If you’re wondering what sort of credit limit you can expect and whether it’ll increase, we’ve answered your questions here.
What credit limit can I expect when I open my account?
With the Ocean credit card, you can expect a minimum credit limit of £200 and a maximum limit of £1,500. The limit you receive will be based on a number of things, like your credit history, how much disposable income you have and the amount of debt you’re already currently managing.
Will I receive a credit limit increase with my Ocean Credit Card?
Yes. You may be offered credit limit increases on your Ocean Credit Card. You’re more likely to be offered a credit limit increase if you’ve shown you’re a responsible borrower. To do this, you should:
- Make all your repayments on time and in full
- Repay more than the minimum payment due – if you can
- Never spend beyond your current credit limit
If you do these things consistently for several months, you may find that you’re then offered a higher limit. This is because you’ve proved that you can handle your current limit and look likely to be able to manage a larger one without any problems.
You could be eligible for up to two credit limit increases year.
Do I have to accept a limit ?
A higher credit limit can come in handy for emergencies or protecting the cost of larger purchases. Just remember, it also means you can run up a bigger balance, which could take longer to pay back and cost more in interest. Only accept a limit increase offer if you’re confident you can manage a larger credit limit and you’ve been borrowing responsibly for a decent length of time (like six months or more).
If you’ve been offered a higher limit and you’re worried you’ll spend more than you can afford, don’t worry. You’ll always have the chance to turn down a credit limit increase if you don’t want it, before it gets applied to your account. This won’t affect your eligibility to be considered for future credit limit increases.
Can I reduce my credit limit?
If you’re not happy with your limit and would like to decrease it, simply give our partners at Capital One a call on 0344 481 2812 or +44 1159 938 002 (outside the UK).
Why is my credit limit small?
Got a smaller credit limit than you were expecting? This could be down to a number of reasons, including:
- You’re already borrowing a high amount
If you’ve already got a large credit limit on another account, like an overdraft or another credit card, you could receive a smaller limit. This is because there’s a risk you could struggle to keep up with your existing payments, and these new ones, if the amount you’re borrowing increases.
- You’ll be too financially stretched if you take on more debt
If your income and current outgoings mean you already don’t have much left over, then there’s a risk you may not be able to make large credit repayments. In this situation, you could be given a smaller limit to help keep your payments affordable.
- Your credit history isn’t perfect
Ever missed monthly payments? If your credit history has a mistake or two, you could receive a smaller credit limit.
Disclaimer: All information and links are correct at the time of publishing.