Has your Credit Card limit been reduced?

Penelopa.Pitstop

• Current account provider: Lloyds TSB, Air Miles Cards
• Credit Card limit before change: 1750
• Credit Card balance at time: 0
• New Credit Card limit after change: 1000
• Whether this happened due to the way you run your account: They said in letter that's because I don't use this card too often I may be victim of fraud so they will lower my limit to minimize the risk.
• Any charges incurred as a result: none
• Whether you were notified beforehand: I've got letter after they changed it.I didn't notice it really.

I didn't use the card because the limit was too low for any bigger purchases like holiday etc. I tried to up it many times but for some reason I was always rejected (by my own bank) and my credit history is very good. I used it last time in Nov 2008. I always paid it off in full. Now it will be totaly useless with 1000 limit. I use Egg cashback for all shopping and pay it off every month. Lloyds was backup card which I'm trying to replace with Tesco right now.

Interestingly my husband has a card with 6K limit and didn't use it since Dec 2007 and they don't think he may become victim of fraud.

carlislelass

Barclaycard reduced my limit by the lump sum I`d just paid...never received a letter though they said one had been sent. Limit now too low to do anything with so paying it off.

magiciansgirl

Hmmm; a pattern does seem to be emerging re those of us who have managed to pay off a chunk are being penalised. What do you think NID?

magiciansgirl

Jeez, M & S haven't yet replied to my appeal letter but have written again to say they are putting up the APR! What on earth is going on?

never-in-doubt

magiciansgirl wrote: »

Jeez, M & S haven't yet replied to my appeal letter but have written again to say they are putting up the APR! What on earth is going on?

To be honest i'd look to get out while you can, its pointless sticking with a lender who, clearly, isn't interested in your custom.

Try the regular HSBC Mastercard when you go for a financial review, they will be able to tell you immediately what credit you can have from loans to overdrafts to CC limit......

magiciansgirl

Thanks NID, yes I was going to ask about the Mastercard and try for a balance transfer from M & S as they have really offended me. I could understand if I was late, or in arrears, but their attitude just seems really unfair; and I've had the card for nearly 10 years. The APR increase letter also goes on about 'relevant factors' but they haven't checked my credit report etc. I provided income detail on my appeal letter; we shall see.

willstewart

I'm reducing my VA Amex a bit faster than usual at the moment (mainly a minimum payment or a little bit over payer). Haven't got a physical card as I mislaid it somewhere a few months ago and haven't requested a new one. The limit is still at £2000 presently and hasn't changed since day 1.
Whether paying larger payments every month will change that, I've no idea, but it will be interesting to see.

Had the limit on one of my cards increased as I paid the balance off a few weeks ago.

I just worry as I've a holiday coming up in January and don't want to pay loads onto a card to cover that and then find my limit gets cut by 50%+ just before and I'm screwed so to speak.

snoppydog

My credit card is with Aqua and they reduced my limit from £1100 to £300 without informing me. I only found out three weeks later when I got my statement and noticed charges of almost £100

djm1972

There seems to be a bit of theme brewing - banks appear to want to reduce their exposure / liabilities quite aggressively at the moment.

I'm wondering if, for example, access to the funds in the wholesale money market - or perhaps more likely the interest rate charged for those funds - is being linked to exposure / liability - which would (should) certainly include credit card credit limits.

magiciansgirl

snoppydog wrote: »

My credit card is with Aqua and they reduced my limit from £1100 to £300 without informing me. I only found out three weeks later when I got my statement and noticed charges of almost £100

That's shocking behaviour. I'm fed up with M & S but at least they had the courtesy to write to me. You would surely have a case for reclaiming those charges.... do hope so.