One credit card increased, the other reduced?! Why?

Risco

Ok so this month I got a letter from capital one about an increase of my limit to £800. I never use the card as it has a high interest rate. However I have left a balance of £150 on there that I have not bothered to pay off in full and just the minimum each month. All my bills are paid on time, I have a healthy bank balance.

So I come home today to find that Natwest have reduced my limit from £2000 to £350! Why would they do this? I was using it responsibly since I got it, paid off in full for all but 1 month where I paid off half then the rest the following.

Can I ring up and get it reversed? Would the capital one increase triggered my reduction in my Natwest? I am pretty peeved as my Capital One is one of those high interest 34% jobs that I used to build my credit rating.

Any suggestions?

PNPSUKNET

wouldnt of thought it would make that big of diff

stephane_2

Natwest reduced your limit probably because you were not using it enough, and paid in full each month. The credit market is getting tighter and will not improve. Also Natwest is closing application to it's classic & gold card to non Natwest customers.

Risco

stephane wrote: »

Natwest reduced your limit probably because you were not using it enough, and paid in full each month. The credit market is getting tighter and will not improve. Also Natwest is closing application to it's classic & gold card to non Natwest customers.

So can I appeal, is it worth applying for a different card?

stephane_2

You can appeal but to be honest I don't think you will get very much from it...you could apply for another card but it all depends as well on how good your credit history is in general. Might be worst having a look at your credit report to give you an idea. Do you bank with Natwest? if not why not ask your bank in the first place

Risco

stephane wrote: »

You can appeal but to be honest I don't think you will get very much from it...you could apply for another card but it all depends as well on how good your credit history is in general. Might be worst having a look at your credit report to give you an idea. Do you bank with Natwest? if not why not ask your bank in the first place

I do bank with natwest, so I am going to go in tomorrow to ask them why.

stephane_2

Until earlier this year had been banking with natwest for over 7 years, never had any problems, got their Platinum CC with a ridiculous £500 limit and they always have refused to increase my limit, that did not stop me getting 2 credit card within last 6 months with just under £10,000 worth of credit limit between them!! I now bank with First Direct

Risco

Just rang up, they said there is no reason why my credit limit should be reduced. So she has applied to get it reinstated and will call me next week. Seems like there is an error, hopefully will be sorted by next week.