So fecked off with Lloyds-limits and credit files

[lisnic]

I got a letter this morning saying due to responsible lending etc they were reducing my credit card limit (by 6k!)

I was a bit wtf as the only thing I owe anyone is this card and it's not got much on it really! Dh has our car and his card too but very well within means don't miss payments etc

Also we pay monthly for experian and get equifax every quarter so know have a good rating

Rang them and I was bunged on hold while the talked to personal lending as i said i wanted to know why as the letter reads like ive suddenly got bad credit and they came back saying was something on my credit file and they wouldn't increase it again

I just went and looked and according to experian I owe £59 (phone) everything else is satisfied and settled - the only change is Lloyds have deleted the card from my credit file?? Its showing as an alert as account deleted Wtf don't get it why would they have done this? Why would this make them see me as a risk?

Will get equifax later but my actual score with experian only dropped slightly following them doing this but nothing significant or change it to poor or anything?

I'm utterly confused and so angry!

[Tekkencat]

a reduction of £6k

[DillyDally]

If it's a card you don't use very often, and you have a big credit limit on it, they often like to lower it so that it's less of a security risk (someone could steal it and rack up huge fraudulent debt on it). That's what they said to me when they did it to a card I hadn't used for a year or so. Nothing to do with credit rating. I used it as a reminded to actually get rid of the card, as I didn't use it and there was no point in having it.

It might not be that though if they think there is something there - could there have been any fraudulent activity? Although I'm with Lloyds and they are very good in flagging these things up and getting in touch.

I wouldn't, personally, get really angry about it, I would just check it out thoroughly

Hopefully someone with more banking/finance experience will come along and be more help.

[*Holly*]

It's about risk and exposure not that you have bad credit. It's the credit card company protecting themselves in case you run out and spend up to the limit then don't pay it back. If you don't use up to your limit anyway then they are working on the basis that you don't need it so reducing their exposure by reducing the limit.

They might have used your credit file as a guide to make the decision i.e how much credit you might have available if you wanted to use it and measure the risk on that basis. Also they may have seen that you don't use credit so made the decision to reduce based on that.

At the end of the day they can do what they want, they don't have to lend you anything! I wouldn't waste time getting annoyed about it, especially if you don't need it

[DillyDally]

It's about risk and exposure not that you have bad credit. It's the credit card company protecting themselves in case you run out and spend up to the limit then don't pay it back. If you don't use up to your limit anyway then they are working on the basis that you don't need it so reducing their exposure by reducing the limit.

They might have used your credit file as a guide to make the decision i.e how much credit you might have available if you wanted to use it and measure the risk on that basis. Also they may have seen that you don't use credit so made the decision to reduce based on that.

At the end of the day they can do what they want, they don't have to lend you anything! I wouldn't waste time getting annoyed about it, especially if you don't need it

I knew someone who knew what they were talking about would be along! I was kind of right

It's worth remembering that credit is privilege, not a right.

[lisnic]

But why would they delete the credit account from my credit file? It now shows i have nothing at all with anyone except orange and that i have nothing available etc This is only action that has impacted anything (lowered score a little?)

I'm thinking for future too as having no credit can be bad if I did ever want to get anything as no history (which is what I'm thinking here as shows no accounts with a current payment history Iyswim?)

But also how they said the reason was to do with my credit file? How?

I do use it sporadically usually put big purchases and holidays on it for security purposes

We bank with Lloyds so they know what goes in etc and they keep offering us all sorts (how i got card in first place they offered it to me when i was paying money on!) so I'm a bit confused and also they do usually call for things (have blocked card a couple times when dh used abroad to check etc)

I am going to ring back and ask why a credit account has been deleted by them

[lisnic]

I knew someone who knew what they were talking about would be along! I was kind of right

It's worth remembering that credit is privilege, not a right.

Oh yes I know but to have them just swoop and and take a limit down by quite so much with a very smokey doesn't add up explanation is annoying really

Think it's what they have done removing the account which has probably caused it which is just poor admin probably or some error and it will reappear next month which is most annoying me

[Toots]

Are you sure the account has been removed? I still have things from years ago on my credit file. I think it tends to go back 6 years so anything from that time should show.

[Faith]

I don't get why you're so annoyed.

They've reduced your credit allowance, but unless you need that extra 6k what's the big deal? I'd be perfectly happy and it wouldn't even occur to me to go off and start checking experian It's no reflection on you, or your credit.

I actually like my credit card company to do this- if I don't need a big credit limit it stops the chance of fraud. In fact I've been catching up on bills today, and my CC company rang about half an hour later to check that I'd made all the purchases. I find it reassuring they're keeping a check and are likely to flag up or prevent fraud.