cc use it lose

keefie10

Recently changed banks Ie lloyds to nationwide,had a cc with lloyds for about 20 years with a £15000 limit not used for a while as no need toand nil balance! just had a letter saying they dropping it to £500 and canceling the cc in two months because i dont use it often enough any thoughts on this ?:o

MothballsWallet

I guess they're allowed to do it because you haven't used the card for so long, and you're possibly costing them money to keep the account open with that limit for you.

Do you still need the card? If not, follow their procedure to close the account down, and it will (after enough time has passed) improve your chances of getting credit in the future.

SuperHan

The Lloyds group have been making an effort to reduce the amount of unused, available credit they have on offer to customers, I believe in a big to strengthen their balance sheet after government guidelines came in to play.

They've seen the card as unused and looking unfavourable to them, so they're closing it. Not much you can do I'm afraid!

The_Boss

Nothing more to add to the above really except they are within their rights to do this as long as they have provided notice.

Anthorn

Credit limits have to be backed up with actual funds and I don't think that's changed since 2008/9. So if you have a credit limit and not using it that's dead money. There are also administration costs to consider.

The other likely reason is that they're not making any money from you.

chattychappy

Dormant accounts are seen as a fraud/money laundering risk. There are also some admin/compliance costs in keeping them open.

jonesMUFCforever

Agree with all other posters - all you needed to do was use the card once or twice every couple of months to keep it ''live''.


If you really want to keep the card give card services a ring to see if they are willing to give you a higher limit than the proposed £500.
It might mean a fresh credit check on you or perhaps apply to the Nationwide as they are now your main bankers.

forgotmyname

Ive had letters from the Halifax saying they will remove my overdraft on a set date. Usually a month or two not right away.

I thought its probably because i only used the account to pay the phone and electric bill DD and nothing else.

I stuck £1000 in and added a few more DD's. Used it for ebay also and they never removed the overdraft.

I have never used it but i prefer it to be there just in case. Rather pay a silly fee than go overdrawn or get refused to pay something.

When i upgraded to the reward account it asked if i wanted to keep the overdraft and said its not the best way to borrow.

But i thought surely its better than the charges for not having one? Instant £12 or £20 hit for going overdrawn then how much a day £??

reclusive46

forgotmyname wrote: »

Ive had letters from the Halifax saying they will remove my overdraft on a set date. Usually a month or two not right away.

I thought its probably because i only used the account to pay the phone and electric bill DD and nothing else.

I stuck £1000 in and added a few more DD's. Used it for ebay also and they never removed the overdraft.

I have never used it but i prefer it to be there just in case. Rather pay a silly fee than go overdrawn or get refused to pay something.

When i upgraded to the reward account it asked if i wanted to keep the overdraft and said its not the best way to borrow.

But i thought surely its better than the charges for not having one? Instant £12 or £20 hit for going overdrawn then how much a day £??

I had to agree with this. I find it silly that banks remove a small overdraft if the customer doesn't use it. I'd much prefer to have a small overdraft on my account in case I make a mistake with a payment or forget to transfer money over. I'm always well in the credit but I just like having it just in case. I don't want to be charged a small fortune.

planteria

is the card of any benefit?....seems not as you havent been using it.

perhaps you should speed up the process by calling them to close, and then applying for a card that you want. i put my spending on Amex wherever i can & generate cashback in the process. managed properly, it's free money:)