Barclaycard Credit Limit Discussion Area

MSE_Martin
MSE_Martin Posts: 8,272
First Post First Anniversary Combo Breaker
Money Saving Expert
I've seen much discussion of the credit limits Barclaycard is giving with its new 0% for 13 months offer. (read article here)

To help I thought I'd quickly jot down down three things

1. My thoughts on the reasons why the limits are low
2. Some suggested alternatives routes for higher limits
3. A plan so MoneySavers can collect together info on credit limits from different card companies, to help others applying decide where to apply for.  

1. The Reason:
Surprisingly I've actually some (well a tiny tiny bit) current sympathy for Barclaycard.  Traditionally it's battered by the media, it is massively the UK's biggest card company, thus shoulders much of the schtick for pushing people into debt.  

In many ways this new offer is Barclaycard's attempt to respond to the criticism it tends to face from the press.

It has tried to be transparent with charges (they may be strict but it is at least being upfront), and not to splash the cash out with high credit limits so it can't be accused of encouraging over-indebtedness.

This is the main reason credit limits are lower, it's a response to the become a 'responsible lender' calls that much of the personal finance press and Consumers Association are constantly lobbying for.  

As you may know - unlike many journalists for whom "debt is bad" is the mantra.  My view is subtly different, "Debt is not bad, bad debt is bad!  Debt if it's a rational decision to pay more to have something now rather than wait, which is both planned for, affordable and at the lowest possible rate of interest, is a perfectly reasonably thing to do.  After all companies do it, govenrments do it, so why shouldn't we when we have cash flow issues."  

Yet I'm afraid the mainstream "watch for the debt monster" view seems to have won out, but I'm not convinced this is to the consumer's benefit.  While of course I rabidly support not overlending and pushing people into ill afforded debt.  The consequence is those already in debt, looking to reduce the cost of the interest, won't get the needed credit limits from the top offers.

It's a difficult battle for Barclaycard at the moment.  As an example, one paper's Money section's recently included a bizarre major feature slating this new offer you'll understand why it's running scared.

This piece which i still struggle to understand, criticised Barclaycard for

i. linking its APR to interest rates - something the Consumers Association has lobbied for year!
ii.the whole essense of the offer - which is the best 0% offer the market has ever seen!
iii. offered halifax one as an alternative, a card which is 5 months shorted 0% and while it advertises a rate of 9.9%, actually this rate isn't fixed, it depends on your credit score and can go up to 18.9% - something it was criticising Barclaycard for.

My worry is the impact it will have on the market place.  Insiders at Barclaycard tell me the muttering is "finally we tried to do something really good, a market leading offer, and we're still getting slated, what's the point in being competitive".  To be honest you can see their point.   This offer is not perfect, there are problems, but do it right (read my article for how) and it is hugely improved on anything else we've seen.

However, I don't want to let it off the hook completely.  While giving lower credit limits is well within its rights, the fact that you have to apply to find out doesn't help anyone - as it means 'one more credit search' on your record, which can have a (marginal unless you've already got problems) impact on your credit score.


2. Alternatives

Barclaycard isn't the only player in the market

Shifting Debt then read: Best Balance Transfers Article (ps MBNA is rumoured to be particularly generous with credit limits)

Need a card for spending read: Best Card for Purchases article

3. Report your credit limit
Please can you report what credit limit you got with the new Barclaycard deal - plus how you find it relates to what you've been given with other cards - and which you've found give the highest limits.  It would also be useful to have an indication of your salary and whether you've had any credit history problems to get an indication.

Do remember though as i say "bad debt is bad" getting bigger credit limits if you're in debt, should be a way of cutting the interest to help you pay back more quickly and get out of the mire - not to borrow more and add to the problem

To report your credit limit click here.
To take part in this discussion simply click reply


Martin
Martin Lewis, Money Saving Expert.
Please note, answers don't constitute financial advice, it is based on generalised journalistic research. Always ensure any decision is made with regards to your own individual circumstance.
Don't miss out on urgent MoneySaving, get my weekly e-mail at www.moneysavingexpert.com/tips.
Debt-Free Wannabee Official Nerd Club: (Honorary) Members number 000
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Comments

  • Galstonian
    Galstonian Posts: 1,292 Forumite
    Hi Martin.

    I thought one of the criticisms about Barclays rate being linked to base is that the published rate they are using for "go to" is linked to the base rate as it stood before the last two rises?  That in my view is deliberately misleading.

    On the low limits I don't buy it.  People with high incomes are getting limits in the hundreds when they have other cards with £10K+ limits.  Now we all know that credit scoring is a black art and the fact that they have existing credit may count against them but I doubt it.  I'll bet that limits will be reviewed (and raised) immediately after the deadline for completing balance transfers.  It is one thing to advocate stricter control of credit but another to only restrict it when there is a nice juicy offer on the go.  Barclays have as much interest in reducing the country's indebtedness as any of the other credit card issuers - very little indeed.

