Co-op Credit card limit decreased with no warning!!!

Westie983

my credit card not from COOP thought was reduced last week from £4750 to £500. no warning, logged onto internet banking at 8pm tp check a refund had been processed, logged back in in the early hours again, and it had been reduced!!!

Spoke to my credit card provider and they said they have reduced the limit based on credit references....

Crazy really as they increased the limit a year ago, I was only using £500 of the limit maybe that was why...

crystal_pixie_2

I had the same problem with Lloyds. I started off with a limit of £2200 and they reduced it to £400. I got the hint and cancelled the card.

dazzaofdagenham

On the same note..

Had a Halifax card for 15 years...and had a limit of 12000 and used to out everything on it...from daily shopping to household bills to insurance and holidays.

Then for what seems to reason whatsoever they reduced limit from 12000 to 850 pounds...and for me that made the card unusable for my family budgeting....

I asked on the phone and wrote to them asking why and if the limit could be taken back to 12000.......NO was the answer and no explaination was ever given....so I closed the account and opened a tesco credit card for the same purpose.

crystal_pixie_2

I wonder if this is a way of getting rid of you? My Lloyds credit card was paid off each month without fail, so I am guessing I wasn't a viable customer.

I transferred my current account from Lloyds to Handelsbanken and the limit was lowered.

Coincidence? Maybe.....

chelseablue

crystal_pixie wrote: »

I wonder if this is a way of getting rid of you? My Lloyds credit card was paid off each month without fail, so I am guessing I wasn't a viable customer.

I transferred my current account from Lloyds to Handelsbanken and the limit was lowered.

Coincidence? Maybe.....

Good point.


I have a Halifax credit card, the limit is £6,200 but the balance has been 0 for months.


Interesting to see if they ever lower it

CLAPTON

crystal_pixie wrote: »

I wonder if this is a way of getting rid of you? My Lloyds credit card was paid off each month without fail, so I am guessing I wasn't a viable customer.

I transferred my current account from Lloyds to Handelsbanken and the limit was lowered.

Coincidence? Maybe.....

CC companies make money from the retailers for every transaction

about 50% of CC are paid in full each and every month

JKSandy

My Halifax card randomly goes down by £50 every now and again lol

alba0re

Card companies are bound by regulation to ensure that the credit they are extending to you is affordable, and will monitor your credit report as part of this process. If you were to take out more credit cards, for instance, you suddenly have access to more credit, in which case the lender has to assess whether your existing limit is still affordable. This also makes business sense for the lender, as they need to manage their own exposure.

Of course, they could also decide they don't want your business any more (you might not be at all profitable to them) and make your account less attractive in the hope you will go elsewhere.

robin58

cos wrote: »

My credit limit was reduced from £4000 to £400 and I was given no indication why. I had no outstanding debt so it was ok, and I just cancelled the card. I'd used the card quite significantly prior to reducing the balance to zero.

I suspected they wanted to reduce their banking exposure.

I had a credit limit of £11,200 built up over years of use. Did not use it for awhile and recently they reduced it down to £250.

When I got onto them I was not told of any reason why it was done. My credit score (I know don't trust it) is very very good.

The only thing I was told which I considered was bull....!, that it was to protect myself from fraudulent use!

Personally I with you cos, since the bank went through a very badly run period where it was then bailed out by others, they were told to go through their accounts and cut down the limits.

Strange thing is it has not affected my other credit card limits, in fact one is trying to offer me very good reasons to borrow money or transfer other credit cards balances.

chuckley

I seriously don't trust co-op anyway. that is an extreme drop though. but co-op have you on 'red alert' with any kind of mishap. with that 3 strikes and you're out' clause on basic/current accounts.