Will Credit Card limit be dropped or Card cancelled?

Palonka

Thanks. In your opinion, is it quite common for CC companies to drop limits and/or cancel card when credit ratings drop considerably?

Palonka

Thanks Gurranes. By "arrears" do you mean late payments or any type of default, or do you mean increasing debt ratio?

Gurranes

By arrears I mean missed payments, not just increasing your debt.

I would think card companies might react to missed payments as there is a tangible reason to reduce your limit, rather than just a score being a certain level. I say might as I don't know what strategy Barclaycard might have, they may just react to missing a payment on their card. Unforunately you only find out when it happens.

dalesrider

I would be careful doing a BT. If you have missed a payment and then do a BT. There is a chance that they will look into the account and decide that as you have now taken another card out that you are pushing your limits and to protect themselves they will drop the limit.
They may not gain this info via a search, they will have this info recorded on their systems.

I undersand that you wish to protect your 2 staff members. But be carefull with how you deal with the current situation. Or you will end up closing down and also leaving yourself in a position that you cannot get out of.

cornerstonelighter

Palonka, don't worry about using your C/Cards for business. I've got 14 personnel cards all of which I use for buisness cash flow. However its absolutely vital not to get yourselves into deeper hardcore debt with them. I employ 13, so understand the pressure to come up with the weekly wages!

guesswho2000

cornerstonelighter wrote: »

Palonka, don't worry about using your C/Cards for business. I've got 14 personnel cards all of which I use for buisness cash flow. However its absolutely vital not to get yourselves into deeper hardcore debt with them. I employ 13, so understand the pressure to come up with the weekly wages!

I sense :spam:, they're out in force this evening; nobody in their right mind would use a personal credit card to pay staff wages.

Paul_the_Painter

And dragging up a week old thread is what exactly?

wonkytechy

Palonka
I agree with what grumbler says HOWEVER the problem with your scenario is that you have a business linked with these finances and hence your accounts can be checked by anyone considering doing business with you.
I knew someone without a business who succeeded in having a maxed out mortgage, 24000 pounds of loan that hey only paid interest on and 7 credit cards....no-one reigned them in, they subsequently lost their job and spoke to all creditors under a cva ( final stop before bankruptcy) and no-one demanded any of the money back. Foolish lending?
I know you have employees but I have heard people negotiate for shorter weeks to retain any income at all and gives them the opportunity to be looking at other work in the meantime. I think you're on thin ice though