Credit limit decrease

Blueyoshi

Hello

I received a letter from Aqua saying they had reduced my credit limit as I wasn't using the card (true I haven't used for 6 months only use for abroad)

Just worried it will hurt my credit file?

Advice please!

eskbanker

Having less available credit is generally seen as a good thing when assessing credit risk....

eskbanker

adindas wrote: »

Now regarding keeping your Credit cards alive showing activities, to prevent the same thing happen again in the future. You could link all of your creditcards with PayPal and buy 1p item on ebay and pay by PP each month to keep all of your CC alive.

Seems unnecessarily circuitous, why not just use the card(s) for stuff you'd normally buy anyway, such as food shopping, petrol or whatever? Paying statements off in full every month of course....

adindas

eskbanker wrote: »

Seems unnecessarily circuitous, why not just use the card(s) for stuff you'd normally buy anyway, such as food shopping, petrol or whatever? Paying statements off in full every month of course....

Myself, I actually sometimes combine it with self service check out in Tesco for item below £1.

I start from the assumption that people do not use some of their credit cards for daily purchase because they have many CCs or they have other better alternatives.

Advantages, to keep it alive like I mentioned on post#3
- You do not need to carry too many credit cards in your wallet, if you have many
- There are cashback and/or 0% for purchase CC or DC if you have it
- Other advantage on eBay It will boost the Positive feedback ....

eskbanker

adindas wrote: »

I start from the assumption that people do not use some of their credit cards for daily purchase because they have many CCs or they have other better alternatives.

Advantages, to keep it alive like I mentioned on post#3
- You do not need to carry too many credit cards in your wallet, if you have many
- There are cashback and/or 0% for purchase CC or DC if you have it
- Other advantage on eBay It will boost the Positive feedback ....

You're making a lot of assumptions there - that OP has multiple cards but doesn't want to carry them about, that eBay and/or PayPal are in any way relevant to them, that they'd be happy to start buying spurious stuff for the sake of it, etc.

I'm just assuming that OP buys food, which seems rather more likely as a base case....

adindas

eskbanker wrote: »

You're making a lot of assumptions there - that OP has multiple cards but doesn't want to carry them about, that eBay and/or PayPal are in any way relevant to them, that they'd be happy to start buying spurious stuff for the sake of it, etc.

I'm just assuming that OP buys food, which seems rather more likely as a base case....

Well, if the people needed to be told that they could use their credit card to buy stuffs food, they normally buys anyway, such as food, etc. to keep it active and they have not done so. I wonder whether they are suitable to hold a credit card in the first instance.

Blueyoshi

Thank you for your replies! The reason I don't use Aqua normally is because I have a cashback credit card for things like food and fuel etc. (The aqua card I have is advance so the rate will eventually be 19.9).

I will however charge Netflix to it or something piddly just so the card is being used and paid off every month.

I was just rather concerned that the limit decrease would hurt my credit file....

creativemieu

As already said above, the reduction should not hurt your credit file.

muhammadghori2014

Hi,
today i received TXT message from Halifax Credit Card that my limit has been reduced to £500 ONLY all the way from £2000. So i decided to get back in touch with them today itself. And guess what FOLKS it was the SYSTEM error which failed to activate my Direct Debit from March but started instead from May. as a result a late payment fell in my yard. I wasnt supposed to get one. As i have always been up to date with them. Bottom line i spoke to them and after a lengthy call of 1 Hour and 20 Minutes they realised their mistake and increased my limit to a new max of £2500 finally. You only have to stick to your complain and dont listen to them when they say that ' Sir after 6 months we will review your account status and then make a decision'. DO NOT LISTEN or AFREE TO THIS NONSENSE when u HAVe not done any MISTAKES.

[Deleted User]

muhammadghori2014 wrote: »

as a result a late payment fell in my yard.

Was this from a late payment tree? :think:

pvt

Deleted_User wrote: »

Was this from a late payment tree? :think:

They're "abundant croppers" on this forum...