HSBC reducing limit

syco1

I have had a HSBC credit card for around 30 years and a GM card for around 15 years. I have never had any problem with either. As GM is closing down, I gave in to Halifax and let them send me one of theirs to replace the GM.
Halifax have been ringing me monthly and pestering me every time I go in a branch, saying I am guaranteed a card, so I wasn't too happy when the card came with just £500 credit limit.
Two days later a letter from HSBC informed me that as they are a responsible lender they have reduced my credit limit. So from having £10,000 credit from two cards, I now have £2,500.

Would this be because Halifax shared my info with HSBC, because both are Mastercard, or to do with Credit reference agencies ? Seems too much of a coincidence.

izools

Best check your credit file and see what is actually being reported.

The fact both are mastercard has no bearing.

It may simply be that HSBC seeing a new card prompted them to do a review and now they feel with your current level of income, expenditure, and average balance you would be a significantly lower risk with the new credit limit.

Who do you bank with?

ironlady2022

Has your income reduced since 30 years ago? Otherwise if yo havenever reached your 10k limit, this is another reason why they would reduce it. I agree it is a massive reduction though!

PNPSUKNET

£10 k is a lot to have free on a card, they most prob have been responsible and seen it as a risk.

syco1

Thanks for replies - what I should have said is that I had around £5,600 credit limit on both the GM Card and HSBC, which I believe are both run by HSBC. So they have closed one scheme and cut my limit by more than half on the other one.
No problem whatever .. may well be because I have never been anywhere near those limits. Just seems a major coincidence that it happens a few days after the Halifax card arrived. I bank with the Halifax, but HSBC kept increasing my limit without asking, kept it at £5,600 for ten years, and now have suddenly dropped it.
Wouldn't mind if they had actually asked me anything about my circumstances.

dave2166

i've just had a similar problem with MBNA, ive had a card with them for 14 years and built up a £11.5k credit limit, just before christmas on the advice of this website i applied for and got a Virgin money card, so i can card tart a few others...

now they have just announced to me that they are reducing the limit down to 3.5k the same as the new virgin card... so wheres the 4k difference goner too??

got the usual numpty in the call center ive got to write a letter... what with these idiots and santander !!!!ing me about, (until i close my current account down at the end of the month) i am getting well cheesed off with the banks...

my credit report looks ok there are no red flags , and i have a few other cards, total credit vs total debt is less than 25%....