Barclaycard credit limit changed?

Giddytimes

Barclaycard did this to me too, 3 months running. I also haven't used the card since 2010.

I think they are just reviewing peoples credit limits and reducing their exposure.

With mine it was strange as the month before they put my credit limit up to 7500, then cut it to 7000, 6900 and 6650 over the next 3 months, everytime I made a lump payment!

Luckily they don't seem to ever reduce your limit below your outstanding balance, so if you aren't using the card it's not an issue.

izools

Nuclear_Themes wrote: »

Having ANY payday loans suggests you can't handle your money very well. Now they are aware of this they are preventing you from racking up a large debt with them. It's possible that as you pay off more you'll see your limit decrease further.

My OH had 3x PayDay loans from different lenders at the beginning of the year.

They appear on his credit file as "Personal Loan" accounts and haven't adversely affected his ability to get credit - he's just been given a Nationwide Credit Card and a Post Office credit card with reasonable limits.

Nevertheless, after the conversation I had with him about it, he'll never be taking out a PDL again, I can give you that much


OP, your limit was reduced because you ran the account so close to the limit for an extended period of time. This is a sure fire sign of debt stress.

Cash_Flow

izools wrote: »

My OH had 3x PayDay loans from different lenders at the beginning of the year.

They appear on his credit file as "Personal Loan" accounts and haven't adversely affected his ability to get credit - he's just been given a Nationwide Credit Card and a Post Office credit card with reasonable limits.

Nevertheless, after the conversation I had with him about it, he'll never be taking out a PDL again, I can give you that much


OP, your limit was reduced because you ran the account so close to the limit for an extended period of time. This is a sure fire sign of debt stress.

No one on these boards knows the exact reason the OP had their limit chopped;)

With regards to your OH obtaining credit with the presence of pay day loans on his file, maybe in his case the lenders he approached don't consider pay day loans as an outright decline?

I would of thought that even though the pay day loans show as "Personal Loan" on you partners credit file they wouldn't be too hard to spot as the term will be a maximum of 31 days?

izools

Cash_Flow wrote: »

No one on these boards knows the exact reason the OP had their limit chopped;)

With regards to your OH obtaining credit with the presence of pay day loans on his file, maybe in his case the lenders he approached don't consider pay day loans as an outright decline?

I would of thought that even though the pay day loans show as "Personal Loan" on you partners credit file they wouldn't be too hard to spot as the term will be a maximum of 31 days?

I understand this however Barclaycard themselves have confirmed to me on several separate occasions (I had my limit cut from £1,050 to £800 to £300 over the course of a few months because I'd done the same as OP) that they consider running accounts close to their limit for prolonged time a sign of debt stress.

In regards to the PDL issue, I suppose if we can't assume what Barclaycard see as high risk and low risk, how can we assume PDLs are seen as high risk?

If an applicant has run an account within the terms they agreed and since closed and settled said account, what's negative about that data in and of itself? It shows the applicant can adhere to the terms on a variety of accounts.

Not disputing what you're saying - if I were an underwriter I wouldn't like the sight of PDLs on an applicant's credit file...

but does the Data Protection Act allow an underwriter, or a creditor, mark an applicant down for running account correctly?

Cash_Flow

izools wrote: »

I understand this however Barclaycard themselves have confirmed to me on several separate occasions (I had my limit cut from £1,050 to £800 to £300 over the course of a few months because I'd done the same as OP) that they consider running accounts close to their limit for prolonged time a sign of debt stress.

In regards to the PDL issue, I suppose if we can't assume what Barclaycard see as high risk and low risk, how can we assume PDLs are seen as high risk?

If an applicant has run an account within the terms they agreed and since closed and settled said account, what's negative about that data in and of itself? It shows the applicant can adhere to the terms on a variety of accounts.

Not disputing what you're saying - if I were an underwriter I wouldn't like the sight of PDLs on an applicant's credit file...

but does the Data Protection Act allow an underwriter, or a creditor, mark an applicant down for running account correctly?

"In regards to the PDL issue, I suppose if we can't assume what Barclaycard see as high risk and low risk, how can we assume PDLs are seen as high risk?" Cash advances on credit cards are deemed to be a no no as far as credit scoring is concerned on that basis I think it is safe say Pay day loans will do you no favours.

"but does the Data Protection Act allow an underwriter, or a creditor, mark an applicant down for running account correctly?"
As I mentioned above credit cards provide a facility to withdraw cash yet we are told this can impact your credit rating.

