Loyds have Reduce credit limit Why?

Donna0412

Hi I have had a loyds Credit Card for a number of years, I was late on a payment a few months ago and they reduced mu credit limit from £7500 to £2990. Today I have received another letter stating they are reducing my credit linit again to £2550 just above my balance. Does anyone know why they may be doing this I have never missed a payment in fact the last few months i have been paying it off.

[Deleted User]

They'll be reducing their exposure and risk. It's not uncommon.

Fruit_and_Nut_Case

Simple answer: Because they can.

Longer answer: Only Lloyds TSB know for sure and they ain't telling.

BugsyBrowne

It doesn't take a brain box to work out why they reduced your limit as the obvious answer is you missed a payment.

bengalknights

Its to reduce exposure to potential toxic debt

dalesrider

Missed payments on other loans or running in O/D a lot... All will show in the details they can see.

giblet10

If they've reduced your limit to just above your balance, you may well see them reduce it further as your balance drops - ie if you reduce your balance to £1500, your limit may go down accordingly - they've been spooked by your late payment and may well no longer want you to have one of their cards..you may well have to take your business elsewhere..

TadleyBaggie

Banks are reducing exposure even for people with perfect credit. I have no issues on my credit report, never missed a payment, current account always in positive balance etc. However Barclays have just reduced my O/D from £3500 to £500. It doesn't bother me as I have no intention of using it.

opinions4u

Donna0412 wrote: »

Hi I have had a loyds Credit Card for a number of years, I was late on a payment a few months ago and they reduced mu credit limit from £7500 to £2990. Today I have received another letter stating they are reducing my credit linit again to £2550 just above my balance. Does anyone know why they may be doing this I have never missed a payment in fact the last few months i have been paying it off.

I think you know the answer.

CRISPIANNE3

TadleyBaggie wrote: »

Banks are reducing exposure even for people with perfect credit. I have no issues on my credit report, never missed a payment, current account always in positive balance etc. However Barclays have just reduced my O/D from £3500 to £500. It doesn't bother me as I have no intention of using it.

That is why they have reduced it then. They can give the excess to a customer who will now use the facility.

londonTiger

i have 5K on my barclaycards, which is the bigest credit limit i have and I use this card the least.

they all have different short term goals, soem will be looking to tighten their risk, others in the growth stage.

You may want to try a different bank if you phone and enquire about your credit limit and they refuse to chage it.