Computer generated Credit Card balance reduction. Whatever next?

Ben1977_2

I had 2 credit cards, one (MBNA) was opened as a 0% 8 mths ago, another (SKY) ive had 5 years at 15.9% On the first one I cleared the card when its 0% expired but had a credit limit of £6k. On the second I use daily and pay off every other month so they do make money from me, and the limit was £5.5k.
Upon hearing Martins advice about having credit cards and not using them affecting credit score. I cancelled the MBNA card.
Only to find that my existing Sky card had reduced my limit to £1500. This was very embarrassing when I went to purchase a £3700 item to find I couldnt and they wouldnt re-raise my limit, because the computer says no. I forgot to mention that i never missed a payment in my 5 year history, and the £3700 would be paid off within 90 days at the very most.
The repeated answer i got was "well in this climate everyone has to cut back." How are we su[pposed to get out of this credit crunch and recession if the lenders take away their money making capabilities. Surely they should stop lending to people who cant pay. Now, as a customer who can pay I now have to re-apply to another company for a credit card, needless to say when i get accepted I will cancel my Sky card account too.

dazzaofdagenham

Seems to be going round a lot.

My barclaycard had a 5K limit and the balance is aroungd the 600 pounds on each statement..

Got my december statement through a couple of days ago and the credit limit had been reduced to £3000.

Tried in vain to get barclaycard to explain why...but COMPUTER SAYS NO

Customer says CLOSE ACCOUNT.

Darren

CLAPTON

dazzaofdagenham wrote: »

Seems to be going round a lot.

My barclaycard had a 5K limit and the balance is aroungd the 600 pounds on each statement..

Got my december statement through a couple of days ago and the credit limit had been reduced to £3000.

Tried in vain to get barclaycard to explain why...but COMPUTER SAYS NO

Customer says CLOSE ACCOUNT.

Darren

I don't understand why you are closing the card, it's not personal and 3k is a reasonable limit.

As many cards are doing the same you may do no better elsewhere.

Ben1977_2

Im gonna close mine, cos credit cards are convenient to me not necessary. I beleive they need to stop lending to people who cant pay but lend to people who can and use them for convenience like I do. Without people like me using them, they dont have a business.

simonts

its crap but all about them reducing their exposure risks.

Virgin did it to me awhile back

methusala_2

Yeah,
more and more, computers are making decisions that effect our lives, and removing the human element human element, human element, human element, human element
error code 2649

bert&ernie

Ben1977 wrote: »

Im gonna close mine, cos credit cards are convenient to me not necessary. I beleive they need to stop lending to people who cant pay but lend to people who can and use them for convenience like I do. Without people like me using them, they dont have a business.

I think you'll find that the people who use their cards for convenience (i.e. pay of the balance regularly) actually generate very little net revenue for a card issuer. They may be low risk, but are also low margin.

The reality is that without people who revolve large balances, they don't have a business. It is they that subsidise the "convenience" offered to "people like you"

jimmegee

I had the same thing just this week. £2,000 credit limit for three years with Morgan Stanley, who were bought out by BC end of last year. I've been paying off pretty much the entire balance every month since then, including a £1,500 payment last week. Then I went to pay a £275 vet's bill that I didn't want to come out of my current account yesterday and the card was declined. Told it was reduced to £260 based on credit reference agency information received. I have no idea what this may be so have asked for a new report. In the meantime, Barclaycard has said they believe Experian over their own eyes and in any case the reduction was computer-generated. It's like I'm guilty until proven innocent. I've told them that unless they apologise and reset the limit, I'll just pay off the £100 remaining and close the account. I really don't want to get in debt again anyway and despite the odd convenience e.g. hotel reservations, credit cards are evil things!