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Original poster

Why was DH offered a much higher credit limit than I was?

14 replies

Catabogus · 14/05/2019 16:25

Can anyone who understands these things please explain this to me?

DH and I both recently applied for individual credit cards with the same credit card firm. We both have the same job title, address, are the same age, and have had all our finances jointly for the last 20 years. Yet he was offered almost double the amount of credit I was! He does earn slightly more than I do - but it seems odd that this small gap in income should make such a huge difference to the amounts.

OP posts:

DameSylvieKrin · 14/05/2019 16:29

I heard on the radio recently that a joint mortgage for a married couple improves the husband‘s credit rating but not the wife’s, but you‘d need to verify that. Can you get a free copy of your credit history?

MrsTerryPratchett · 14/05/2019 16:31

Both get your credit reports. I'd be very interested in the answer to this.

ShavenConnery · 14/05/2019 16:34

Has he taken any credit before for e.g. a car, or even a mobile phone. Taking a loan and paying it back on time will increase your rating a lot.

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Original poster

Catabogus · 14/05/2019 16:34

Hmmm...interesting. I will suggest we both get our credit reports then and report back.

Does anyone know how they actually calculate the amount they offer?

OP posts:

Teddybear45 · 14/05/2019 16:35

How much more does he earn? Same job title but different industries? How much credit do you each have in sole names and what are your repayment patterns like? Whose name is the mortgage in?

Original poster

Catabogus · 14/05/2019 16:36

No, all our previous credit has been joint.

OP posts:

Original poster

Catabogus · 14/05/2019 16:37

He earns 3k a year more. Same industries. Mortgage and all previous crediT in both our names.

OP posts:

Usernumbers1234 · 14/05/2019 16:38

How it’s calculated will vary from lender to lender, it will be a relatively complex algorithm.

It’s almost certainly because he’s had previous debt and cleared it off, boosting his rating. I lived with a friend years ago, I had no debt, paid for everything up front. He was constantly on payment plans for overdue debts and had credit cards. Same earnings, he was offered way higher limits, even though he was often overdrawn, his ability to get back out of it boosted his rating, I was an unknown quantity

Teddybear45 · 14/05/2019 16:40

That’s the issue then.Credit cards are rarely truly in joint names. Whoever is the lead cardholder will be the person in whose name the credit card is in, with the added person often just a cardholder (as opposed to an account holder).

BarbaraofSevillle · 14/05/2019 16:44

Did they ask financial commitments or disposable income and what answers did you both give?

Your answers could have indicated that his affordability was better than yours. Also if previous'joint' credit has previously been in his name, then his history of repayment will be better than yours.

Original poster

Catabogus · 14/05/2019 16:47

I don’t actually know whose name the previous credit card was in - as far as I am aware, it was simply joint. Perhaps he was listed as the main account holder then. I will have to make sure I list myself as the main account holder if we apply for another joint card in the future then!

OP posts:

Magenta82 · 14/05/2019 16:57

As far as I'm aware (used to work in a bank and had to learn these things, but things may have changed in the last 10 years) joint credit cards are not a thing, you have a primary account holder and can then get additional cards for the account. The debt belongs to the primary account holder.

My mum has a better credit score than my dad because, although all the major things have been joint, she has a credit card that she pays off regularly.

BarbaraofSevillle · 14/05/2019 16:57

If you're in the UK and didn't apply for the card, it wasn't anything to do with you as joint credit cards don't exist. You would have been a second card holder on your DHs account and all the credit history and responsibility for payment was his alone. So yes you need to have your own account to earn your own credit history and higher limit.

Nottobesoldseparately · 14/05/2019 17:10

Credit is weird.

My rating is currently shot to pieces.

That's because all the finance is currently in my name, the loan, car finance and major credit card.
DH has a ccj as the house he bought with an ex was repossessed and he couldn't get anything.
I have NEVER missed a payment, have in the past (not at the moment) regularly cleared balances etc.

But now, even the 'dodgy' credit cards who give them to bankrupts, won't touch me with a bargepole, but will give DH and his CCJ one!

And then, in 9 months when everything is paid off, they will start offering me all the credit in the world!

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