Earth Plus Platinum - Credit Crisis? What credit Crisis!

[josko]

Thought I'd share this one with you all.

Recenetly applied for the Earth plus platinum card to take advantage of the free 20k QFF points plus the 3 QFF points earn per dollar spend offer.

Filled all of the details required on line, honestly and without embellishment or mistakes (doubled checked everything) and got accepted without question.

Went to check the monthly credit limit granted with the acceptance and Lord behold.........$48,600 limit per month! You have to be kidding me!

Yeah sure...at that rate I'd be bust roooly quickly.

Quite ridiculous i'd say given the financial crisis and mess that we are in.

Your thoughts??

 

[oz_mark]

Westpac obviously haven't changed their calculations then! I guess they have confidence in you.

A year ago I applied for the then Earth+, and got some insane number back as my credit limit (although it was a bit smaller than what you have!).

 

[medhead]

How did this number compare to the total of your other credit limits? I also recently applied for earth platinum and my limit was $500 more than the total of my other limits.

I've had a similar experience with NAB and ANZ where the limit is coincidentally related to the total other limits that I put on the application. I also took on a balance transfer offer from Citibank and their limit was $500 more then the amount I wanted to transfer.

 

[Nutcase]

Went to check the monthly credit limit granted with the acceptance and Lord behold.........$48,600 limit per month! You have to be kidding me!

Quite ridiculous i'd say given the financial crisis and mess that we are in.

Your thoughts??

Im not sure where the per month limit has come from. This is a revolving facility and as such is not limited to a monthly spend. My guess is that its an overall credit limit.

Limits of $50,000 are not uncommon. I have $100,000 available on a Citbank card. Platinum cards often have much higher limits than gold or classic.

From a credit perspective, this is not an unusual situation as Im sure that you have your own home, a car and other cards and no black marks on your file.

Keep in mind that the credit crisis is not affecting Australia as much as other countries. Our system is more robust and our banks better governed. Take the high limit as a compliment and reduce it if you are not comfortable.

 

[lovetravellingoz]

I think Earth always give high limits.

Last time I had one it was high and I reduced it before later cancelling the card.

I just obtained an Earth Plat like you...and the limit is high again.
When I pick it up I will have them cut in back to say $20K or $25K.

 

[oz_mark]

Limits of $50,000 are not uncommon. I have $100,000 available on a Citbank card. Platinum cards often have much higher limits than gold or classic.

Certainly remember when I had a Citibank Platinum that they offered very large increases on credit limits quite regularly.

 

[deepakabc]

i applied earth and i got 25k limit.....

 

[SeaWolf]

If you don't need a limit that high then it might be a good idea to call them and ask them to lower the limit to be more in line with what you normally require. There's nothing to stop you BPaying into the card every week, or over paying if you need to make a large transaction. But by reducing the limit you limit the damage that can be done (even though you're not liable) if you become the victim of credit fraud or identity theft.

 

[Soundguy]

The banks and various financial institutions WANT you to lend - borrow or run up big credit card debts - at the moment, not the opposite.

They are not at all happy if you want to withdraw a deposit as many don't have much actual cash available (especially currently), but to lend out money is easy for them as they create it by means of the fractional reserve banking system. Every dollar deposited is used to create up to 8 or more dollars available to borrowers and their profits flow from the interest payments on those 8 extra dollars; huge leverage but also quite a risky business if there is a run of depositors asking for their cash back. Remember that to a bank a deposit is regarded as a liability but a loan they have made is regarded as an asset.

The banks know that the credit crisis will be extended & deepened by people NOT borrowing and running up debt as that is what our money supply is largely based upon. When debts are reduced and repaid the money supply contracts - it is simply a function of the the modern fractional reserve banking system.

 

[Evan]

Unless you spend it nothing wrong with a big limit... i know for some people its better not to have it.
My 2 credit cards are a little over 20k limit on each, (I never bother to accept the increases as this is enough) and my charge card... well thats umm, within reason unlimited (shall we say 100k a month, but you have to pay it all every month as i do)

In Singapore the limits some of my expat friends have been given are really stupily low ! And yet you hear stories about people running up massive credit card debt, maybe its only because they are only employment pass holders or residents.

