Those who’ve never had a credit limit reduced, what’s your secret?

[BeUmberLurker]

Just wondered what habits people have who’ve managed to keep their credit limits stable (or even increase over time) without ever having them cut.

Do you keep utilisation low, always pay in full, avoid balance transfers, use the card regularly, keep direct debits in place, something else?

I’ve just been approved for a Barclaycard with a limit of £5k. I used to have a card with them before but they slashed it to just over half my limit which led me to close it. I remember looking online at the time and there was lots of people saying that there are notorious for doing this.

So just interested in what seems to help so I can possibly avoid it again this time!

I wish Barclays had reduced my limit! Instead, they increased it every time I got close until I was in £17k worth of debt on that one credit card.

Thankfully they then had the sense/grace to stop my card and slash my interest rate until I’d paid it all off (which took 3 years) and promptly issued me a new card with the same £17k limit. I went online and reduced it to £5k myself, and haven’t racked up any more debt since.

I've had the opposite, I'm always on the breadline and use my credit card to bridge the gap between paydays, I've always got a balance on it that I owe them. I pay more than the minimum each month but nowhere near clearing the balance. I've had three balance increases in the last few years, I can now borrow 4x the amount I could when I first took it out. I thought they are trying to encourage me to spend more so I give them more in interest. Why would they reduce it the more you spend on it? Using it very little and paying it off in full doesn't make you a good customer in the credit card companies eyes.

Never missed a payment. Use my card most months. Usually pay it off in full, though the occasions I don't, I pay off more than the minimum. Don't think I've ever had my limit reduced. It wouldn't bother me too much of thry did, as I don't usually spend anywhere near the limit.

Ours was reduced OP. We always paid off in full. We phoned up to query and they said we weren't using it enough. We asked for it to be reinstated as was and they did.

Mine usually increase, but I think a few years ago I had a Barclaycard and they slashed the limit to something stupidly low for no apparent reason, so I closed it. I think maybe my Amex was also put down once, but it was still more than enough as I pay it monthly so I didn't care. It then went back up while after, though I don't think quite as high. Can't remember if there was any discernible reason, but I do also recall there being something about banks being ordered to lend more responsibly, and I think it may have coincided with that.

Same

According to Barclays now, these are some of the reasons the may reduce someone’s limit:

• Missing payments with us or other lenders, for example your mortgage, credit cards, car loans or other loans
• Going over your credit limit
• Asking for lots of new types of credit in a short period of time
• Credit information we receive from a credit reference agency
• The way you’ve managed other accounts, such as current accounts, borrowing with other lenders, and financial commitments like monthly contracts for mobile phones and utility bills

not sure if any of these were applicable to you @BeUmberLurker (no need to tell us obviously) or whether there were any other criteria at that time.

We use ours like a rolling credit facility. We put most of our spending on it and I'll transfer cash to pay it off as and when there is surplus in the joint account.

Some months I pay off the statement balance and a bit more, some months I don't but it all comes out in the wash. We have a few months where necessary outgoings (like house insurance type stuff) absolutely exceeds our income but it balances out over the following months.

I have a few cc and I think all their limits are 12-15k. Apart from capital one which was my first cc as a student is 3k limit but it's impossible to close online so I still have it!

Working in lending credit limits aren’t normally reduced unless there is defaults, credit report changes or just non usage.
Credit limit increases are very common although there is an option to not have automatic credit limit increases, but they are available if requested.

I've never had one reduced. But then I just move money from one to another to keep them on 0% until I can pay them off.

Barclaycard reduce limits if they're not being used. It's part of their fair value policy and protecting customers under consumer duty rules. Also, they'll reduce it if you have for e.g. taken out a loan for £40k loan in the past few months but also have a £10k limit hanging around doing nothing.

Unsure about other banks.

I don't think I've ever had it reduced. I use them mainly for 0% balance transfers for existing balances and never pay in full - but I don't have any defaults and my balance and limits aren't very high. Only one of my cards ever increases the limit though. And it's not my bank, who I've been with for over 25 years and has never once increased or decreased my limit, it's been £1000 forever 😆

I pay mine off in full every month as that's how they are intended to be used.

I have about £30k limit on 3 credit cards, barley use them but when l do balance is paid of in full every month.
I do use them occasionally just to keep my credit score up.

I've never had one reduced either.
I use mine for most of my spending throughout the month and have a DDR to pay of the balance.
So it has £1.20 things up to £50 or £60 things on there usually, then bigger bills like MOT once a year, car insurance once a year, then pay for our holiday once a year as odd 'peaks', but only time I would get anywhere near the limit is once every 10 years or so when I buy a new (to me) car.

Funnily enough mine just wrote to me to tell me my limit had been reduced!
I don’t use it often and immediately pay it off in full when I do, I think the last time I used it was last May when I booked some Eurostar tickets for me and a group of friends, balance was paid off by the time the payment was due. Think it was reduced from 10 to 7,200 (random!).

I'm 45 and have never had a credit card so no. And no intentions of changing that!

I have several empty credit cards. Only once have they said they want to reduce but gave me the option of retaining the limit. I don’t have a high credit utilisation, only two cards I really use and usually pay them off in full. When I don’t pay them off in full (might pay over 2 months instead of 1) I suddenly get tonnes of
credit offers like loans and overdrafts and other credit cards being shoved in my face.

Probably didn’t need to comment on this thread then, as you have no relevant experience that spoke be helpful to the OP.
OP I haven’t had a limit reduction, although my DH did and he’d never defaulted/made late payments/been in any financial difficulty etc. Barclaycard had a period a while ago where they really tightened their lending criteria and that led to a lot of limit reductions.
Paying on time and not always only paying the minimum should mean you don’t lose your limit.

@WhereHasMyPlanetGone Well I do think in the main people can be rather laissez-faire about taking out credit and I've seen it cause people all sorts of trouble.

i pay for everything with credit card and pay it off every month. Have never transferred balances. Have never had it reduced however last year I requested an increase and they refused (in the year prior had a very low utilization but was expecting big purchase and wanted to get my points for it)

Yes, people do get into trouble with debt. That’s not what this thread is about though, so you saying you’ve never had a credit card doesn’t actually help the OP in any way.

@WhereHasMyPlanetGone Well the OP did ask about the "secret" of not getting a limit reduced... not having a credit card is one way!

Yeah, really helpful 👍

Same here. I use my credit card for almost everything and pay at the end of the month. I have never had my credit limit lowered but I have had it increased a few times over the years.