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  1. #1

    Default National Bank give me 5k credit card extension

    National Bank sent me a letter today saying call this number for 5k extra limit on your credit card, so I did, and they did. The last time they did this was 8 months ago. Prior to that I'd throw the letters out so didn't keep track. How does this work?, is the frequency of the extending limit letter based on your use of the card or is it their timing?
    Last edited by dandan; 16-02-2009 at 10:34 PM.

  2. #2
    Join Date
    Jun 2005
    Location
    Wellington
    Posts
    1,112

    Default

    Few (if any) understand the arcane ways of bank credit cards.
    But I'm sure be smart & put the new limit to good use.
    And if not I'm sure you'll pay a tank load of interest to penalise your lack of willpower.

  3. #3

    Default

    I would always have to contact ASB to make sure they didn't increase my credit card limit. We never need a huge limit as payments are made monthly.

    The annoying thing is, it was always they would increase it, if they never heard from you which is a bit of a pain as I would always throw the letters away and forget about them.

    Its probably been approx 6 months since I have had one, must be due again soon I guess.

    Jabs

  4. #4
    Join Date
    Oct 2008
    Location
    Auckland/Melbourne/ whereever the money is
    Posts
    1,380

    Default

    I think it is just an easy way for the banks to lend in this environment.
    ASB would not lend / increase my loans but gave me a new credit card with 10k limit at the drop of a hat.
    Easy high return lending, particularly if they already have the security of your properties.
    Last edited by Keithw; 17-02-2009 at 10:33 AM.

  5. #5
    Join Date
    Oct 2003
    Posts
    3,578

    Default

    Quote Originally Posted by Jabroni01 View Post
    I would always have to contact ASB to make sure they didn't increase my credit card limit. We never need a huge limit as payments are made monthly.
    I was going to say ASB does a reverse onus - ie contact them if you dont want the limit raised.

    It has been a while since they have offered me as I keep asking for more. Having said that, they always approve it at a drop of a hat.

  6. #6
    Join Date
    Sep 2004
    Location
    Hastings
    Posts
    14,834

    Default Where Does The Money Come From?

    At a recent family social function, I was talking to some
    one 'in the industry,' who asked if I appreciated that the
    banks aren't the backers (provide the credit directly) for
    credit cards. She averred that it comes from larger finance
    companies, the ones like Pacific Retail, etc. I didn't know that.

    Is that your understanding, RR?

    Re: Increasing Limits
    If paying off, in full, monthly, take the raised limit and run.
    One day you might see a great deal that needs a quick
    reaction. I.e. there's every to gain and nothing to loose
    to a higher limit for a paid-in-full-each-month credit card
    account holder.
    Want a great looking concrete swimming pool in Hawke's Bay? Designer Pools will do the job for you!

  7. #7
    Join Date
    Dec 2004
    Location
    Beautiful Waitakere Ranges
    Posts
    519

    Default

    Quote Originally Posted by Perry View Post
    I.e. there's every to gain and nothing to loose
    to a higher limit for a paid-in-full-each-month credit card
    account holder.
    Not quite, since the banks will count your full credit limit as a liability, regardless of the current balance.
    So raising your limit will have a negative impact on your overall LVR and DSR, in the view of the banks.
    High resolution Fractal Art on quality canvas: www.FractalArt.co.nz

  8. #8
    Join Date
    Jun 2005
    Location
    Mt Maunganui, NEW ZEALAND
    Posts
    1,463

    Default

    Quote Originally Posted by Rolf View Post
    Not quite, since the banks will count your full credit limit as a liability, regardless of the current balance.
    So raising your limit will have a negative impact on your overall LVR and DSR, in the view of the banks.
    Quite right.

    If LVR became an issue when applying for a loan, one could always consider lowering their limit with a phone call to the bank.

  9. #9
    Join Date
    Jun 2004
    Posts
    10,364

    Default

    Quote Originally Posted by Rolf View Post
    Not quite, since the banks will count your full credit limit as a liability, regardless of the current balance.
    So raising your limit will have a negative impact on your overall LVR and DSR, in the view of the banks.
    I had this happen a couple of times -the limit was reduced to get my 'liabilities' down, get the loan then the bank would send me a letter putting the limit back up again. My bank manager thought it quite funny how the internals of his bank worked against each other.

  10. #10
    Join Date
    Jun 2005
    Location
    Wellington
    Posts
    1,112

    Default

    At a recent family social function, I was talking to some
    one 'in the industry,' who asked if I appreciated that the
    banks aren't the backers (provide the credit directly) for
    credit cards. She averred that it comes from larger finance
    companies, the ones like Pacific Retail, etc. I didn't know that.
    Can't say I deal with 'Cards' much, they are quite a separate to the core banking services and are treated as an "add on" product for personal & business customers. The limit increases and customer profiling are largely done by computer accompanied by some fancy marketing data-mining.

    I recently received another unsolicited offer for another fancy gold credit card recently, all I had to do was to confirm that I was employed, earned over $30K per year and bingo another Gold Card was mine (with the low-low-rate of ONLY 18% or some rubbish).

    They are a good product and are used responsibly by many customers but are badly misused in the hands of financially inept or irresponsible.


 

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