Asda Credit Card

starM

Hi,

My other half has received a letter from Santander Cards today informing her that the credit limit will be decrease from £2700 to £1650 within the next couple of days. Currently she has a 0% for 12 months on a bal of £1525. She do not have any problems with any of her credit agreements and all payments are uptodate.

Is there anything we can do so the credit limit stays the same?

Also the available credit will only be £125 - will this effect on any future credit applications?

MS

Robert_Sterling

Is there anything we can do so the credit limit stays the same?

Probably not.

starM

ok - Also the available credit will only be £125 - will this effect on any future credit applications?

MS

LoopyPrune

Strange that they are reducing the credit limit mid-term. How long has she had the card? Santander has just increased my credit limit by £1250 and I didnt even speak to anybody. Might pay to look closer at credit file, there has to be something to make them think they need to reduce the available credit to basically nothing.

On the other hand they may just think that your oh wouldnt need the extra credit anyhow as usually a card isnt touched after a balance transfer has been completed apart from repayments.

starM

She had the card for 9 months now but balance transfer has only been done 3 months ago when 12 month 0% offer was received with statement. At the same time of BT they also increased the credit limit from 2k to £2700.

MS

CannyJock

Does no harm to write a letter to express concern over their seemingly erratic behaviour - especially if they are encouraging you to take up a BT offer then move the goalposts. You can ask them to reinstate the original credit limit, or why not ask them for a £1000 increase to allow you to make more use of the card in the future?

A while back, I had a £15K credit limit on a Halifax card shaved every 2 months as I made the minimum payment on it (was stoozing on a 12 month 0% BT deal). So card companies can and will do this from time to time.

The low available credit on 1 card won't make any difference, I regularly stooze 95% of credit limit on cards (or 99.99% on current 0% purchase cards) - but if it's your only card then it might be an inconvenience. It'll take up to 6 weeks for the reduced credit limit to appear on your credit report. If it's your only card, I'd be tempted to apply for another one before the reduced credit limit appears.

Or do you still have the card that you did the BT from 3 months ago that you can use to spend on?

EDIT: Although in reality, now you've done a BT to the card then you won't be using it for further spending to avoid the allocation of payments trap, so I'm guessing this won't actually affect things for you.