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Credit Card reduction

billybobs100
Posts: 3 Newbie
in Credit cards
Hi i am new and need to ask a question would be very grateful for any advice!
Was made redundant a couple of years ago whilst renovating my house to which basically above got put on various credit cards, anyway i no longer spend on any of these credit cards and slowly i am paying them off
Amex £1700
Mbna £900
Barclaycard £12000
Lloyds £8000
Anyway my question is Amex reduced my limit from 3 down to 2k once i had paid it down this i was fine with and i then with my Mbna which was at £12500 with a limit of £13000 have reduced the limit as i have paid it off, so did American Express get scared by my debt and lower and am i best to reduce my credit i would be happy to do this to help my credit rating, i also have a loan although again nothing else spent just concentrating on paying off.
Was made redundant a couple of years ago whilst renovating my house to which basically above got put on various credit cards, anyway i no longer spend on any of these credit cards and slowly i am paying them off
Amex £1700
Mbna £900
Barclaycard £12000
Lloyds £8000
Anyway my question is Amex reduced my limit from 3 down to 2k once i had paid it down this i was fine with and i then with my Mbna which was at £12500 with a limit of £13000 have reduced the limit as i have paid it off, so did American Express get scared by my debt and lower and am i best to reduce my credit i would be happy to do this to help my credit rating, i also have a loan although again nothing else spent just concentrating on paying off.
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Comments
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tut tut 42 viewed your thread and noone replied give the site a bad name..... answer to your question and i am no expert i think the banks may think you have to much debt spread out loans various credit cards so pay them off and stick them if you dont need them!!0
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I hate to think how much you are spending on these. Have you spoken to them and told them your situation or are you just paying off as you go?
Credit cards are not a cheap way to borrow money - you would be best off getting these down as far as you can as fast as you can, starting with the most expensive ones.
Are you in work now?What is this life if, full of care, we have no time to stand and stare0 -
Hi Yes Jane thanks in work again now with a lot to throw per month into the credit cards approx 2k per month so really coming down but yes high ones are 0% until next year and on target to pay off worst case 3 years just wondered if was best after paying 2k a month to voluntarily reduce my limits to get me back on track!0
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Yes it is a good idea to bring the limits down in line with the balances to a degree. I personally would reduce the limits so that they are about 25 ~ 33% higher than the balances, this way you are keeping your available credit down without looking like you've got a lot of maxed out cards.
Good luck!Cashback Earned ¦ Nectar Points £68 ¦ Natoinwide Select £62 ¦ Aqua Reward £100 ¦ Amex Platinum £48
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If you have a debt for several months, the credit card company will see you as a high risk of default. Barclay card do this a lot as soon as they can decrease your limit.0
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If you have a debt for several months, the credit card company will see you as a high risk of default. Barclay card do this a lot as soon as they can decrease your limit.
I think that might be a slight exaggeration but certainly keeping a high running balance for a long time (i.e. very close to the limit at all times) and then pay off a large chunk, I'd be extremely suprised if the limit didn't drop in line with the large repayment as this sort of account conduct is a big sign of debt stress.
Unfortunately it can be misinterpreted, as you say Barclaycard are one as they reduced my limit from £1,150 to £850 because I'd maxed the card, left it close to the limit, and then repaid mostly after a few months.
It's odd as I've maxed and repaid it totally thrice in the time I've had it (9 months) so they can see I am more than capable of spending a lot and paying it right back whilst making them some interest along the way... hey ho, their choice. Makes no bones to me!Cashback Earned ¦ Nectar Points £68 ¦ Natoinwide Select £62 ¦ Aqua Reward £100 ¦ Amex Platinum £48
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