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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 2
    • SnowTiger
    • By SnowTiger 15th Jan 20, 8:52 AM
    • 4,019 Posts
    • 2,996 Thanks
    SnowTiger
    Even on sub-prime "bad" credit cards...?

    I would be very suprised.
    Originally posted by Malkytheheed
    Aqua punters who have posted to this thread claim to pay their statement balance in full every month.

    Like other credit card companies, Aqua offers a range of cards.

    Is their Reward card bad?: fee-free spending abroad using Mastercard rates and 0.5% cashback up to 100 a year.
    • db2016
    • By db2016 15th Jan 20, 11:52 AM
    • 229 Posts
    • 510 Thanks
    db2016
    on this thread maybe, but head over to DFW boards and you'll find lots of "profitable" customers there!



    Aqua punters who have posted to this thread claim to pay their statement balance in full every month.
    .
    Originally posted by SnowTiger
    • SnowTiger
    • By SnowTiger 15th Jan 20, 12:48 PM
    • 4,019 Posts
    • 2,996 Thanks
    SnowTiger
    Aqua punters who have posted to this thread claim to pay their statement balance in full every month.
    Originally posted by SnowTiger
    on this thread maybe, but head over to DFW boards and you'll find lots of "profitable" customers there!
    Originally posted by db2016
    Lots? I see a few.

    The Debt-Free Wannabe forum's audience is a little skewed.

    Just checked. 25 posts made there, and in its sub forums, containing the word Aqua during the past two months.

    Many of them about aqua aerobics and plants. Others mention Aqua in replies or comments.
    • Willing2Learn
    • By Willing2Learn 15th Jan 20, 12:50 PM
    • 5,194 Posts
    • 4,837 Thanks
    Willing2Learn
    Am I the only Aqua customer who got an email, with a 'clickable' option to reject the credit limit reduction? I chose to decline the decrease in my limit...
    I work within the voluntary sector, supporting vulnerable people to rebuild their lives.

    I love my job

    • Ben8282
    • By Ben8282 15th Jan 20, 6:12 PM
    • 4,764 Posts
    • 2,629 Thanks
    Ben8282
    Am I the only Aqua customer who got an email, with a 'clickable' option to reject the credit limit reduction? I chose to decline the decrease in my limit...
    Originally posted by Willing2Learn
    The existance of this option (which I am not doubting) really makes me wonder what Aqua are up to.
    I have heard of the option to refuse credit limit increases but giving cardholders an easy option to refuse decreases sounds very odd indeed. Credit limit decreases only usually occur when the lender has valid reasons for concern about the conduct of the account or the cardholders ability to repay and therefore giving the cardholder the option to decline such a decrease comes across as plain odd.
    • Willing2Learn
    • By Willing2Learn 15th Jan 20, 7:10 PM
    • 5,194 Posts
    • 4,837 Thanks
    Willing2Learn
    Dear xxxxxx,

    We always want to make sure our customers’ cards work for them and their credit needs, undertaking regular reviews to make sure they do.

    We’ve noticed you’re rarely using your full credit limit, which we think might mean you don’t need as much access to credit as you currently have on your Aqua card.


    What happens now
    With this in mind, we will reduce your credit limit from 6400 to 2850 on 28 November 2019.

    This new credit limit should still allow you to continue spending on your card at a similar level to the past 6 months.

    Of course, we want to make sure your Aqua card is working how you need it to.



    What you can do
    Please let us know as soon as possible if you want to keep your current credit limit of 6400. You can keep your current credit limit by clicking below on or before 25 November 2019.
    And then there was a "Keep current credit limit" clickable button


    I am glad I'm not the only one who thought it was rather odd...
    I work within the voluntary sector, supporting vulnerable people to rebuild their lives.

