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RE: credit card limit reduction

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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


  • 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
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