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Irresponsible banking?

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Irresponsible banking?

Just received a letter from Barclaycard informing me that they are doubling my credit limit as from 9tkh September. There has been no change in my financial situation!
Luckily I manage my finances reasonably well these days (as well as SWMBO allows me  Wink) and have no need for such an increase. I can ring to retain my current limit but have decided to allow the increase as I think It will be in my favour for my credit rating as I manage my cards well.
But how many will get such an increase and just go on a spending spree?
With the minimum requested each month being 2.25% of the outstanding balance this can just lure more people into debt Undecided

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7 REPLIES
Community Veteran
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Registered: 18-01-2013

Re: Irresponsible banking?

I used to have four credit cards, kept them mostly paid off.
By the time I'd decided I didn't need them any more, the lenders had increased the combined limit of the four cards from £5k to £45k !
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Registered: 12-08-2007

Re: Irresponsible banking?

Your bank is wanting you to spend more on your cards but they are suggesting they are happy with the increased limit they have set. Should help your credit status Wink
myredhotcar
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Re: Irresponsible banking?

I had a credit card (from the bank) in the late 90s. During a short period between jobs I called them to ask if they could defer a monthly payment on the card because I was not going to be earning for 6 weeks and things were tight as a consequence. Their answer: we will double your credit limit and take the monthly payment from the new allowable credit!
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Re: Irresponsible banking?

I had a better experience with Barclaycard after my divorce. My ex-wife had helped build up quite a debt but, as the card was in my name, refused to pay anything towards it.
My disposable income was completely hammered after taking into account rent, utilities and other bills so contacted them and completed the relevant forms. They froze all interest and agreed to let me pay back at a set amount each month. Took around 4.5 years to pay off and I closed the account. A couple of years after I was working and Barclaycard offered me a me new card which I accepted for emergencies. It has come in handy a few times.

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Courage is resistance to fear, mastery of fear, not absence of fear - Mark Twain
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Community Veteran
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Registered: 27-10-2012

Re: Irresponsible banking?

About 10 years ago now, I remember shopping in the middle of the summer, when we had a heatwave, and there was a BarclayCard stand in the shopping centre. They were giving a free SuperSoaker water gun with anyone signing up for a credit card. You would not believe the number of young people queuing up to get a credit card.
myredhotcar
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Posts: 457
Registered: 06-11-2013

Re: Irresponsible banking?

@ Mav: That sounds far more reasonable. I only got the card because I expressed interest in a mortgage and the bank said I would need to use low-level credit first to improve my credit rating which makes sense I suppose. personally I find the cards encourage me to spend more each month, which is largely down to a lack of financial discipline on my part; it isn't like the cards spend themselves. The vast majority of people I know who use them find them incredibly useful though and keep on top of them, so it seems mainly dependent on the individual.
@ AndyH: I used to get flashy "you have been approved" adverts from Capital One on random websites which seems to have stopped. I'm not sure if this is due to the credit crunch or adblock though. I remember people using catalogues when I was younger; "look at all this lovely free stuff you could have".  I suppose this was the equivalent at the time.
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Re: Irresponsible banking?

I remember when the minimum payment was 5% or £5 whichever was the greater meaning a fair amount of the minimum payment went towards the debt. Now with minimum payments less than half that then if you only pay the minimum then it barely covers the interest Sad
In January I was offered an ASDA card with a very low interest rate plus cash-back so applied and got it. I moved what was left on my Barclaycard to also take advantage of the interest-free period of 12 month. Now Barclaycard keep writing offering me 24 months interest-free. No point doing that now but if there's anything left at the end of 12 months then I'll move that back. No point paying interest if I can avoid it Wink
I make all my purchases on the ASDA card and as soon as the transaction appears online pay it off from my curent account.

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Courage is resistance to fear, mastery of fear, not absence of fear - Mark Twain
He who feared he would not succeed sat still