September 05, 2005

Easy Credit

Just recieved my new mbna mastercard and notice that they have increased my credit limit by another £3000. This is Daft for a couple of reasons.
1) I haven't actually used this particular card for over 2 years, and only then because they were giving me interest free credit on purchases for 6 months.
2) combined with the Visa card I also have from them (which hasn't been used for probably 4 years, but my records don't go back that far) I know have a £28,900 credit limit with them.
Since officially I am a full-time PhD student have minimal paid employment this strikes me as quite ridiculous. Actually even if I were employed the minimum montly payment on that amount would be a terrifying £860. They obviously do no checking at all before randomly increasing limits. No wonder people get into unmanageable debt.
Fortunately I am quite sensible and only ever use my credit cards as a means of getting 6 weeks interst free credit on all my purchases and to avoid carrying large amounts of cash. The card I do use only has a £3000 limit which is more than adequate for my usage.

- 3 comments by 2 or more people Not publicly viewable

  1. Wow, and I thought I was doing well with a £5,750 credit limit!

    05 Sep 2005, 19:12

  2. Lee Davis

    yes well I have had the cards for about 10 years and mbna seem to have a policy of increasing your limit by around £1000/year, despite the fact I have never had more than £3000 on the card at any one time.

    05 Sep 2005, 20:30

  3. Credit Market

    This is a common occurrence with credit cards and although being notified of an increase in your credit limit may initially prove quite temtping, if you think for one minute you could fiind yourself getting into difficulty simply call the card issuer, tell them to reduce your limit and request they never alter your account without prior consent.

    22 May 2006, 17:56

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