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  • FIRST POST
    • vonsworld
    • By vonsworld 12th Dec 19, 11:42 AM
    • 58Posts
    • 5Thanks
    vonsworld
    Aquacard credit limit reduced for no good reason
    • #1
    • 12th Dec 19, 11:42 AM
    Aquacard credit limit reduced for no good reason 12th Dec 19 at 11:42 AM
    I have an Aquacard credit card which I have held for about 8 years.
    Recently they contacted me to say they were reducing my credit limit to an amount which is "more suitable for my level of use".

    I have an excellent credit rating with all the agencies, no negative factors, and have never missed a payment. I have been using the card regularly, but only have a balance of a few hundred pounds and always pay this off entirely after receiving a statement, so I pay no interest.

    Is it just a case that because I am making little profit for them they are behaving like reptiles and reducing my limit?

    I have other credit cards which I also pay off in full, a couple of them have 5 times the credit limit of the aquacard, and they have never acted by reducing my limit. In fact I have held credit cards for 30 years and have never had a limit reduced because I am not using the card enough.

    What do you think?

    😊
Page 1
    • zx81
    • By zx81 12th Dec 19, 11:50 AM
    • 24,820 Posts
    • 27,708 Thanks
    zx81
    • #2
    • 12th Dec 19, 11:50 AM
    • #2
    • 12th Dec 19, 11:50 AM
    It's a combination of risk, usage and their own exposure.

    It's very common, so nothing to worry about. Certainly nothing reptilian, unless you believe yourself to be a mouse.
    • Gary_Dexter
    • By Gary_Dexter 12th Dec 19, 3:40 PM
    • 7,282 Posts
    • 4,845 Thanks
    Gary_Dexter
    • #3
    • 12th Dec 19, 3:40 PM
    • #3
    • 12th Dec 19, 3:40 PM
    What do you think?

    😊
    Originally posted by vonsworld
    I think you're over-thinking things.

    You've admitted to only using it for a few hundred pounds - what was the original limit and the new limit?

    It's likely they are just cutting back on their lending requirements, and probably 100 other people got the same letter as you.
    • john1002
    • By john1002 12th Dec 19, 4:26 PM
    • 966 Posts
    • 390 Thanks
    john1002
    • #4
    • 12th Dec 19, 4:26 PM
    • #4
    • 12th Dec 19, 4:26 PM
    Yep me too, totally understand it as I had a 5700 limit reduced to 4400 but only ever maxed out card to 2000 maybe once in 5 years, most other times 400 average a month, I have lots of cards and credit available so in the grand scheme it is not an issue, they want to reduce risk/liability or give it to other customer who may use it more that’s fine with me.

    If you want to try and get it back up just contact them, explain your reasons maybe future high purchase and see what they say.

    Suspect more companies will do this as their own needs change. Having a good mix of cards/limits promotions and facilities allows people to ride times such as these.

    John
    • CakeCrusader
    • By CakeCrusader 12th Dec 19, 5:25 PM
    • 1,116 Posts
    • 751 Thanks
    CakeCrusader
    • #5
    • 12th Dec 19, 5:25 PM
    • #5
    • 12th Dec 19, 5:25 PM
    They did exactly the same to me when I cleared the balance in a lump sum. I didn't use the card, and a couple of months later they did it again so I cancelled it. I think they don't want people to clear their balances, there's nothing in it for them if they do.
    • born again
    • By born again 12th Dec 19, 6:06 PM
    • 1,401 Posts
    • 785 Thanks
    born again
    • #6
    • 12th Dec 19, 6:06 PM
    • #6
    • 12th Dec 19, 6:06 PM
    Is it just a case that because I am making little profit for them they are behaving like reptiles and reducing my limit?

    I have other credit cards which I also pay off in full, a couple of them have 5 times the credit limit of the aquacard, and they have never acted by reducing my limit. In fact I have held credit cards for 30 years and have never had a limit reduced because I am not using the card enough.

    What do you think?

    ��
    Originally posted by vonsworld
    Certainly not anything profit related or they would have closed it.
    If your not using it much, then be thankful that they are taking a positive step and reducing your risk exposure.

