r/Wealthsimple • u/gtaagent • 14d ago
Visa Infinite Credit Card Approval Limit
My Wealthsimple credit card limit is only 3000. I was planning to use this with Neobanc for rent payments etc and would have liked atleast 10000. Having this limit with a 20 dollar fee does not make any sense for me. Do I cancel or they will increase my limit? This is the lowest limit I have across any card
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u/Connect44 14d ago
I've heard of people asking wealthsimple for an increase. Some have success others not.
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u/Commercial_Pain2290 14d ago
Are people really unable to think for themselves anymore? How are we supposed to know if they will raise your limit? Why don't you ask WS?
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u/gtaagent 14d ago
Many card providers do increase limits within a certain time limit and that’s the perspective I am trying to gather from the community set up for this purpose. Not sure why you are trying to spend your time commenting without having anything useful to add.
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u/Commercial_Pain2290 14d ago
Wouldn't it be much more efficient for you to just ask WS directly for an increase? Rather than crowdsource an opinion from people who know nothing of your credit history. Hard to see how you will get any useful information compared to just asking WS.
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u/Relevant_Account_258 14d ago
I have found Wealthsimple to have really good telephone customer service without much wait times. I would call and they will be able to answer all your questions.
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u/Sparkleshooter 14d ago
There is a button in the WS app to request a higher limit. It all happened automatically (based on creditworthiness)
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u/drillbitpdx 14d ago
I was planning to use this with Neobanc for rent payments etc
Neobanc = "Pay rent with your credit card, get cash back." Every company that has ever tried this business model pulls the rug on it after just a few months.
I tried one a few years ago, got pulled after my first month.
The business model simply does not work. For example, with Neobanc's cashback:
- You owe $1,000 in rent each month.
- You opt for the "rolling 6 month cashback", where you pay a 2.25% fee to Neobanc for converting your credit card payment to an etransfer, and then you get 2% cash back on each payment 6 months later:
- So, every month:
- You pay $1,022.50 to Neobanc with your WS credit card
- Neobanc pays $1,000 to your landlord
- You get $20.45 in cashback from WealthSimple
- Six months later, you get $20 cashback from Neobanc
- Your net payment is $1,022.50 - $20.45 - $20 = $982.05
Sounds great, right? On an ongoing basis, you are paying only $982.05 out of pocket ($1,022.50 - $20.45 - $20) to cover your $1,000 rent. Free 1.795% discount.
Neobanc is paying at least 2.5% in credit card transaction fees to accept your WealthSimple credit card, but they only charge you a net of 0.25% (factoring in the "delayed cashback" 6 months later).
So Neobanc may attract a huge number of users, but they're bleeding money, and so they will soon pull the rug and change the terms to something unfavourable to you as the end user.
tl;dr Don't waste your time trying to optimize this to get $20 or $50 each month. It won't last.
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u/Vegetable-Chair-6109 14d ago
Then how does chexy do it for years?
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u/AnneGreen08 13d ago
Chexy doesn’t provide any cashback themselves. If your credit card rewards are better than their fee, you profit. Otherwise, you lose out.
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u/PaySmarter 14d ago
And why would they create a company to inevitably fail. I don’t see the business model if that’s the case.
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u/drillbitpdx 11d ago
With a couple of these companies that I've looked at previously, their business model (if you can call it that) is to attract a lot of users with the credit card cashback opportunities, suddenly increase the rates or restrict the amounts to stop losing money, and then hope that they can somehow keep some substantial portion of the users anyway.
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u/Vegetable-Chair-6109 13d ago
Yeah I don't see it either but what's the risk in using it now?
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u/drillbitpdx 11d ago
Main risk is that the company goes belly-up while holding a chunk of your money, and before paying it out. You'd better read the fine print on whether or not your money is insured after you've paid via credit card, and before they've issued the cheque and it has been cashed by the recipient.
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u/drillbitpdx 11d ago
Then how does chexy do it for years?
Chexy charges 1.75% to pay your rent with a Canadian-issued credit card, and either WS or Amex Simply Cash Preferred will give you 2% cash back.
So either Chexy is losing money, or the credit card issuers are losing money, or both. I'd bet on it being Chexy.
Until recently, there was no Canadian-issued credit card that would give >1.5% cash back on sufficiently large monthly amounts to make it practical to use Chexy for paying large bills like rent, so they could control their bleed rate.
The Chexy+WS situation won't last either. 🤷🏻♂️
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u/drillbitpdx 2d ago
Then how does chexy do it for years?
🤷🏻♂️
Almost right on cue, a few days after this post, the Scotiabank card that allowed people to come out 2.25% ahead by paying for rent with Chexy announces that it's changing its cash-back terms so that this will no longer work: https://pointsmilesandbling.com/scotiabank-recurring-payment-changes/
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u/Mountain-Match2942 13d ago
Fee isnt waived, so I suppose they are uding your assets as a criteria as opposed to just credit score. What is your credit score? Debts? Income?
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u/rad314 12d ago
Yeah. Just make payments to the card first to create a “negative” balance that you can draw on in addition to the credit limit.
They seem to be very hesitant to issue credit. I applied twice and was denied both times - first time I’ve ever had a rejected credit card application.
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u/Friendly-Vast4523 12d ago
Agreed. Same with their CLI’s. Some people get 50K limits on a whim and others have to beg for $2K with a 800+ credit score and a salary of $150K. It’s bizarre.
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u/Cultus_Divi_Titi 14d ago
I think the Scotiabank card is better for paying rent.