Has your Credit Card limit been reduced?

never-in-doubt

magiciansgirl wrote: »

Maddening, isn't it? You'd think they'd reduce limits for people querying late payment charges etc. I am appealing by pointing out that whatever they say about responsible lending, they do have a duty of care not to actively damage my credit rating by putting me in a position where I only have an available balance of £100 now as opposed to the halcyon last week of June when I had £2028....

It definitely makes sense to an extent, in that the banks seem to be reducing limits when a large chunk is paid off. The key question remains though; is this done only to people who may be 'stretched' or with recent 'activity' on their credit files or anyone?

This thread was designed to try and establish just that, i.e. does it matter or is there a general reason as to why this is happening and to date it looks as though those with high debt ratio and possibly recent activity on their credit files are being punished especially when they pay large chunks off their balance....

I am surprised at M&S doing it, can I ask, do you bank with HSBC? If so then speak direct to HSBC Card Services as they will override the systems based on your internal behavioural score.

magiciansgirl

Hi NID, and congratulations and thanks for the work you do here. I wouldn't think I count as stretched any longer; was pre 2007. The only recent activity on my Equifax credit file is that I have just opened a savings account with Intelligent Finance and they did an identity check. Prior that that, and before I got my PPI refund, I got a Vanquis card in February. I am paying this in full every month, and the credit limit on that was upped in June. I had planned to ditch that card when I further reduce the M & S balance and use M & S as my primary card, but if they further reduce the limit every time I pay a lump sum then I could find myself with scarcely any reasonable APR credit at all? I do bank with HSBC yes, but am slightly bothered about their behavioural scoring, as I applied for a loan to clear the credit card earlier this year and was declined.

Miss_J

Current account provider: Skycard
Credit Card limit before change: £9000
Credit Card balance at time: £1100
New Credit Card limit after change: £680
Whether this happened due to the way you run your account: Had never missed a payment, but hadn't had a large balance on the card. Problems lay with me not knowing they were going to reduce my limit and booking a holiday using my card, they reduced the limit 4 days after I had charged my holiday to it when I complained about this they said that they had made the decision to reduce the limit before I had used the card and before they had actually reduced the credit limit.
Any charges incurred as a result: Yes have incurred 1 x £12 overlimit fee, the only reason I used the card was because I knew I could pay off the balance with a tax rebate that was due however the overlimit charges came into effect before I got my tax rebate.
Whether you were notified beforehand: Only at the time, not when I made the purchase.

Noticed last month that Halifax had put my limit up to £6900 when I hadn't asked for an increase then this months statment it has gone back to £4500, can't quite work that out, not bothered though because I won't be using my credit cards again.

never-in-doubt

magiciansgirl wrote: »

Hi NID, and congratulations and thanks for the work you do here. I wouldn't think I count as stretched any longer; was pre 2007. The only recent activity on my Equifax credit file is that I have just opened a savings account with Intelligent Finance and they did an identity check. Prior that that, and before I got my PPI refund, I got a Vanquis card in February. I am paying this in full every month, and the credit limit on that was upped in June. I had planned to ditch that card when I further reduce the M & S balance and use M & S as my primary card, but if they further reduce the limit every time I pay a lump sum then I could find myself with scarcely any reasonable APR credit at all? I do bank with HSBC yes, but am slightly bothered about their behavioural scoring, as I applied for a loan to clear the credit card earlier this year and was declined.

Hiya,

Thanks for replying and your thanks.......

There is no reason then, according to what you say, that the reason has much to do with your credit file so one can only assume they have done it to cut-their-risk in that if you've been in the limit for a while and the balance isn't reducing much more than the interest they will see this as bad and possibly reduce limit after a large payment.

Seems the best way to do things is not to pay off large chunks! However seems a little harsh so if I were you i'd be ringing them and asking for it to be investigated.... do you access your M&S card via your HSBC internet banking or is it separate?

I'd deffo write in and argue that they should use your behaviour score as back-up and request they put limit back to previous amount or you'll look to move all your banking elsewhere......

That should help a little.

