RE: credit card limit reduction


Hi Guys,

As I have mentioned in my other posts I have loads of credit cards with lots of debt and in 5 months I have reduced my debt from 39844.51 to 31873.73.

Today I got a text / email from Halifax saying they are reducing my credit limit from 6550 to 5050 (Current balance is 4850) I don’t mind this as I’m not using the card any more just paying back the debt.

My Questions:

Will the card reduced limit have a negative affect on my credit rating (it just started to pick up again)?

Can a card reduce my limit to an amount lower then is in use?

Can/ would a card reduce my limit lower then the current balance plus the interest of the months statement?

e.g. If my current balance is 6000 and i make a payment of 200 they then lower the balance to 5800 even though the interest due in that month is 125

Thanks for any help



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