credit limits

hioneday

I am really annoyed with my cc company,I applied and got a cc from lpf about a year ago and was given £1560 credit limit.(I got the card so that I could get a credit rating)I used the card for the first time 2months ago spending just £18.99 and paid this off before I got a statement.A month ago I spent £49 99 and again paid it off in full before the statement came.Yesterday I had a letter from the company saying they had reviewed my account and are lowering my credit limit to £260 and will not in any circumstances raise this limit.
I feel very angry at being treated this way when as far as I can see I have done nothing wrong.Martin advises us to pay all cards off monthly which I did and you can hardly call £70 in a year big spending.
Has anyone else had a similar experience.regards susan.:mad:

skintandscared_2

I read about Egg card doing this recently to the customers who pay off their balance monthly. They even closed some of the accounts. It seems that although it's the sensible thing to do, the credit card companies don't like people who don't run up big bills and they can make lots of interest out of.... Completely out of order if you ask me!

normanmark

Well you're not exactly utilising the whole credit limit are you? From your spending patterns it says to them that you do not need a limit that high.

MABLE

normanmark wrote: »

Well you're not exactly utilising the whole credit limit are you? From your spending patterns it says to them that you do not need a limit that high.

Yes but the OP pride has been hurt. Surely that is worth something!

exel1966

hioneday wrote: »

I am really annoyed with my cc company,I applied and got a cc from lpf about a year ago and was given £1560 credit limit.(I got the card so that I could get a credit rating)I used the card for the first time 2months ago spending just £18.99 and paid this off before I got a statement.A month ago I spent £49 99 and again paid it off in full before the statement came.Yesterday I had a letter from the company saying they had reviewed my account and are lowering my credit limit to £260 and will not in any circumstances raise this limit.
I feel very angry at being treated this way when as far as I can see I have done nothing wrong.Martin advises us to pay all cards off monthly which I did and you can hardly call £70 in a year big spending.
Has anyone else had a similar experience.regards susan.:mad:

You spent less than £70 in a year, therefore have clearly displayed to them that a limit over 20 times your normal spend is far too much and not required, hence the reduction to approx 4 times your spend.
Card companies are tightening up on limits where they are not needed and have been doing this for the past few years.
Your new limit will actually benefit your credit rating as it leaves more options for any future creditors when assessing an application from you. They will be able to see that your current available credit is not too high.
Having a higher limit does not give you a better credit rating.

exel1966

skintandscared wrote: »

I read about Egg card doing this recently to the customers who pay off their balance monthly. They even closed some of the accounts. It seems that although it's the sensible thing to do, the credit card companies don't like people who don't run up big bills and they can make lots of interest out of.... Completely out of order if you ask me!

Why is it out of order ? Credit isn't a right, it's a privelage.

Just as you have the right to decide who you lend a tenner to, so do the the card companies have the right to chose who they want as their customers.

hioneday

MABLE wrote: »

Yes but the OP pride has been hurt. Surely that is worth something!

whats an OP? if it is me you are right.

normanmark

MABLE wrote: »

Yes but the OP pride has been hurt. Surely that is worth something!

It's worth nothing in business.

Innocent_Guy

Credit Crunch means all lenders are tightning purse strings...