Aquacard credit limit reduced for no good reason

philveller

Well it's almost exactly a year later and they've reduced my limit again from just under 3k to £1500, I've used the card about half as much largely due to Covid and working from home since last March, so no fuel, no wear and tear on the car, no travel abroad etc. 

But at least this time I got the letter with the line :-
"We’ve noticed you’re rarely using your full credit limit, which we think might mean you don’t need as much access to credit as you currently have on your Aqua card."

And they have said I can call to try to retain my limit, I'm going to try that tomorrow with the explanation that I will likely be buying several flights in the next 15 months at over £1000 per flight and I had considered buying a new second hand car later this year which will be harder now (I was going to put it on the card for section 75 protection but still clear it from savings the same month).

The problem with this reduction in credit limits is that as others have said it increases ones utilisation ratio and it is also a self fulfilling downward spiral as every time they increase your utilisation ratio you are going to reduce your spending to compensate and no doubt they will then further reduce your limit until the card is useless.

I've had the card 3 years and never carried a balance, I've tried to use it regularly on Amazon, eBay and for groceries and subscriptions in order to get them their merchant fees but if this keeps up the card really will be useless to me.

vonsworld

I cancelled my Aqua credit card for just such the same behaviour. Take it from me that no reputable credit card company behaves in this manner. I have been using various credit cards for 35 years, and apart from Aqua, have never had a credit limit reduced because I don't use the card enough. Do yourself a favour and find a different card company. 

[Deleted User]

vonsworld said:

Take it from me that no reputable credit card company behaves in this manner.

All credit companies behave in this manner. Managing limits is absolutely standard.

adamp87

vonsworld said:

I cancelled my Aqua credit card for just such the same behaviour. Take it from me that no reputable credit card company behaves in this manner. I have been using various credit cards for 35 years, and apart from Aqua, have never had a credit limit reduced because I don't use the card enough. Do yourself a favour and find a different card company. 

Barclaycard not reputable either? 

It’s common practice at the moment with lenders in the midst of the financial fall out from Covid. 

Dandytf

adamp87 said:

vonsworld said:

I cancelled my Aqua credit card for just such the same behaviour. Take it from me that no reputable credit card company behaves in this manner. I have been using various credit cards for 35 years, and apart from Aqua, have never had a credit limit reduced because I don't use the card enough. Do yourself a favour and find a different card company. 

Barclaycard not reputable either? 

It’s common practice at the moment with lenders in the midst of the financial fall out from Covid. 

MBNA the list continues...

StephenM_2

Dandytf said:

MBNA the list continues...

MBNA have just given me an unsolicited £5000 increase.

philveller

I called them today and they reinstated my previous limit available immediately, I did ask if they were likely to change it again and they simply said we review the account every 3 to 6 months, so I expect it will happen again.
The support chap was very helpful after I got through but the phone queue was very long.

yorkie2021

vonsworld said:

I cancelled my Aqua credit card for just such the same behaviour. Take it from me that no reputable credit card company behaves in this manner. I have been using various credit cards for 35 years, and apart from Aqua, have never had a credit limit reduced because I don't use the card enough. Do yourself a favour and find a different card company. 

I did the exact same!  Completely unacceptable from them.