Odd credit card behaviour

scottinthesky

Ok, being surprised a credit card company behaves oddly might be an oxymoron but bear with me...

Last week I received letters from two credit cards about changes to my accounts - two different banks and I've had both for over 5 years with no defaults, late payments or anything like that. During Covid I didn't take any payment breaks or suspend my accounts or anything like that but I did rely more heavily on credit, although always making minimum payments. 

As of last month I started paying off some of the debt I'd accrued, across all of my credit lines, not just these two. The letters regarding changes were: 
1) Credit card 1 : we are reducing your credit limit by £2000 (from £7k to £5k) "because of your financial behaviour we have noticed with other financial providers. We will not change this decision." 

2) Credit card 2: "we are increasing your APR (by 5%!!) because of your financial behaviour with other lenders." 

Any ideas what they're looking at that has their noses out of joint? I haven't taken any new credit in the last year and can't think of anything significant that has changed. 

Ebe_Scrooge

Don't take it personally - this board has been littered with similar stories of late.  Bottom line - all lenders are tightening their belts and limiting their exposure at the moment.  Worth checking that the data in all 3 of your files is accurate, but it's probably nothing you've done "wrong" (other than only making minimum payments, which can be viewed as a sign of financial stress), just a symptom of the current situation.

[Deleted User]

In addition to the above, making minimum payments is never a good look, so when times get tough as they currently are, you're first in line for your credit to be tightened.

2021BJ

scottinthesky said:

Any ideas what they're looking at that has their noses out of joint? I

During Covid I didn't take any payment breaks or suspend my accounts or anything like that but I did rely more heavily on credit

although always making minimum payments

There's your answer.

Increase in credit usage and carrying a balance.