With regards to the loan, everyone is strict now so don't take it personal, again if this happens ask them to reconsider and ask them to use your internal behaviour score to prove how good a risk you'd be..... personally, you're better to go into HSBC and get a financial review cos this does one search and then lists everything you can have - so then you can apply for various things and get them approved with only that single search...:D

magiciansgirl

Thanks NID. Will take your advice and book a financial review with HSBC. I don't access M & S via them, have always dealt directly. It was a storecard converted to a credit card. But will appeal via M & S anyway.

trevjl

Current account provider: Asda mastercard (santander)
Credit Card limit before change: 2000
Credit Card balance at time: 1200
New Credit Card limit after change: 1250
Whether this happened due to the way you rrun your account:
Not according to them
Any charges incurred as a result: no
Whether you were notified beforehand: no

Used in for petrol, half an hour later it was refused in Asda, most embarrasing. 5 days later tried to buy on the internet and it was again refused. When I phoned them and question it, they said it had been refused as my credit limit had been reduced. they would not tell me why. just that it may be due to externall credit reports. They also told me they had sent a letter, which i have never received. Very strange that as I don't owe anybody anything apart from my mortgage (13K). I have never missed a payment or been late and pay off every month.
After blowing my top and telling them I was closing my account as soon as I got home and paid off the outstanding balance, i got to thinking why. Then it came to me. They want just that. They want me to close the account as they dont make anything out of me. I pay off on time every month therefore no interest and no fees. Also Asda card gives back 1% in vouchers, so they are probably running mine account at a loss. No wonder they did not try to persuade not to close the account.
So now I use it and then when I get home I tranfer that amount to the account to keep it at zero and still get my 1% back. I suspect that it might not last that long. !!

deadthings

• Current account provider: Barclaycard
• Credit Card limit before change 7000
• Credit Card balance at time: NA
• New Credit Card limit after change 8000
• Whether this happened due to the way you rrun your account: I've been with them decades and have always been a greater payer.
• Any charges incurred as a result: NA
• Whether you were notified beforehand: No. Out of the blue. Never asked for it, and didn't need it.

They are getting to be very poor now, along with most credit card companies. They upped my limit, and about two months after upping it they wrote to me telling me they were increasing my APR by 5%. They wrote that if I did not like this, I could close the account and the APR would stay the same, so I rang and closed the card (with a balance on it to be paid off as normal) and I wrote to complain about the increase. I just got a longish letter back apologizing, but advising me that yes the account is closed, but they are still increasing the APR!
So, even though the letter said I could keep my original APR if I closed the account, they have still told me that will in fact increase it.

So I'm going to write another complaint about this, and if they still refuse to abide my their own letter then I will take it as far as the Ombudsman. We'll see.

I always thought they were the best of the cards, because over the years I've had cards with all the banks on and off, but they are getting pretty substandard, even for very long term customers.

My income is fine, and my credit record is excellent, and all payments up to date and have been for a long time. Given the limit increase I fail to see why the interest rate rise. I've actually closed several lines of credit recently too, so there really is no justification for it.

D.

starsky365

ahhh yes the old "we sent you a letter" chesnut. Well in the space of 3 months my limits have been reduced on 3 cards all three said they had sent a letter which suprise suprise I never recieved. The plot thickens tho as within this same three months A&L tripled my overdraft and I got accepted for a new CC.

yellowpjs

Current account provider: Cooperative
Credit Card limit before change: 1800
Credit Card balance at time: 524.86
New Credit Card limit after change: 550.00
Whether this happened due to the way you rrun your account: Used regularly for small items but always paid off in full, went up to about 1200 just before they reduced it
Any charges incurred as a result: None
Whether you were notified beforehand: No Notice given noticed it on statement thankfully hadn't gone over it.

went down around October time now they are refusing to send me a new card as it expires at the end of this month!!!
Been banking with them for around 7 years got good wage going into main account too.

never-in-doubt

yellowpjs wrote: »

Current account provider: Cooperative
Credit Card limit before change: 1800
Credit Card balance at time: 524.86
New Credit Card limit after change: 550.00
Whether this happened due to the way you rrun your account: Used regularly for small items but always paid off in full, went up to about 1200 just before they reduced it
Any charges incurred as a result: None
Whether you were notified beforehand: No Notice given noticed it on statement thankfully hadn't gone over it.

went down around October time now they are refusing to send me a new card as it expires at the end of this month!!!
Been banking with them for around 7 years got good wage going into main account too.

I'd say its time you looked for a new bank - for them to refuse you a card it doesn't look good, something has spooked then and i'd say it may be your credit file so get a copy quick smart mate and see what it says.......