Credit card limit reduced
Comments
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Shakin_Steve wrote: »And yet my MBNA card has been at £13,000 for about four years and I've never used more than £2000.
There's always one isn't there. (Rhetorical question doesn't need a question mark). They breed on MSE
Depends on the lender and how much they have in reserve to cover limits. But it goes beyond that to how much the lender thinks you might want to spend. If they just cover what you currently spend then they might lose out on profits if you need to spend more. By that latter example, reducing a limit because you are not using it doesn't make sense. But it does make sense if the lender doesn't have the capital it needs to cover limits so it needs to economise by reducing limits which are not used.
So getting back to square one, it depends on the lender.0 -
Doctor_Duke wrote: »They wouldn't just reduce your limit without reason. The credit card companies get monthly feeds from credit reference agencies and it could be that they have decided to limit their risk exposure to you. I would just check your credit files to make sure there isn't any adverse information on them. Plenty of advice on here to get a free report but for clarity they are ClearScore (Equifax), Noddle (CallCredit) and MSE Credit Club (for Experian).
Just to say, I took your advice to check my credit score through MSE Credit Club. There's no problem with my score. "Out of our basket of top credit cards and loans, you have a good chance of getting 99% of them."
So, it's all a bit perplexing.No reliance should be placed on the above! Absolutely none, do you hear?0 -
Doctor_Duke wrote: »They wouldn't just reduce your limit without reason. The credit card companies get monthly feeds from credit reference agencies and it could be that they have decided to limit their risk exposure to you. I would just check your credit files to make sure there isn't any adverse information on them. Plenty of advice on here to get a free report but for clarity they are ClearScore (Equifax), Noddle (CallCredit) and MSE Credit Club (for Experian).
And trying to find out the reason they reduce limit is almost impossible.
Halifax reduced my limit from 7700 to 4400 and would not / could not tell me why, "computer says so "
Despite me having the card for 20 years and also having a halifax current account for 20 years....the computer simply decided that that's what going to happen and no one could reverse it.0 -
Just to say, I took your advice to check my credit score through MSE Credit Club. There's no problem with my score. "Out of our basket of top credit cards and loans, you have a good chance of getting 99% of them."
So, it's all a bit perplexing.
The score, albeit as high as you could get, is not what is important here, it is the history of your credit record. I have had my own limit slashed before now (Halifax who can be notorious) for no other reason than I took a cash withdrawal out. Big mistake and was many years ago. What did I do? Closed the account, applied for a new one six months later and got a healthy credit limit! So if you are sure there is no adverse info on your record than you could always close it and use the eligibility checker to see what other products you could get. In short, try not to worry happens to us all at some time and as others have said there is little you can do if the computer has decided to reduce your limit.0
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