Barclaycard lowering my credit limit...

Quila

I'm not sure why, they've said due to a bad credit rating, however I don't have a mortgage, owe no money to anybody and the second I need to use my Barclaycard for an emergency the transaction is declined. I call them, "bad credit rating so your limit has been lowered."

I don't know what to do, I've been in hospital and had surgery and out of work since November, I'm self employed so that was my only option to pay my tax bill. I don't know what to do, all help is appreciated!

SnowTiger

Quila wrote: »

I'm not sure why, they've said due to a bad credit rating, however I don't have a mortgage, owe no money to anybody and the second I need to use my Barclaycard for an emergency the transaction is declined. I call them, "bad credit rating so your limit has been lowered."

I don't know what to do, I've been in hospital and had surgery and out of work since November, I'm self employed so that was my only option to pay my tax bill. I don't know what to do, all help is appreciated!

Dunno. Bit of a mystery if you ask me. :rotfl:

Fruit_and_Nut_Case

Do you bank with Barclays? If so, they may have noticed a lack of incoming funds since November.

Edit: What SnowTiger said.

Quila

No, I bank with Halifax...and I'm sorry SnowTiger, I don't see the point you're trying to make?

Fruit_and_Nut_Case

I don't want to put words in SnowTiger's mouth but I suspect that (s)he thinks that you should have been putting money aside through the year to pay your tax bill.

izools

How close to your limit was your running balance on your barclaycard?

How much more than the minimum payment have you been making over the last six months?

How much have you spent on the card in comparison to how much you've repaid in the last six months?

If say, you've owed 75%+ of your limit for the last several months, and been paying barely above the minimum, and spending almost that much again each month, there need be no external influences for barclaycard to consider you to be a high risk and have a lower internal score with them.

Besides which, the IRS only charge 8% APR on delinquent balances. Much better than pretty much any credit card out there.

Quila

How close to your limit was your running balance on your barclaycard?
I was nowhere near my limit, they've reduced it by £2000....
How much more than the minimum payment have you been making over the last six months?
I always pay back the full balance every time i get a statement.
How much have you spent on the card in comparison to how much you've repaid in the last six months?
I'm now up to my limit on the card because of the reduction, my emergency surgery meant that i've had to use it a little more for necessities (car insurance, house insurance etc), as I've had no other income.

Hax

Ouch - never think of credit as a source of income - that's how downward spirals start!

izools

Hmm.

The only thing I can think of is they would rather lend to a customer who incurs interest than you who clear in full each month.

It wouldn't be the first time Barclaycard have slashed the limit of an account that is paid in full each month.

Although, if you can afford to repay it in full each month, you surely have the money for your tax bill somewhere else? Otherwise you wouldn't be clearing it in full.

Like I say, the IRS only charge 8% APR on overdue tax bills being repaid per an arrangement which is better than any credit card bar the Simplicity.

carlislelass

couple of years ago I paid in £50 overpayment, next statement was reduced by the same amount! soon paid it off and closed it ( and told them why)

book12

Quila wrote: »

How close to your limit was your running balance on your barclaycard?
I was nowhere near my limit, they've reduced it by £2000....
How much more than the minimum payment have you been making over the last six months?
I always pay back the full balance every time i get a statement.
How much have you spent on the card in comparison to how much you've repaid in the last six months?
I'm now up to my limit on the card because of the reduction, my emergency surgery meant that i've had to use it a little more for necessities (car insurance, house insurance etc), as I've had no other income.

£2000 is still a lot. You are lucky that they haven't cancelled/closed your credit card.

izools wrote: »

Hmm.

The only thing I can think of is they would rather lend to a customer who incurs interest than you who clear in full each month.

It wouldn't be the first time Barclaycard have slashed the limit of an account that is paid in full each month.

Although, if you can afford to repay it in full each month, you surely have the money for your tax bill somewhere else? Otherwise you wouldn't be clearing it in full.

Like I say, the IRS only charge 8% APR on overdue tax bills being repaid per an arrangement which is better than any credit card bar the Simplicity.

I thought banks don't like customers making late payments/incurring interest? It is also bad for the credit report, etc...