Capital one increasing limit restrictions

Desmond2000

Hi, I have a capital one credit card with a limit of £450 which I am happy with as a pensioner. Recently I have been offered an increase to £1,200. I do not want a limit that high but would be happy with a lower limit of £600. I contacted capital one and asked them but they refused telling me that was the only offer on the table. They told me if I want, I could accept the limit of £1,200 and at a later date reduce it to £600. This seems to be a blatant way of forcing people into debt. Has anyone had experience of this or can offer any advice on it as I am reluctant to accept this as is.

Ayr_Rage

https://forums.moneysavingexpert.com/discussion/6667249/capital-one-increasing-limit-restrictions

Increasing a credit limit does not force anyone into debt.

You have to use the card responsibly and not live beyond your means.

Having extra available credit is always useful for emergencies, nobody is forcing you to use that extra credit.

Advice, if it's the only offer then you only have two choices.

Nasqueron

No-one is forced to spend.

Do you always spend £450 a month now given you have a limit of that? If not, why do you think having a limit of £1200 would make you spend that much?

Desmond2000

I think that having a credit limit of £1,200 could lead someone into over spending or do you think that everyone that has a credit card is responsible person and nobody would over spend?

Why would a credit card company object to someone wanting to act carfully and responsibly

Ayr_Rage

@Desmond2000 you can act responsibly with ANY credit limit, I cannot understand why you would think otherwise.

As I said previously, you have choices.

Brie

I agree. For those without much self control in spending the ongoing increases in card limits has definitely caused many to get in to debt. It's because of this that card companies have been told they need to be more responsible with the increases they give, they can't just up things automatically as in the past and need to be able to decrease the limits when requested.

Because you appear to know what you require I might suggest you can accept the option to increase to £1200 and immediately tell them to decrease it to the £600 you prefer. If they refuse this would be a reason to lodge a complaint. But why the individual you were talking to couldn't do this immediately when you asked is odd. They should know how to manage limits for their customers so either they haven't been trained on this or it needs to be referred to a specific team.

Your other option would be to apply to a different company with better customer service and get rid of the old card.

Nasqueron

https://forums.moneysavingexpert.com/discussion/comment/81990063#Comment_81990063

I think anyone could in theory overspend on any limit based on their income and affordability, just as they could borrow money they can't afford to pay back so it's a moot point.

Your post said it was a "blatant way of forcing people into debt" which it clearly isn't, people choose to spend money, they are not forced to, nor are they forced to accept it

vacheron

https://forums.moneysavingexpert.com/discussion/comment/81990063#Comment_81990063

Do you think that everyone who has a car or kitchen knife is responsible and that nobody would use them irresponsibly? Should we ban companies from offering these to the public too?

A knife or a car is a tool, just like a credit card. The only difference is that the credit card companies have access to credit reports to judge if someone is financially responsible or not.

I am assuming that because you have been offered a 3 fold increase in your credit limit that they must consider that you are?

MEM62

This seems to be a blatant way of forcing people into debt.

This does not 'force' people into anything. Having a limit does not mean that you have to use it.

MyRealNameToo

I fully agree with the others that giving someone a higher limit doest cause someone to be in more debt, the person using that higher limit is what does. That said the FCA doesnt fully agree with me and hence we get all the nonsense about irresponsible lending (rather than irresponsible borrowing).

It's not a big issue though is it given you could accept the limit increase and potentially minutes later request the limit be reduced to £600. With most banks reduction of limits are fully automated, they arent going to say no, so other than maybe having a day or two for things to flow through archaic IT systems its really a none problem. If you can't trust yourself for 48 hours then get destroy the card and ask for a replacement which will take longer than that to get to you.

redux

I have a card with a £12600 limit. They said they'd close it if I didn't use it. I spent about £26 two months ago and now the balance is zero again