Credit card limit rreduced

[thegirlwiththemouseyhair]

Can anyone explain the reasoning behind a bank's decision to reduce the credit card limit?

I have three with MBNA one of which is for 'rainy day' use.
Having just moved there are expenses that I am using the card for.
Yesterday the card was declined (boiler service) and when I rang they told me they had reduced the limit down to what I owed on it and I was over that limit by £45. Needless to say I hadn't received the letter to inform me of this....
Then they said they had done the same to the other two cards.
My credit has always been good and even if the cards haven't been paid off, a regular payment has gone in every month and the occasional lump sums when I can afford it.

I am rather baffled....

BTW I have cut them all up and when paid off I shall be closing accounts.

Have you had recent credit checks ie for moving? Banks have a monthly feed which does not show on your file BTW to alert them to changes to your file. More checks may indicate increased risk for them which might mean that they reduce your limit.

Maybe they don't think you can afford your debt. You say you've just moved, have you increased your mortgage?

Must say, I'm always the one ringing the credit card company saying I don't want such a high limit as I pay it off each month anyway.