    I love my job

    • Ben8282
    • By Ben8282 15th Jan 20, 9:02 PM
    • 4,764 Posts
    • 2,629 Thanks
    Ben8282
    This is coming across as credit builder/bad credit card mentality for wont of a better expression.
    I always believed that established mainstream credit card users were supposed to have masses of unused credit. I certainly do and have not had any limits reduced on me as far back as I can remember. Is not the optimum utilisation % supposed to be 10%?
    I did have the overdraft limit on my main current account reduced by 17.5% a few years ago back when the banks were having their problems, the reason given being non-use, but honestly can't ever remember a credit card limit being reduced, unless it happened back in the 80's or 90's and I have forgotten about it. Thing is though, I never seem to get increases either. These days, I get a card, get a decent limit and then nothing. It never increases nor decreases. The credit limit on my oldest card, which is also my highest, has remained unchanged for over 20 years.
    Last edited by Ben8282; 15-01-2020 at 9:05 PM.
    • Willing2Learn
    • By Willing2Learn 15th Jan 20, 9:15 PM
    • 5,194 Posts
    • 4,837 Thanks
    Willing2Learn
    The thing is though, is that I do need the credit limit to remain the same, as I am going to be in Belize for a couple of months. So I need a card with zero foreign transaction fees...(I'll have a Starling card for ATMs too, plus a couple of spare cards, just in case I get a card blocked for being abroad!!).
    I work within the voluntary sector, supporting vulnerable people to rebuild their lives.

    I love my job

    • Ben8282
    • By Ben8282 15th Jan 20, 9:21 PM
    • 4,764 Posts
    • 2,629 Thanks
    Ben8282
    I wonder if Aqua deciding to issue cashback cards and 0 FX fee cards, which are attractive to mainstream credit card holders is similar, to use an extreme example, to if Vanquis suddenly decided to start issuing the equivalent of Amex platinum charge cards - something outside their business model and experience.

    One guess here is that Aqua are seeing an unplanned increase in applications for their products, especially the cashback card, and have found that they need to free up the credit in order to offer it to new applicants. Presumably credit card issuers have to cover themselves somehow in case everybody should suddenly decide to spend their full limit so that the credit card issuer doesn't run out of funds themselves.
    Last edited by Ben8282; 15-01-2020 at 9:31 PM.
    • jimbo26
    • By jimbo26 15th Jan 20, 9:42 PM
    • 738 Posts
    • 540 Thanks
    jimbo26
    I was wondering that also. With Tandem making their product unattractive to most customers there seems to be a big shift to Aqua Rewards card. With a sudden influx of new applications, they may well be freeing up some of their available credit by reducing limits of customers who are not using their cards.
    • gt94sss2
    • By gt94sss2 15th Jan 20, 9:49 PM
    • 4,326 Posts
    • 2,049 Thanks
    gt94sss2
    Aqua have offered the Reward card for years - the original iteration was even better than the current one.. it offered 3% cash back

    I think many people are overly hooked on linking the Aqua brand with only those who have poorer credit ratings (admittedly their normal market)
    • philveller
    • By philveller 17th Jan 20, 11:49 PM
    • 2 Posts
    • 0 Thanks
    philveller
    I too had my limit reduce mid December 2019 right in the middle of a 3 week holiday abroad.

    I was informed by text message with a note in the text that a letter would follow but the letter was not there when I returned.

    Like others I have never carried a balance, always paid early in full, I've had the card for 2 years it's main attraction is the fee free FX purchase rate, my average spend has increased from about 600 a month in 2018 to over 700 a month in the last 12 months, but that's averages peak spending has been over 1500 some months.

    It was only 8 months ago that they increased my limit to a bit over 4k and they've now reduced it to just a bit under 3k.

    I phoned them regards another matter but also asked why they had reduced my limit the answer was change in your credit report or maybe that I don't use the card very much, my credit reports haven't changed with any of the CRA so I guess they don't think I use it enough.
    • Dandytf
    • By Dandytf 18th Jan 20, 9:46 AM
    • 2,530 Posts
    • 553 Thanks
    Dandytf
    Even on sub-prime "bad" credit cards...?

