Credit card limit slashed so I am using 90% of available credit?

kimminess

Hi All,

I have an Advance credit card with Ll*yds TSB which I have had since I was 18 (Am now 20). I got a bit frivolous with it at one point and so have been working to get the balance down. At it's highest point, the balance was 1700 with a limit of 2000. I have paid off over 1000 in July & August and got the balance to 600 pounds exactly in time for my statement to be raised today.

I logged onto my online banking a moment ago, and they have decreased my limit to 650! As such I am now using 92% of my available credit as opposed to the 30% I would have been using if they had kept my limit as it was... I spoke to Ll*yds on the phone and they said it was because I had applied for a balance transfer, and had one cash advance (5 pounds) last month!! I have not missed any payments nor gone over my credit limit in the time I have had the card.

Has this happened to anyone else? Do you think it would be beneficial to go in branch and talk to someone about it, or shall I just suck it up? I don't intend to use the card much any more (I'm into the MSE way ) but I realise if I am basically 'maxed out' on this card, if I did want a credit product in the future it would make me a less attractive prospect, am I right?

Thanks for any thoughts/help/advice

BugsyBrowne

Suck it up or move banks and tell lloyds they no longer meet your criteria.

Ben8282

A £5 cash advance? With a £3 minimum cash advance fee? Very expensive way of borrowing £5.

And was the balance transfer from or to the LloydsTSB credit card account? What is/are your credit limits on your other credit card account(s) and what % of the credit limits are you using?

YorkshireBoy

In your position (ie you're not able to repay it imminently?), I'd be applying for a BT card elsewhere before LBG update the CRAs with the new data.

kimminess

It was an incredibly expensive way to top up my National Lottery account before kicking myself as its classed as gambling!! So bit of an error there.

They haven't updated my data since May, when the balance was 1600 pounds so I don't think anyone would touch me for a BT. I can repay the whole lot next month so it shouldn't affect for the long term, its more annoying than anything Hmph.

Thanks for comments everyone x