Credit card advice

[Astraeus]

I have a credit card with an outstanding balance of £650 (from a £1000+ limit) and I am now in the process of paying it all off between now and 16th April (thus incurring only two months of minimal interest ~£4) but, upon approaching my bank to request that they drop the credit limit down from in excess of £1000 to match me paying off the card, they refused. Am I better off taking the entire balance on to a different card with a different bank and going for a credit limit of only £700 so that I'm paying no interest (assuming the have 0% on balance transfers for a short period) knowing full-well that I'll have paid off the entire balance in just over a month?

Thanks.

[alan_ward]

The banking code states that your bank must reduce your credit limit if you ask

• You can contact us at any time if you want to
reduce your credit limit or opt out of receiving credit
limit increases.

[Astraeus]

Thanks for the response. To quote my bank:

I can confirm your request to decrease your credit limit has been
unsuccessful. New credit limit amount cannot be equal to or less than
existing balance.

I'll pay them a visit tomorrow and take with me a copy of the Banking Code that they issued me with when I took out the card.

Still though, am I better off transferring onto a 0% balance transfer card and paying no interest on the card for the next month?

[Greg]

Originally Posted by Ciarán

Thanks for the response. To quote my bank:



I'll pay them a visit tomorrow and take with me a copy of the Banking Code that they issued me with when I took out the card.

Still though, am I better off transferring onto a 0% balance transfer card and paying no interest on the card for the next month?

There are tons of 0% deals for balance transfers going around. From 3 - 12 months is the common time.

Just remember that they no longer transfer balances for free. Normally 2.5/3% charge, so £650 would incur a charge of £19.50 at 3%. If you are only going to be charged £4 interest (which is bloody good rate if you owe £650) then you may as well leave it on your existing card. Would be interested to know what card you have already as £4 monthly interest on £650 is unusual.

[pixelpixel]

A slight twist to this but various banks would class a credit reduce as a credit application. Yes it might sound a bit crazy but this is what I have experienced when being on the other side. A company that holds a credit license can at anytime credit check you in order to protect them as a business.

They could have a system that rates you and tells advisor's what they could offer you...this could be also reflected on how many credit checks you have ever had while at the bank/company. Now all the above might sound a bit strange but thats what I have seen while working for a few companies and also my own experience with credit cards / banks.

I would just do nothing, if your worried about spending while paying off your card, just destroy it and let it be. Credit is never going to effect your balance that will only be effected by what you pay.

[Astraeus]

The reason I owe so little on such a large balance is that it was 0% interest on purchases for 8 months so I've only accrued interest on 1 months worth of purchases.