    I would be very suprised.
    Originally posted by Malkytheheed
    Thanks probably a few 100million yet to be paid from Credit Cards from Trillions owed by UK.
    I'm one though not relying on day-day CC purchases, more home essentials/Emergancy a tech purchase.
    I reiterate, I don't mind some interest for the privelage.
    sc dmp 2012 13k Dec 2019 11040 paid 80% approx.-Next Update Early Jan 2021
    Mid 2018 Help2save 50 uk pounds per month-New Rules 2020
    Mid 2019-Virgin Money e-saver reward 18 -T.b.c.-Closed reverting to rbs instant swipe saver
    • A4445
    • By A4445 18th Jan 20, 1:47 PM
    • 1,088 Posts
    • 560 Thanks
    A4445
    Natwest reduced my limit recently I didn’t use it much at all. I kept it for 0% forex. I have a Clarity and Nationwide Select Card. I politely told them to shove the card. The agent tried really hard to keep me as a customer clearly on retention targets. I again politely said if your going to mess me around I don’t want your services ������
    • No_6
    • By No_6 18th Jan 20, 10:01 PM
    • 829 Posts
    • 162 Thanks
    No_6
    I see the fun Ai chats are still running

    missed it for a while

    6
    • ric777
    • By ric777 21st Jan 20, 11:00 PM
    • 17 Posts
    • 6 Thanks
    ric777
    Same for me, 6400 down to 1500. Notified by email in November it would happen, phoned them and they agreed to maintain the full limit. Still reduced it at the end of December and another phone call was to no avail, just said new day can do what they want.


    I originally took out the card for its then 3% cash back and free european use and built up from the ridiculously low starting limit. Always paid of
    f, and almost exclusively european use.


    Clearly I am not a valued customer as I never miss a payment and use it for the cash back abroad, i.e no extortionate profit for them. Nowt to do with responsible lending limits, just me not making enough for them imho
    • jonesMUFCforever
    • By jonesMUFCforever 21st Jan 20, 11:20 PM
    • 26,347 Posts
    • 13,519 Thanks
    jonesMUFCforever
    Same for me, 6400 down to 1500. Notified by email in November it would happen, phoned them and they agreed to maintain the full limit. Still reduced it at the end of December and another phone call was to no avail, just said new day can do what they want.


    I originally took out the card for its then 3% cash back and free european use and built up from the ridiculously low starting limit. Always paid of
    f, and almost exclusively european use.


    Clearly I am not a valued customer as I never miss a payment and use it for the cash back abroad, i.e no extortionate profit for them. Nowt to do with responsible lending limits, just me not making enough for them imho
    Originally posted by ric777
    I disagree - if they let you have a facility/limit of 6400 then they have to keep monies available in their balance sheet to fund it (for you and all of their customers).
    Do you use the reduced limit fully?
    There is nothing stopping you applying elsewhere to see if you can get a new card to make up the difference if you need to.
    What goes around - comes around
    give lots and you will always receive lots
    • Malkytheheed
    • By Malkytheheed 22nd Jan 20, 8:26 AM
    • 43 Posts
    • 41 Thanks
    Malkytheheed
    Would Aqua (Newday) be foul of any law if you could be found to penalise those customers who show responsible borrowing? (I.e. pay off their CC in full)
    • zx81
    • By zx81 22nd Jan 20, 8:48 AM
    • 24,794 Posts
    • 27,681 Thanks
    zx81
    No, none whatsoever.
    • JGUK
    • By JGUK 22nd Jan 20, 11:39 AM
    • 208 Posts
    • 45 Thanks
    JGUK
    Just did the same thing to me today, lowered credit limit by half via SMS and was instant when I looked online.


    Called up and cancelled card and took out another card from another provider.


    Just to add for completeness, like others, always paid in full, never missed a payment but only maybe used 10-15% of available limit at any one time - was the reward card.
    Last edited by JGUK; Yesterday at 11:43 AM.
    Thanks
    JG
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