    Barclaycard customer services are one of the worst in my experience.  There is no malice in this, they are just ill equipped to do what they are meant to do.  They appear to have little or no information on products and little or no power to make changes to accounts.  The thing that irritates me more than anything though is when a promise is made but never delivered on - this has happened so many times that I no longer deal with them except in writing.

    I bookmarked the following link, I can't recall if it was from MoneySupermarket but it is for the MBNA 12 months card and works for me.  https://wwwn.applyonlinenow.com/UKMPapp/Ctl/redirect?CV_sourceCode=plt12jun13_mcds&CV_banner=MFL-UN-29077-29780


    As for revealing financial information on a public web site, if there was some anonymity or if people did so using private messages then perhaps the resposnse would be higher?
  • I'm sick of Barclaycard already - and that's just in trying to become a customer!

    After applying online on 11th June I've finally received a form to sign which also contains the part referring to balance transfers.

    If Barclaycard have been swamped with applications - I have no sympathy for them - they SHOULD have expected this with such an offer.

    My form does NOT contain details of my credit limit (aaargh!) and I'm blowed if I'm gona rack up a phone bill on the 0870 number in the accompanying letter trying to find out.

    So off I trot to - saynoto0870.com - to find a cheaper number - which is - 0800 917 7277

    After phoning this, ignoring all the prompts to input the account number I don't yet have and finally getting thru to speak to someone - that someone REFUSES to pull up my details (despite my acceptance letter saying my card is ready and waiting) and REFUSES to tell me my credit limit so I can fill out the form (I suspect I shall be telling them to swipe the card where the sun don't shine).

    Seems I have ring the office that is dealing with NEW customers tomorrow morning as they are now closed!

    By the way - the direct dial number for NEW applications is

    0845 766 0758

    or just dial the freephone number above and hit option 3 after ignoring all the prompts to input the account number you may not have.
  • The same as happened to my mum - who applied for a Barclaycard - back in June - she got the form through yesterday to sign and return, saying her card was waiting for her.

    BUT NO CREDIT LIMIT STATED................ - and - a section asking about - BALANCE TRANSFERS.......

    So, she is now deciding what to do.
  • Hobo_2
    Hobo_2 Posts: 286 Forumite
    I`ve been a barclaycard customer 3 times now, if my memory serves me right, it`s a weird way but they have always informed the limit with the card when it arrives!
    Like to know their logic for this as regards BT request
  • purplemoon
    purplemoon Posts: 674 Forumite
    D_G,
    If your mum goes ahead with her application and then decides the credit limit isn't high enough she can always cancel... It shouldn't be a big decision at this stage. I was surprised not to see what my credit limit was before I signed too.
  • Thank you - Purplemoon - your advise is much appreciated.

    I will let my mum know.
  • TheDink
    TheDink Posts: 443 Forumite
    Got my letter on Saturday morning. I have to admit I did use the 0870 number, but got straight onto the phone to them, spoke to someone within a couple of minutes, found out what my credit limit is, and sent the form straight back. Maybe I was just lucky - but try phoning before 9am. It does seem daft that they ask you to request BT's but don't tell you your credit limit - unless they are trying to encourage you to transfer more than 90% of your limit (and thus not get 0%)!
  • pioneer31
    pioneer31 Posts: 330
    First Post First Anniversary Combo Breaker
    Forumite
    I have signed the form without knowing the credit limit. I know realise I've been a mug. I've signed my name to something which I don't have the full facts on.

    They're obviously playing silly games here.

    I shan't ever do it again. If the credit limit is low, I'll just put the card in a drawer and let it rot.
  • mccawz
    mccawz Posts: 43 Forumite
    My Egg Card 0% offer runs out 1st August. So it will be interesting to see if Barclaycard will take on this £4500 Balance Transfer! :-/

    Judging by other posts I'll be lucky to get a £500 limit! ???

    My Marbles credit limit jumped from £4000 to £6000 this month without me asking for an increase! I'd just spent £3000 on a kitchen (including instalation) from Ikea and used the card. I pay this card off every month, though, the interest rate is too high.
    Smile and be happy, things can usually get worse!
  • System
    System Posts: 178,077
    Photogenic Name Dropper First Post
    Community Admin
    ;)
    Mccawz, you wont know till you try, they are usually open to negotiation, try phoning to sus them out. You should get a similar limit to your other cards (if they are not full, ie up to their limits) and you are earning £12k+, Their view of your Ability to Repay will be the main factor in deciding your limit.

    Its a cat and mouse game, Scat
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