Credit Card Help, Can anyone advise?

[CreditCardHelp]

I paid my credit card off in full 2 days ago, and I've just had a text to say they have decreased my limit. I now 2grand vanished into thin air, which is my money to survive on for the next 3 months. I have always paid more than my monthly minimum payments and an advisor I spoke to 4 weeks ago said that my account was looking good and it was being managed really well. As I'm a student, I pay off my balance in full every 3 months when my loan comes through the live on that, always paying my minimum payments off.
My credit score hasn't changed, there is no reason why they would do this. I now have been left 100 pounds to last me 3 months. They have passed it into complaints and say it can take up to 8 weeks to get back to me. Can they do this? The guy on the phone said they may be able to compensate me if it's left me in financial hadrship, which it has. I'm really worried about this now, and worrying that I will have to drop out of uni. They have me no warning that they had any concerns with my account, they just did it today.
Has this happened to anyone and what happened when they reviewed it?

Look, the op has had clear advice. Stop spending stupidly on credit cards, overdrafts or shit loans... Get to MSE. Or citizens advice. Or the uni student support services. Free, impartial, practical advice in person is best but the fact is that no one here on this thread can properly advise - she's not even in the right sub forum on MN to get financial advice.

She needs an
A) in depth review of her money, see above and
B) a LONG TERM solution,not something that is a short term fix or will get her deeper in the red.

OP you say that universal credit have reduced your payments due to previous overpayment. I suggest you contact a debt charity or benefits charity - maybe cab to see if they can help negotiate how much they recover each month.

They already put a block on my repayments to help me through the summer so are expecting it to be paid back now that I’m a student again

Which is usually 56 days
She is already doing that if she only clears it every 3 months.

Giving advice why it is a bad idea to build credit this way is not being mean, I’ve been in debt and learnt the hard way as well from this exact same thing!

I’ve also made other suggestions alongside other people trying to help

There's nothing I can do until I hear back from them, but it's looking likely that I will have to drop out of uni.

You don’t say if you are, but did you make cash withdrawals from your CC? I’m just worried you have been paying a lot of charges

You can call the national debt line
They gave me good advice

With overpayments from UC like a PP said you can ask for the overpayment to be reviewed. They usually try to take back a certain percentage, I had to pay back £350 of tax credits at £75 a month but if this is putting you into hardship you can try to talk to them about it

I have always found the CAB hard to get an appointment with so trying national debt line may help they also have a really good website

For food to get by, do you have a food bank locally? You may need to get referred but I would do it

Do you have prepayment meters? If you don’t, you can alert the utility companies of your circumstances and they may also be able to help you with bills until you get back on your feet

As you are a student are you exempt from council tax? Never get behind on council tax or rent out of all of your bills because they have the most serious consequences

When this happened to me and I got into a mess I did take on another job (I had 3 jobs and single mum), it was really hard I do feel for you. Don’t be embarrassed to tell your family and friends that you may need some help with childcare if anyone could possibly help you, they may surprise you.

I understand it’s hard to find a job in your situation, many places are already looking for Christmas staff so you may be able to find something part time

Car boot sale or sell on Facebook your baby items you don’t need

Also putting all your silver change into a jar every time you use cash can help you save money over the month so you have something left over at the end

Have you actually talked to your student support services? And have you applied for that childcare grant?

OP has already said she has got the childcare grant set up (though it's a shit show especially with the new portal this year!) And that student support won't help with hardship caused by credit cards. Honestly, I don't have any advice OP, but I'm sorry you're in this position. I am also a full time degree student and single parent and I understand how hard it is, especially when people suggest you quit or get a job. They don't seem to understand that that would have the opposite effect!

As I said before no advice really but if you ever want to chat to someone who understands your position feel free to PM me

Sorry! Missed the child grant thing.
The student support can recommend where to get best advice and or grants, not just hardship one. I would ask them for any helpful info they can have about ANY grants and/or loans.

Or move to part time study. Year just started so it should be doable

re CC companies not liking customers who pay in full every month:

I've paid in full ever since I received my first CC aged 18

I'm now 63 and have never had my limit lowered, or a new CC refused

CC have increased my limits several times - without my asking - over the years, even though I rarely exceed 10% of my limit

As pp stated: your problem is because you regularly use such a high % of the limit
Not because you are doing the sensible thing and paying it off to avoid interest.
It's a good habit to keep, avoiding unnecessary interest costs

and yes, if you can't get an additional grant, then moving to pt study looks sensible
Being so dependent longterm on a CC is not a viable plan

How far into your course are you? Can you transfer some credits to open uni, switch to part time and get a job? Or defer and get a job? You need money more than the degree in the very short term.

2nd year. I’ve just applied for a job to work on my lecture days. It will be fine. I’ll figure things out. I’m a little less panicked today.

I don’t think it’s helpful to OP anymore but I will explain why I think paying the whole balance is the issue for those who can’t seem to grasp what I am saying

If you have £2000 limit card and spend £2000 then pay off £2000 you are spending 100% of your limit then paying it all off. Flags up issues with affording the card and become a risk as you are relying on it

If you have a £2000 limit and spend £500, then pay the £500 off, you are paying off your ‘balance in full’ but you only used 25% of the limit in the first place

Make sense?

All this talk of ‘paying in full’ - OP can you clarify something. You said I pay it completely in full every 3-4 months. what exactly do you mean?

EG spend £400 in September, pay £400 in September, repeat every month (paying in full)

OR

Spend £400 in September, pay £100 per month for the next 4 months as suggested in your quote? This would be partial payments and not actually paying in full! So all this chat about ‘not being a profitable customer’ isn’t even relevant.

Your past credit history is relevant though, it still makes you a higher risk customer. Banks are risk averse and if you seem like you’re slipping back into bad habits then they will immediately cut their losses hence reducing your limit. I wouldn’t say that you have necessarily been managing your card well, if you spend £1500 and take 4 months to pay it off, banks won’t like that. It shows that you struggle to afford it.

I had a terrible credit rating when starting uni (due to similar reasons ) and still got a student account/ overdraft - with Lloyd's, if that helps. 4yrs ago.

I don't know if you're aware that you can get student finance for Masters now? I recently applied, it's v simple as not means tested. You don't get as much, a little over 10k which you have to pay tuition fees from, but at least it would cover those?

But maybe your course isn't eligible, and that's why you need a loan? Just wanted to say in case you didn't know. Think they only got introduced quite recently.

@CreditCardHelp how are you getting on?

@araiwa

You operating your account well has a completely different view point from the cc company.

They arent making any money off you if youre always paying it off.

My credit card company have never made e a penny from me as I've always paid it off in full but they still keep increasing my limit despite me never having asked for it to be increased.