Barclaycard credit limit moved down!

lawstudent

Maestro. wrote: »

I suspect the reason they've done it is they're sick of you holding a balance on the card and are chipping away at it as you pay the balance off, and it may well end up at a limit of £500 or however low they normally go (it might be £250 for barclaycard).

That makes no sense. You seem to be suggesting Barclaycard are fed up of making a profit from their customers.

Maestro.

lawstudent wrote: »

That makes no sense. You seem to be suggesting Barclaycard are fed up of making a profit from their customers.

it's a commonly known practice, and it doesn't just involve profit but risk also. Someone who held a high balance for ages and then paid some of it off, might just do the same again in future but default on it instead of paying.

I'd certainly be wary of someone who took ages to pay me back, and would probably hesitate to lend to them in future.

It's not uncommon for people to come here after having had a high limit, and had the bank whittle it all the way down to £500 as they gradually cleared the balance (which was usually held for a substantial amount of time without significantly moving).

EDIT: this very thing also happened to my OH, along with rate hikes which are a profit making exercise.

B19JON

Maestro. wrote: »

It's not uncommon for people to come here after having had a high limit, and had the bank whittle it all the way down to £500 as they gradually cleared the balance (which was usually held for a substantial amount of time without significantly moving).

This has happened to me.
Every month they would reduce my limit until the balance was clear.

Clearly, they didn't want me as a customer lol

Jcts

But it can also go the other way. Having a high balance for a while can trigger a limit increase

iAMaLONDONER

lawstudent wrote: »

That makes no sense. You seem to be suggesting Barclaycard are fed up of making a profit from their customers.

Maybe they are trying to minimise their risky debt!