They've reduced my credit card limit!

munnybunny18

Hi, can anyone advise me please?

I've just had a letter from my credit card company (Skycard) saying that due to the credit crunch, they have reduced my credit limit from £9500 to £1300.
This means that i am already at my limit this month, so i can't use the card until this month's payment goes through (12th Dec).
Why have they done this?

I pay my bill in full every month, and have never paid them a penny in interest. I use my card for all purchases, and get skypoints each month which pay for my Sky TV subscription and broadband.
I suspect they don't like me as a customer and are trying to discourage me from using my card and amassing skypoints. When i rang, i was told that they would not even raise my limit to £2000, which would be plenty for each month's spending.

Has anyone else had this problem, what is going on exactly, and what can i do about it?
Thanks a lot!

YorkshireBoy

munnybunny18 wrote: »

what is going on exactly

They're freeing up credit limit to allocate elsewhere...to someone who will use it. You appear to have around £7K you're not using, so that may allow them to take on 3 or 4 more customers without undue exposure.

and what can i do about it?

Vote with your feet and change providers.

RobertoMoir

Sometimes letter say what they mean and mean what they say.
You're not using your card that much so they're reducing your limit. I've had one that says the same thing from a credit card that I don't use, and to be honest it didn't bother me.

calibrax

munnybunny18 wrote: »

never paid them a penny in interest

Call me cynical, but I bet this is the true reason...

RobertoMoir

calibrax wrote: »

Call me cynical, but I bet this is the true reason...

I'm willing to bet that's part of it for sure. This still seems to be shocking to some people, but banks and credit cards do need to make money. If they can't see sufficient profit from a deal, they won't be keen on that deal.

sheraz2

RobertoMoir wrote: »

I'm willing to bet that's part of it for sure. This still seems to be shocking to some people, but banks and credit cards do need to make money. If they can't see sufficient profit from a deal, they won't be keen on that deal.

Common sene:money:


Ultimately, if you're just paying for things to amass the bonuses attatched and not paying any interest, then what value are you adding to their operations exactly?

I'd just be happy with all the free stuff you've got already and either change providers, or accept that the bonuses just aren't there now.