Credit Card Upper limits

silverfox23_2

I am moving towards being debt free and as part of this am paying off my credit cards and cutting them up. However yesterday I received a stroppy letter from Barclay Card re my Platinum card - advising that they are reducing my credit limit. This in itself is no problem as it helps towards my debt free plans but when speaking to Barclaycard about it they stated the reason was because my other 2 cards had a high credit limit (never used!!) and thus I had the potential to spend heavily! These were the cards paid off and closed. The problem was that one of the cards was a Virgin card and they had regularly, without my requesting, raised my credit limit to £12,500 - absolutley stupid. So we have the situation where one card provider pushes the limit to silly levels - unrequested - and this then impacts how the other card provider see the risk and consequently reduces the credit limit - again without recourse to the card holder.

When I explained this to Barclaycard the comment was - in effect - "tough" so I am closing that account. I understand that card providers look at the overall holding and the theoretical risk but you would have thought a little customer consultation would be in order??

pre123

you could always contact virgin and request they lower the card limit to a prefered limit, and i believe you can opt out of automatic credit limit increases with cards, this will hopefully stop this happening in the future:p