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    • GDB2222
    • By GDB2222 18th Mar 17, 10:10 AM
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    GDB2222
    Credit card limit reduced
    • #1
    • 18th Mar 17, 10:10 AM
    Credit card limit reduced 18th Mar 17 at 10:10 AM
    My credit card company keep reducing my spending limit. It started as £10k and it's gradually reduced over the years to £3.5k. My normal spending on the card is a few hundred a month, and I pay it off every month in full. However, the new limit could be a problem if I want to make a few big purchases in one month.

    Does anyone know why they reduced the limit? As far as I know, I have a good credit rating.

    Also, can I get them to raise it a bit?
    No reliance should be placed on the above! Absolutely none, do you hear?
Page 1
    • gt94sss2
    • By gt94sss2 18th Mar 17, 10:18 AM
    • 3,969 Posts
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    gt94sss2
    • #2
    • 18th Mar 17, 10:18 AM
    • #2
    • 18th Mar 17, 10:18 AM
    They will have reduced it as you are not using the credit - and it costs them money to have 'unused' limits.

    You can always ask them to raise the limit - it's their choice if they are willing to do so.
    • GDB2222
    • By GDB2222 18th Mar 17, 10:33 AM
    • 13,847 Posts
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    GDB2222
    • #3
    • 18th Mar 17, 10:33 AM
    • #3
    • 18th Mar 17, 10:33 AM
    Thanks. I hadn't realised it cost them money just to increase my credit limit!
    No reliance should be placed on the above! Absolutely none, do you hear?
    • Shakin Steve
    • By Shakin Steve 18th Mar 17, 11:42 AM
    • 824 Posts
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    Shakin Steve
    • #4
    • 18th Mar 17, 11:42 AM
    • #4
    • 18th Mar 17, 11:42 AM
    They will have reduced it as you are not using the credit - and it costs them money to have 'unused' limits.

    You can always ask them to raise the limit - it's their choice if they are willing to do so.
    Originally posted by gt94sss2
    And yet my MBNA card has been at £13,000 for about four years and I've never used more than £2000.
    I came into this world with nothing and I've got most of it left.
    • Doctor Duke
    • By Doctor Duke 18th Mar 17, 11:46 AM
    • 301 Posts
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    Doctor Duke
    • #5
    • 18th Mar 17, 11:46 AM
    • #5
    • 18th Mar 17, 11:46 AM
    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).
    • Ben8282
    • By Ben8282 18th Mar 17, 6:51 PM
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    Ben8282
    • #6
    • 18th Mar 17, 6:51 PM
    • #6
    • 18th Mar 17, 6:51 PM
    It is difficult to understand why this is happening. The conduct of your account is not such that it should have resulted in repeated credit limit decreases over the years.
    • 20aday
    • By 20aday 19th Mar 17, 6:18 AM
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    20aday
    • #7
    • 19th Mar 17, 6:18 AM
    • #7
    • 19th Mar 17, 6:18 AM
    I once opened a Halifax credit card with a limit of £1,000. The account had been open three-four months (from memory) when I opened a Very account.

    Then Halifax slashed my credit limit by the same amount Very offered me.

    So as suggested above have a look at your credit files to see if there's anything untoward on there; how long have you had the credit card for and who's the card issuer?
    It's not your credit score that counts, it's your credit history. Any replies are my own personal opinion and not a representation of my employer.
    • GDB2222
    • By GDB2222 19th Mar 17, 6:22 AM
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    GDB2222
    • #8
    • 19th Mar 17, 6:22 AM
    • #8
    • 19th Mar 17, 6:22 AM
    I once opened a Halifax credit card with a limit of £1,000. The account had been open three-four months (from memory) when I opened a Very account.

    Then Halifax slashed my credit limit by the same amount Very offered me.

    So as suggested above have a look at your credit files to see if there's anything untoward on there; how long have you had the credit card for and who's the card issuer?
    Originally posted by 20aday
    Around twenty five years. The Coop Bank.
    No reliance should be placed on the above! Absolutely none, do you hear?
    • 20aday
    • By 20aday 19th Mar 17, 6:31 AM
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    20aday
    • #9
    • 19th Mar 17, 6:31 AM
    • #9
    • 19th Mar 17, 6:31 AM
    Given the recent news I could've understood any reductions in limits as they tried to their exposure ahead of any potential sale-I wonder if it's because you've held your card for so long and they might be hoping you'd eventually get fed up and apply for a newer product elsewhere.

    Given the age of your credit card do they report to the agencies?
    It's not your credit score that counts, it's your credit history. Any replies are my own personal opinion and not a representation of my employer.
    • Heng Leng
    • By Heng Leng 19th Mar 17, 8:31 AM
    • 3,944 Posts
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    Heng Leng
    They wouldn't just reduce your limit without reason.
    Originally posted by Doctor Duke
    The limit is variable and can be reduced for no reason.
    • Doctor Duke
    • By Doctor Duke 19th Mar 17, 8:32 PM
    • 301 Posts
    • 134 Thanks
    Doctor Duke
    The limit is variable and can be reduced for no reason.
    Originally posted by Heng Leng
    . The computer risk profiling algorithm determines a reason to reduce limits or increase them so there is a reason it's called risk profiling. Thought you would know that... My post was trying to be helpful to the OP.
    Last edited by Doctor Duke; 19-03-2017 at 8:34 PM.
    • Anthorn
    • By Anthorn 19th Mar 17, 9:37 PM
    • 3,043 Posts
    • 786 Thanks
    Anthorn
    And yet my MBNA card has been at £13,000 for about four years and I've never used more than £2000.
    Originally posted by Shakin Steve
    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.
    • GDB2222
    • By GDB2222 23rd Mar 17, 1:54 PM
    • 13,847 Posts
    • 74,102 Thanks
    GDB2222
    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).
    Originally posted by Doctor Duke
    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?
    • dazzaofdagenham
    • By dazzaofdagenham 23rd Mar 17, 3:54 PM
    • 1,028 Posts
    • 355 Thanks
    dazzaofdagenham
    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).
    Originally posted by Doctor Duke
    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.
    • Doctor Duke
    • By Doctor Duke 23rd Mar 17, 7:39 PM
    • 301 Posts
    • 134 Thanks
    Doctor Duke
    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.
    Originally posted by GDB2222
    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.
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