Massive reduction in Barclaycard limit

MalMonroe

ilikewatch2 said:

I know that in the current climate banks are probably trying to reduce their exposure, but this probably ranks as the most extreme credit limit reduction I've ever experienced - especially when I was notified 3 days after it was applied!

Are you really sure that this is legitimate? Have you logged on to your online account? I kept getting messages from my credit card company by both text and email advising that the 0% agreement - which expires next June - was coming to an end at the end of THIS June. I panicked a bit and then logged on to my account and sent a private message to the company. They responded that they hadn't sent an email or a text and nor would they to advise about this kind of thing. They said they hoped I hadn't clicked on any links in the email, which I hadn't, as that would allow hackers complete access to my account. As your limit was £9200, hackers could have had a real beano!

ilikewatch2

Yes, the first thing I did was to log in to the app to confirm the change in credit limit (the email did contain more information specific to me, such as a partial account number etc. but I cropped this out of the screenshot I posted). I have since received a letter which also advised of the change.

Chino

jjames1985 said:

They show that lenders don't trust you with a lot of money, that's pretty bad.

No, they show what a borrower's limit is, not why it was set at that level. For all a lender knows, the limit was set by specific request of the borrower.

dr_adidas01

Malkytheheed said:

I didn't know AMEX even did such low limits! 

Yup if you read the summery box bit on most of Amex’s card it says minimum credit limit £700

Fingerbobs

Chino said:

jjames1985 said:

They show that lenders don't trust you with a lot of money, that's pretty bad.

No, they show what a borrower's limit is, not why it was set at that level. For all a lender knows, the limit was set by specific request of the borrower.

I had an Aqua card with a credit limit of £500 for a while, between 2012 and 2014, when they were paying 3% cashback on all spend. It was a pain because I had to keep paying the card off several times a month so I could continue my normal spending to earn cashback, but it didn't cause me any problems with opening other lines of credit.

Thrugelmir

Sad_Dad said:

wiseonesomeofthetime It will because I Stoozed about 50k and put a lot of it through my AMEX card.

So you've a high credit utilisation elsewhere? 

Silvertabby

jjames1985 said:

They just don't want you as a customer anymore, probably because you're not profitable.  Don't take it personally.

Hope this isn't a sign of the times.  We have had 2 cashback cards for years, during which time we have never paid a penny in interest or other charges.  

Sad_Dad

Thrugelmir said:

Sad_Dad said:

wiseonesomeofthetime It will because I Stoozed about 50k and put a lot of it through my AMEX card.

So you've a high credit utilisation elsewhere? 

Correct, 50k spread over about 7 cards. 

Thrugelmir

Silvertabby said:

jjames1985 said:

They just don't want you as a customer anymore, probably because you're not profitable.  Don't take it personally.

Hope this isn't a sign of the times.  We have had 2 cashback cards for years, during which time we have never paid a penny in interest or other charges.  

The credit card companies take a decent cut of the money you spend on the card. No need to pay interest to be a profitable customer. 

Providing credit facilities comes at a cost to the lender. Also requires them to put aside capital to meet regulatory requirements. In the current crisis the capital is probably used elsewhere. In addition credit card spend has probably dropped away considerably as people keep their hands in their pockets. 

Gary1963

@Barclaycard love how you find out your limit has been reduced when you receive a email saying you're near your limit. Funny how it coincides with the end of the payment holiday! Tweeted... No response!