Barclaycard reducing credit limit then closing account due to inactivity

Templeton10

Malkytheheed said:

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. 

No, looks like it.  I closed the account and unlike with some others, they made no effort to retain my custom.  Will be interesting to see what happens if I ever apply for another card from them.

wiseonesomeofthetime

I am due to have a travel cancellation refund credited to my 0% Barclaycard, which has not been used for anything else, so I wonder if my limit will be reviewed while still a good 12 months left on my deal??

Time will tell.

adamp87

Malkytheheed said:

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. 

To be fair with Barclays it’s a substantial limit on a card that’s unused for nearly 7 months during a pandemic. Most likely to reduce risk of it suddenly being all used and potentially unpaid they’ve made the decision. 

CRISPIANNE3

Just read my latest statement and advised that my cash limit is being reduced to 30%.  However the credit limit remains the same.  I have never drawn cash on any of my credit cards so not an issue. I still get plenty of promo offers but since the virus the money transfers have stopped. Again no problem. 

funkycredit

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?

That's not true. I've got money offers on my amazon platinum and always have done. I don't need them but they're there - and that's NewDay! 

jet01

 New Day brands, including Fluid and Aqua, and other Lloyds group brands not just MBNA offer money transfer cards still. 

Scrumpy11

jet01 said:

I have received a letter today from barclaycard to say that because I haven’t used my card for a while they will cut my credit limit from over £9,000 to £1,000 from July and then in August they will close the account altogether. 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. 

I have been thinking about getting rid of this card for a while as I have another rewards card that I prefer to use instead. However, this card is the longest standing financial relationship I’ve had with any lender because I have had the card since 1997 and kept it in good standing. Therefore for that reason I’m unsure if I should close it or not because I have read that it is good for your credit report to have some long-standing products that you have maintained well over time. Is this true or should I go ahead and close the account?

Also I found it a bit strange that the letter says that they will cut the credit limit for a month before they actually close the account. Any ideas why this would be? I’m worried that will look like they have cut the credit limit because they think I’m a bad risk and then I closed the account in response to that credit limit cut, reducing the likelihood I will be accepted by or get the best deals from another card company if want another card in the near future. Is that right?

Any advice appreciated. 

Hi, I am not sure whats going on with Barclaycard, they reduced my limit stating I have had bad bed marks left on my credit file, this is lies... I pat for Experian and there has been no bad mark against me.
I am furloughed from work but work for a big motoring company, so i pose no risk as if I lost my job then I would receive a good redundancy package.
There own department said my account is in good standing, I have never missed a payment.

i do find all this strange as I received six hundred pound refund of charges a week before they cut my limit... I am not complaining, although I had not put any complaints for any refunds in... Im guessing my limit cut was due to the refund and not bad credit as they stated as the reason.  One massive complaint is going in

Jemsnation

Jumping on this as i am in a similar situation with NatWest. I've just had an e-mail from then stating they are going to lower my limit but I can keep my current limit if I contact them. What are the pros and cons of requesting that they keep my limit the same? Admittedly, I don't tend to use this card but I'm happy to use it now and then to keep it active if necessary. From what I understand about credit cards, it is good to have a fairly high limit across the board but show a relatively low % of spending to improve your credit rating (shows you spend responsibly). Is this to way of looking at it too simplistic?

john539

Keep card or make transaction.
You never know when you might need it.

Thrugelmir

Jemsnation said:

 From what I understand about credit cards, it is good to have a fairly high limit across the board but show a relatively low % of spending to improve your credit rating (shows you spend responsibly). Is this to way of looking at it too simplistic?

Have credit availability that meets your personal needs. Over thinking the issue achieves nothing. Certainly not an improvement in credit rating. Behaving normally is perfectly adequate to achieve a pass on ones credit files.