Egg credit limit decrease

MABLE

Following received from EGG in connection to me reducing my limit because it was never used.

Quote.
Dearest Mable,

I can certainly look at decreasing your credit limit for you.

You can do this online, by selecting 'Your money', then 'view' from the right of your Egg Card details, then select 'Request credit limit' option to the left of this page and follow the onscreen instructions.

Alternatively, let me know the amount you'd like to decrease it to, in this instants £2000.00, and your gross annual income and I'll do the rest.

We'll consider your request and get back to you as soon as a decision has been made.

Thanks for your message.

unquote.

Bit much when you have to fight for a decrease and then they say they will consider my request. However I can understand it as I am one of those Egg customers they do not want to lose.

CannyJock

I did this with my Egg card before, asking for it to be reduced to £ 500. Then 6 months later I decided that I wanted my balance put back to where it was so I could build up a bit of cashback - £ 500 limit would only let me get £ 60 cashback without making additional payments mid-statement to my card. Getting it put back was a major hassle, had to send all sorts of bank account details.

clio

Mable
how are you one of the customers they don't want to loose.. Didn't think CC,s were loyal nowadays to us customers!!!!

Moggles_2

I would think carefully before you reduce limits which are already modest, even if unused. Lowering limits can affect future applications for credit, if you overdo it.

Be aware too, as CJ says, it isn't always possible to re-instate some of the old credit limit, should you change your mind later.

DifferentFromTheNorm

MABLE wrote: »

Following received from EGG in connection to me reducing my limit because it was never used.

Quote.
Dearest Mable,

I can certainly look at decreasing your credit limit for you.

You can do this online, by selecting 'Your money', then 'view' from the right of your Egg Card details, then select 'Request credit limit' option to the left of this page and follow the onscreen instructions.

Alternatively, let me know the amount you'd like to decrease it to, in this instants £2000.00, and your gross annual income and I'll do the rest.

We'll consider your request and get back to you as soon as a decision has been made.

Thanks for your message.

unquote.

Bit much when you have to fight for a decrease and then they say they will consider my request. However I can understand it as I am one of those Egg customers they do not want to lose.

They have just used the template for increasing a credit limit and changed 'increasing' to 'decreasing' and 'increase' to 'decrease'. The system they use is linked to the online one, it won't process a request to change the limit unless the income is entered.

However, there is a separate team that they could have forwarded your message to in order to get the limit reduced without entering income details. It's much quicker for someone to do it themselves online though, so they've probably just told you how to do it so that it saves you and them hassle/time.

MABLE

Moggles wrote: »

I would think carefully before you reduce limits which are already modest, even if unused. Lowering limits can affect future applications for credit, if you overdo it.

Be aware too, as CJ says, it isn't always possible to re-instate some of the old credit limit, should you change your mind later.

I have contacted Egg and have told them now to leave my limit at £6,000 and as a result have offered me a promotional rate.

The only other time I have requested a reduction was from Barclaycard. They reduced the limit from £3,600 to £2,200 but a year later increased it to £4,200 without me asking for this. They now keep bombarding me with promotional rates.

lucyyy_2

I have an alliance & leicester credit card, and had a couple of hundred pounds outstanding, and they reduced my limit.

never had a late payment or anything! why can they do this?

I went to purchase something and got declined cos they had reduced the limit without me being informed.

:mad:

DestroyingAngel_2

Unfortunately, cc companies have the power to increase your APRs and decrease/increase your credit limit when they feel it is warranted. I'm not 100% sure what criteria they apply when making such decisions, but it's probably based on your spending pattern and payment history, or if there are changes to your credit report, or if they feel there's a risk of you overspending.

You would have been informed of this in either by letter, or along with your statement.

jules73_2

You have to remember that it is not your card...It belongs to the bank.
You don't set your limit, they do.
Sign of the times I guess.

postit_2

Hello all,

Ive had a Virgin credit card for about 3 years and got given a good credit limit of around £5k initially. :j

Over the past few years they have steadliy increased it and in mid Sept I got sent a letter along with credit card chqs to say congrats we have increased your limit to £7100 and gave me a 0% balance transfer rate until June 09- great I thought- I can transfer some other smaller balances on other cards to this rate!!

I got home yesterday eve to a letter from MBNA saying after a periodic review they have reviewed credit card accounts and feel a new limit of £2500 is more appropriate 'based on your current circumstances'!! To my horror I realised the credit card no they ref was my Virgin Card.

This is a drastic cut and I have no idea how in the space of 3 weeks they can offer me so much then take it all away again?? I was not near the limit and always pay on time etc. :eek:

Ive not managed to get to call them but just wondered if this is happening throughout the banks in context of the current financial climate and they are reducing their risk on lending??? No idea, but just thought it was very drastic and no annoyed that I cant transfer balance using handy chqs.

DOes this mean my credit rating has got worse and they now think I am a risky lender?

any help/advice gratefully received.
cheers

Any

Give them a ring and find out - MBNA group has got a mess at the moment in their system - we paid off our card last month in full and 5 days later got a letter from debt collectors to pay up as we are late with the payment. Not only we paid off in full before this letter was issued, but also even by the date this letter was written we weren't late and there was wrong credit card number - the last digit was different.
We called MBNA (initialy I actually thought that it is fraud) and MBNA said they are sorry and it is their fault. They made a mistake.
So if it is MBNA headed letter but Virgin card, give them a ring just to make sure they are serious.
And no, I don't think they can legally let you transfer balances just to change your limit within days to be able to charge you overlimit charge. If they say they are serious go to Financial Ombudsman.