All Topics / Finance / Credit card limit !

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  • Profile photo of Tommy1Tommy1
    Member
    @tommy1
    Join Date: 2010
    Post Count: 12
    March 21, 2011 - 7:09 am

    Hi all,
    I have a friend with a problem trying to get approval for a credit card. Details are as follows:

    Equity loan limit is $50k
    Actuall amount redrawn will be maximin of $25k
    Income $35k per year.
    ACC Union will provide maximum of $2k on 62 days interest free.
    Requirement is for credit card of at least $4k

    Any suggestion on where friend should go to seek an approval at a higher limit. At present all income etc is being deposited into equity loan, and wish to put living expenses etc on credit card and then pay off in full at end of 62 days interest free period.

    All expenses are private property etc etc at a personal level.
    No investment property owed, house fully paid for, value would be approx $275000

    Any advise would be greatly appreciated. The mortgage broker advised to take the $50k equity limit even though friend only needed a maximum of $30k

    Profile photo of Mick CMick C
    Participant
    @shape
    Join Date: 2010
    Post Count: 1,099
    March 21, 2011 - 8:30 am

    Hi,

    I’m slightly confused…are we talking about a standard credit card here? or some sort of LOC ( line of credit?)
    From your post it sounds like your not your friend is not an Australian, am i right? sounds like a US loan….

    Regards
    Michael

    Mick C | Shape Home Loans
    http://www.shapehomeloans.com.au/
    Email Me | Phone Me

    Same Banks. Better Rates. Served With a Passion.

    Profile photo of god_of_moneygod_of_money
    Participant
    @god_of_money
    Join Date: 2008
    Post Count: 970
    March 21, 2011 - 9:04 am

    where is ACC Union????

    Profile photo of Tommy1Tommy1
    Member
    @tommy1
    Join Date: 2010
    Post Count: 12
    March 21, 2011 - 9:53 am

    Sorry about confusion, bank is Australian Central Credit Union. Friend is a Australian resident. Just trying to get a normal everyday credit card with about $5k to $10k limit so that funds can stay in equity loan for the maximum length of time, prior to paying off credit card at end of interest free period.

    Problem seems to be a relatively low income and I assume the credit card company work there numbers as if the equity loan is fully drawn down, hence effecting the maximum amount that the credit card limit can be.

    With there credit card having an interest free period of 62 days creates a situation where the limit needs to be at least $2k just to cover basic bills etc for the duration of 2 months. Near the end of the 2months the plan was to transfer money from the equity loan (loc) where wage has been deposited, to pay out the credit card.

    Profile photo of Jamie MooreJamie Moore
    Participant
    @jamie-m
    Join Date: 2010
    Post Count: 5,069
    March 21, 2011 - 11:15 am

    Your friend should try a different lender? Where does he have his LOC? Perhaps he should ask for the limit to be reduced. You’re right – lenders will consider the LOC as fully drawn – just as they’d consider a credit card’s limit (despite how much has been spent on the card).

    Cheers

    Jamie

    Jamie Moore | Pass Go Home Loans Pty Ltd
    http://www.passgo.com.au
    Email Me | Phone Me

    Mortgage Broker assisting clients Australia wide Email: [email protected]

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