Barclaycard reducing credit limit then closing account due to inactivity

Rhubarb_Shed

I take it you've checked to see if your card actually reports to the CRAs?  I ask because I have two Barclaycards, though both a little older than yours, neither of which appear in any reports.  I didn't realise this until I actually bothered to start checking  my reports a couple of years ago.  If the card is not reported then keeping it open or closing it can't have any impact on your credit history.  

Despite these cards not appearing on my reports, I've never had issues obtaining credit products.  One advantage (disadvantage?) of this situation is that you can quite easily find yourself with a total of available credit well in excess of your annual income.

jet01

It’s probably about 4 years since I used the card I think. I was going to cancel it just before that but when I rang to cancel they offered me 0% on purchases for 12 months so I took the offer as I was about to buy a new laptop and it let me spread the cost interest free over a few months. Then ended up keeping the card but haven’t used it since. 

I think I will go with the advice above and cancel the card now before the credit limit is slashed. Thanks for the information about why they are  proposing cutting the credit limit before they actually close the account, that’s what I was most concerned about to be honest. 

CRISPIANNE3

I normally find I get a warning from credit card providers they are closing the account because of non use and I just use the card again for the odd purchase and seems to resolve it.

Grumpy_chap

If you have not used the card, it is reasonable for the card to be closed as keeping it open costs Barclaycard money.

maxximus75

jet01 said:

"If I want to keep the card at the existing credit limit I can text them or make a purchase on the card in the next 14 days and nothing will change. 

Why not just make a purchase on the card to keep the existing £9k credit limit before they drop it to £1k  and keep the account open?

jet01

It is being reported on Experian credit report because I check that on here monthly. It was being reported on Equifax as well last time I checked. 

chanz4

Is it showing dormant though?  

Templeton10

Looks like they may be carrying out reviews.  I received a letter from them, yesterday, informing me that they were reducing my credit limit from £11,500 to £300. Only use the card, when travelling and was last used in December 2019 but still disappointed, as it's a good card.  

onlyfoolsandparking

Fighter1986 said:

Malkytheheed said:

Fighter1986 said:

 I'd close the Barclaycard right away before they reduce your limit. 

Why? What help does this give? I don't see the advantage? 
I don't mean to have a go but are you really in the best knowledge to give advice? I noticed in your previous post you told a commentor that you had to get a money transfer card from a specific lender to be able to buy a car on a credit card, which simple isn't true. 

There are only three lenders that offer money transfer cards - Virgin Money tesco and MBNA. Out of those, MBNA are the only one that allow you to request a specific limit.

So on that basis my advice was sound.

The advantage of closing the account before the limit reduction take place is such that other creditors when credit checking the customer will see their Barclaycard had a high limit, not a low limit, which could influence their decision in terms of what limit to extend them on their new account. Being seen to be trusted with £9,000 is obviously better than being seen to be trusted with £1,000. 

Anything else?

Not correct, Halifax and Barclaycard offer MT,s as well

Malkytheheed

Templeton10 said:

Looks like they may be carrying out reviews.  I received a letter from them, yesterday, informing me that they were reducing my credit limit from £11,500 to £300. Only use the card, when travelling and was last used in December 2019 but still disappointed, as it's a good card.  

£300!  They must really not want you as a customer.