Take MBNA offer before limit reduction?

chattychappy

I have an MBNA card with a £19K limit which has been unused for about a year. A life-of-balance offer of 6.9% is currently showing, with 3% fee for CC, 4% for money transfers.

A friend of mine has a theory that MBNA are "trawling" accounts at the moment and to avoid accusations of irresponsible lending are reducing unused credit limits.

He says if there is any chance I'll need the facility in the future then I should take it now before the limit is reduced.

Anyone think this is happening for non-use rather than missing payments etc?

INT1

MBNA are usually greedy but yes lenders are being more stricter, even if the limit was reduced, you could phone up and ask for it to be re increased. The reason for re increase would be for your BT etc, i'm sure they will do this as will make money off you transferring the balance.

CannyJock

I wouldn't use it for a BT that costs you money just for the sake of keeping some activity on it.

My MBNA card has been sitting with a small credit balance since I cleared my last stooze on it - similiar credit limit to yours. I'm just sitting tight and waiting for a stoozable deal.

If they reduce it, they reduce it. You can write and ask them to reinstate it, giving them reasons why.

Realistically, what are the chances you need to put your hands on £ 19K out of the blue?

chattychappy

CannyJock wrote: »

Realistically, what are the chances you need to put your hands on £ 19K out of the blue?

Thanks, your view mirrors mine. I do have a balance coming to the end of a 0% deal (around 5K). I can pay this off in cash, but I'm also thinking of taking time off to do a course and would rather not run my cashflow down if I go ahead. I would (should!) return to income afterwards, but it would be useful to BT to MBNA as well as put the course fees onto it (via money transfer at the same LOB rate, albeit with 4% fee.) I wouldn't need the whole 19K, but it would be a pain if the limit was massively reduced.

choppergirl

I had an MBNA credit card with a credit limit of £8.5K which I used occasionally and paid off in full when due. Recently I applied for a new credit card with MBNA as they were offering free motorcycle luggage which I wanted. As a result they have cut my credit limit to £2K and offered just £1K on the new card, in other words have cut my credit limit by £5.5K. They said this was because I wasn't earning as much as previously... they wouldn't have known that if I hadn't applied for the second card so BE VERY CAREFUL if you apply for a second card with them! I am so angry :mad:I have cancelled both accounts. I would like to shout, scream and swear at them ...all suggestions as to what MBNA could stand for gratefully received!!!

IWantToBeFree_2

Don't know why you are mad at them, afterall, you willingly give them the details of your earnings. If you are earning less, then it is quite sensible for them to lower your limit. By spitting your dummy out of the pram you've just cut off your nose to spite your face really.

choppergirl

Thank you for your supportive reply...not! I thought this forum was for constructive comments to help each other rather than to post smug "one over" comments.

CannyJock

Hope you waited to get the luggage first.

EDIT: With MBNA's facility to transfer credit limits, you could have just kept applying for a new card every once in a while as your income increased and build your credit limit up quicker than normal that way.

choppergirl

Thanks! At least I am wiser to how they work now (if not rather deviously!) Am I allowed to say that on this forum?!... I've only just registered and I'm already causing trouble...!

chattychappy

Choppergirl: I'm sympathetic. When your income was higher, it justified MBNA in their eyes "taking the risk" on you with your old limit. Well you income dropped and you kept the limit. Now MBNA know about your lower income... so what? Surely your track record suggests your old limit was OK on your new (lower) income.

Anyway, I did the "credit limit transfer" thing a couple of time and now have the BMI MBNA card. More recently MBNA declined my application for a Virgin MBNA card so I can't play that game again. First decline I ever had. I wondered if it was because of my unused 19K on their main card.

NickX

chattychappy wrote: »

Anyway, I did the "credit limit transfer" thing a couple of time and now have the BMI MBNA card. More recently MBNA declined my application for a Virgin MBNA card so I can't play that game again. First decline I ever had. I wondered if it was because of my unused 19K on their main card.

The 19K unused would definitely have something to do with it. I would speak to an underwriter and request that that £19k is moved across to a new Virgin MBNA card. They will do this put sometimes need a push.

I think you could successfully appeal that particular decline.