Lloyds reducing limit on credit card

hazbow

Hi,

I received a letter from Lloyds telling me that they are reducing the limit on my credit card from £3k to £1k as part of their review and being a more "responsible lender".

I've never made a late payment and it may have been reduced cos I haven't used it in nearly a year.

Is this going to affect my credit rating?

TFD_2

hazbow wrote: »

Is this going to affect my credit rating?

Not as such.

But other lenders can look at percentage of credit used when considering opening an account, and this reduced limit will have reduced your available credit.

PNPSUKNET

if its not used, their isnt a point in them giving it to you when they can offer it to someone else and make some cash from it

jenny_13

There are several reasons it may have been reduced as you have suggested it may be to do with the fact the card hasn't been used in so long. Lendors can consider it as a risk as you aren't using it and a large balance is avaliable in case you lost the card.

The other issue is if you have taken out other credit for example other credit cards, overdraft or mortgage. Sometimes creditors believe this will effect your ability to pay and if you ran the card up in full you may not pay it back.