Barclaycard reduce credit limit to £700 from £12,000

wsteve

Received a letter from barclaycard imforming me that my credit limit has been reduced from £12,000 to £700 and no longer able to take out cash.

I have always made payments on time and never gone over my credit limit. And have an excellent credit rating.

I presume this is their way of closing my account ' according to the terms' etc etc.

What an earth is going on....

Telephoned them and got the same reply.:mad::mad:

CannyJock

It happens.

They've just reduced the amount of available credit on your credit report by £ 11,300 although it'll take a few months to show.

Why not apply for a decent 0% purchase card, or if you clear the balance in full each month a reward/cashback card. If you've got an excellent credit rating you won't have any problem being accepted and given a decent limit. If you can wait a couple of months till the lower credit limit is reported then you'll get an even higher limit on your new card.

If you really want them to reverse their decision then you need to write to them and explain why you need the limit. I did this a few years ago with Lloyds and got a 5 figure limit reinstated after my card had been semi-dormant for a while.

pre123

let me guess, £700 is your average balance for the last 6 months or so, or youve just paid a lump sum of the card??

as CannyJock says go for 0% on purchases card.. Tesco or Play.com are best on market to my knowledge

wsteve

Yes I have just paid a lump sum off the credit card about £2500 and the current balance is near enough £700.

Why do they do this closing the account, are they not making enough money from me? Why should I ever go near barclays bank ever again.....

I have just taken out a 16 month 0% with virgin card.:rotfl:

pre123

congrats on the new card..
ive had my argos mastercard reduced from £2000 to £250 (their lowest limit) main reason i guess is that when i did spend i paid in full every time (so no profit from interest charged) plus i hadnt used it for six months.. but just need to get around to cancelling it

ive just got the new play.com which is 0% for 9 months on purchases!!!!

pre123

wsteve wrote: »

Why do they do this closing the account, are they not making enough money from me? Why should I ever go near barclays bank ever again.....

hit the nail on the head.. just check the interest you paid last month before the lump sum payment and next months interest after the lump sum...
CC providers love you having massive balances only paying minimum payments as they make the most profit from you.. pay of in full leaves little room to make any money let alone profit from you

CannyJock

wsteve wrote: »

Why do they do this closing the account, are they not making enough money from me? Why should I ever go near barclays bank ever again.....

They're not closing the account, although if the £ 700 limit is not much use to you then clear and close the card. Either way, don't take it personally, if they come up with a product that you want then that'd be the reason to go near them.

wsteve wrote: »

I have just taken out a 16 month 0% with virgin card.

16 months on balance transfers, but only 3 months on purchases.

td_007

pre123 wrote: »

CC providers love you having massive balances only paying minimum payments as they make the most profit from you.. pay of in full leaves little room to make any money let alone profit from you

This is partly true - credit cards make their big profits from customers. However, they also make their money from merchant fees which could ~3% of transaction value and many times a flat rate fee per transaction. Thus, even if you pay off your balance in full every month, it is not as if the credit card company is not making "some" profit. This is ofcourse much less than what they would like....

CannyJock

Not to mention the costs they incur from dealing with unenforceability claims.

INT1

Current climate-Risk based pricing.

In otherwords lenders are protecting their backs on the freely available credit on their books.
If you dispute the decision and plant to use the card for 10k, give them a call and ask to speak to a underwriter to increase it to a more preferred limit which you will use.

It won't just be Barclaycard doing this

udydudy

Hey lloyds tsb seems to want to be in the barclaycard league (except for wanting taxpayer cash). They have also started reducing limits. I recently got a 10% reduction in limit stating having done a review of the account.

These guys are sooo crass. their banking division wants us to meet a investment advisor as they feel our account is very good and we have a lot of cash which they could advise us for better financial management!!!.

Anyway as far as I am concerned they go into the barclaycard league-- wherein I will be closing all my accounts with them (when my BT period ends) and they will only get my money only when they offer the best interest rates in the market for my savings!!

They surely are not going to be making anymore money out of the money that stays in their current accounts (albiet for short periods) or from commissions when i spend thousands on their credit card(whilst not in stoozing) I guess it will also improve my credit score as will have lesser available credit!!.