credit limit

normanmark

Do people complaining here regularly hit their limit & pay it off in full? If you're not utilising the whole limit regularly then there's a prime reason as to why they're reducing it.

markre_2

My spend (was) rarely less than the new limit .
In general it would be abt 2-3 times more.
Twice in the last year it has exceeded 4 times the new limit.

I was open to a reduction with HBOS,basis the above, but they were quite unmoved.

Ok so I have a fallback card I can use , but anyone could easily be trapped and be unable to pay by this unannounced - but contractually legal -vicious reduction.

missk_ensington

You shouldnt have your limit slashed just because you're not using it! What if you're planning a largeish purchase and have been saving the card for a new car or a new tv or something! I like to keep a fair amount of credit free at all times just so I can sleep at night knowing I have money available for food and petrol if I ever have no money!

normanmark

missk_ensington wrote: »

You shouldnt have your limit slashed just because you're not using it! What if you're planning a largeish purchase and have been saving the card for a new car or a new tv or something! I like to keep a fair amount of credit free at all times just so I can sleep at night knowing I have money available for food and petrol if I ever have no money!

My point was that card companies regularly look at the accounts, if your pattern of spending is only suggesting that you've used say only 20-30% of your limit the past 12 months then as lenders they're asking the question - why does this person need the limit.

Remember its their money, they've got every right to slash the limit if they see fit. Scenarios like the one i've described is the most logical reason (if the credit records are exemplary; which everyone states they are) as to why limits are reduced.

missk_ensington

Normanmark - I know what you're saying, and Im not saying youre wrong, but in my situation for example I was given a £9,000 limit on my capital one about 10 months ago and at the time only needed a quarter of that, but kept it anyway, now I have started a new business and no one would give me a business loan/overdraft, if it hadn't been for that large credit limit I'd have had to give up on the business but as it was it turned out to be invaluable to me. Just because you dont need it straight away, doesn't need you'll never need it