Written by Karen Bryan
I was rather annoyed when I received a letter from Aqua informing me that they’d reduced the credit limit on my Aqua Reward Credit Card from £1,600 to £800. They told me that this reduction had been carried out as I hadn’t used the credit card for a few months.
Now the reason for that is that the Aqua Reward Credit Card pays a healthy 3% cashback, but with an upper limit of £100 cashback a year. This means when my spending hits £3,333.00 in a 12 month period and I’ve reached the maximum cashback, I stop using the card.
As the initial 12 month period was up, I was about to start using the Aqua Reward Credit Card again. A reduction in the spending limit would’ve been inconvenient, as I would’ve had to carefully monitor my spending to ensure I stayed below the £800 limit.
I phoned Aqua to request them to reinstate my £1,600 credit card limit to which they agreed. However, I can think of lots of other things I’d rather do on a Saturday morning, than be on hold to Aqua’s customer service department to ask them to reverse their action.
I’ve never had my credit card limit reduced before, but I’ve had it increased without requesting it. I’ve read that unrequested increases in credit card spending limits are irresponsible and can encourage some people to spend more than they can easily afford to repay.
In my opinion, credit card companies should leave a customer’s credit card limit unchanged unless there’s a very solid reason to make a change, or the customer requests a change.