Personal Credit Limit

modomojo

HI,
I have four sources of credit. 2 overdrafts and 2 credit cards.
Last month one of my CC's upped my spending limit by £400.
This month the other CC provider lowered my limit by £400.
I talked to them and they siad it was out of their hands, it was in line with the "responsible Lending" scheme.
I was told that each individual has a certain amount of credit they are allowed to have and, as I had already got my full quota, as one credit limit increased another had to be lowered.
It all sounds a bit dodgey to me.
If I had reached my "Personal Credit Limit" then how could my first CC company increase my limit?
This is particularly upsetting as I had just put a whole chunk of money into the second account so I could use it on holiday.
This money has now gone. I have to borrow holiday money from my mum.
I'm 42!
I haven't borrowed anything from my mum since I first started work!
If anyone can throw any light on this matter I would be over the moon.
Many thanks for reading. :beer:

TrickyDicky

One credit issuer has decided that you should have a higher limit, the other decided you should have a lower limit. There is no "personal limit" as you put it just issuer by issuer assesments of each individual based on their circumstances.

And another point - you dont put any money into a credit card - you are paying back the money you already borrowed. It has not gone anywhere, except to pay off your debts.

welf_man

Which supplier was it that told you about a "personal credit limit"?

Mel.

never-in-doubt

welf_man wrote: »

Which supplier was it that told you about a "personal credit limit"?.

Hopefully none or they need to go back to "banking for beginners, day 1"

welf_man

Indeed - I'm just hoping it's not one I have any relationship with!!

Mel.

LBG_worker

There is no personal limit as such but there is a floor limit of which the bank will class you as 'over indebted' and therefore will refuse you credit - its calculated on your income and current financial commitments. This could be what they are referring to.

Hey banking for beginners no longer runs - Its now called banking for dummies

modomojo

TrickyDicky wrote: »

One credit issuer has decided that you should have a higher limit, the other decided you should have a lower limit. There is no "personal limit" as you put it just issuer by issuer assesments of each individual based on their circumstances.

And another point - you dont put any money into a credit card - you are paying back the money you already borrowed. It has not gone anywhere, except to pay off your debts.

I am well aware of the latter thanks.
The Credit Card companies make money out of "lending" money to consumers and I pay them for the privalige with interest every month.
I "put" money into this CC because I wanted secure spending while I was away.
That is sensible.

modomojo

welf_man wrote: »

Which supplier was it that told you about a "personal credit limit"?

Mel.

it was PAYPAL.

modomojo

LBG_worker wrote: »

There is no personal limit as such but there is a floor limit of which the bank will class you as 'over indebted' and therefore will refuse you credit - its calculated on your income and current financial commitments. This could be what they are referring to.

Hey banking for beginners no longer runs - Its now called banking for dummies

Thanks, that helps to explain it a little. I still don't understand why one lender would decide to "up" my limit though if they have access to the information that tells them I have all the credit I can handle.
Perhaps they just don't care what happens with the rest of my credit as long as they can earn a little more interest from the money they are lending me themselves?:rolleyes:

sharpy2010

modomojo wrote: »

it was PAYPAL.

The worst most untrustworthy company on earth!

You only have to go HERE https://www.paypalsucks.com to see how bad they really are.

withnell

modomojo wrote: »

Thanks, that helps to explain it a little. I still don't understand why one lender would decide to "up" my limit though if they have access to the information that tells them I have all the credit I can handle.
Perhaps they just don't care what happens with the rest of my credit as long as they can earn a little more interest from the money they are lending me themselves?:rolleyes:

The company that "upped" your limit is happier to lend you more than the other, which when it saw your limit increase felt you could get overindebted and decided to not lend you as much.