TSB Credit Card - limit reduced after 3 months

wolf475

hi

I applied for and received a TSB card in mid February. This card was for balance transfer purposes as it was 0% for around 20 months. I transferred up to the maximum from one of my other cards, and since then I have received two statements - against which I paid the balance transfer fees in full (on the first statement), and also paid more than the two minimum payments requested.

I have not made any purchases or cash advances on the card - indeed I cut it up within days of receipt.

Today I received a letter saying my credit limit was being reduced by £100 as a result of a review into the way I have managed my account!

This seems bizarre after only 3 months. It's no big deal in the long run as I wasn't planning on using the card for any reason other than to clear down my card balances but it seems very strange all the same.

Any similar experiences?

thanks

B19JON

Had exactly the same with Nationwide with a BT card. Was reduced by £300 after 2 months!

jonesMUFCforever

What other lines of credit/debts do you have?
Anything on the CRA's which might have made them think twice about lending to you such as late payment markers or worse etc?

wolf475

jonesMUFCforever wrote: »

What other lines of credit/debts do you have?
Anything on the CRA's which might have made them think twice about lending to you such as late payment markers or worse etc?

No additional credit since I took out this card - I've never missed a payment or defaulted on any loan.

chattychappy

Sounds like an IT "funny" to me. Some well-meaning algorithm on a frolic.

pmartin86

chattychappy wrote: »

Sounds like an IT "funny" to me. Some well-meaning algorithm on a frolic.

Quite possibly the funniest thing I've heard in a very long time, good effort!

Thrugelmir

wolf475 wrote: »

Today I received a letter saying my credit limit was being reduced by £100 as a result of a review into the way I have managed my account!

This seems bizarre after only 3 months. It's no big deal in the long run as I wasn't planning on using the card for any reason other than to clear down my card balances but it seems very strange all the same.

If a balance transfer is your entire activity on the card. Then you're not going to generate much income for the lender.

While you take it personally. The decision to reduce limits will impact many others as well. And as is as the result of a commercial decision. Providing unused credit facilities isn't cost free.

jonesMUFCforever

wolf475 wrote: »

No additional credit since I took out this card - I've never missed a payment or defaulted on any loan.

Clever! But that was not the question asked - I have to assume that there are other outstanding debts which you could claim are serviced without a problem due to not missing any payments but to a lender it might mean you are treading water.