Unsolicited Credit Card Limit Increases

macloud

These have recently been in the news but I cannot see any comment on here. May have missed it.

Anyway, I got an unexpected letter from my CC company offering to increase my credit limit from £8,500 to £9,800. I had not asked for this and I certainly don't need it. Bit irritated really as we hear constantly of folks getting into debt easily and, with difficulty, extricating themselves from the same. Dodgy CC tactics, I reckon.

Anybody else got this type of 'offer' ? How did you deal with it ?

I rewarded my CC company with a request to reduce my credit limit from £8,500 to £6,000 ! They complied without comment. I doubt they will try that one again.

[Deleted User]

Just about everyone gets them.

If you want it, you don't need to do anything. If you don't, tell them.

Unless you have self control difficulties, it's generally a good thing to accept, as it demonstrates you are trusted with credit. Limit reductions imply the opposite.

Your card company will offer limits in the future unless you advise them otherwise.

jonesMUFCforever

macloud - I think you are reading too much into this.

Credit increases are offered to customers with a history of managing their account well.
A lot of credit limit increases these days are done by you having to opt in rather than opt out.

redpete

macloud wrote: »

Anybody else got this type of 'offer' ?

Fairly regularly, it's standard.

How did you deal with it ?

Usually ignore it and let it increase. I don't believe it will have a detrimental affect on my credit scoring as I don't plan on applying for credit for which my score is critical. If I wanted to leave room to apply for another or a replacement credit card I would just ask them to reduce the limit, as you have found out this is straightforward. It's certainly not worth worrying about relative to many other things in life.

antrobus

Providers have agreed to a voluntary code being developed by the Financial Conduct Authority (FCA), the City regulator, which would see restrictions and choice on credit limits.
They will start asking new customers for their consent before raising limits, and give them the option to carry on receiving uninvited increases. Existing customers will be given the option to ask their lender to require their consent

Credit card limits 'need control'
http://www.bbc.co.uk/news/business-42009118

Biggles

I pay no attention, apart from making a note of the new limit for my records.

I never fully use the credit limits on any of my cards, so it won't alter the way I use them.

IAmWales

I rewarded my CC company with a request to reduce my credit limit from £8,500 to £6,000 ! They complied without comment. I doubt they will try that one again.

I doubt your actions will have any bearing on future credit decisions. Increases like this are computer generated, based on your credit worthiness and card use, not whether the customer has rang up for a bit of a moan.

[Deleted User]

It's in the T's and C's for most CC companies.

It's really not a big deal - you want it - great. You don't - refuse it.

Simple

twiglet98

Nationwide regularly write to offer increases that are opt-IN, ignore it and they'll send another letter in 3 months. Barclaycard have often increased mine without notice, I'd have to opt-OUT of theirs.

PeacefulWaters

macloud wrote: »

I got an unexpected letter from my CC company offering to increase my credit limit from £8,500 to £9,800.

That means they like you.

Bit irritated really

It is a complement.

as we hear constantly of folks getting into debt easily and, with difficulty, extricating themselves from the same. Dodgy CC tactics, I reckon.

They set a limit. It's not an aspirational target.

Anybody else got this type of 'offer' ? How did you deal with it ?

I retain exactly the same spending pattern as I did before the change. I spend nothing more. I clear the balance in full every month. I pay no interest.

I rewarded my CC company with a request to reduce my credit limit from £8,500 to £6,000 ! They complied without comment. I doubt they will try that one again.

I doubt it will make the slightest difference to how their behavioural scoring works.

Do you think there's a little man telling the computer not to bother next time?

wiseonesomeofthetime

I have had credit card limit increases on three of my cards in the last twelve months. Two of them were for cards I had used for balance transfers and since paid off and left on a zero balance.

Why do I not close them?

Well, because I am stoozing on a different 0% purchase card to the tune of over £11,000, I keep the other two unused cards to reduce my credit limit utilisation percentage.

Just because they both increased my credit limit, it did not inspire me to use them again as I never pay credit card interest and so would not suddenly spend over £14,000 on the two cards, just because it's available to me.

With my now defunct Barclaycard Platinum card (the free foreign spend to 2018 version) due to no foreign holiday planned until 2019-20, I now have over £18,000 of available funds.

When my BT and purchase deals are close to expire, I shall clear both from my regular saver accounts and then quit stoozing and fall back to just a credit VISA card with a back up credit MASTERCARD and bin the rest.

Sometimes, stoozing just becomes more effort than it's worth and would leave my family in a right mess should I suddenly expire myself.

WE may understand our methods, but how many people here leave a flowchart or guidance for their loved ones to direct them through WHAT is WHERE for WHICH pot??

I digress. Apologies.