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?
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National Bank give me 5k credit card extension
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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
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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, 10:33 AM.
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Originally posted by Jabroni01 View PostI 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.
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.
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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.
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Originally posted by Perry View PostI.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.
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
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Originally posted by Rolf View PostNot 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.
If LVR became an issue when applying for a loan, one could always consider lowering their limit with a phone call to the bank.
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Originally posted by Rolf View PostNot 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.
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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.
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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Hmmm, some interesting comments here, my NB card limit is now 25k, I use a few k here and maybe the odd 12k or something and pay it back to zero in a few days or a week or six, I should make sure it's back to zero more often like at the end of each month. I like creditcards and revolving credit for emergencies that never happen. Perhaps, I'll ask national if I can lower my credit limit to 1k so I dont spend on unnecessaries but be able to call up anytime and have it raised back to 25k for an emergency.
I had some loans flickover from origin to anz last year and someone there said as a new anz customer u get a free 5k credit card which i declined but now might investigate.
It's credit card fever
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My credit card limit got raised all the way up to 40K once. A little daunting to think I could buy a couple of cars on the visa (and spend the rest of my life paying them off). I had the limit reduced right back down to $2,500 which is all I need for my monthly personal expenses. As Rolf said - improves the LVR.
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Speedometers may go up to 200kmh, but that doesn't mean you ever need to drive at 200kmh. CC's are the same, extra head room just in case, of course always pay them back in full monthy. Either way it's something for nothing, not a problem for those with financial discipline.
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break fees and credit cards
For someone who needs urgent lower weekly mortgage cost now but has fixed in for a while, but arn't allowed to capitalise their break cost and cant fund it them selves, they might be able to gather credit card money without too much trouble. They might be able to save a few hundred a week at a lower mortgage rate, including the credit card interest payments.
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I suppose one also has to reckon that those
who pay cash/cheque are subsidising those
who use credit cards. Quite obvious when
you see two prices offered: cash and CC,
to allow for the commission. But that's
mainly on the www, rather than Main St.
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