Credit Limit Reduced!!!

steviebiker

I have a Barclaycard Simplicity account and have just received a letter which told me my credit limit has been reduced! It was reduced by a massive £3750 to just £99 above my balance amount almost with immediate effect!!

This was because they are "looking out for me"! I have a credit score of 924 and have one default on a card that I forgot to pay one month of which I phoned to pay, said sorry and late payment charge refunded.

I need this card as I am going on holiday shortly and would be using this rather than my debit card abroad. I also need the credit in case of unforseen expenses when abroad.

Why do this?

davethorp

Simple answer, the recession/credit crunch

A lot of people have posted similar stories about barclays. Seems they are tightening their belts. Unfortunately there is very little you can do as it's up to Barclays how much they are prepared to lend you

naijapower

I suggest people stay away from Barclaycard for now. They are obviously feeling the pinch but using all sorts of excuses to justify their action.
I appreciate their right to do this but me thinks the sudden decision is a bit unfair as it has been seen to cause untold hardship and embarrassment.
I saw one unhappy customer on BBC TV last week

keithk56_2

I know what you mean as it has just happened to me. I have a Thomas Cook Card which is administered by Barclays and decided as I am going on holiday in August to ask if they would increase my limit by £1000. I was told they would write in 7 to 10 days to advise the outcome (still waiting, has been a month now) Any how by the 8th day decided to check my account on line to find it had decreased by approximately 10%.
Annoying thing is I was going to use the card to pay my holiday as you get holiday pounds so I had Paid int £1200 which they wiped out £340 of it.

Not a good advert for either Barlcays or Thomas Cook

dvs

steviebiker wrote: »

I have a credit score of 924 and have one default on a card that I forgot to pay one month of which I phoned to pay, said sorry and late payment charge refunded.

The credit score from credit reference agencies means nothing in the real world. Banks use their own criteria to calculate their own score or risk acceptance. Please don't waste money paying extra to find out what your score is.

naijapower

Yep. Do not pay for credit score. It is meaningless and a complete waste of space and funds....

sgt.tibbs1977

There is an interesting section on this web page re. credit scoring systems and how they are used. States that the banks use credit scoring systems in order to assess if you are going to be profitable to them or not and less on your risk of non-payment. This was the case a couple of year ago when egg done a similar thing to all the customers that were paying the balance on their accounts each month that meant they made no money from these customers.
In respect of can they do it? Unfortunately, as Bob the Builder would say, yes they can. The process is clearly set out in the Banking Code which can be viewed online.

never-in-doubt

sgt.tibbs1977 wrote: »

There is an interesting section on this web page re. credit scoring systems and how they are used. States that the banks use credit scoring systems in order to assess if you are going to be profitable to them or not and less on your risk of non-payment. This was the case a couple of year ago when egg done a similar thing to all the customers that were paying the balance on their accounts each month that meant they made no money from these customers.
In respect of can they do it? Unfortunately, as Bob the Builder would say, yes they can. The process is clearly set out in the Banking Code which can be viewed online.

Utter Utter nonsense - banks cannot and DO NOT use credit scores to determine how profitable a customer will be.... surely You're not that daft to even raise query with it mate?

Ok, credit scoring is based solely on the following factors:

Your person, your employment, your accommodation, your income, your job type, your marital status and anything personal to you! It doesn't include provision for any debt, available credit held or anything like that - it as a mathematical analysis of points using combined scores from the varying answers you give.

For instance, if you have lived in same house for 10+ years, same bank for 10+ years and same job for 10+ years you will have one of the best credit scores. Basicallym it shows you are stable.

You cannot appeal a credit score decline for these exact same reasons, think about this - to appeal would mean you have to lie otherwise how can the data you supplied improve to win an appeal? It can't unless you lie!

Credit scores are calculated differently between lenders, like Tesco do not care about address and/or employment type whereas most proper banks do.

By the way, Egg never done that at all. maybe read up a bit before posting utter nonsense! Egg were doing what all the main lenders are currently doing, especially Barclays. Cutting exposure to risk for revolving credit.

sgt.tibbs1977

ouch! As what I have stated above comes direct from the man Martin Lewis himself I think you need to take your garbelled rant up with him! If you scroll down on the main page you will find the article on credit scores and how they work.
In respect of Egg, am sure you will find the story if you put it in BBC news search engine, I have wasted enough time even replying to you to search for it myself, it was a pretty big story at the time, you must have been hiding under a rock the day it was released! And as Barclaycard have done the same thing as per OP it would appear that it is more common than you claim.
In addition, it is also in the Banking Code, as you appear pretty keen on reading am sure you can read through it.
And in respect of 'facts don't lie' read Michael Foucault, he had some interesting comments to make on the construction of truth. Haha!

sgt.tibbs1977

Ok I lie, I just like it when I get to be smug! Here is the link:

http://news.bbc.co.uk/1/hi/uk/7236171.stm

Cash_Flow

never-in-doubt wrote: »

Utter Utter nonsense - banks cannot and DO NOT use credit scores to determine how profitable a customer will be.... surely You're not that daft to even raise query with it mate?

Ok, credit scoring is based solely on the following factors:

Your person, your employment, your accommodation, your income, your job type, your marital status and anything personal to you! It doesn't include provision for any debt, available credit held or anything like that - it as a mathematical analysis of points using combined scores from the varying answers you give.

For instance, if you have lived in same house for 10+ years, same bank for 10+ years and same job for 10+ years you will have one of the best credit scores. Basicallym it shows you are stable.

You cannot appeal a credit score decline for these exact same reasons, think about this - to appeal would mean you have to lie otherwise how can the data you supplied improve to win an appeal? It can't unless you lie!

Credit scores are calculated differently between lenders, like Tesco do not care about address and/or employment type whereas most proper banks do.

By the way, Egg never done that at all. maybe read up a bit before posting utter nonsense! Egg were doing what all the main lenders are currently doing, especially Barclays. Cutting exposure to risk for revolving credit.

Are you sure about that?