Credit limit reduced from 5000 to 260?

edited 30 November -1 at 1:00AM in Credit Cards
22 replies 3.8K views
Danielle1985xDanielle1985x Forumite
29 Posts
edited 30 November -1 at 1:00AM in Credit Cards
Hi guys.

I’ve just had a letter from Barclays telling me that they’re reducing my credit limit, from £5,000 to £260!!! I did a balance transfer to a new card a month or so ago, and had a balance of around £3500, which I ideally would like to get paid off. The Barclaycard is now clear. The new card has a credit limit of £4,600.
My credit score isn’t great, but I’ve never missed a payment or been late and have banked with Barclays for the entire time I’ve held a bank account. I don’t have a lot of debt, the £3,500, £6000 on a pcp which finishes in October and my mortgage?

Is my credit going to take a hit because of this now? The account has only been open around a year, should I just close it? I have another Nationwide card that I’ve had around 6 years and is clear which I was just keeping open so I’ve had at least one of my accounts a long time.

What do you guys think?
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Replies

  • worried_jimworried_jim
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    They no longer want you as a customer.
  • zx81zx81 Forumite
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    It will just show on your credit files and lenders will take their own view.

    No real need for concern if the rest of your file shows good credit management.

    Don't worry about the credit score.
  • Shakin_SteveShakin_Steve Forumite
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    When Barclays gave you a credit limit of £5000, they will have done a hard search and assessed affordability. Now they know that you have another card with a balance of £3500, they probably think £8500 unaffordable.
    I came into this world with nothing and I've got most of it left.
  • [Deleted User][Deleted User] Forumite
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    MoneySaving Newbie
    They obviously don't want you as a customer anymore.

    You've transferred away a balance that could be earning interest and now they've lost "interest" in you :)
  • Ben8282Ben8282
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    This is a massive reduction and is unlikely to have been triggered by transferring your balance elsewhere.
    You say that you have never missed a payment or been late but you also say that your credit score is not great. Although the credit score is meaningless in terms of obtaining new credit, it is at least indicative and the fact that it is not great would imply that there is something adverse somewhere on your credit files .
  • I missed a payment on a catalogue account about 7 months ago now, I guess this is the reason why but don’t understand why they would reduce it 7 months later and I can’t see that they’ve done a credit search on me.

    Should I close the card?
  • [Deleted User][Deleted User] Forumite
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    MoneySaving Newbie
    Have you actually contacted the card issuer and asked them why they have done it?

    That's usually a good start...
  • bengal-stripebengal-stripe Forumite
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    I missed a payment on a catalogue account about 7 months ago now,

    So that makes it seven missed payments in as many months.
    My credit score is poor, I have 6 missed payments on a catalogue account 4 months ago.
  • MABLEMABLE Forumite
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    Originally Posted by Danielle1985x View Post
    My credit score is poor, I have 6 missed payments on a catalogue account 4 months ago.


    And there is the answer!
  • chattychappychattychappy Forumite
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    and I can’t see that they’ve done a credit search on me.

    Some lenders get a continuous feed in return for supplying their own monthly updates.

    Don't bother closing the account (they might close it anyway). Just carry on, ensuring you make payments on time. In the case of the transferred balance, don't pay just the minimum even if it's on 0%. Pay at least £1 more. That avoids a minimum payment marker which can make you look distressed.
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