Credit Limit Increases
 

Would you mind terribly if I joined the lynch mob? I have my own flaming torch and pitchfork (pitchfork and straw behind ear being pre requisites for residence in shockingham)....

If it wasnt for the credit card we would have lost our house... Well incurred SIGNIFICANT fees... Whilst I waited FOUR MONTHS for the health service I work for to correct their error...

Having a credit card with a decent limit on it helps in emergency situations when you are cash poor temporarily....

Problem is when you are cash poor longer term..... And its happening more and more in WA with the two tier economy.... Those that work in mining and those that dont.... I kniw several families who have cut back to the bone and have relied on credit cards to pay for essentials hoping for a job and the jobs just havent materialised until they have some serious financial issues.... A temporary solution has turned into a nightmare for them.....

Re: Credit Limit Increases
 

Not sure why everyone doesn't use these products. Far far better than Credit Card Interest. They hold the answer to both the above scenarios. As long as you can trust yourself that is. I still maintain despite the above posts, that the vast majority of people that get themselves into serious credit card debt are impatient people.

http://www.homeside.com.au/



http://www.choicelend.com.au/

Re: Credit Limit Increases
 

I have one of those and also pay it off in full every month (if I even use it). They just sent me an email offering to increase the credit limit from 10 to 16k.

Re: Credit Limit Increases
 

No, not just you! :D

Surprise, surprise, I ho myself from one frequent flyer sign on bonus to the next...I couldn't tell you how many different cards I've had since I've been in Aus!

Works for me!

http://i50.tinypic.com/11h9b0y.png

...and 50,000 for Virgin Velocity this year.

Re: Credit Limit Increases
 

Im trying to pick a card to go with..

Are the Virgin ones any good? Can get alot of bonus points signing up now.

Re: Credit Limit Increases
 

Not at Nab. It is only $5

Re: Credit Limit Increases
 

The Virgin Flyer credit cards are excellent. $99 annual fee - mine came with 50,000 velocity points (6 months ago)...you also get 4 free oneway companion domestic flights per year which you can use on any flight. That's an amazing benefit for a $99 annual fee - me and the OH both have the card and it's saved hundreds.

http://virginmoney.com.au/credit-car...lyer-features/

Re: Credit Limit Increases
 

What good is a homeloan when you've got no income? :confused: Where does it say on either of those websites that people can buy food or pay the electric bill or put petrol in the car to get to a job interview?

Re: Credit Limit Increases
 

It's nothing to do with paying it off each month. We always pay ours and have a limit of $50 k on both cards

Re: Credit Limit Increases
 

Good points. I keep only one card. In 2008 it had a 15,000 dollar limit with a balance of under 500. In 2009 they notified me my limit had been lowered to 5,400. At this point my balance was zero.:blink: What the hell? I don't want nor need the extra limit. I guess its because i have never had to pay a late fee or overlimit.

Re: Credit Limit Increases
 

It's not a home loan... it's an offset mortgage account, line of credit if you like... I'm talking about all home owners here. It's basically insurance against bad times. You only have to pay the interest on what you owe. You do need a house as Collateral though.


If your renting then thats a totally different story. The people I see getting into serious credit card debt almost universally have the latest cars, gadgets, designer clothes, expensive furniture and then wonder why they are in the situation they are in.

Like I said the real victims of the Credit industry are the real day to day people who are exploited like no other. I have real symathy for those. Which IMO are more likely to fit the bill with the scenario you painted and Eddie went through.

Re: Credit Limit Increases
 

Yeah can get 50,000 with the top card again..

I might well apply tomorrow. May as well start getting something extra when I shop!