Credit card limit dropped by card issuer to £500, will this affect my credit rating?

Ebe_Scrooge

Fidelia said:

Once debt-free I was eager  to improve my credit score

They don't think I NEED the credit available.

My credit score is now rated 'excellent'

Your score is meaningless.  The recent swathe of cuts in limits has more to to with economic uncertainty and banks trying to limit their exposure than anything else.

And (this is a general point, not directed solely at you), nobody "needs" credit, with the possible exception of a mortgage.  If you're in the situation where you're relying on credit cards to buy everyday essentials, then you've bigger problems to worry about than whether your limit has been reduced.  Yes, credit cards are convenient, and do offer certain benefits, but they are by no means a necessity.  My mantra when offering advice to anyone new to credit cards, for instance is "Before you buy something with your credit cards, ask yourself whether you could afford to buy that item right now with your debit card.  If the answer is no, then don't buy it".

funkycredit

dr_adidas01 said:

funkycredit said:

Strange, I've a hell of a lot of available credit and never had any limits reduced. Only upwards - even now; pandemic or not. 

Must be more to it than that? Surely....

Perhaps there is but there have been a lot of threads recently where people have had their limits slashed by huge amounts, Aqua, Marbles and some newday card holders and have their limits reduced. Not to mention Barclaycard as they have been in the news lately for slashing customers limits to.

Perhaps you have been lucky in it not happening to you yet!!

As I say, there's more to it than that. It won't happen to me as I don't keep any balance. Plus of course, the moment they tried such a tactic, I'd immediately close it. 

Granted it'll possibly affect Stoozers etc which is pretty bad, but maybe they're trying to stop that so reduce liability when the previous large balance is cleared? Who knows what goes on in their minds! Some stories I'm reading on here just beggars belief! 

dr_adidas01

funkycredit said:

dr_adidas01 said:

funkycredit said:

Strange, I've a hell of a lot of available credit and never had any limits reduced. Only upwards - even now; pandemic or not. 

Must be more to it than that? Surely....

Perhaps there is but there have been a lot of threads recently where people have had their limits slashed by huge amounts, Aqua, Marbles and some newday card holders and have their limits reduced. Not to mention Barclaycard as they have been in the news lately for slashing customers limits to.

Perhaps you have been lucky in it not happening to you yet!!

As I say, there's more to it than that. It won't happen to me as I don't keep any balance. Plus of course, the moment they tried such a tactic, I'd immediately close it. 

Granted it'll possibly affect Stoozers etc which is pretty bad, but maybe they're trying to stop that so reduce liability when the previous large balance is cleared? Who knows what goes on in their minds! Some stories I'm reading on here just beggars belief! 

Saying that it won't happen to me is silly, while you may not keep a balance there's nothing stopping a credit provider deciding that you no longer fit the criteria for such a large limit and reducing it accordingly. They could decide that people with a surname beginning with F will get credit limit decreases while people with a surname beginning K will get a limit increase.

Should this happen as you've said you would close the account as it wouldn't be useful to you, who knows how they make the decision to reduce someone's credit limit. There have been threads where peoples credit files haven't changed and they have had a limit reduced and others who's have gotten worse and had limits increased, there does indeed seem like there is no logic to it at all.

funkycredit

They don't create algorithms as you state though - it just doesn't work like that so no. It won't happen to me. Guaranteed. 

Never has in 50 years of holding credit and I don't expect it to now. I've had high limits through 4 previous recessions lol

But yes, ok. Playing devils advocate if it happened I'd just close it long before it reflected on my file.  

2021BJ

funkycredit said:

dr_adidas01 said:

funkycredit said:

Strange, I've a hell of a lot of available credit and never had any limits reduced. Only upwards - even now; pandemic or not. 

Must be more to it than that? Surely....

Perhaps there is but there have been a lot of threads recently where people have had their limits slashed by huge amounts, Aqua, Marbles and some newday card holders and have their limits reduced. Not to mention Barclaycard as they have been in the news lately for slashing customers limits to.

Perhaps you have been lucky in it not happening to you yet!!

Plus of course, the moment they tried such a tactic, I'd immediately close it.

You do understand that's exactly what they want you to do, right?  Not much of a threat really.

funkycredit

2021BJ said:

funkycredit said:

dr_adidas01 said:

funkycredit said:

Strange, I've a hell of a lot of available credit and never had any limits reduced. Only upwards - even now; pandemic or not. 

Must be more to it than that? Surely....

Perhaps there is but there have been a lot of threads recently where people have had their limits slashed by huge amounts, Aqua, Marbles and some newday card holders and have their limits reduced. Not to mention Barclaycard as they have been in the news lately for slashing customers limits to.

Perhaps you have been lucky in it not happening to you yet!!

Plus of course, the moment they tried such a tactic, I'd immediately close it.

You do understand that's exactly what they want you to do, right?  Not much of a threat really.

Who said it was a threat? Think you're quoting the wrong reply!

I'm clear if they tried this I'd be off. But as I keep saying they won't so it's fine. 

