Don't Pay Big Payments on Your Credit Cards unless you can really afford it!!!!

Hackneygirl

PROLIANT wrote: »

But surly if you owe the money to the bank then if you have the means and intention to pay it off why not?
If the bank reduce your credit limit then you must appear as a risk to them, if you do not agree then vote with your feet and bank else where or write a letter of concern to the underwriting dept and explain that you do not agree with the decision and see what transpires from that.

a long drawn out sigh

PROLIANT - you keep on banging on about the same old things, we all appear as a risk to banks during this recession and that is the reason they have reduced the credit limit - I thought it would be a useful experience to share with everyone

and yes I know I can "vote with my feet" etc and that is for me to decide, I am not whinging or really complaining - I am stating what happened to me so that others can use the information accordingly

I do intend to appeal the decision and if you read my OP you will see that I cannot negotiate the decision until sometime in the week

as a matter of interest to everyone, I will keep you all posted on the progress of my appeal

I am really happy that many people have been warned and understand that paying off your balance on a credit card always meant that you could put the card aside to use in any emergency that may arise - many of us do this and it has always been fine - times have changed and banks seem to be clawing back money any way they can :wave:

Hackneygirl

exel1966 wrote: »

I don't think you grasped what I said at all. Don't worry, i don't believe that you're 'special' and it's only happening to you, like I said credit card companies amend credit limits (up and down) all the time, and have been doing it for years, but it has nothing whatsoever to do with paying large amounts off. I'm not sure why anyone would be so naive to think that paying off large amounts would guarantee a credit line. Nothing guarantees a credit line, even those with excellent credit ratings can and do have their limits lowered from time to time.

What exactly are the underhand measures you speak of ? I certainley don't see any in this thread

yet another long drawn out sigh


things have changed for goodness sake - this has never ever happened to me before and I have had the same credit card for twenty years - I have paid it in full numerous times and have always refused to push up the limit when asked by the bank - this time everything has changed and the customer services have stated that it is due to the present financial recession (sigh)

the guy from customer services did feel it was an unfair decision and also told me to appeal as I am a valued customer hence I feel it was done in an underhand way without any prior warning (sigh)

Voyager2002

thriftymomma wrote: »

I agree and I for one am thankful she has posted it. I was considering paying off a large amount on a card and it's made me sit down and do some sums at the very least.
It isn't something I had considered.

Beware! Your credit card company may at any time decide to reduce your limit, and if your balance is more than the new limit they can demand that you pay the difference. So if you have funds to clear part of the balance and so reduce your interest bill, do so.

In the OP's case, she mentioned losing one job and getting another, perhaps at a lower salary. Since she banks with the Co-op, they would have seen the new salary and perhaps decided that they wanted to reduce her limit.

Anyway, it sounds as if she still has the cards from MBNA, and in any case most employed people who are willing to pay extortionate interest rates can still open a new credit card.

PROLIANT

I understand your point hackneygirl but what I am trying to get across to you and others is that it doesnt matter -
Recessions and thriving economies
are just like the 11 year Solar Cycle, peaks and troughs of activity, it will pick up again soon don't worry, as long as you can keep your head above the water line and keep the green [0] on your credit files you will be ok.

exel1966

I don't disagree, things have changed and once again I'll repeat myself by saying that card companies are looking to reduce their risks further, but it's not uncommon for them to increase/decrease limits.

I think you're being naive and complacent if you think that because it's never happened to you before it shouldn't happen now. 'Things have changed for goodness sake'. Maybe their risk assessment of you has increased.

Do you think that payments are the only criteria when assessing limits? What about all the other factors such as your total available credit elsewhere, your percentage of used credit against available to name a couple. Maybe one of those has given them a reason to reduce your limit ? You are jumping to conclusions by assuming that your full payment has brought this about.

Hackneygirl

Voyager2002 wrote: »

In the OP's case, she mentioned losing one job and getting another, perhaps at a lower salary. Since she banks with the Co-op, they would have seen the new salary and perhaps decided that they wanted to reduce her limit.

