Barclaycard - Increased Credit Limit

Mac_Sami

I have a measly £450 credit limit on my Barclaycard Gold card, which I've had for just over 2 years (maybe 3, my memory's a tad hazy right now, until I look at my records).

Tonight, I log on to my internet banking to see they've upped my credit limit to £3,450, of which £450 is cash (I don't understand this bit). It says:
Your credit limit Total credit limit: £ 3,450.00 Amount of total credit you can use as cash: £ 450.00 You will be notified on your statement if the amount of cash
available to you on your Gold Visa changes.
Their FAQ says:
Your credit limit is available to you to use in a number of ways:

• For purchases
• For cash withdrawals and Barclaycard cheques
• Depending on your status, you may also be able to transfer a balance to your Barclaycard

You can choose to use all of your available credit for purchases you make with your Gold Visa.

The amount of cash you are able to take using your Barclaycard is calculated as a proportion of your overall credit limit. It is not in addition to your overall credit limit. You can withdraw cash over the counter at a Barclays branch, by using a Barclaycard cheque, or at an ATM.
Information about your overall credit limit and the amount available to you as cash is provided below.
Can anyone explain this to me - do I actually have a £3,450 credit limit? I've never used my card to withdraw cash, just for purchases online and in the shops.

Granted, I use the card monthly, and use most of the limit - just for day to day things, and then pay it off at the end of the month. Never missed a payment or anything like that.

I took on a mortgage (with Nationwide) around 6 months ago - could that have an effect? I should really take a look at my current credit report and see what it says - but I'm guessing it's saying something good!

Would be interested to hear if other people have had the same experience recently.

Thanks.

moneysavingallday

Well done you.

sutton111

yes you must have that limit if that is what it is saying it will also show on your credit file that you have £3450 as well. if you haven't missed a payment on your mortgage this will improve your credit.

brightonman123

£3k for card purchases, £450 (make it 400, plus advance fees) for cash withdrawls - total £3,450..

seems rarther irresponsible for the card co, imo, to hike up someone's limit like this..

or maybe they are tempting people to spend spend SPEND! for Xmas, and then worry later..

if not comfortable, ask to return to what is was, or a more reasonable amount- say £1,000?

or just give me the difference, lol!

moneysavingallday

in the paper it said barclaycard are reducing everyones limits

simongregson

brightonman123 wrote: »

£3k for card purchases, £450 (make it 400, plus advance fees) for cash withdrawls - total £3,450..

The way barclaycard limits work is that it is £3450 total, of which £450 could be cash.

cifpower

£3450 is you credit limit which means you can make purchases up to that limit. You can also withdraw cash on your card up to a limit of £450.

Paul_Herring

I rather suspect that cash advances will incur not only a cash advance fee, but also interest from the day of withdrawal.

I'd not bother withdrawing cash from this card.

As brightonman said, if you don't want/feel uncomfortable with the high limit, ask them to reduce it back down, and don't change how you're currently using the card.

SecretSquirrel88

Hmmm.... our barclaycard limit got lowered. They may be tempting you for christmas as another poster said. Lucky you though!

Mac_Sami

Thanks - wasn't trying to gloat about it, so sorry if anyone got that impression. I'm just as confused as some people as to why they'd increase the limit, given the current climate we're in!

I never withdraw cash on the card, and never plan to. I might get them to lower the limit, I'd never spend that much, only occasionally for a large purchase that I've already got the funds for, but would prefer the protection of buying on a credit card.

Bismarck

Mac_Sami wrote: »

Thanks - wasn't trying to gloat about it, so sorry if anyone got that impression. I'm just as confused as some people as to why they'd increase the limit, given the current climate we're in!

I never withdraw cash on the card, and never plan to. I might get them to lower the limit, I'd never spend that much, only occasionally for a large purchase that I've already got the funds for, but would prefer the protection of buying on a credit card.

they're after safe ways of making money.....as you already plan, don't draw on the card.....it gives all kinds of wrong signals - they offer it to you but I suspect it's their trigger that you're overdoing something when you have to withdraw cash using a CC.