Tesco credit cards cut your limit with no warning!!

easttorrens

We received a letter from Tesco bank saying they were reducing my credit card limit immediately with no reason why.
we are thousands of pounds under the original credit limit and have only been a customer for a few months after taking the card out after reading the reviews on this site.
Can they do this?

if so this card is now no longer any use what so ever to us!!

Herbalus

easttorrens wrote: »

We received a letter from Tesco bank saying they were reducing my credit card limit immediately with no reason why.
we are thousands of pounds under the original credit limit and have only been a customer for a few months after taking the card out after reading the reviews on this site.
Can they do this?

if so this card is now no longer any use what so ever to us!!

If there are thousands of pounds between you and your limit, why is the card no longer of any use if they lower it?

They can lower it, because if you're not using it then they won't want to keep that credit available to you when it could be available to someone else who might use it.

Have you been making all payments on time? Also, what is the limit and what are they lowering it to?

bengal-stripe

easttorrens wrote: »

if so this card is now no longer any use what so ever to us!!

Well, than close the card and get another card (with the required limit) somewhere else.

[Deleted User]

easttorrens wrote: »

Can they do this?

Of course they can, it's their money. It would be different if they reduced your limit to less than your outstanding balance - that's not allowed without prior warning. But since you are several thousand below your limit then maybe they have just decided to reallocate that credit elsewhere.

easttorrens wrote: »

if so this card is now no longer any use what so ever to us!!

So get a different one... Or call Tesco and ask them to reinstate your limit.

YorkshireBoy

Herbalus wrote: »

If there are thousands of pounds between you and your limit, why is the card no longer of any use if they lower it?

They've only had the card a "few months", so probably have a year or so of 0% left.

Maybe they're slow-stoozing? Maybe they're planning on a large purchase in the next month or two and would like 12 months 0% on it?

OP, lenders take a monthly feed from the credit reference agencies, which lets them know how you're managing your finances elsewhere. Is there anything else going on that could have spooked them?

_Andy_

"Can they do this?

if so this card is now no longer any use what so ever to us!!"

1) Yes.
2) Why?
3) If so, just go to another company

bargainbetty

Have you tried calling them to discuss it? Perhaps if you contact them and discuss your reasons for wanting the higher limit, they would reinstate it.

Be nice though, they have every right to do this - you do not have a 'right' to credit with them, and sine you were not using it, and automatic review may have flagged it for reduction.

quilty

Tesco have just increased mine by £2000 and I only spend £100ish a month on it and pay it straight back, I'm on interest free anyway, as suggested try calling them and see what they can do, I'm just going to transfer a balance over to them now, they are very helpful, in my experience anyway.

As others have said I don't know why it would now be no good for you as you are thousands under your limit?

mjm3346

quilty wrote: »

Tesco have just increased mine by £2000

That's where some of the OPs freed funds went.

quilty

mjm3346 wrote: »

That's where some of the OPs freed funds went.

If its true what they can see what your spending on other cards then they are doing their job lol, hence the balance transfer :oWeddings in 3 months are not advisable from me, but great all the same

YorkshireBoy

quilty wrote: »

As others have said I don't know why it would now be no good for you as you are thousands under your limit?

Even after reading the first line of my reply in post #5?