Anyway, it sounds as if she still has the cards from MBNA, and in any case most employed people who are willing to pay extortionate interest rates can still open a new credit card.

several long drawn out sighs

the OP wearily replies


Wrong wrong worng - I was made redundant on 6 January 2009 with a good redundancy pay-out - I found another job with a higher salary on 23 January 2009 hence I have paid off all of my credit cards like a "good girl"
and yes I do put my cards away for emergencies like many of us do - its not a crime

I have no idea where you get any ideas that I have MBNA credit cards - I do not and never have so read carefully before you post about a person

I have two with Capital One that I have held for 16 years approx - Capital One have always been OK with me and as a long time customer I do not pay any high excessive charges so "she" is in a good financial position and "she" may even keep the lower credit limit for now but many people on here may not be in such a good position so hence the warning (sigh)

on the banner of this site it states "consumer revenge" - I wonder why there is so much support for banks and credit card companies on here

PROLIANT

Hackneygirl wrote: »

on the banner of this site it states "consumer revenge" - I wonder why there is so much support for banks and credit card companies on here

I disagree, it is not about revenge, more striking an equilibrium between the customer and the bank, if you have been treat out of hand by the bank then you are in your right to complain and do something about it, however what is happening more and more on this site is that people who choose to keep their heads in the sand and not manage their finances properly are suing banks for money which was taken from the consumer in the form of a fine, a bit like doing 60 in a 30 mph zone - you should not have been so naughty and you get fined, therefore you try not to do it again, you don't hear people taking the courts to court do you?
This site is getting more and more like that idiot society - consumer action group, talk about blinkered selfish individuals or what, MSE is about saving money, not stealing money through legal loopholes in this "bent" British legal system.
I am not having a go at you personally hackney girl, I am just defending the point made of many on here including myself.

Hackneygirl

PROLIANT wrote: »

I disagree, it is not about revenge, more striking an equilibrium between the customer and the bank, if you have been treat out of hand by the bank then you are in your right to complain and do something about it, however what is happening more and more on this site is that people who choose to keep their heads in the sand and not manage their finances properly are suing banks for money which was taken from the consumer in the form of a fine, a bit like doing 60 in a 30 mph zone - you should not have been so naughty and you get fined, therefore you try not to do it again, you don't hear people taking the courts to court do you?
This site is getting more and more like that idiot society - consumer action group, talk about blinkered selfish individuals or what, MSE is about saving money, not stealing money through legal loopholes in this "bent" British legal system.
I am not having a go at you personally hackney girl, I am just defending the point made of many on here including myself.

I know PROLIANT but

I see your point, be it blinkered, the banks are not God or saints, they have been robbing the consumer for years and years - the reason I joined this site was in relation to the "bank charges" issue

remember the fat cats who raked in the money still have big payouts and pensions while their banks fall apart - they were not just "naughty" - they are selfish, heartless and downright evil and should be made to pay for their sins

I am defending the rest of the people on here who are grateful to me

never-in-doubt

PROLIANT wrote: »

This site is getting more and more like that idiot society - consumer action group, talk about blinkered selfish individuals or what, MSE is about saving money, not stealing money through legal loopholes in this "bent" British legal system.

That comment is way off the mark and you ought to bear in mind that CAG is just as good, if not better, than MSE - first off, you don't get fools like you mouthing off all the time. Who are you? The daddy of MSE or just the forum bully?

I am a long time member of CAG and got referred here by someone at CAG and jealousy gets you nowhere - what, did you fail in your claims thus you're bitter?

Legal loopholes are a godsend, if the lender cannot be bothered to write a legal document and act accordingly then they deserve everything they get and if that means people get "free money" then good on them. That's only my opinion but it still counts, which is all that matters. If that means I pay a higher APR so what, if I don't like it i'd simply say no thanks to the lender, not whinge at the free loader!

noah271007

Hackneygirl wrote: »

remember the fat cats who raked in the money still have big payouts and pensions while their banks fall apart - they were not just "naughty" - they are selfish, heartless and downright evil and should be made to pay for their sins

I am defending the rest of the people on here who are grateful to me

Thanks Hackneygirl. You are so right about fat cats getting away with murder. People have lost their jobs with their pension they have saved over the years because of their mistakes.

Did you know that if RBS went under - gone bankrupt, Fred the Shed would have lost almost everything like everyone associated with the bank. Under the pension compensation scheme he would have able to claim max of 28K a year. Not 693K a year.