Halifax Credit Card Limit Decrease

Gambit

Hey guys,

I just thought I'd post what happened to me recently with my Halifax One Card. I went to a shop to buy a Christmas present but the transaction was declined. I was suprised as I hadnt even spent a third of my £3000 limit so I called them up while in the shop. Apparently the day before they had decided to decrease my credit limit from £3000 to £900! What shocked me was that they had done this so suddenly without even telling me. They did inform me the letter was in the post but I argued that this wasnt very useful when the post takes a few days and I was spending on it regularly. Luckily I always carry an extra CC so I was still able to buy my gift.

After many calls and mis information I was finally at a point where I was told they couldnt do anything further until I got my credit report from Experian as until I have that they cannot discuss any of the information that they used from this report to decrease my limit. I've ordered that now but I think I do know why they might have done this. Recently I was offered an interest free balance transfer with no fee until May from my MBNA card. This card was almost empty when I got my Halifax card but now I had almost maxed it out with the BT. I didnt realise that your current credit card balances were looked at as I always thought that it was your credit limit that was important, not your balance.

As the Halifax One Card was interest free until Sepetember, I was planning to put all my Christmas shopping on there and pay it off next year. Luckily I got most of it on there but still having to put some of the spend on another card as a result which is annoying.

Seems to me that credit card companies are becoming more strict so be careful about how many credit cards you hold. And be aware that they can decrease your credit limit as well as increase it whenever they feel like it! :mad:

mummytofour

Sorry to be a meanie but let this be a wake up call to you.

Credit cards for xmas gifts with the idea of paying off next yr is a BIG FAT NO!

I have been there and have the t-shirt, it feels so much better to only buy what you really can afford and not what you feel you should buy.

IcklePickle_2

Something similar happened to me this week. (See my SkyCard post below)

Just be careful that your balance on the Halifax isn't over the (new) credit limit because if it is you'll start getting overlimit fees and lose any promotional (0% etc.) interest rates you have.

We've had a wake up call this year with regard to finances/debts so I've had to limit every Xmas present (even to best friends and grandparents) to less than £7, which sounds rubbish but is all we can afford.

Remember the credit crunch probably hasn't reached it's full effect yet - credit card companies are starting to reduce limits and demand repayment and it may get worse next year

oceanscape

mummytofour wrote: »

Sorry to be a meanie but let this be a wake up call to you.

Credit cards for xmas gifts with the idea of paying off next yr is a BIG FAT NO!

I have been there and have the t-shirt, it feels so much better to only buy what you really can afford and not what you feel you should buy.

Get over yourself!

There is absolutely nothing wrong with using a CC to purchase Christmas gifts on a 0% basis, paying off the balance next year before the 0% period ends. :rolleyes:

YorkshireBoy

Gambit wrote:

I've ordered that now but I think I do know why they might have done this. Recently I was offered an interest free balance transfer with no fee until May from my MBNA card. This card was almost empty when I got my Halifax card but now I had almost maxed it out with the BT. I didnt realise that your current credit card balances were looked at as I always thought that it was your credit limit that was important, not your balance.

I believe card providers take/request monthly bureax data from the CRA's. Experian's offering is something called a 'consumer indebtedness index' (CII), which basically looks at how much of your available credit you are using. Indeed, I've fallen foul of it myself recently when the offer of a pre-approved card was withdrawn when they viewed my CII data during the telephone application.

oceanscape wrote: »

There is absolutely nothing wrong with using a CC to purchase Christmas gifts on a 0% basis, paying off the balance next year before the 0% period ends. :rolleyes:

And the last time I checked, you couldn't get section 75 protection with cash.

cos_2

IcklePickle wrote: »

We've had a wake up call this year with regard to finances/debts so I've had to limit every Xmas present (even to best friends and grandparents) to less than £7, which sounds rubbish but is all we can afford.

I know it's off topic but I just wanted to say well done for controlling the Xmas urge to splurge. It troubles me that so many people get themselves in a financial pickle at this time because they have to buy expensive presents. It's good to see someone being sensible; well done again. :T