Reduced my credit limits - Big mistake

indesisiv

sourcrates wrote: »

That's both unbelievable, and frightening, in equal measure !!

I have 3 cards each with a limit of over 14k on each one. If I maxed them all it would easily be more than my annual salary.

EssexHebridean

Worth joining Noddle too - also free and access to LOTS of useful info there.

Bearcat the issue of banks increasing credit limits automatically is one that I wish Martin/MSE would tackle - it's appalling. Nationwide offer you an increase, but you have to physically accept it in order for it to be put into place, so there is at least a solid thought process to be gone through.

Bumblebear

EssexHebridean wrote: »

Bearcat the issue of banks increasing credit limits automatically is one that I wish Martin/MSE would tackle - it's appalling. Nationwide offer you an increase, but you have to physically accept it in order for it to be put into place, so there is at least a solid thought process to be gone through.

Couldn't agree more. I was given a credit card by my bank aged 18, honestly, I hardly even knew what one was, but I said OK to the minimum amount they would allow. 6 months later it quadrupled anyway... It happens with every card I've ever had, and if you're not in the right place when you're using it, goodness me it makes getting into debt easier. Thanks for the information about Nationwide, I was thinking about moving to their credit card once I've finished paying my current one off anyway, just to keep a credit rating ticking over, but I think you've just sold it to me!


Thank you for raising the question meridian4. I'm always confused by the conflicting information on this subject and have also fallen foul of lowering my credit limit (to avoid temptation) too soon in the past. It is annoying to be scuppered when you're trying to do the right thing! I hope you're able to sort your situation out.

Windofchange

I've been doing as you have been for the past god knows how many years and it is a minefield to say the least. I am going to finally get debt free this year with any luck - reminds me, I need to update my signature...

I have three main cards - an MBNA with a 9k limit, a barclaycard with a 13.5k limit and a bank of scotland with a 6k limit. i have 600 to go on the bank of scotland and 4200 on the Barclaycard. The MBNA has been clear for years but I haven't bothered to shut it down. I too have a long trail of cleared cards that I have taken over the years. A Halifax with a few k limit, a Vrigin with a 10k limit last time I looked, another barclaycard with a 3.8k limit that used to be an Egg card before they got taken over and an M&S one somewhere I think that is also cleared.

I guess the point I am making is that I have a lot of unused credit. I reckon added up I must have access to about 100k which is just madness. I was going to close some but they don't make it easy. The Virgin one for instance the guy on the phone just kept saying I may as well keep it and if I wanted to close it I need to write this that and the other. I gave up in the end. I am worried what impact closing all these accounts will have on my score which is up in the 900's currently.

I got in a lot of trouble back in the day with these cards - guess that is why they are throwing them at me. They kept increasing my limits and I came very close to bankruptcy. It's taken me 15 years to get to this point where I am going to see the back of them.

This thread has spurred me to have a sit down and look at all these cards over the weekend. Think I will close the ones I have that I am not using and just keep the main three. One for spending on every now and again once clear and the other two as rainy day funds I guess. The finance industry is like dropping an alcoholic in the middle of a pub with 10k. I'm not surprised unsecured debt is spiralling out of control.

sourcrates

indesisiv wrote: »

I have 3 cards each with a limit of over 14k on each one. If I maxed them all it would easily be more than my annual salary.

And they wonder how people get into debt !!

I think this is a prime example.

meridian4

Hey to all of you who answered my initial plea for advice. Thank you all for your kind and detailed input.
So, it's not just me who is/was/still is, confused by the 'available credit' minefield.
From what you have all reported, I think it best not to close any of the cards I have at present. I'll just leave the cleared ones in limbo. (Actually, just as Sharon87 reported, I received an unsolicited credit limit increase from Halifax only yesterday!!)
So, as I'd REALLY prefer a BT using 0% and 0% fee, I'm going to try for the Virgin card I mentioned above. If that is refused (can't imagine why it would be, but hey, never count your chickens... I'll appraoch one of my cleared cards for a 0% deal. As MrsTinks wisely advised, I have now calmed down :-) and can think more clearly now.

One quick question if anyone knows the answer? I made a lump sum payment to one of my cards last week, do you know when that kind of reduction would be relayed to your credit score? Within days, or is it done on a monthly cycle. Month end or statement month end?
I know, I know, I do overthink things at times - sorry !!!! :-)

Caspercat84

I was told that it is done every 30 days or so BUT different companies report back to Experian/Equifax at different rates.
when I tidied it all up last year, my capital one showed the next month, but my Halifax card took 2 months to update.
it depends on each individual company I think.

meridian4

Thanks for that Caspercat84 - I thought there wouldn't be a clear answer to my last question - there never is with anything Credit related, is there?

meridian4

EssexHebridean wrote: »

Worth joining Noddle too - also free and access to LOTS of useful info there.

Thanks for the tip about Noddle. I have just joined, and yes, excellent site giving free access to my actual report.

I see on the Search history, that Clearscore carry out a search every month to update my score on their site. It's termed a 'Quotation Search'
I presume that is not going to be classed as a real Search, surely? Maybe classed as one of the Soft Searches?

Thanks again

meridian4

OK guys - I am now sorted. Got the MBNA card: 32 months at 0% and 0.64% transfer. but the £20 cash back covers the fees.
It was shown as 100% acceptance on MSE soft search, and went through without a hitch, giving me enough available credit to transfer the last 2 cards I have.
Sooo looking forward to being finally debt free. This was my last move (hopefully) toward freedom.

Good luck to all who are doing this - it's a journey worth taking.