    Might be worthwhile dropping some of the cards if you are not using them. You will see more of limits reduced as card provider look to reduce their risk exposure.
    Regulator is looking at things like this. After seeing so much debt some people get into.
    • gionnetto
    • By gionnetto 12th Dec 19, 7:59 PM
    • 221 Posts
    • 39 Thanks
    gionnetto
    • #7
    • 12th Dec 19, 7:59 PM
    • #7
    • 12th Dec 19, 7:59 PM
    What do you think?

    😊
    Originally posted by vonsworld
    Credit card companies make money in two ways:
    1) the interest they charge on your outstanding balance
    2) the fee they charge merchants when you use them for a transaction

    Therefore, if you don't carry a balance or you don't use them much, they might decide you are not profitable and reduce your limit.

    The win-win situation would be to use them for almost everything and pay off each statement in full. That way, they'd make profit off of you and you wouldn't pay any interest.

    Cheers
    Your cholesterol levels are not seen, or used, by your heart and arteries, so ignore it.
    .
    • cymruchris
    • By cymruchris 13th Dec 19, 1:54 AM
    • 214 Posts
    • 140 Thanks
    cymruchris
    • #8
    • 13th Dec 19, 1:54 AM
    • #8
    • 13th Dec 19, 1:54 AM
    Sometimes there's no rhyme or reason to what they do - I've had an Aqua card for about a year - Use it often - sometimes into 4 figures - always clear in full by direct debit - never missed a payment - never late - never paid a penny in interest. The card is run by NewDay - who also operate a number of other cards. I applied for an Amazon platinum card - also by NewDay (APR 21.9%) - got accepted online - the next morning in the post I received a letter from Aqua telling me that due to my recent activity they were increasing my APR by 5%. That letter would have been sent prior to me making the Amazon application - so on one hand - due to my awful behaviour of paying everything in full for a year and not paying interest - it was being put up 5% but on the other hand - welcome to my new amazon platinum card at 21.9% interest. I don't think sometimes their left hand knows what their right hand is doing.
    An ex-bankrupt on a journey of recovery. Feel free to send me a DM reference credit building credit cards from the usual suspects Happy to help others going through what I've been through!
    • stehouk
    • By stehouk 13th Dec 19, 12:29 PM
    • 352 Posts
    • 160 Thanks
    stehouk
    • #9
    • 13th Dec 19, 12:29 PM
    • #9
    • 13th Dec 19, 12:29 PM
    Iv'e had my limit reduced it is now 2000, i only use it for overseas spending and always pay off in full, my highest spend was 1100 when they had an offer of 50 cashback which i took advantage of, that's ok with me as i have other 0% cards available.
    • MallyGirl
    • By MallyGirl 13th Dec 19, 1:26 PM
    • 4,133 Posts
    • 9,595 Thanks
    MallyGirl
    Fundamentally they need to ringfence the money to cover the possibility of you spending up to your credit limit and that is 'dead money'. If you never go near your limit why should they continue to do that.
    We have a borrowing facility on our flexible mortgage - we were nowhere near the limit so they asked to drop it. As it happened we were about to spend a whole lot on a big extension so the facility was about to be used - as a result of a conversation they kept it at existing level.
    • foxy-stoat
    • By foxy-stoat 13th Dec 19, 4:18 PM
    • 5,714 Posts
    • 3,540 Thanks
    foxy-stoat
    Aqua's interest rate is over 35% - they are doing you a favour.
    • GD366
    • By GD366 8th Jan 20, 8:07 AM
    • 1 Posts
    • 0 Thanks
    GD366
    I'm adding my experience too. Like everyone else here in this post, I too have just had my credit limit reduced from 3,500 to 1,700. But unlike you getting advised they would do so, I wasn't given that courtesy.

    Also like everyone else I pay off religious my balances on my other cards (2 I use for daily use). So, no debt and plenty of reserves.

    Shocking behaviour. Only every used Aquacard for odd large one off purchases and paid off straight away. Plus retained in case of emergency.

