limit slashed

theleek

Hi,
After a bit of advice,got a credit card that had a limit of £3,500,i maxed it a few months ago,and paid the full balance off on the 18th August.

Went on Holiday on the 19th August,but used card on 18th and ran up a debt of £800,well short of my limit.The intention was never to max it again.

Anyway,got back last night,and got a letter dated the 20th August,saying that my limit was now £500,and this was based on my credit score.As a result,the only advice the card firm gave me was repay £300 and work within the limit,as i was not in financial hardship!They will also charge me £12 per month for being over my limit and worry that this balance will affect my credit score as i will be over the limit.

The help i need is that i have never missed a payment on this card for the 2 years i have had it,and now worry that this may affect my other card i have.I missed a payment by two days on this card about three months ago.My credit check i have done show i have never missed a payment on any of my accounts other than the one i have mentioned.

My son moved in with me and has now moved out but there are debt letters now coming to this address for him,would this affect my rating?

Anybody else sufferred like this or any advice would be welcome

Moggles_2

My son moved in with me and has now moved out, but there are debt letters now coming to this address for him. Would this affect my rating?

No, credit ratings assess people, not dwellings.

If you share a financial product (eg. mortgage) with someone else, then you are
financially linked to them and their affairs could have an effect on your credit rating, but simply occupying the same house as somebody with a poor credit history, has no effect whatsoever

Innocent_Guy

theleek wrote: »

Hi,


TI missed a payment by two days on this card about three months ago.My credit check i have done show i have never missed a payment on any of my accounts other than the one i have mentioned.

HI There,

Usually a marker would not added to your credit file unless the payment was 28days late or the date that your next statement was produced.

Search for NID's thread about Credit Limit reduction

I'll try and post the link

Innocent_Guy

http://forums.moneysavingexpert.com/showthread.html?t=1694063&highlight=

Innocent_Guy

Hi There,

The above should help.

theleek

Many thanks

Just wondered whether being over your limit affects your rating
Anyway,intend to pay full amount off over next few months and rebuild!

oscar52

Innocent_Guy wrote: »

Usually a marker would not added to your credit file unless the payment was 28days late or the date that your next statement was produced.

Search for NID's thread about Credit Limit reduction

I'll try and post the link

industry standard is to report after 5 days late

Innocent_Guy

oscar52 wrote: »

industry standard is to report after 5 days late

Interesting,

I have always been told from various sources that it will be marked on your credit file if you haven't paid by the time the next statement has been produced. This is deffo 100% correct at least with Virgin anyway.

Innocent_Guy

theleek wrote: »

Many thanks

Just wondered whether being over your limit affects your rating
Anyway,intend to pay full amount off over next few months and rebuild!

Yes, over the limit will affect your credit rating.

Potential lenders can see

Limit = £500 Balance = £800 therefore overcommited by £300.....

poker-playa

oscar52 wrote: »

industry standard is to report after 5 days late

It is usually after the next statement is produced plus accounts report in arrears.

jen_a_c

Just a thought but could you phone them and ask if it's possible to 'opt out' of your card? I know they can do this with interest rises and wondered if they'd do it for a credit limit reduction too - it seems very very unfair to reduce your limit below the drawn balance and then charge you - is this even allowed????