Halifax Clarity - credit limit lowered from £5000 to £500

PCN_advice_needed

I've had a Clarity credit card for some years, and I was surprised to see that my credit limit had been lowered by them from £5000 to £500 a few weeks ago. I use the card when abroad for cash withdrawals and paying for things as there's no transaction charges. There was a small balance on it but I paid that off pretty sharpish.

On calling them, I couldn't get a clear answer - the person I spoke to put me on hold and spoke to the Lending department (apparently) who said it wasn't a change in my credit score with them, but it might have been something else.

Having registered with Equifax and a couple of others to get free credit score reports they all look healthy and I'm at a loss to understand how to get the credit limit raised again - my financial circumstances and spending haven't changed radically and it's a pain because if I'm abroad for work I can rack up £1500 - £2000 in expenses pretty quickly.

What's the best approach to finding out what data Halifax based their decision on, and if I need to what's the best way to follow the chain back to the original organisation which collected that data ?

[Deleted User]

PCN_advice_needed wrote: »

What's the best approach to finding out what data Halifax based their decision on

There isn't one. It's confidential and they won't share it with you.

They may simply be reducing credit liability across the board. What sort of balance did you typically have?

PCN_advice_needed

Depends. Mostly nothing more than £1500, more often than not a zero or sub £100 balance.

The pain is that I can no longer rely on this card for using abroad for expenses - £500 won't last long on some of the trips I do.

noh

Have you asked them to increase the limit?

dj1471

Do you regularly spend more than £500 a month on it? If not that's probably the reason they've lowered the limit.

Your best bet is to apply for an alternative fee-free card such as the Creation Everyday:
http://www.moneysavingexpert.com/travel/travel-credit-cards#compare

john1002

I doubt you will change there minds to be honest but wait 4-6 months and just apply for a new limit to what you had, you may get it or a smaller one but should get an increase.

It is a pain but have a search on here and you will see it happens all the time, it is easy to take it personally but your just a number and I’m sure you will get back.

Happened to me and I’ve now got a higher limit than I had before they reduced it some 12 months ago.

Good luck

John

Superscrooge

According to MSE. Halifax credit cards use Experian and Call Credit rather than Equifax https://www.moneysavingexpert.com/credit-cards/credit-reference

So probably worth checking the other CRA's just in case?

Have you opened any other credit cards recently, or taken on any other loans, remortgaged etc?

Bank of Scotland CC got spooked last year when I took out further 0% credit cards and twice reduced my credit limit with them.

chattychappy

Could be somebody has pushed the wrong button, entered a "-" instead of a "+" when updating an algorithm....

Some years ago Halifax did this to a cohort of perfectly good customers. Limits were reduced to £500 temporarily with a letter that told them that a month later their accounts would be closed. Happened to me on an account that was dormant. Couldn't understand it but wasn't bothered. Sure enough, the account was closed. A little later it was all discovered to be a terrible mistake and they were re-opening the accounts of affected persons on request.

It was before the days of Clarity which I have since obtained. I'll repost if the same happens to me! My limit is £9600, but my outstanding balance is rarely more than £500 because I'm using it for foreign cash which I pay off within days.

Ben8282

Such a massive credit limit reduction is highly unusual. Something in your credit files must have spooked them

photome

Ben8282 wrote: »

Such a massive credit limit .is highly unusual. Something in your credit files must have spooked them

£5000 isn't massive

Vortigern

Ben8282 wrote: »

Such a massive credit limit .is highly unusual.

photome wrote: »

£5000 isn't massive

It's not unusual either.