Nationwide reduced my credit limit - advice please

patwa_2

Hello,

I noticed today when checking my statement that Nationwide have reduced my Nationwide Classic Visa Card credit limit from £2300 to £500 (the starting limit was £1500 and increased at my request two years ago). I did not receive any letter, etc to indicate this would be happening.

To be fair, I have not used anything near the limit for a long time, so I can vaguely see why they're cutting it, yet, I would think my statements would show I'm not a high risk customer.

Is this now common across the board? Should I just leave things as they are or request a resetting of the limit to the original?

Thanks.

colinw

It is suprising that they did not give you any warning. What if you had of been away on holiday when it happened? I still have my £5000 limit with NW. Then again I have used it quite a bit lately.

Moggles_2

I noticed today when checking my statement that Nationwide have reduced my Nationwide Classic Visa Card credit limit from £2300 to £500 (the starting limit was £1500 and increased at my request two years ago). I did not receive any letter, etc to indicate this would be happening ...

Lenders tend to reduce credit limits without warning, because they know some punters would go out and spend right up to the old limit to avoid the cuts.

Moggles_2

Is this now common across the board?

It's the norm, where credit limits are concerned. Most of us are notified in advance of interest rate changes and other variations in the Ts & Cs.

Should I just leave things as they are or request a resetting of the limit to the original?

There's no harm in asking. Be prepared for a credit check though.

never-in-doubt

You're not alone, it seems to be the norm lately: :mad:

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

vwman_3

Nationwide have done the same to me, I'm off to Canada next week for a month and pre-booked my Hotels with Nationwide card to the tune off £1k, now I will have to email the Hotels to explain.

I have spoken to Nationwide and told them that I pre-booked my Hotels with their card some 6 months ago and the say not our problem, my limit has been cut from £3.5K down to £500.

Moggles_2

vwman wrote: »

Nationwide have done the same to me, I'm off to Canada next week for a month and pre-booked my Hotels with Nationwide card to the tune off £1k, now I will have to email the Hotels to explain. I have spoken to Nationwide and told them that I pre-booked my Hotels with their card some 6 months ago and the say not our problem, my limit has been cut from £3.5K down to £500.

Whatever happened to Nationwide's "proud to be different" ethos?
Increasingly, the Society is indistinguishable from a mortgage bank.

leveller2911

Long term it has to be a good thing,encouraging people to "live within their means".
For whatever reason be it low wages or general "want now pay later" attitude it should make people really think before buying items they may not really need.
This can be a good thing.
I have 1 CC which is with Nationwide, have a limit of £7,700 and have never had more than £1,000 for more than a month.Why £7,700 limit,it just encourages people to rack up debt.....
It may not be easy but some should see it as a GOOD thing.......

colinw

Just out of interest do the people who have had their lmits cut have any other Nationwide accounts such as a flex account? I am just wondering as I have not had my limit cut but I have a few other accounts with Nationwide. If they cut my limit to £500 I would dump the card.

marksoton

leveller2911 wrote: »

Long term it has to be a good thing,encouraging people to "live within their means".
For whatever reason be it low wages or general "want now pay later" attitude it should make people really think before buying items they may not really need.
This can be a good thing.
I have 1 CC which is with Nationwide, have a limit of £7,700 and have never had more than £1,000 for more than a month.Why £7,700 limit,it just encourages people to rack up debt.....
It may not be easy but some should see it as a GOOD thing.......

Thats all very well and good but peoples spending patterns vary. My usual credit card bill is about £1500 a month.

A couple of months ago i had to book a flight and that alone was £3000. I think my total bill that month came to £4500 odd. If i hadn't had an £8000 limit i would either have not been able to pay with the card or it would have looked like i was maxed out. The limit doesn't encourage me to spend needlessly, for a start i pay off in full each month. At the end of the day the customer has to take responsibility for their own spending.

leveller2911

marksoton wrote: »

Thats all very well and good but peoples spending patterns vary. My usual credit card bill is about £1500 a month.

A couple of months ago i had to book a flight and that alone was £3000. I think my total bill that month came to £4500 odd. If i hadn't had an £8000 limit i would either have not been able to pay with the card or it would have looked like i was maxed out. The limit doesn't encourage me to spend needlessly, for a start i pay off in full each month. At the end of the day the customer has to take responsibility for their own spending.

Its all very well saying "the customer has to take responsibility for their own spending" I don't have any problem with that, BUT when its on a credit card its NOT their money.
For years now people have been brainwashed into thinking credit cards make financial sense and to some they do, but for the majority they are a never ending debt.I pay mine off completely each month and only use it for purchasing via the internet.Credit card limits do encourage people to spend to a limit,its not like having to apply for a loan in person to a bank manager who use to grill you as to why you "need" the money.

At the end of the day for the vast majority of people if they havent got the money they shouldn't buy it.......

What is wrong with saving for something??? is it "so old fashioned"??? not hip or trendy.:rolleyes: