Credit Card limit reduced

rb10

matttye wrote: »

Very true!

Just thinking there must be SOME reason for the reduction. If she never hits the limit and repays in full every month they surely can't be too worried about her not paying the money back.

If she's spending c. £1100 per month on the card, then they'll be making more than enough in transaction fees to cover their costs of running the card.

I don't believe it'll be a profitability decision. More likely to be something on the credit report.

[Deleted User]

My guess is that 'the system' did this automatically. I'd be very surprised if a human being had anything to do with the decision - who knows what algorithm was used. Call them and hope that you get to speak to someone with an ounce of common sense.

You will probably have to get your call transferred to someone in the UK though as staff in offshore call centres invariably have very little authority to make decisions. Like I say, see what they say when you call and if the outcome is dissatisfactory take your business elsewhere - loyalty counts for nothing (with a few exceptions - Amex being one in my experience). From what you've said, it sounds like your finances are in order so you should have little difficulty in getting an alternative product. Based on your spending it sounds as though you would meet the eligibility criteria for the Amex Platinum Cashback or Gold Charge Cards. At the risk of sounding like an Amex fanboy, these are both excellent products and they generally wont mess you about with tiny limits (the Gold is a charge card so there isn't really a defined limit at all). Incidentally, I happen to have both of these cards and would be more than happy to refer you! :-)

YorkshireBoy

rb10 wrote: »

If she's spending c. £1100 per month on the card, then they'll be making more than enough in transaction fees to cover their costs of running the card.

Even if it's a 1-2-3 card and she's spending a lot on fuel, groceries, and at department stores, thereby maxing the cashback?

I don't believe it'll be a profitability decision. More likely to be something on the credit report.

I agree. Maybe the CRA monthly feed has highlighted missed payments elsewhere, or an increase in debt/available credit elsewhere (ie the CII figure)? Or maybe they're financially associated and the OP's financial situation has changed?

DTHEP

YorkshireBoy wrote: »

Even if it's a 1-2-3 card and she's spending a lot on fuel, groceries, and at department stores, thereby maxing the cashback?I agree. Maybe the CRA monthly feed has highlighted missed payments elsewhere, or an increase in debt/available credit elsewhere (ie the CII figure)? Or maybe they're financially associated and the OP's financial situation has changed?

Thank you could you explain CRA, CII figure and OP thanks

YorkshireBoy

DTHEP wrote: »

Thank you could you explain CRA, CII figure and OP thanks

CRA = Credit Reference Agency, ie Experian & Equifax

CII = Consumer Indebtedness Index

OP = Original Poster, ie you!

bingy_burge

Happened with my barclay card intial was putting 200-300 a month on and paying it off in full via dd. Not using anywhere near my limit and they sent me a letter saying they were reducing my limit by 25%.

I queried and they said they had re scored me and doing to everyone and thats why they werent bailed out by the government as they are a responsible lender. Asked if the card was maxed what would they of done and they said nothing we onlyd rop limits if the card balance is below it.

rb10

bingy_burge wrote: »

I queried and they said they had re scored me and doing to everyone and thats why they werent bailed out by the government as they are a responsible lender.

I hope you realise that's a rubbish excuse they've given you!

1. They weren't bailed out by the Government because they were bailed out by Middle Eastern investors instead.

2. It certainly wasn't UK credit card assets that caused banks to fail!

DTHEP

bingy_burge wrote: »

Happened with my barclay card intial was putting 200-300 a month on and paying it off in full via dd. Not using anywhere near my limit and they sent me a letter saying they were reducing my limit by 25%.

I queried and they said they had re scored me and doing to everyone and thats why they werent bailed out by the government as they are a responsible lender. Asked if the card was maxed what would they of done and they said nothing we onlyd rop limits if the card balance is below it.

The card was never max at any time, as of now she is over her limit now until we get the bill in, it was great knowing that we had half decent limit if it was needed.

[Deleted User]

DTHEP wrote: »

The card was never max at any time, as of now she is over her limit now until we get the bill in, it was great knowing that we had half decent limit if it was needed.

No need to stay over the limit until the bill comes in. You can make a payment at any time. You should be able to do this online or by phoning them up. Best to make the payment before the statement comes as that way you should get away without it being reported to the CRAs.

tinkerbell28

I don't buy the not profitable malarkey. I'm going to get my limits reduced tomorrow. As I clear in full if I use my card. I use them for s75 protection and my limits keep going up. It is bonkers. I could buy several cars on what they offer. I am wanting mine reduced!