Advice - Barclaycard credit limit?

Aeldari

Hi all, looking for some advice please. 

Have had a letter through the post today, which advised me that as of yesterday, Barclaycard have cut my credit limit almost in half.  (Unbelievable that that I've been informed about it AFTER it has already happened). So instead of being £2.5k under my limit, I am now £200 under it.

To say I am absolutely furious is an understatement.

I have not missed or been late with any payments within the last 10 years. Fair enough I don't pay in full but I don't pay just the minimum either. In fact I have not missed or been late with payments on anything at all!!!

I'm worried about the affect this unexpected decision will have on my credit score / rating.

Should I be worried about it?

Thank you.

[Deleted User]

Nothing to be furious about.  And any change in your made up score or rating can be ignored.

If you need further credit, simply apply elsewhere.

Aeldari

I don't want or need extra credit at the moment, so that's not my worry as such, although if anything were to happen and I needed something I would worry about the impact.

I've had debt issues way in the past and this has taken me right back there as being seen as an untrustworthy and high risk customer which I really don't feel I am now, although I always am slightly anxious about money generally  with my history. It's back in the past so doesn't appear on my credit info.

But basically you're saying ignore the decrease, it's not a huge problem?

[Deleted User]

No, it's not a huge problem.  People tend to get offended when their limits are dropped, but there's really no need.

Aim to have two or three cards as back up and to demonstrate that lenders trust you.

Aeldari

Cheers. Calmed down now but reading that letter really threw me.

I don't have any other cards as back ups and don't know whether applying for other credit cards  would be harmful now?

cymruchris

Aeldari said:

Cheers. Calmed down now but reading that letter really threw me.

I don't have any other cards as back ups and don't know whether applying for other credit cards  would be harmful now?

Are you planning to apply for any mortgage in the next 6 months? If not, and your financial circumstances aren't heading towards tough times - go through an eligibility checker and look at taking on another card. Your imaginary score will  likely drop when you make a full application - (hard search) - and might linger lower than it is today for a few months (as you'd be opening a new account with no history to it) - but in the long run it'll climb back up again, and will be beneficial having more 'available credit' on file should you move towards a mortgage application at some point.

Aeldari

No, no plans on the mortgage front for another couple of years, I'm on a five year fixed.

Finances steady and no change in the foreseeable future - of course anything can happen, that's life, but no planned changes. If you see what I mean!

I guess what concerned me is that whereas I was using up to 50% of my available credit now I'm using about 99% which makes the picture look entirely different. I guess that may not look great to potential lenders.

Thanks peeps, appreciate your help.

Gerry1

Aeldari said:

I don't have any other cards as back ups and don't know whether applying for other credit cards  would be harmful now?

It's a bit unwise to rely on one card.  The Mastercard / Visa networks or local links can go down, the chip can't be read, the card is unexpectedly declined or whatever.  That could be a real problem if you're already committed to the purchase, e.g. you've filled up the car, had a restaurant meal or whatever.

Better to have second card of a different flavour.  It would only be harmful if you can't control your spending.

Mr87

Why don't you take the opportunity to shop around for a decent cashback card? Sign up to MSEs credit club, it's all soft search so doesn't affect credit rating. Plus, if you're not paying off in full, you might benefit from a balance transfer card to get you back on track with 0% (just don't be tempted to use the extra credit available to you!) 

jimbo26

Aeldari said:

I don't have any other cards as back ups and don't know whether applying for other credit cards  would be harmful now?

If you mean harmful to your made up score then don't worry. You seem a bit preoccupied with your 'score', there is no need to be as lenders don't see the score, it is a figure created by the CRAs as a gimmick and has no impact on whether you will be offered another credit card.