"If an applicant has run an account within the terms they agreed and since closed and settled said account, what's negative about that data in and of itself? It shows the applicant can adhere to the terms on a variety of accounts."

Well the data shows that the applicant was desperate for cash.

Cash_Flow

izools wrote: »

In regards to the PDL issue, I suppose if we can't assume what Barclaycard see as high risk and low risk, how can we assume PDLs are seen as high risk?

Cash advances on credit cards are deemed to be a no no as far as credit scoring is concerned on that basis I think it is safe to say Pay day loans will do you no favours.

izools wrote: »

but does the Data Protection Act allow an underwriter, or a creditor, mark an applicant down for running account correctly?

As I mentioned above credit cards provide a facility to withdraw cash yet we are told this can impact your credit rating.

izools wrote: »

If an applicant has run an account within the terms they agreed and since closed and settled said account, what's negative about that data in and of itself? It shows the applicant can adhere to the terms on a variety of accounts.

Well in my eyes the data shows that the applicant was desperate for cash.

izools

Cash_Flow wrote: »

Well the data shows that the applicant was desperate for cash.

OK, yes, it does.

That doesn't necessarily mean the applicant has a cash flow problem.

There are plenty of legitimate reasons for requesting a PDL which don't come as a result of poor budgeting or suffering debt stress -

• A relative has died / has met with a severe accident and they live far away, the PDL applicant hasn't been paid for nearly a month
• A valuable item is up for sale for far less than its worth and payday is close but the item will have sold by then
• There has been theft or loss of property which is paramount to the PDL applicant's livelihood, they need to replace them sooner than their insurance company can cash settle in order to continue their work

Etc.

Whilst these issues should be coverable by a rainy day fund, there are instances where such a fund is not enough - that doesn't always state the applicant isn't savvy, they may simply be on a low income or had an unexpected emergency expense come up at a bad time of month / year.

As I say, I don't advocate PDLs. I consider the PDL companies nothing less than legalized loan sharks. So worse, as they have a legit feel.

But I can't agree with the suggestion they negatively effect credit standings once settled as I just can't fathom out how such a judgement fits in to the DPA.

Cash_Flow

izools wrote: »

OK, yes, it does.

That doesn't necessarily mean the applicant has a cash flow problem.

There are plenty of legitimate reasons for requesting a PDL which don't come as a result of poor budgeting or suffering debt stress -

• A relative has died / has met with a severe accident and they live far away, the PDL applicant hasn't been paid for nearly a month
• A valuable item is up for sale for far less than its worth and payday is close but the item will have sold by then
• There has been theft or loss of property which is paramount to the PDL applicant's livelihood, they need to replace them sooner than their insurance company can cash settle in order to continue their work

Etc.

Whilst these issues should be coverable by a rainy day fund, there are instances where such a fund is not enough - that doesn't always state the applicant isn't savvy, they may simply be on a low income or had an unexpected emergency expense come up at a bad time of month / year.

As I say, I don't advocate PDLs. I consider the PDL companies nothing less than legalized loan sharks. So worse, as they have a legit feel.

But I can't agree with the suggestion they negatively effect credit standings once settled as I just can't fathom out how such a judgement fits in to the DPA.

All of the above could be covered by a small O/D.

You can Glamorise pay day loans all you want:p

izools

Cash_Flow wrote: »

All of the above could be covered by a small O/D.

You can Glamorise pay day loans all you want:p

Mate seriously, I loathe and detest PDLs, I consider them the work of the devil.

I'm just trying to rationalise how treating settled PDLs on a credit file negatively fits into the DPA.

Never mind, just one of those things that is incompatible with my brain

udydudy

Johntea wrote: »

T............as I'll have literally settled all my debts apart from the Wonga since that is on interest frozen repayment plan. .......

Could not this be the simple reason for the reduction in limit. Firstly the Wonga debt is on frozen Interest repayment plan which must have been updated by Wonga on to your credit file, and would surely trigger alarm bells in any risk/underwriting department as it means you are not sticking to the original terms of credit.

Also though you have said you have settled all other debts, you have not mentioned whether these were similar arrangements before being settled. ofcourse one would agree that having borrowed there is no guarantee for barclays that you would not seek a similar arrangement with them and hence they prefer reducing your credit limit as and when you repay.

In my experience they never reduce your debt below what you owe them. I am unsure whether ever they reduce it to so very close to your outstanding that interest charges take you over limit.