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Aquacard credit limit reduced for no good reason

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Aquacard credit limit reduced for no good reason

edited 30 November -1 at 12:00AM in Credit Cards
60 replies 7.8K views
vonsworldvonsworld Forumite
71 posts
Part of the Furniture 10 Posts Combo Breaker
edited 30 November -1 at 12:00AM in Credit Cards
I have an Aquacard credit card which I have held for about 8 years.
Recently they contacted me to say they were reducing my credit limit to an amount which is "more suitable for my level of use".

I have an excellent credit rating with all the agencies, no negative factors, and have never missed a payment. I have been using the card regularly, but only have a balance of a few hundred pounds and always pay this off entirely after receiving a statement, so I pay no interest.

Is it just a case that because I am making little profit for them they are behaving like reptiles and reducing my limit?

I have other credit cards which I also pay off in full, a couple of them have 5 times the credit limit of the aquacard, and they have never acted by reducing my limit. In fact I have held credit cards for 30 years and have never had a limit reduced because I am not using the card enough.

What do you think?

😊
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Replies

  • zx81zx81 Forumite
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    It's a combination of risk, usage and their own exposure.

    It's very common, so nothing to worry about. Certainly nothing reptilian, unless you believe yourself to be a mouse.
  • [Deleted User][Deleted User]
    0 posts
    MoneySaving Newbie
    vonsworld wrote: »
    What do you think?

    😊

    I think you're over-thinking things.

    You've admitted to only using it for a few hundred pounds - what was the original limit and the new limit?

    It's likely they are just cutting back on their lending requirements, and probably 100 other people got the same letter as you.
  • john1002john1002 Forumite
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    Part of the Furniture 500 Posts
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    Yep me too, totally understand it as I had a £5700 limit reduced to £4400 but only ever maxed out card to £2000 maybe once in 5 years, most other times £400 average a month, I have lots of cards and credit available so in the grand scheme it is not an issue, they want to reduce risk/liability or give it to other customer who may use it more that’s fine with me.

    If you want to try and get it back up just contact them, explain your reasons maybe future high purchase and see what they say.

    Suspect more companies will do this as their own needs change. Having a good mix of cards/limits promotions and facilities allows people to ride times such as these.

    John
  • CakeCrusaderCakeCrusader Forumite
    1.1K posts
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    They did exactly the same to me when I cleared the balance in a lump sum. I didn't use the card, and a couple of months later they did it again so I cancelled it. I think they don't want people to clear their balances, there's nothing in it for them if they do.
  • born_againborn_again Forumite
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    vonsworld wrote: »
    Is it just a case that because I am making little profit for them they are behaving like reptiles and reducing my limit?

    I have other credit cards which I also pay off in full, a couple of them have 5 times the credit limit of the aquacard, and they have never acted by reducing my limit. In fact I have held credit cards for 30 years and have never had a limit reduced because I am not using the card enough.

    What do you think?

    ��

    Certainly not anything profit related or they would have closed it.
    If your not using it much, then be thankful that they are taking a positive step and reducing your risk exposure.

    Might be worthwhile dropping some of the cards if you are not using them. You will see more of limits reduced as card provider look to reduce their risk exposure.
    Regulator is looking at things like this. After seeing so much debt some people get into.
    Family is for life not just Christmas
  • Important update! We have recently reviewed and updated our Forum Rules and FAQs. Please take the time to familiarise yourself with the latest version.
  • gionnettogionnetto Forumite
    223 posts
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    vonsworld wrote: »
    What do you think?

    😊
    Credit card companies make money in two ways:
    1) the interest they charge on your outstanding balance
    2) the fee they charge merchants when you use them for a transaction

    Therefore, if you don't carry a balance or you don't use them much, they might decide you are not profitable and reduce your limit.

    The win-win situation would be to use them for almost everything and pay off each statement in full. That way, they'd make profit off of you and you wouldn't pay any interest.

    Cheers
    Your cholesterol levels are not seen, or used, by your heart and arteries, so ignore it.
    :eek:.
  • cymruchriscymruchris Forumite
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    Sometimes there's no rhyme or reason to what they do - I've had an Aqua card for about a year - Use it often - sometimes into 4 figures - always clear in full by direct debit - never missed a payment - never late - never paid a penny in interest. The card is run by NewDay - who also operate a number of other cards. I applied for an Amazon platinum card - also by NewDay (APR 21.9%) - got accepted online - the next morning in the post I received a letter from Aqua telling me that due to my recent activity they were increasing my APR by 5%. That letter would have been sent prior to me making the Amazon application - so on one hand - due to my awful behaviour of paying everything in full for a year and not paying interest - it was being put up 5% but on the other hand - welcome to my new amazon platinum card at 21.9% interest. I don't think sometimes their left hand knows what their right hand is doing.
    An ex-bankrupt on a journey of recovery. Feel free to send me a DM reference credit building credit cards from the usual suspects :) Happy to help others going through what I've been through!
  • stehoukstehouk Forumite
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    Iv'e had my limit reduced it is now £2000, i only use it for overseas spending and always pay off in full, my highest spend was £1100 when they had an offer of £50 cashback which i took advantage of, that's ok with me as i have other 0% cards available.
  • MallyGirlMallyGirl Forumite, Board Guide
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    Fundamentally they need to ringfence the money to cover the possibility of you spending up to your credit limit and that is 'dead money'. If you never go near your limit why should they continue to do that.
    We have a borrowing facility on our flexible mortgage - we were nowhere near the limit so they asked to drop it. As it happened we were about to spend a whole lot on a big extension so the facility was about to be used - as a result of a conversation they kept it at existing level.
    I'm a Board Guide on the Debt-free Wannabe, Loans & Credit Cards boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Board guides are not moderators and don't read every post. If you spot an inappropriate or illegal post then please report it to [email protected]
    Any views are mine and not the official line of MoneySavingExpert.com.
  • foxy-stoatfoxy-stoat Forumite
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    Aqua's interest rate is over 35% - they are doing you a favour.
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