RE: credit card limit reduction

GambledLife

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

[Deleted User]

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