[Deleted User]

funkycredit said:

2021BJ said:

funkycredit said:

dr_adidas01 said:

funkycredit said:

Strange, I've a hell of a lot of available credit and never had any limits reduced. Only upwards - even now; pandemic or not. 

Must be more to it than that? Surely....

Perhaps there is but there have been a lot of threads recently where people have had their limits slashed by huge amounts, Aqua, Marbles and some newday card holders and have their limits reduced. Not to mention Barclaycard as they have been in the news lately for slashing customers limits to.

Perhaps you have been lucky in it not happening to you yet!!

Plus of course, the moment they tried such a tactic, I'd immediately close it.

You do understand that's exactly what they want you to do, right?  Not much of a threat really.

Who said it was a threat? Think you're quoting the wrong reply!

I'm clear if they tried this I'd be off. But as I keep saying they won't so it's fine. 

It's read as a "threat" that if they lowered your balance you would close the card. Obviously your "guarantee" is no such thing, they could do it tomorrow if they decided they no longer want you as a customer.

funkycredit

Deleted_User said:

funkycredit said:

2021BJ said:

funkycredit said:

dr_adidas01 said:

funkycredit said:

Strange, I've a hell of a lot of available credit and never had any limits reduced. Only upwards - even now; pandemic or not. 

Must be more to it than that? Surely....

Perhaps there is but there have been a lot of threads recently where people have had their limits slashed by huge amounts, Aqua, Marbles and some newday card holders and have their limits reduced. Not to mention Barclaycard as they have been in the news lately for slashing customers limits to.

Perhaps you have been lucky in it not happening to you yet!!

Plus of course, the moment they tried such a tactic, I'd immediately close it.

You do understand that's exactly what they want you to do, right?  Not much of a threat really.

Who said it was a threat? Think you're quoting the wrong reply!

I'm clear if they tried this I'd be off. But as I keep saying they won't so it's fine. 

It's read as a "threat" that if they lowered your balance you would close the card. Obviously your "guarantee" is no such thing, they could do it tomorrow if they decided they no longer want you as a customer.

It's not a threat at all. It's a simple fact - no threat whatsoever. I'd leave. Immediately. 

But we're going around in circles; it will never happen to me. 

2021BJ

funkycredit said:

Deleted_User said:

funkycredit said:

2021BJ said:

funkycredit said:

dr_adidas01 said:

funkycredit said:

Strange, I've a hell of a lot of available credit and never had any limits reduced. Only upwards - even now; pandemic or not. 

Must be more to it than that? Surely....

Perhaps there is but there have been a lot of threads recently where people have had their limits slashed by huge amounts, Aqua, Marbles and some newday card holders and have their limits reduced. Not to mention Barclaycard as they have been in the news lately for slashing customers limits to.

Perhaps you have been lucky in it not happening to you yet!!

Plus of course, the moment they tried such a tactic, I'd immediately close it.

You do understand that's exactly what they want you to do, right?  Not much of a threat really.

Who said it was a threat? Think you're quoting the wrong reply!

I'm clear if they tried this I'd be off. But as I keep saying they won't so it's fine. 

It's read as a "threat" that if they lowered your balance you would close the card. Obviously your "guarantee" is no such thing, they could do it tomorrow if they decided they no longer want you as a customer.

It's not a threat at all. It's a simple fact - no threat whatsoever. I'd leave. Immediately. 

But we're going around in circles; it will never happen to me. 

Yes, and as I said, it's meaningless.

Fact, threat or whatever, if they slash your balance that's a good sign they don't want you as a customer any more so you're not really "sticking it to them" if you up and leave. You're doing exactly what they want you to do.

[Deleted User]

funkycredit said:

Deleted_User said:

funkycredit said:

2021BJ said:

funkycredit said:

dr_adidas01 said:

funkycredit said:

Strange, I've a hell of a lot of available credit and never had any limits reduced. Only upwards - even now; pandemic or not. 

Must be more to it than that? Surely....

Perhaps there is but there have been a lot of threads recently where people have had their limits slashed by huge amounts, Aqua, Marbles and some newday card holders and have their limits reduced. Not to mention Barclaycard as they have been in the news lately for slashing customers limits to.

Perhaps you have been lucky in it not happening to you yet!!

Plus of course, the moment they tried such a tactic, I'd immediately close it.

You do understand that's exactly what they want you to do, right?  Not much of a threat really.

Who said it was a threat? Think you're quoting the wrong reply!

I'm clear if they tried this I'd be off. But as I keep saying they won't so it's fine. 

It's read as a "threat" that if they lowered your balance you would close the card. Obviously your "guarantee" is no such thing, they could do it tomorrow if they decided they no longer want you as a customer.

It's not a threat at all. It's a simple fact - no threat whatsoever. I'd leave. Immediately. 

But we're going around in circles; it will never happen to me. 

And again, you stated that if they did it, you will leave. That is a threat e.g.

"the company faces the threat of liquidation proceedings"

And again, you cannot state it will never happen to you, it could and it can.