Morgan Stanley! URGGGGGG!!!!!

Jewel_2

My partner has a Morgan Stanley card with £9600 credit on it, being repaid at a really low interest rate for life (great). When we transferred the credit onto this card, we inadvertently went over the limit by £6 in the process (with the re-reckoning of the interest rate etc). Now everytime we pay, our limit is reduced by that much, ie, we pay £400 a month so they have now reduced our limit to £9200. We don't mind our limit going down - we don't intend to use it again once cleared, but each month they send us a computer-churned out letter saying they have reviewed our account, apologising for the inconvenience, and have lowered the limit. Will this show on our credit rating as a search for credit each month? We were concerned that they may end the low interest rate as we have 'broken the rules' but they haven't done this so far, which is obviously good news...

exel1966

Yes, your credit limit will be shown on your credit report to anyone who looks at it, BUT they will not be able to determine if it has been recently lowered unless they looked at it on more than one occasion ie. before and after a change took place. Nothing to worry about really.
You're quite fortunate that they haven't rescinded the ongoing offer you have, so play you're cards right from now until the balance is cleared and all will be well.

Jewel_2

Thanks exel, but will it show as a credit search each time they send me a letter, or am I being thick? The letter they send explains a credit review using experian/equifax, so I was wondering if they will keep doing checks which looks as though we keep applying for credit?

Paul_Herring

No, it won't show as a 'credit search,' as you're thinking of it. Exel's talking about the information Morgan Stanley send to the credit reference agencies.

Jewel_2

Cool - I'm glad the limit is coming down it makes me feel better!