Forum Home» Credit Cards

RE: credit card limit reduction

New Post Advanced Search
Important update! We have recently reviewed and updated our Forum Rules and FAQs. Please take the time to familiarise yourself with the latest version.

RE: credit card limit reduction

edited 30 November -1 at 12:00AM in Credit Cards
1 reply 746 views
GambledLifeGambledLife Forumite
66 posts
Second Anniversary
edited 30 November -1 at 12:00AM in Credit Cards
Hi Guys,


As I have mentioned in my other posts I have loads of credit cards with lots of debt and in 5 months I have reduced my debt from £39844.51 to £31873.73.

Today I got a text / email from Halifax saying they are reducing my credit limit from £6550 to £5050 (Current balance is £4850) I don't mind this as I'm not using the card any more just paying back the debt.

My Questions:

Will the card reduced limit have a negative affect on my credit rating (it just started to pick up again)?

Can a card reduce my limit to an amount lower then is in use?

Can/ would a card reduce my limit lower then the current balance plus the interest of the months statement?

e.g. If my current balance is £6000 and i make a payment of £200 they then lower the balance to £5800 even though the interest due in that month is £125




Thanks for any help

Replies

  • zx81zx81 Forumite
    30K posts
    Tenth Anniversary 10,000 Posts Photogenic Name Dropper
    ✭✭✭✭✭
    You don't have a credit rating. Just credit history.

    A small drop, as long as not in conjunction with other negative factors, won't concern most lenders.

    It won't drop below your balance and they will account for interest
Sign In or Register to comment.

Quick links

Essential Money | Who & Where are you? | Work & Benefits | Household and travel | Shopping & Freebies | About MSE | The MoneySavers Arms | Covid-19 & Coronavirus Support