Anyone know anything about credit limits.

[Aposterhasnoname]

We’re planning on a new kitchen in the new year. It’s going to cost around £15,000. We plan to pay about £5000 up front then finance the rest. We have a number of credit cards between us, with more than enough credit available on them. I have £15,000 available. DH something like £25,000. We usually spend around £500 a month on them and pay it back in full every month so we never pay interest. We have no other credit and the mortgage is paid off.

A few kitchen companies are doing four years interest free. I want to do that, but DH reckons we won’t be able to due to the amount of other credit available to us. I don’t want to apply and be turned down and spoil our otherwise excellent credit record. Does anyone know if we’re likely to be accepted or is DH right?

You are right and your DH is wrong. The credit you have available via credit cards would not be detrimental to you being approved for an interest free loan from the kitchen company. If the cards were maxed out that would be a different matter.

High credit limits, managed well, with a low % of your limit used and paid back monthly is usually positive for your credit score. I can't see why this would negatively affect you. You'd be mad to spend it on a credit card that would accrue debit interest if you have a 0% offer available to you.

I cannot see why a lender acting for a kitchen company, or for that matter a car dealer, would refuse their 'interest free' deal because you could borrow the money at greater cost elsewhere.

The credit broker/lender's role is to facilitate business for their principal. As long as they're happy you can repay they're not going to look too hard at other stuff. If one company, say Wren, told me to hop it and pay loadsamoney to Barclaycard instead of their lender I'd be asking B&Q or IKEA to quote!!

It's possible that, if your CC providers can see you've got £10k debt to a kitchen co, they might get cold feet about your credit limit and reduce it. ISTR having something similar in the distant past - so long ago the card was Access!!

Thank you everyone.