Credit Utilisation issue

linedadelas

I recently re mortgaged and part of this process the bank said I had access to too much money and they were not happy. I was advised to cancel or lower my available credit on my credit cards. Some had limits of £8k (I think I have 6 cards in my wallet). Roughly I had access to around £45k but I’d never be a fool and spend that all.

So to keep them happy I lowered my limits and was accepted however I did query with them before I did this as I was concerned it may affect my credit score as my lower limits would affect my credit utilisation. They said it wouldn’t but on research I was sure it would.

As it now stands it clearly has affected my credit utilisation and my score is now down by a good 100 points.

Should I be overly concerned ?
Should I increase my limits to change the percentage of utilisation to increase my score again?
I’m only annoyed with the banks as they told me it wouldn’t change and I was correct in the fact that it did.

[Deleted User]

No.  Your score drops with any change and warm or cold weather.

It's not something a lender will ever see or care about. It's purely a comedy gimmick.

2e0arr

Consider these principles from the FCA. I can see a complaint when you get your mortgage and maybe smell FOS compensation money or gesture of goodwill money for you when you complain?
1 Integrity. A firm must conduct its business with integrity. Is giving wrong advice showing integrity
2 Skill, care and diligence. A firm must conduct its business with due skill, care and diligence. If giving wrong advice and you follow it and get the mortgage and then you are able to then raise credit limits maybe using due diligence ?
5 Market conduct: A firm must observe proper standards of market conduct. Is giving wrong advice observing proper standards of market conduct ?
6 Customers' interests. A firm must pay due regard to the interests of its customers and treat them fairly.  Was them giving you wrong advice not in your interest? If you have the mortgage no what is to stop yo raising your credit card limits ? would they cancel your mortgage ?
7 Communications with clients. A firm must pay due regard to the information needs of its clients, and communicate information to them in a way which is clear, fair and not misleading.
Was their advice that your credit score would not be affected was incorrect misleading and unfair ?
8 Conflicts of interest. A firm must manage conflicts of interest fairly, both between itself and its customers and between a customer and another client.  Was there was a conflict  of interest between your bank, yourself  your, your credit card companies and  credit score agencies ?
9 Customers: relationships of trust. A firm must take reasonable care to ensure the suitability of its advice and discretionary decisions for any customer who is entitled to rely upon its judgment.    Its advice was incorrect ?

eskbanker

linedadelas said:

Should I be overly concerned ?

No.

By following the bank's advice you got your mortgage - would you have preferred to have retained your made-up number but not have the new mortgage?

Having said that, if a bank employee unequivocally told you something that isn't actually true then that isn't good, so if you feel it's worth pursuing, then complain - if nothing else they'll listen to the call recording and educate the employee accordingly.  Chances are there won't be any tangible impact on you - even if future credit applications are declined, at least some of the change in 'score' could probably be attributed to the remortgage rather than simply the lower CC limits - so it's hard to argue that you've actually suffered any loss as a result of the conversation....

2e0arr

If they gave you advice on the phone ask for a Subject Access Request for a copy of the phone calls it will cost you nothing . Listen carefully to them for the advice they gave.