Reduce credit card limit

Prof. Utonium

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Imo, DC helps to control your spending better and far less anxiety compared to missing a cc bill payment.

maybe dc for small purchase.
Cc for big ticket ones since banks can file chargeback for u

Doesn't matter DC or CC if one lacks the restraint.

Points/rebates/miles tend to be better for CC as compared to DC, not sure if now is on par. Essentially free money/gifts.

Make payment on time or GIRO and you won't have to worry about missing a payment.

Set lower limit if you are that worried. Honestly I would prefer to have max limit as it would help in your credit score i.e. utilizing 10% of limit (1k vs 10k) instead of 50% of limit (1k vs 2k).

Make any payments big or small through CC and you can still dispute. I even disputed currency exchanges and merchant's bank fees differences before and got my refund in full instead of it being deducted by other external fees. :s13:
 

DelinquentXX

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Hahaha first time I see. Credit card issued to you is to ask you spend so they can earn so why would they reduce your limit? The only time they reduce is they scared you incur already no monies pay them.

Nowadays in letterbox you can receive a pre-signed cheque from those cc banks, you deposit the cheque monies lent to you already can you believe it? They want you to borrow monies from them.

Anyway I have not tried to reduce cc limit before. Kind readers who have done that can share?
As these silly marketing by sending all the details of the user to the residence and if the letter did not reach user but another person who credited it. Is this also commercial crimes?
 

chartermember

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Anyone done this before?

I think the banks have given me too much credit on cards and I prefer to lower the credit limit on the cards actually
I am thinking of doing the same...I have done so on individual credit card but it is tedious filling in multiple forms...wondering if I can simply call the bank and request across the board for multiple cards I have with them.
 

reddevil0728

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I am thinking of doing the same...I have done so on individual credit card but it is tedious filling in multiple forms...wondering if I can simply call the bank and request across the board for multiple cards I have with them.
You can find out for sure by just calling and ask?
 

CrashWire

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I am thinking of doing the same...I have done so on individual credit card but it is tedious filling in multiple forms...wondering if I can simply call the bank and request across the board for multiple cards I have with them.
I know that you can definitely call in and request Amex to put a preset spending limit on your card for your security.
 

crystalnox

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I am thinking of doing the same...I have done so on individual credit card but it is tedious filling in multiple forms...wondering if I can simply call the bank and request across the board for multiple cards I have with them.
Just send them an online message or online chat, they can do it for you without filling any paper forms. Calling also works.
 

nautilus

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Reducing your credit limit on your credit cards will reduce your unsecured debt liability which will help improve your credit score.

I've reduced my credit limit previously and ironically it's easier to increase your credit limit for some banks compared to reducing. For example UOB will require you to go down to the branch to fill up a physical form to reduce your credit limit, as compared to online submission of documents for increasing your credit limit. Not sure if this is still the case.
 

crystalnox

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Reducing your credit limit on your credit cards will reduce your unsecured debt liability which will help improve your credit score.

I've reduced my credit limit previously and ironically it's easier to increase your credit limit for some banks compared to reducing. For example UOB will require you to go down to the branch to fill up a physical form to reduce your credit limit, as compared to online submission of documents for increasing your credit limit. Not sure if this is still the case.
UOB always special case. Every small thing need to go down to branch.
 

reddevil0728

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Reducing your credit limit on your credit cards will reduce your unsecured debt liability which will help improve your credit score.

I've reduced my credit limit previously and ironically it's easier to increase your credit limit for some banks compared to reducing. For example UOB will require you to go down to the branch to fill up a physical form to reduce your credit limit, as compared to online submission of documents for increasing your credit limit. Not sure if this is still the case.

UOB always special case. Every small thing need to go down to branch.
The non digitalisation of UOB really quite bad
 

Oldnerd79

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Pros and cons, while you can protect yourself against credit card fraud n unauthorized charges, on the other ha d you may not be able to increase the limit in the future when you need to borrow money. Especially for ppl near retirement age, I don't think can easily apply for new credit card or increase limit when one is without a job.
 

BBCWatcher

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Reducing your credit limit on your credit cards will reduce your unsecured debt liability which will help improve your credit score.
Reducing your credit limit also increases your credit utilization (percentage of credit used). Higher credit utilization tends to reduce your credit score. The net overall impact could go either way. It'll mainly depend on how significantly you're increasing your credit utilization with a credit limit reduction. If you only charge one banana ($0.50) per month to credit cards then it's probably not going to matter. ($0.50 within a $10,000 credit limit is still a low percentage even if you've reduced your credit limit from $30,000.)

Moreover, different prospective lenders are free to apply their own scoring metrics (and often do). Some may care a great deal more about credit utilization than the standard scoring algorithms.
 

ahnyaahnya

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Anyone done this before?

I think the banks have given me too much credit on cards and I prefer to lower the credit limit on the cards actually
Yes. I did it before.
Reduce is easy . Increase maybe harder .
When I asked to reduce, RM said next time you want to reduce, maybe cannot (cos I stopped working).
But I reduced it anyway
 

ahnyaahnya

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From the media reports, it seems that the scammers managed to transfer out large sums probably above the transfer limits set. I think there might have been failures with OCBC's systems on that part. If they were able to circumvent that, would lowering limits on our end help?
The account holders gave access to their accounts to the scammers. Scammers know how to change the transaction limits hor ( even I know, and I'm not savvy ).
 

ahnyaahnya

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this the part I dun understand. From what I read from the victims claim, the scammer can add payee, change transfer limit and transfer overseas without token or OTP.

Read Liao ball shrink. Might as well keep my moolah in my milo tin biscuit under my bed.
Change phone number too , can receive OTP.
This is reason why OCBC still continuing the use of physical token
 

ahnyaahnya

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Pros and cons, while you can protect yourself against credit card fraud n unauthorized charges, on the other ha d you may not be able to increase the limit in the future when you need to borrow money. Especially for ppl near retirement age, I don't think can easily apply for new credit card or increase limit when one is without a job.
True.
When I decided to change my cc (cos it was giving me nothing , no points ) to a different one from the same bank , they asked for documents, and made silly excuse for not granting a new one..eg asked for Income Tax filing...which I sent to them... Guess what? They refused my application on the grounds that they couldn't see my whole I.c. number!
Duh, IRAS only print out the last few digits , what you expect me to do? Go after IRAS ?
Got my name, got my address, got last few digits of I.c. in the IRAS statement. Still not enough ?
Some more , got $×××,××× in my accounts with them.
 
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