Bank has reduced my Credit Card limit

katiewoos_2

Had a letter yesterday from HSBC telling me they had reduced my Credit Card limit by £1000. I phoned them and they say as a responsible lender they have decided as I dont utilise my limit they have reduced it. I have had the same limit for years and run my account responsibly. Can they do this ? The limit they have given me is neither use nor ornament. I will have to go through a credit scoring scheme to see if they can increase the limit. Is there anything I can do to get HSBC to increase it back to the original limit. I use the card to book our holidays in Florida and the limit they have given me wouldnt book a holiday in Blackpool.:mad:

molerat

A commercial decision to reduce their exposure, the banks now need more funds to back their lending exposure. And yes they can do this.

opinions4u

Yes they can do this.

If you're not happy, take your business elsewhere.

PNPSUKNET

I would move ship, if they try to rescore it would decline anyway.

jonesMUFCforever

I don't understand your post - on the one hand you say that you don't utilise the limit and they have reduced it by £1000 (to what now?) then you say that you book your holidays to Florida with - which is it - do you clear the card at all?
(You only need to put £1 on a credit card to get S75 cover as long as purchase is over £100)

ironlady2022

Why are you concerned anyway as you say you don't use near that limit?

emma1983_2

I can see where katiewoos is coming from - the bank made the agreement to allow her to spend up to a certain amount and now the bank has slashed that amount by a grand which is a lot of money without any reasonable excuse. I am now in the same situation, I got a letter from Halifax last weekend saying they will reduce my credit limit to £850 from £2550 and bearing in mind my balance last week was just under £850 I think this is disgusting - it makes me think they are trying to stitch me up and trying to make me go beyond my credit limit so that they can penalise me. What makes me breathe a sign of belief is that I was going to use the full £2550 credit to buy a car instead of using a loan which I would've had to pay interest on but I saved up the money for the car instead - can you imagine it if I paid for the car on credit card (the full £2550 or near enough) with no savings and the bank turned round to me and said we're cutting your credit limit to £850. I would be screwed.

KingElvis

Just get another card from a different lender.

paulmcerlean

emma1983 wrote: »

I can see where katiewoos is coming from - the bank made the agreement to allow her to spend up to a certain amount and now the bank has slashed that amount by a grand which is a lot of money without any reasonable excuse. I am now in the same situation, I got a letter from Halifax last weekend saying they will reduce my credit limit to £850 from £2550 and bearing in mind my balance last week was just under £850 I think this is disgusting - it makes me think they are trying to stitch me up and trying to make me go beyond my credit limit so that they can penalise me. What makes me breathe a sign of belief is that I was going to use the full £2550 credit to buy a car instead of using a loan which I would've had to pay interest on but I saved up the money for the car instead - can you imagine it if I paid for the car on credit card (the full £2550 or near enough) with no savings and the bank turned round to me and said we're cutting your credit limit to £850. I would be screwed.

Not really, as they wouldn't reduce it to a figure lower than the balance you have.

Sounds like they are looking shot of you if they have reduced you down to your balance.

emma1983_2

KingElvis - That's not the point though, is it?! Even if I did use the full original credit limit then had to transfer the money onto a new credit card because Halifax reduced my credit limit I would have to pay a fee to transfer this money which would've defeated the object of using a credit card instead of a loan. I know credit card companies have the right to change customers' credit limits at any time but in a lot of cases this is really inconsiderate to the customer and can impose financial problems onto their customers which is not right.

boo1

They've done that with mine as well, must be because of all the financial doo dah they've got themselves into. I'm thinking I might as well get rid of mine as the amounts I've got are no good to man nor beast. So perhaps they have done me a favour!!