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Bank has raised our credit limit

2K views 14 replies 13 participants last post by  Sterzo 
#1 ·
The bank has recently reviewed our account and they’re going to let us get £8.5k into debt.
Nice, but I have to say if I don’t want the extra thousand quid debt. Then they carefully consider it! Then the default should be that they only increase it if we want them to?
 
#2 ·
They're supposed to have tightened everything up since the bank bailout.

But when we got our mortgage, with minimal checking, they were happy to lend us about 3 times as much as we needed, and twice as much as I would have been even faintly comfortable actually borrowing.
 
#6 ·
My bank do this every now and then, but they always tell me that I can phone <freephone number> if I'd like to discuss having a lower or (even) higher limit.

I thought all banks were supposed to do that, and give you the clear option of declining the offer of an increased limit...
 
#8 ·
I had a similar increase. The letter stated ‘after carefully considering your account’ which couldn’t have taken that long, given I rarely use the card ‘we have upped your credit limit.’

Oddly, about ten years ago, when my account was equally inactive, they wrote to say they were lowering my limit.

Whatever.
 
#9 ·
It’s about as dumb as these betting companies getting people addicted. Or students who just get numb to the scale of their student debt.
What do they do, increase the credit until you cannot pay it back then finally get some interest out of you? Ours is always paid off and we get vouchers from what we spend so not that lucrative for them.
 
#11 ·
Of course they want you to get into debt, that’s how they many money. They’re being slaughtered by low/negative interest rates, they’d rather lend it to you.

It’s simply an algorithm, don’t take it personally. It’s demonstrably not reckless, because they will have selected accounts that can provably handle it, that’s why you got the letter.

Is the availability of credit a good or a bad thing? Overall, it’s a good thing. Leasing cars is all about credit. Some would argue that it has just given poor people the ability to have nice cars that they can’t afford. The counterpoint is that it has allowed more people to drive a newer, better car - safer, better for the environment etc etc.
 
#14 ·
I've always found mine are happy to adjust it up or down if you ask. We upped ours for a month to help buy my son a car (quicker and easier than lots of money transferring) and then just asked them to drop it back down .. no problem.

Then again I have a few cards, so if one didn't play ball, I'd used one of the others!
 
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