Asda Credit card decrease in credit limit

chunky_tesco

I received a letter today regarding my Asda Everyday Credit Card (now handled by Santander) notifying me that due to their "commitment to responsible lending", my credit limit was to be decreased from £3000 to £250. Now I can spend anything from £60 to £600 a month, and I have a direct debit set up to pay off the balance in full every month.

I was going to cancel my card next month anyway due to their appalling customer service and !!!! poor online website, but after seeing that letter I just rang them up to pay off the outstanding balance and closed the account.

They also cited my credit rating as a reason for lowering my limit, but when I check the other day my rating was 800-900 depending on the credit information group.

TFD_2

Credit ratings from the credit information providers mean nothing. The bank's own credit ratings are calculated differently. It's not worth wasting money getting these made up numbers, but just ensuring all aspects of your credit file are as strong as they can be.

For them to decrease the limit so heavily, there must be some reasoning behind it.

chunky_tesco

i have a feeling that the poor suckers managing to only make the minimum payments every month aren't having their credit limits decreased.

TFD_2

I have a feeling that your paranoia is incorrect.

Credit limits are being cut left right and centre, but usually for people without the strongest credit ratings.

duckydaze

I've just experienced exactly the same thing as you have with my Asda card. I cancelled it also as you have done. It was amusing though that on the same day that I received the letter reducing one cards credit limit I also receive a guaranteed acceptance application form for the santander zero card? Same company?

chunky_tesco

duckydaze wrote: »

I've just experienced exactly the same thing as you have with my Asda card. I cancelled it also as you have done. It was amusing though that on the same day that I received the letter reducing one cards credit limit I also receive a guaranteed acceptance application form for the santander zero card? Same company?

I closed mine as I thought they were reducing my limit because of my responsible use of their card; always paying off the balance in full, not maxing the card out every month as well as the reasons I mentioned above.
I also took a detailed look at my credit rating breakdown on checkmyfile.com and there is nothing negative about my record in the last 6 years

hax_2

duckydaze wrote: »

I've just experienced exactly the same thing as you have with my Asda card. I cancelled it also as you have done. It was amusing though that on the same day that I received the letter reducing one cards credit limit I also receive a guaranteed acceptance application form for the santander zero card? Same company?

Yes, Asda CC is issued by Santander.