Big cut in credit limit

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In_the_black_3
In_the_black_3 Posts: 8 Forumite
edited 25 April 2009 at 7:39PM in Credit cards
Hi. I have a Skycard credit card that did have an £7k limit, but which has been cut to £1700. I have rarely used the card in the past year and had a zero balance, but before that it was closer to the limit on 0% deals. I used it recently to write a credit card check and received a letter 2 weeks later saying the limit was cut to this new figure, which is a little above the cheque amount. I never missed a payment or been late ever on any loan or credit card, and am wondering why they have done this. I have 25k avalible on other cards? Just the credit crunch? :confused:

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  • Paul_Herring
    Paul_Herring Posts: 7,481 Forumite
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    I have rarely used the card in the past year and had a zero balance [they cut the limit] and am wondering why they have done this

    Probably because you weren't using it.
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  • naijapower
    naijapower Posts: 1,393 Forumite
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    No i dont think it is cos you werent using it. These card companies can no longer guarantee availability of the limits hence they are cutting back.
    Even customers that have earned the card companies money by not paying in full have had their limits cut as well
  • Robert_Sterling
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    Hi. I have a Skycard credit card that did have an £7k limit, but which has been cut to £1700. I have rarely used the card in the past year and had a zero balance, but before that it was closer to the limit on 0% deals. :confused:

    As you have had £7,000 approx at 0% for a while and then nothing thereafter the credit Card Company has not made a fortune from you.
    ..
  • billg57a
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    I'd reckon this is mainly down to the credit crunch - many banks seem to be cutting back on the credit limits of customers just at the moment.
  • kebark
    kebark Posts: 34 Forumite
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    probably the fact your not profitable enough to let have a large credit. I've seen accounts that have shot up in limits (one guys more than doubled recently) and I've seen others drop down. Could be worth calling and asking?
  • dhassen
    dhassen Posts: 759 Forumite
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    They probably decided that the 5300 you weren't using could be lent to someone else they could make money from. Makes sense really!
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  • naijapower
    naijapower Posts: 1,393 Forumite
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    Thats correct. it is all about business sense from the banks point of view. i.e. give the funds to someone that would use it, owe them and pay interest.
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