Halifax decreased my clarity credit limit

Gilbo_Baggins

Found out in my monthly statement that Halifax decided to decrease my limit by two thirds (£3000), leaving just £47 above my current balance. Meaning I can't really use it until after I clear the balance, which I always do just before the date required.

Just so annoying to reduce it by so much when my circumstances haven't changed, and I always manage my finances well.

SnowTiger

Gilbo_Baggins wrote: »

Found out in my monthly statement that Halifax decided to decrease my limit by two thirds (£3000), leaving just £47 above my current balance. Meaning I can't really use it until after I clear the balance, which I always do just before the date required.

Just so annoying to reduce it by so much when my circumstances haven't changed, and I always manage my finances well.

That's a bit surprising, especially as you clear the balance every month. I wonder what spooked them?

However, having said that, messages posted here suggest Halifax keeps the credit limits on their Clarity cards pretty low.

redux

Can you call them and ask for this to be reviewed, maybe back up to half or 60% what it was before?

pheonix254

Clarity limits are anything but low, in my experience. I was given a £5k limit when I was unemployed, my employed friends have 5 figure limits.

Personally - I'd check your £2 statutory credit reports, start with callcredit (via noddle as it's free). It is unusual to have limits dropped unless there is a good reason for it - such as additional access to more credit (you applied for anything recently? car? phone? mortgage, loan?) late payments showing up or a default.

Then again it could just be a routine re-evaluation - in which case, they are allowed to do it as per the Ts and Cs, but you can also request the reason and/or that they increase it again, though they'd be within their rights to refuse.

Gilbo_Baggins

They claim that my exposure limit is too high, yet it hasn't gone up in the last 6 months. Mortgage application is currently going through with Leeds building society which of course will have an impact.

But it's just frustrating more than anything. Could have lived with £2,500 for when I go to America, but not £1,500. Thankfully I'm not going until November this year so will apply for limit increase then.

JKSandy

I have a credit card with them, not a clarity one, and they have reduced it by £50 several times.

For me its not a big deal as I don't use it for purchases but maybe they are just starting to look more into card holders available credit.

PeacefulWaters

Gilbo_Baggins wrote: »

They claim that my exposure limit is too high, yet it hasn't gone up in the last 6 months. Mortgage application is currently going through with Leeds building society which of course will have an impact.

The most likely trigger.

But it's just frustrating more than anything. Could have lived with £2,500 for when I go to America, but not £1,500. Thankfully I'm not going until November this year so will apply for limit increase then.

Wifi and Faster Payments are your friend. Used in a timely way you could easily spend more than £1,500 without exceeding your limit.

chanz4

they upped myn without asking, and I only spend about £300 a month pay in full

20aday

I had a Halifax MasterCard in 2013.

In December I'd opened a Very account as they were offering an iPad Mini 2 on a BNPL plan. I was given a £1,000 credit limit.

Within a couple of weeks they'd written to me saying they were halving my credit card limit to £500 so I'm guessing opening a new line of credit 'spooked' them.

OhhToria

Had same issue where my limit was decreased. Didn't even receive a letter prior to this, which was incredibly inconvenient as at the time, I was living on the OD month by month (always paying off each month).

Gilbo Baggins, have you also checked your credit score rating recently to make sure nothing untoward is going on (unknown identity theft, for example).

molerat

OhhToria wrote: »

Had same issue where my limit was decreased. Didn't even receive a letter prior to this, which was incredibly inconvenient as at the time, I was living on the OD month by month (always paying off each month).

Gilbo Baggins, have you also checked your credit score rating recently to make sure nothing untoward is going on (unknown identity theft, for example).

Which would have raised a red flag on any account review.

I am surprised how different lenders look at things. I have been waiting for MBNA to reduce my limit or close the card, £7.5k and make a couple of sub £10 transactions a year for the past 3 years, total card + od limits 1.75 times my income. No logic to their decisions