Penalised for paying my Credit card!

Christopherwilson

I have just found out my credit history has been damaged drastically because my wife and I had a £750 credit limit( had £4000 but had it reduced ).didn't realize and was never told that even though we pay it off with in full, because we regularly use over 75% of the limit ( we put all our food and petrol on it) it effects our credit rating. If we'd left it at £4000 and used it just the same, we'd only used less than 25% of the limit and this would have made our credit history amazing! So frustrating.:mad::mad::mad::mad:

[Deleted User]

Your score and rating have nothing to do with anything.

boo_star

!!! wrote: »

Your score and rating have nothing to do with anything.

Agreed, ignore whatever nonsense the CRAs push as a "score."

Lenders don't use it.

robber2

Christopherwilson wrote: »

I have just found out my credit history has been damaged drastically..........

Out of interest who told you this?


Rob

Ben8282

Why did you reduce the credit limit? What was your motive in doing this?
You are quite correct that you should have left it as it originally was for several reasons.
However, so long as you are spending and repaying in full each month you are unlikely to be damaging your credit history. The problem that is likely to arise is that when you next apply for a new card, the lender will have no way of knowing you reduced the limit and not the credit card provider and therefore wonder why a reasonable limit was suddenly reduced by the issuer of the card to a low bad credit credit builder card type of limit.

boo_star

Ben8282 wrote: »

Why did you reduce the credit limit? What was your motive in doing this?
You are quite correct that you should have left it as it originally was for several reasons.
However, so long as you are spending and repaying in full each month you are unlikely to be damaging your credit history. The problem that is likely to arise is that when you next apply for a new card, the lender will have no way of knowing you reduced the limit and not the credit card provider and therefore wonder why a reasonable limit was suddenly reduced by the issuer of the card to a low bad credit credit builder card type of limit.

The limit may not have been reduced on request. "had it reduced" is at least ambiguous.

Ben8282

boo_star wrote: »

The limit may not have been reduced on request. "had it reduced" is at least ambiguous.

That is how I read it at first but the 'f we'd left it at £4000' changed my opinion.

boo_star

Ben8282 wrote: »

That is how I read it at first but the 'f we'd left it at £4000' changed my opinion.

Fair point.

A bizarre request at best.