E

 

[JohnK]

Just recently Citibank offered an increase to $45,000 for my Readycredit. The credit limit would not be available all at once but they would periodically increase the credit limit up to the offered ceiling without asking you first for approval. I kindly declined the offer as I could see getting myself into further trouble.

I regret the size of some of the limits on my credit cards. Hindsight is a good thing....

 

[straitman]

I regret the size of some of the limits on my credit cards. Hindsight is a good thing....

JohnK,

Hindsight is a wonderful thing but I believe you have made a wise choice on this occasion.

 

[Lord Mud]

Ineteresting topic! A former friend of mine used to work for a certain unnamable credit checking organisation that many despise.. He mentioned that reducing creit linits and cancelling cards has detrimental affect on you credit rating. and yes I was very shocked to hear that as I had been desperately trying to pay off all my outstanding cards. I do agree that the outlandish credit limits are a bit ridiculous though

 

[JohnK]

He mentioned that reducing creit linits and cancelling cards has detrimental affect on you credit rating.

To be honest I don't think it has any effect. Take it from someone who has cancelled credit cards, applied for new ones, reduced credit limits and increased credit limits. I shift money around from one credit card to another sometimes just to make the repayments. I continually get offers for new credit cards in the mail and I am being offerd ridiculously high credit limits on my existing cards. It appears that the more you get into debt the more they are interested in giving out debt. I am a revolver and I have lost track of how many credit cards I have in my possession....

 

[Diesellife]

Ineteresting topic! A former friend of mine used to work for a certain unnamable credit checking organisation that many despise.. He mentioned that reducing creit linits and cancelling cards has detrimental affect on you credit rating. and yes I was very shocked to hear that as I had been desperately trying to pay off all my outstanding cards. I do agree that the outlandish credit limits are a bit ridiculous though

It will affect your score in UK but not in Australia... AUS is still using the negative entries on the credit report and consist no other relevant information...eg how many cards and limits...

 

[Evan]

<..> It appears that the more you get into debt the more they are interested in giving out debt. <..>

For sure ! how else to they make money on interest ?
They don't help themselves but hey its business.

Interesting a friend asked me for advise (no idea why, i have no idea on these things) since they got a balance transfer offer at 2% from a bank and still owed $6k from a car loan (his only debt) and he thought maybe it was a good idea to balance transfer that to a credit card. Sort of the reverse of what most people do so actually makes sense. Crazy isn't it.

As i also mentioned in another post, Aug/Sept increase offer by $3k, then nov/dec $4k, same card ! a card with a large 20k+ limit and always in good standing, but not always paid off every month due to late expense claims.
I guess the big 4 banks have no credit issues.

E

 

[oz_mark]

As i also mentioned in another post, Aug/Sept increase offer by $3k, then nov/dec $4k, same card ! a card with a large 20k+ limit and always in good standing, but not always paid off every month due to late expense claims.
I guess the big 4 banks have no credit issues.

Certainly don't seem to. They offered me a roughly 10K increase from 20K+ to 30K+. Reminds me of what Citibank used to offer me

 

[Dave Noble]

For sure ! how else to they make money on interest ?
They don't help themselves but hey its business.

Interesting a friend asked me for advise (no idea why, i have no idea on these things) since they got a balance transfer offer at 2% from a bank and still owed $6k from a car loan (his only debt) and he thought maybe it was a good idea to balance transfer that to a credit card. Sort of the reverse of what most people do so actually makes sense. Crazy isn't it.

E

Of course that only works if he uses the card until the loan is paid off; they expect people to use the cards and screw up their saving

Dave

 

[Diesellife]

Have anyone got offered limited increase with NAB?

 

[notzac]

I've had a similar experience with NAB and ANZ where the limit is coincidentally related to the total other limits that I put on the application. I also took on a balance transfer offer from Citibank and their limit was $500 more then the amount I wanted to transfer.

Interesting - AmEx just did the same for me.

My experience with Earth is the reverse of everyone else here; an unusefully low credit limit that they weren't interested in increasing for me. Can't say as I'll be too sorry to close that account...