Amex Reducing Credit Limit

Soulsad5

I know some people are getting letters saying their credit card accounts are closed, but has anyone received regular letters telling them that their credit limit has been reduced after a review of your account? I've had 3 such letters from Amex within a year, each one reducing my credit limit even though I'm not spending on it, just paying off. I believe that as soon as I get to a couple of hundred they'll tell me the account is closed.

16cat1980

Soulsad5 wrote: »

I know some people are getting letters saying their credit card accounts are closed, but has anyone received regular letters telling them that their credit limit has been reduced after a review of your account? I've had 3 such letters from Amex within a year, each one reducing my credit limit even though I'm not spending on it, just paying off. I believe that as soon as I get to a couple of hundred they'll tell me the account is closed.

Yes, I've had the same thing. I orginally started with a very high limit which I couldn't believe they gave me at the time and I too have had it reduced bit by bit over the last year or so. Like you I never spend on it as I transfered a balance to it at a good rate so I've just used it like a loan really. I expect it will eventually get to the point when my limit is so small they'll close it but as I won't spend on it it won't really matter. I have had 'the letter' from Egg regarding one of my cards as well. I was a bit upset at first but now see they are doing me a favour as I will not be tempted to use any available credit on those cards. Although I never miss payments I do owe a lot of money on cards so I guess they are just making up for some risky decisions they made previously and helping me reduce my debts.

If it is not causing you any problems (which hopefully it won't if you haven't been using it) then don't worry about it ... even if you had no balance on the card and wanted to use it nowhere seems to accept Amex anyway!!!:p

CannyJock

In theory this isn't a bad thing anyway.

I'm helping someone move high interest debts onto lower interest balance transfer cards and have posted a few times about getting the best credit limits.

Concensus is that the more "available credit" you have by adding up your current credit card limits, then the lower the credit limits you'll be eligible for with other companies. Not done enough of this to get the data to say for definite, so this is anecdotal at moment, but seems to get the nod from a couple of the more experienced heads.

My thinking is that if they're reducing your credit limit then you'll be able to apply for other cards with a greater chance of getting a larger credit limit.

vwman_3

My wife has had her Marbles limit reduced in the last week from £12k down to £500, my sister has had her Marbles card cancelled altogether she had a limit of £8k.

CannyJock

vwman wrote: »

My wife has had her Marbles limit reduced in the last week from £12k down to £500, my sister has had her Marbles card cancelled altogether she had a limit of £8k.

Any balances or normal spending use on the cards or were they dormant? Any other change in credit record since card was taken out, like other loans applied for etc?

vwman_3

My wife had about give or take £500 outstanding on her card, we got married in May and spent best part of 5 weeks touring America and Canada, she ran up a bill of £2.5k there and paid most of it off, that took 6 months, then the final £500 was then paid off, a few weeks ago.

As soon as that was cleared she get's the letter, she has been with Marbles for the last 6 years, never mised a payment and had always carried a small balance, she used the card weekly, and has not applied for any other form of credit in the last 12 months.

This is the first time in 3 or 4 years where she has had a zero balance.

My sister on the other hand has not used her card for 3 months since she got another card, she has been with Marbles for a longer period.

loveandlight

Just to add to this thread that exactly the same as above has happened to me these past few months.

This morning I received a letter from Amex telling me they are suspending ATM cash access immediately even though I have never used it and they have also reduced my credit limit for the second time in the past six months.

I never use the card and have a very low life of balance rate and have always run the account well without giving them any problems.

They also doubled my repayments last month. They can do what they want to me as I have no intention of using the card and haven't since I took out the card and did a balance transfer.

My outstanding balance is coming down very fast as the interest on it is so nominal. I don't like Amex anyway and I shan't be getting another card from them in the future.

vet8

My husband had his credit limit for his Halifax card reduced by £50 this morning. What is the point? It cannot be worthwhile for them to send out the letter informing him of this.

It makes no difference as he also just did a BT onto it and has never used it apart from that, but is just seems so petty to lower the limit by £50.

billg57a

I've had several phone calls from the Co-op bank, over a period of several months, to tell me that they are about to reduce my credit limit - to just above what I owe them. It appears to me that the banks are becoming very picky about who they will lend to at the moment.

Innocent_Guy

My friend just got accepted for an Amex and he got a £1200 start limit

DaySpa21

Soulsad5 wrote: »

I know some people are getting letters saying their credit card accounts are closed, but has anyone received regular letters telling them that their credit limit has been reduced after a review of your account? I've had 3 such letters from Amex within a year, each one reducing my credit limit even though I'm not spending on it, just paying off. I believe that as soon as I get to a couple of hundred they'll tell me the account is closed.

I was getting the same from them. I started to make just one tiny purchase of the card each month and they have left both me and my credit limit alone.