Anyone had their credit limit reduced?

Toomanycards

I've heard of it happening if you miss payments, but has anyone had it happen while they were up to date? And how did you find out about it?

mountainofdebt

Hubby had his capital one card limit reduced from £10K to £500.

When he phoned up they told him it was because he hadn't used the account for a long period of time and it was to protect him against fraudulant use.

Not sure now how we found out - I think it was a letter that was sent out.

Ember999

If anyone reduced my limits without me asking them to (and yes, I have several empty cards I don't use but choose to keep) then I would phone up and close the account.

mountainofdebt

To a certain extent I agree with you Ember but I can see Capital One's point of view (they did say that if hubby wanted the £10K limit then they would reinstate it)

As it was we decided to close the account to make hubby more attractive for 0% deals!

Ember999

mountainofdebt wrote:

To a certain extent I agree with you Ember but I can see Capital One's point of view (they did say that if hubby wanted the £10K limit then they would reinstate it)

As it was we decided to close the account to make hubby more attractive for 0% deals!

If they said they would reinstate it then that is okay then. I just thought it was mighty cheeky of them to reduce it for no reason whatsoever lol
I have had an MBNA Platinum Card with a £15,000 limit for over 5 years, never used it and they have never complained nor reduced it. I just prefer to use other cards, don't know why I got it really, probably at the time, just because I could
Thanks for your reply
Ember xx

bonvonnie

I have an Alliance and Leicester CC, with a £6K limit but they wrote to me and told me that it was being reduced to £2k, i called them up, and it was because I'd applied for an MBNA CC, which they accepted me with a £4K limit.

As they are the same company (both MBNA) i could of had the 2 cards amounting to the £6K, or just the one card. I kept just the one.

creditcardking_2

Toomanycards wrote:

I've heard of it happening if you miss payments, but has anyone had it happen while they were up to date? And how did you find out about it?

A friend of mine was having financial problems and he had missed a few months payments, the card company called and offered him a larger limit to help him through the tough times, this caused even more debt problems.

Joe_Bloggs

@Ember999
That MBNA card is hurting other 0% deals you could get from the MBNA group and hurting the limits other lenders can give you. Try closing the card as a negotiating tactic while negotiating a 0% deal from MBNA. If they say no then close the card and go for a Virgin (MBNA 0%) card.
I have just got rid of 19K of credit limit to improve my chances of getting better credit limits at 0% rates.
J_B.

CTT_2

I had two cards with LLoyds, one being the plat and advance. They wrote to me stating if I did not use the cards the accounts would be closed. I decided to combine both credit limits and transfer to their new Amex card and once this was done the other two accounts were closed. I was offered 0% for 6 months and stoozed 15k of the limit.

As Rock84 would say WOW! and I say to that Rock on Baby!

Toomanycards

Did you get advised the limit would come down straight away, or did you get 30 days notice? I thought banks had to give 30 days before they did something like decrease the limit or raise the interest rate (unless you miss a payment which means they will take action straight away)?