Marbles (NewDay) have reduced my limit

GenieBoy

I've had a Marbles credit card since 2020 and I've had a few limit increases since then to £4,600.

I've just received an email today saying they have reduced my limit to £1,800 sighting my credit usage over the last 6 months.

Will this have a negative impact on my credit files? I still have 10 credit cards with a combined limit of £23,050 after this reduction.

I also have a NewDay Fluid card with £1,550 limit.

MorningcoffeeIV

It'll show as a closed account.

If you have other well managed accounts, there's little reason to think a lender would be too concerned. 

Your low limits are more of an issue to address.

WillPS

A change in credit limit will show on your credit report, but lenders won't know whether this is a result a request from you or has been forced upon you. The specific impact of that, which I think is perhaps your concern, is not very easy to know - but I can assure you that I have reduced my own credit limits before and it has not caused me issues obtaining the credit products I desire.

Don't worry too much about it.

MorningcoffeeIV said:

It'll show as a closed account.

No it won't, unless the OP closes it.

cymruchris

MorningcoffeeIV said:

It'll show as a closed account.

If you have other well managed accounts, there's little reason to think a lender would be too concerned. 

Your low limits are more of an issue to address.

I think you've misread the OP - nothing is closing.

To the OP - usually limit reductions seem to happen either when you've not used the card enough, or when lenders see that you're not managing credit elsewhere in line with their risk models. So if you've been carrying a balance on another card for a long time, at a high percentage utilisation, making only minumum payments - the pattern might make them reduce your limit as a precautionary measure.

If its just sitting there idle - and your'e spending £3.50 every two months - again it's normal they'd consider reducing it, as there's only so much credit to go around, and if you're not using yours, they'd rather offer it to someone else.

It's all a bit swings and roundabouts. If all of your other accounts are being well managed, I don't think it'll have any impact anywhere.

If you're not using it, using it a little more (and paying off in full) might help increase it again.

GenieBoy

Yes I haven't used it much this year and when I do I have been clearing the balance so I assume they think I don't need that limit anymore.

CliveOfIndia

GenieBoy said:

Yes I haven't used it much this year and when I do I have been clearing the balance so I assume they think I don't need that limit anymore.

This is very likely the cause.  Clearing the balance in full isn't a problem - and is absolutely the right thing to do.  But if you're not using it much then basically the lender is allocating some of your available credit to someone else.  That's perhaps a slight over-simplification, but any lender has a finite amount of credit to dish out, so they'll try to apportion it equitably - those who regularly use a large amount of credit will get a higher limit.

It shouldn't cause you any issues - and if you do need a higher limit, which you plan to use, you can always request an increase.  They may say "no", but you can ask.

born_again

GenieBoy said:

I've had a Marbles credit card since 2020 and I've had a few limit increases since then to £4,600.

I've just received an email today saying they have reduced my limit to £1,800 sighting my credit usage over the last 6 months.

Will this have a negative impact on my credit files? I still have 10 credit cards with a combined limit of £23,050 after this reduction.

I also have a NewDay Fluid card with £1,550 limit.

If you have 10 other cards & that amount of available credit. Just get rid of it.

Lenders only see your credit history & the fact you have so much available credit compared to your known income.

Which could be something that has caused the reduction.

[Deleted User]

You could see if they'll combine your credit limits on either the Marbles or Fluid then close the other.

solentsusie

Just had the same thing happen to me, I had an old New Day card that had been going for years which I used a very small percentage of the limit on and they reduced it down to £1100.  I've just closed it to simplify my finances.  Tesco have also just done the same and halved my limit, once again I've just paid off a balance transfer and hardly use the card.  I think a lot of lenders are looking at customers who rarely use anywhere near their limits. 

jbrassy

The question I have is why you have 10 credit cards? That seems like a lot. Do you get any benefit from all of these credit cards, e.g. cashback, fee-free spending abroad, etc? If not, I would get rid of a lot of these and focus your spending on a 3 or 4 cards which you regularly spend with and which give you some sort of benefit. For example I have 3 credit cards: 2 for spending in the UK which give me cashback and one for spending abroad which doesn't charge for overseas transactions. Across these 3 cards I have a credit limit of £36,500. I think if you focus your spending on a few cards you're more likely to get higher limits on these cards. It might look better in terms of credit history having high limits on a few cards rather than lots of cards with low limits.  

paul_c123

It can't really be seen as a negative (by a bank) because tons of people manage/lower their credit card credit limits themselves, indeed there's an option to opt-out of auto credit limit increases and an option to suppress the marketing of them too.

There may be an underlying reason why they've reduced a credit limit (generalisation) but I think in this case its simply because its been unused for a period of time.