Credit limits changed by 90% down

babs98

I have 2 credit cards from the Co-operative Bank and received a letter today saying they were reducing the credit limit on the one I don't use to £250 and suggesting I might like to cancel the card. I only got that card because they promised there would never be any charges. The advice on another thread to use all your cards at least once every three months is worth following.

Swans1912

babs98 wrote: »

I have 2 credit cards from the Co-operative Bank and received a letter today saying they were reducing the credit limit on the one I don't use to £250 and suggesting I might like to cancel the card. I only got that card because they promised there would never be any charges. The advice on another thread to use all your cards at least once every three months is worth following.

Do you plan on canceling, one or both?

greyteam1959

I agree with Proliant and do as he does.....I use them as a financial management tool.
I have 5 credit cards and 3 debit cards.
....and before anybody jumps on me.... all the credit cards are paid off monthly in full.
I have not looked at the credit limits lately but I think I have a limit of £6500 on 4 of them and maybe £7500 on 1.

johnmoney05

My Nationwide VISA did the same to me. From £2,500 down to £550. It is not much use for me now. I use that card only for travelling. Then if a limit of £550. Don't think it will get me very far. And I need to be worry about all the time going over the limit. Anyway, I had closed it and another credit card which I didn't use. Saving the bank money to keep my account alive.

Zooxanthelle

They can put down your credit limit if they review your lending and see you have alot of credit in other areas eg mortgages, loans or overdrafts or other credit cards . Basically they are just trying to get back to being responisble lenders. It's just unfortunate that accross the banking sector they've dug such a huge hole for themselves.

loveandlight

Card companies are slashing credit limits if you are handling your account too well because they are not making any money out of you. Credit may not be a right as daveboy states, but these card companies are in it to make money and they want you to become dependant on them so they want you to think credit is a right.

The card companies have their own money problems and they are trying to reduce their own risk exposure and at the same time they want the accounts that are handled badly so they can keep adding on the charges.

Amex in case you didn't already know are trying to achieve bank status in the US as they have run out of money so they can then ask for a bailout from the US govt.

I would just go elswhere Bad_Boy1022 and get another card instead and rid of the GE one.

Jaybee24uk

These high limits seem to be a staus symbol. Folks showing off, however if they never use it why cry? They aint making any money from you, and you limit could go to someone else paying lots of intrest!

My limit is £1000, I go over a few quid every now and again, paying my £12 "fine". I'm the type of customer the banks like, making them some easy money

Jemma-T

Banks have massively reduced these limits for one reason: they don't have the funds to cover the limits.

They've never had the funds either they just thought someone else did.

Look after what you have.