Cap One Platinum Credit Limit Question

dexters_mum_2

Hello all,

I've held my Capital One Platinum since January and I am quite happy with it, I have an outstanding balance of £24.01 due to be paid on the 12th by Direct Debit and a credit limit of £2000.

I am not entirely comfortable with this limit and I am considering asking Cap One to reduce the limit to £1000. My husband got into terrible debt with a credit card which had a £5k limit and I really don't ever want that situation to arise with me, even though I have seen what he went through and I have been sensible with my card and always paid the full amount off on DD.

My question is this, if I did ask them to reduce the limit, in the future, would they still increase it periodically anyway? I have heard Cap One give you an increase on your third statement if you have conducted the account well? I would be just due for my third statement shortly and don't want an increase but is there any point in asking for a reduction or should I just leave it as it is.

I don't intend to get into any debt with the card but you never know what is around the corner.

I'm not sure whether to ask or just to leave it alone?

DM

skyrider007

If you are bad at budgeting then surely reducing the limit to the level at which you are comfortable with is the best thing to do.

They should stop giving you an increase in credit limit once you have told them that you want a lower limit.

If you do not have an overdraft or other CC with higher limit (for rainy days) then it may be best just to leave this alone.

adaze

Ask them not to automatically increase your limit, I know Barclaycard will do this.

dexters_mum_2

I'm not bad at budgeting, far from it in fact, it is just this is my first credit card ever and I am nervous of the whole concept of credit cards given my husband's experience.

I have not given him an additional cardholder on my account, I just wanted to have a limit where, if for some reason I was out of work or ill, I would have enough money to meet the repayments or clear completely.

I just wasn't sure if it was better to just change it or to keep it open at £2k as a just in case scenario, not sure if there appear to be any benefits from reducing the account limit but I will ask if I can withdraw from automatic credit limit increases.

The other issue I was concerned about was if I did reduce the limit then needed it again, whether they would reinstate it!

Moggles_2

You sound much too sensible to get into debt. If you only ever spend what you can afford to repay in full by the payment due date, you can't go far wrong.

Btw, have you registered your details on the C1 website? Online services have improved out of all recognition since the new site was launched a few weeks ago. It's easier than ever before to keep track of transactions and monitor your spending.

I would think carefully before you halve the credit limit. Lowering credit limits can affect future applications for credit, if you overdo it. Be aware too, that it isn't always possible to re-instate some of the old limit should you change your mind later.