    Lousy interest rate, 35.9% also, yet my main one with my bank 6.4%

    Bad show AquaCard
    • zx81
    • By zx81 8th Jan 20, 8:24 AM
    • 24,820 Posts
    • 27,708 Thanks
    zx81
    Shocking behaviour. Only every used Aquacard for odd large one off purchases and paid off straight away. Plus retained in case of emergency.
    Originally posted by GD366
    It sounds more like sensible behaviour, based on what you've said.
    • 2ilent8cho
    • By 2ilent8cho 14th Jan 20, 12:29 PM
    • 82 Posts
    • 39 Thanks
    2ilent8cho
    Just had a text from Aqua, limit dropping from 4000 to 2100. Was annoyingly going to take there offer of 6 months interest free next month then they slash the limit so i cannot use it for what i intended.
    • vonsworld
    • By vonsworld 14th Jan 20, 12:41 PM
    • 58 Posts
    • 5 Thanks
    vonsworld
    Since my original post I have closed the account.

    I have several other cards with much higher credit limits, one of which is 9k. However I rarely have a balance over 500 and always pay them off in full after a statement. None of these providers has ever reduced my credit limit.

    I don't need Aqua and so they can stick it 😀
    • CRISPIANNE3
    • By CRISPIANNE3 14th Jan 20, 12:56 PM
    • 386 Posts
    • 215 Thanks
    CRISPIANNE3
    I think you're over-thinking things.

    You've admitted to only using it for a few hundred pounds - what was the original limit and the new limit?

    It's likely they are just cutting back on their lending requirements, and probably 100 other people got the same letter as you.
    Originally posted by Gary_Dexter

    Surprised Gary has received a ppr but no doubt MSE had good reason and no doubt was duly deserved.
    • JonVarnas
    • By JonVarnas 14th Jan 20, 1:25 PM
    • 24 Posts
    • 20 Thanks
    JonVarnas
    Been seeing quite a few posts about this. Maybe Aqua have seen an increase in defaults and are starting to get jittery about their position
    • Malkytheheed
    • By Malkytheheed 15th Jan 20, 6:33 AM
    • 43 Posts
    • 42 Thanks
    Malkytheheed
    If they were getting jittery they would be targeting those who miss payments and such. Not those who have a track record of paying in full every month.

    I've got a feeling that between tandem, this, and other credit card behaviour I am seeing. For reward cards people who repay in full are not profitable and therefor not "good" customers. This only applies to the EU where hand holding rules means credit cards have such strict limits on what they can charge merchants.
    • SnowTiger
    • By SnowTiger 15th Jan 20, 7:55 AM
    • 4,022 Posts
    • 2,997 Thanks
    SnowTiger
    I've got a feeling that between tandem, this, and other credit card behaviour I am seeing. For reward cards people who repay in full are not profitable and therefor not "good" customers.
    Originally posted by Malkytheheed
    Most credit card users pay their balance in full every month.

    It seems to me that Aqua have reduced limits on accounts that have a proportionally low spend going through them.

    All card provides go through this sort of culling from time to time. Use it or lose it.

    Quotes from the messages posted to this thread so far. My emphasis added in red.

    I have been using the card regularly, but only have a balance of a few hundred pounds and always pay this off entirely after receiving a statement, so I pay no interest.
    Originally posted by vonsworld
    Yep me too, totally understand it as I had a 5700 limit reduced to 4400 but only ever maxed out card to 2000 maybe once in 5 years, most other times 400 average a month...
    Originally posted by john1002
    They did exactly the same to me when I cleared the balance in a lump sum. I didn't use the card, and a couple of months later they did it again so I cancelled it. I think they don't want people to clear their balances, there's nothing in it for them if they do.
    Originally posted by CakeCrusader
    Iv'e had my limit reduced it is now 2000, i only use it for overseas spending and always pay off in full, my highest spend was 1100 when they had an offer of 50 cashback which i took advantage of, that's ok with me as i have other 0% cards available.
    Originally posted by stehouk
    Only every used Aquacard for odd large one off purchases and paid off straight away. Plus retained in case of emergency.
    Originally posted by GD366
    • Malkytheheed
    • By Malkytheheed 15th Jan 20, 8:10 AM
    • 43 Posts
    • 42 Thanks
    Malkytheheed
    Most credit card users pay their balance in full every month.
    Originally posted by SnowTiger
    Even on sub-prime "bad" credit cards...?

    I would be very suprised.
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