Anyone else had their cc limit slashed

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UFX

UFX

UFX

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Halifax really deserve : rolleyes ::rolleyes:

Over the past few years they kept on increasing the limit without asking, think it was around 4k & I would think no wonder some people end up in serious debt.

Now I havent used it for a little while & just last week I decided to spreed the cost of my Car insurance on it £650 then bang a week later they slashed my limit to £500 haha

They play some funny games.
 
As soon as I started paying my egg card off in full each month they halved the limit... probably because they weren't making money any more :p
 
kibblerok said:
As soon as I started paying my egg card off in full each month they halved the limit... probably because they weren't making money any more :p
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That doesn't make mush sense tbh... so I doubt it was related to you paying it off every month. Reducing credit limits is more likely to be related to them reducing exposure as a whole than individual behaviour.
 
I am planning to cancel my Halifax credit card at the next opportunity I have to call them. First they removed the option to pay online. Ok I thought. So I'll wait for my usual statement and take it into the bank. Not ideal, but I can live with it. Then I get a letter saying I had missed payment and was being slapped with a £12 late fee. Ok! A late fee for a bill you never sent me? Interesting! So I pay that bill off in full, including the late fee. THEN I get another letter saying I owe them another £4.99, and if I dont pay it immediately I will get another late fee. Despite the fact I just paid the bill and that statement didnt show the charge for that item yet.

So as soon as I pay off what I currently owe them I'm cutting up their card and closing the account. I already got a new Clydesdale Bank mastercard and THEY let me pay online!
 
dowie said:
That doesn't make mush sense tbh... so I doubt it was related to you paying it off every month. Reducing credit limits is more likely to be related to them reducing exposure as a whole than individual behaviour.
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It doesn't - but reading MSE forum when it happened many were in a similar position.

Just use the card for the cashback now.
 
I'd say most people on the MSE forum would be the types to use credit cards sensibly as you do and pay off every month. Perhpas Halifax did target these types but I'd have thought it more likely they have just reduced exposure in general.

There is no logical reason to reduce limits simply because someone is paying off each month - firstly they're still earning a small amount on purchases which they're now reducing and secondly they've got greater potential that with a larger limit you can't afford to pay off everything one month and they get to charge you interest.
 
dowie said:
is more likely to be related to them reducing exposure as a whole than individual behaviour.
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Probally but faaaar too late for many I would think.

I'll still keep using it for some online purchases I suppose, I more often then not paid it off in full every month and always have & just pleased I dont rely on it really.

It just looks as if they want people to fail, Manage your money well they dont want you.

They wont get another penny interest of me for their cheek:D
 
dowie said:
There is no logical reason to reduce limits simply because someone is paying off each month - firstly they're still earning a small amount on purchases which they're now reducing and secondly they've got greater potential that with a larger limit you can't afford to pay off everything one month and they get to charge you interest.
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If you pay off the balance each month then they dont get any interest but they still have to handle the transactions - hence why they reduce your limit. They basically want you to go elsewhere.
 
egg did this to me, got a letter saying they were cancelling my card, there was a nil balance on it, phoned them up and the guy basically implied that i was a risky customer, WTF, I know I have a decent credit score, anyway stuff them I got another card with a £2k limit the next day, some credit risk, I guess it was cos when I used the card I paid it off in full every month, they werent making any money
 
Halifx are just utterly stupid. Upped my limit from 4k to £8250 over about 3 years (unasked).

Then all of a sudden they dropped the limit to £8050 (not a big drop) and then said they were increasing my interest rate from 9.9% to 12.9%.

I told them where to get off and transferred the balance away. The account is also closed.

I <3 Egg! :)
 
Barclaycard for me have recently done something that has left me bemused

I cleared a £2100 bill, leaving my balance at exactly £0.00. Previous to this, I had a direct debit set up to pay £100 a month. Even though my balance was at £0.00, the next DD of £100 was taken, meaning my balance went to +£100.00

Not a big deal, but they then charged me, somehow, interest on the credit, and now it sits at +£83.76. No further purchases have been made on the card since clearing it, so they have basically stole it from me

Noice
 
cmsbfent said:
Barclaycard for me have recently done something that has left me bemused

I cleared a £2100 bill, leaving my balance at exactly £0.00. Previous to this, I had a direct debit set up to pay £100 a month. Even though my balance was at £0.00, the next DD of £100 was taken, meaning my balance went to +£100.00

Not a big deal, but they then charged me, somehow, interest on the credit, and now it sits at +£83.76. No further purchases have been made on the card since clearing it, so they have basically stole it from me

Noice
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That was probably interest accrued by not yet charged when you paid off the balance.
 
cmsbfent said:
Barclaycard for me have recently done something that has left me bemused

I cleared a £2100 bill, leaving my balance at exactly £0.00. Previous to this, I had a direct debit set up to pay £100 a month. Even though my balance was at £0.00, the next DD of £100 was taken, meaning my balance went to +£100.00

Not a big deal, but they then charged me, somehow, interest on the credit, and now it sits at +£83.76. No further purchases have been made on the card since clearing it, so they have basically stole it from me

Noice
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Did you ring them to point out the error?

Or, if your balance had not been paid off in full from the month before you cleared it, then it would have been interest accrued from the previous month........
 
n111ck said:
If you pay off the balance each month then they dont get any interest but they still have to handle the transactions - hence why they reduce your limit. They basically want you to go elsewhere.
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They get a portion of your transactions and keeping you on a larger limit increases the chance you'll get bill you can't pay off in a single month...

Reducing limits is much more likely due to reducing exposure - getting older, losing your job, only utilising a small portion of the limit are probably good indicators for them to reduce their exposure to you.

http://www.guardian.co.uk/money/2009/feb/08/credit-cards-credit-rating
 
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