Warning to card tarts! Lloyds cancelled my card haven't used it for 12 months!

carolanski

Just a word of warning to other Credit Cart tarts. I switched a balance from my LloydsTSB credit card that I have had for twenty-odd years to my Nationwide card on a 0% deal. I noticed online a few days ago that my credit limit had been reduced from £8500 to £500 so I phoned, to be told it was a fraud prevention measure and if I want to use card in future I could ask for it to be reviewed.

I then received a letter today informing me that my card had been cancelled and that if I wanted to reapply for it I would have to wait 6 months after the account had been closed in two months time.

Has anyone else had a similar experience? I have 3 or 4 cards I use to shuffle my debt between (which was used to pay for my bathroom) and if the other lenders start to follow suit then I'm going to have start using them all and paying off the balance each month which is just irritating!

[Deleted User]

Just using them occasionally will be enough to prevent a dormancy closure. No need to do it every month.

mumto2boys

They did this to me last year too, i hadn't used my Lloyds card for over a year so they wrote to me and told me they would lower my limit then cancel the card after 6 months which i wasn't really bothered about as i wasn't using it anyway. I guess if i had used the card with the lowered limit they would have let me keep it though?

Maestro.

carolanski wrote: »

if the other lenders start to follow suit then I'm going to have start using them all and paying off the balance each month which is just irritating!

heaven forbid having to actually pay back a debt you owe...

:money:

carolanski

I've never come across it before and wonder whether it should be included in the advice for newbies. I'm certainly not a financial dunce - I used to be a mortgage consultant and feel pretty let down by LloydsTSB as they didn't even warn me or give me an opportunity to start using the account again. Do you think it is because I have the other cards too?

carolanski

Maestro. wrote: »

heaven forbid having to actually pay back a debt you owe...

:money:

No need to be sarky! I do not appreciate your tone- I am paying off the debt I owe ( for one large purchase I wanted to spread longer than a loan would allow me) and for day to day expenses I only use my debit card. feel irritated that I am going to have to use every credit card I own just so I don't lose them for the future.

My main reason for the post was to bring to other peoples attention so that if they like to switch between 12 month 0% deals too (thereby attracting a yearly interest rate of the transfer fee and giving them some more flexibility than a loan) they are aware.

mumto2boys

carolanski wrote: »

I've never come across it before and wonder whether it should be included in the advice for newbies. I'm certainly not a financial dunce - I used to be a mortgage consultant and feel pretty let down by LloydsTSB as they didn't even warn me or give me an opportunity to start using the account again. Do you think it is because I have the other cards too?

I certainly had a letter from them advising me thats what they were going to do and i had 1 other credit card at the time and i bank with Lloyds.

carolanski

That's why I was so surprised. I've banked with them since I was 18, have savings accounts and two current accounts with them and have had that card with them since I left Uni. What cracks me up is that previously when I've not used it for long periods they used to offer me balance transfer deals and increase my credit limit by thousands at a time!

Seriously considering moving all my business elsewhere!

CLAPTON

quite simple to set up a DD for the full amount for each of the cards (except the one you are stoozing with) and simply use them for low value purchases each month

[Deleted User]

carolanski wrote: »

What cracks me up is that previously when I've not used it for long periods they used to offer me balance transfer deals and increase my credit limit by thousands at a time!

It's a different world now. Lenders look more closely at available credit, usage, balances elsewhere. You won't find a lender who play fast and loose with credit anymore, not in the mainstream markets.

mistergadgets

Maestro. wrote: »

heaven forbid having to actually pay back a debt you owe...

:money:

Maestro, your comment is quite offensive and unreasonably sarcastic. If you can't 'play nice' why don't you just go away and play on the Daily Mail website. You'll be welcome there!