Problems Reducing MbNA Credit Limit

ClareP_2

As a disciple of moneysavingexpert, I have taken a few hours today to make those calls, be a rate-tart etc. I have a 0% deal on an MBNA card, which is about to come to an end and I noticed that they had also put my credit limit. I rang them to reduce the credit limit, but when I got through to a service advisor and I said that I wanted to reduce it, I was 'warned' that "reducing the credit limit will have an adverse effect on [your] account". I asked to go ahead anyway and was given 2 further warnings of adverse effects, before the action was carried out. I work in the finance industry, but I can see how this sort of language would worry someone. When I challenged this, she couldn't explain what the detrimental effect would be. i know the people in the call centre are working from a script, but that seems a bit much. Don't let them bully you!


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Gromitt

I don't know if this is a troll or a genuine post, but they are correct that reducing your credit limit definitely has an effect on future credit applications, as you will be seen to be using more of your available credit than before. I'm surprised that someone working in the finance industry doesn't know this.

jonesMUFCforever

The way I read is - she asked for the limit to be reduced which might put her outstanding debt over the new requested limit.

sfax

It has an effect but it may not necessarily be an adverse effect. All depends on your other debt, your other credit limits, what you are applying for, and how the lender evaluates the information in your file.

As a 0% BT tart, I have reduced limits to open up new credit avenues in the hope that a lender will not see the total limit that I already have available as too high to add to with new credit.

Reducing a limit will increase your debt/credit limit ratio which might be adverse but not if that increase is from 10% to 30% for example.

CRISPIANNE3

ClareP wrote: »

As a disciple of moneysavingexpert, I have taken a few hours today to make those calls, be a rate-tart etc. I have a 0% deal on an MBNA card, which is about to come to an end and I noticed that they had also put my credit limit. I rang them to reduce the credit limit, but when I got through to a service advisor and I said that I wanted to reduce it, I was 'warned' that "reducing the credit limit will have an adverse effect on [your] account". I asked to go ahead anyway and was given 2 further warnings of adverse effects, before the action was carried out. I work in the finance industry, but I can see how this sort of language would worry someone. When I challenged this, she couldn't explain what the detrimental effect would be. i know the people in the call centre are working from a script, but that seems a bit much. Don't let them bully you!


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I am very happy to keep what high limit they have given me. The reason being IF you are a good customer then will continually throw promotional rates your way.