Reduction in Credit Limit on Barclaycard

linem

Hi,

I've had a Barclaycard for quite a number of years. Last Year my credit limit was increased without me asking, to £4,000.

This month I had notification to say it had now been reduced to £2,400.

I was told that it was due to 2 late payments in the last year. When I explained that on each occasion, I had been abroad, but had paid it within days of either returning or when due and also well above the minimum payment. In fact I've never paid just the minimum but paid in hundreds each month, when needed.

I was then asked if I had any store cards as they could count towards my credit rating/limit. When I told her that I had 4 for high street stores (one has actually expired) but couldn't remember the last time I'd used them, she suggested I got rid of them and get back to Barclaycard and they would review my case in 3 months which seems a bit long to me.

What do you think is the best action for me. I travel twice a year and use my Barclaycard for my airline ticket.

pipps0316

Have a direct debit set up for the minimum payment. If you pay your card off in full each month before the DD date, they wont take the DD, but if you are abroad, you will not miss the payment.

3 months might seem long, but within three months if you set up a DD your limit will be increased again. I found this with capital one.

Good Luck and hope it helps

linem

Thankyou pipps thats a good suggestion and I may have to do that.

chattychappy

I never use DDs and spend long periods of time overseas. I manage things online and make payments whilst away...

Whether you use DD or not - just don't miss repayments. If you do it rings alarm bells. You might have an excuse/reason to give them on the phone - but really it makes no difference as however legitimate what you say is, it still increases the risk to them in their automated eyes.

Apart from the credit risk, banks are increasingly supposed to have controls in place to avoid "irresponsible" lending. I can well imagine one approach to this (fig leaf) is to prune the limits of customers that are less than spotless.

This kind of issue rights itself in time. I think 3 months is a reasonable time for them to review things (perhaps even longer). I doubt whether having the store cards would make any difference.

It does sound as if B/C have overreacted, but that's the way it is now.

If you don't get the limit you want in 3 months time, then consider another card. No need to be loyal to them. I HOPE you're not using Barclaycard for foreign spend....

linem

Thanks for the advice, I'll remember it when I get back to them in 3 months and no I don't ever use my Barclaycard when away. Travellers cheques and cash.

chattychappy

linem wrote: »

Travellers cheques and cash.

OK... not sure how you get the cheques/cash. But consider Santander Zero /Post Office credit card/Nationwide credit card for foreign spend. The rate will almost certainly be better than TCs or obtaining foreign cash.

Happy Travels!