AMAZON CARD apply destroy your credit limit

DreamDetective

A few weeks ago on the Amazon site I applied for the Amazon Card. I have spend thousands on Amazon over the years. I decided to apply as I thought having a card and only using that card on Amazon would be a smart thing to do. Shock Horror... MBNA without any notice reduced my Halfords Card limit from £15800 to £5000... I phoned to ask why they did this and I was told that as I buy goods from Amazon and applied for a card there I was not a worse credit risk and they had to reduce the limit. I was told they always do that is you apply for Amazon card. The reduction shows on my credit report. Not MBNA not AMAZON have replied to my letters of complaint. So do not apply for the AMAZON card if you want to retain your credit.

PrettyWoman

Exactly the same thing happened to my husband. He has a Virgin CC (MBNA) and applied for the Amazon one to get the £15 off an order. He didn't get the Amazon card but his Virgin credit limit was reduced from £4000 to £1200 immediately with no notification.

He always pays in full but that month happened to have bought an awning for our caravan. He was close to his now reduced limit and the first he knew about it was when the card was declined in M&S!

He rang them up and they just said his account had been reviewed!

System

What limit did you get on your Amazon card?

MBNA split limits between their cards, this would happen if you previously held any one of their cards and then applied for another one.

Regards
UNDERGROUND

noh

The Amazon card, as you know, is a MBNA issued card.
When you apply for any MBNA card they will look at any existing cards you have with them and review the total amount of credit available to you across all the accounts you hold with them.

I applied for an Amazon card and was given one with a £4.5K limit. My existing Virgin CC limit of £15k was not affected.

The limits they give you depend entirely on their view of your credit worthiness and the criteria they apply at the time of review.

BatOutOfhell

Well I applied for an Amazon card online before Xmas to get the money off deal. I never heard a thing from them - no rejection letter, email, nothing.
In January I had a letter from Vanquis (think that was their name) saying that as I had recently applied for another card and had been unsuccessful, would I like to have one of theirs?
What is going on with Amazon? I'll never ever apply for a card from them that's for sure.

thenudeone

mbna are very risk-averse at the moment.

See this: https://forums.moneysavingexpert.com/discussion/2762290

Case currently with Ombudsman (because they did not give 30 days notice before removing credit facilities!)

ElkyElky

thenudeone wrote: »

mbna are very risk-averse at the moment.

See this: https://forums.moneysavingexpert.com/discussion/2762290

Case currently with Ombudsman (because they did not give 30 days notice before removing credit facilities!)

They aren't required to give 30 days notice before lowering your credit limit or revoking their facilities. If they did, don't you think everyone will be maxing out their cards so MBNA couldn't take it away?

It is afterall, their credit card.. they can do what they wish. You don't have a right to the card.

I can tell you now the Ombudsman will laugh your complaint out the window I'm afraid.

PNPSUKNET

I agree the fos cant force to lend

oki25

If you apply for a CC, the issuer will check your credit file-we know that, if tha said credit knows you have one of their own cards already, and spots something they dont like on your credit file, why would they not snatch away any spare credit to stop you spending.. If you have been passed to Vanquis by MBNA then you need to seriously check your finances, your credit report must bee screaming RISKY, you can write to Experian if you spot any mistakes, good luck!

callum9999

If this was a case of someone struggling with debt repayments and they hadn't reduced the limit, no doubt the thread will be full of people going on about how reckless and evil the bank/credit card companies are. They really can't win...

Kyresa

callum9999 wrote: »

If this was a case of someone struggling with debt repayments and they hadn't reduced the limit, no doubt the thread will be full of people going on about how reckless and evil the bank/credit card companies are. They really can't win...

On this forum board ? No they wouldn't, they'd be lectured about "why did they spend the money they couldn't afford" or "why should the banks let them off".

This board is not sympathetic to most I'm afraid!