Decreasing credit limit

melbury

I have just decreased the limit on two credit cards, working on the assumption that if the worst happened any damage would be limited.

Presumably the credit card would be refused once those limits had been reached? I assume that is how it works.

squack

the worst that can happen being identity theft/cloning online fraud etc?

personally i wouldnt risk going anywhere near the new lower credit limits or they will let you exceed them slightly and you will be stung badly :money:

td_007

melbury wrote: »

I have just decreased the limit on two credit cards, working on the assumption that if the worst happened any damage would be limited.

Presumably the credit card would be refused once those limits had been reached? I assume that is how it works.

Unless it is flagged up a potential fraudulent transaction (even legitimate transactions have been flagged by automatic fraud detection), the payment will go through even if it brings you over your credit limit. So unfortunately, it will not work as you think.

Robert_Sterling

melbury wrote: »

I have just decreased the limit on two credit cards, working on the assumption that if the worst happened any damage would be limited.

Presumably the credit card would be refused once those limits had been reached? I assume that is how it works.

I do not assume that is always how it works.

ElkyElky

Unfortunately, what ever your limit is, you can still exceed it and receive charges.

Credit card companies continue to process transactions that take the balance over the credit limit, so they can at their advantage charge you.

The only fool-proof way of preventing yourself from exceeding the credit limit is to set up a direct debit to take the full amount each month and continuously log into the online banking website to view your balance.

Moggles_2

Where finance is concerned, it's best not to assume anything. What's become of the Ts & Cs you signed up to when you applied for the cards?

In general, if a CC is lost, stolen or misused by someone without your permission, you are only liable for the first fifty pounds, irrespective of your credit limit (In practice, CC companies seldom ask customers to cover the first £50.)

CannyJock

melbury wrote: »

I have just decreased the limit on two credit cards, working on the assumption that if the worst happened any damage would be limited.

Presumably the credit card would be refused once those limits had been reached? I assume that is how it works.

Ouch. In my experience reducing credit limits doesn't do you much good (few notable exceptions like Barclaycard maximum 0% BT being £5k).

As others have said, you can exceed your credit limit at any time. Infact the card providers are more than happy to whack you with over limit fees, revoke 0% offers and generally make as much from you as possible once you exceed your limit.

Pity you hadn't asked us to verify your assumptions before you acted, would normally advise against it :rolleyes:

melbury

What a shame, so that was a complete waste of time then:mad:

I just thought it would be a good safety measure, I didn't realize that they would still let the card be used over the new limits. Never mind, perhaps I will get on and cancel one of the cards.