Impact on credit file after reduction in Barclay card limit / account closure

andygmk

Hi, hope I'm putting this in the correct place!
Barclay card have recently written to me and advised that from the 14th August they'll be reducing my credit card limit from £7,400 to £1000 and then on the 14th September be closing the account completely. I've noticed quite a few threads / comments that they are doing this to a lot of people at the moment. I haven't used the card in at least 2 years and in that time its had a 0 balance on it, I've got the option to keep it open.

I've got two other cards, one with Nationwide with a £7,000 limit on it - which has £1,095 balance on it and will be paid off next month and a 0 balance MBNA with £7,800 limit, if Barclay card reduce my limit and close the account - I'm wondering what impact this would have on my credit file / rating. I've read differing advice online in that sometimes it good to close dormant accounts and other times it is not.

I'm doing a fair bit of saving and I'm planning to look at mortgages at some point next year (currently live in rented flat), so I don't want to do anything that will impact my credit and hamper the chances of getting a mortgage.

Also after checking my report, I've noticed that British Gas have got accounts listed for gas and electric, but the values don't match what I actually pay for the services. Does this matter?

Thank you!

[Deleted User]

It'll just show as a closed account.  In itself, it's not a particular problem for lenders.

However, it wise to have three or four cards.

Don't worry about the utilities.

andygmk

Ah ok, so if it does get closed it won't really cause an impact. But if it's wise to have at least 3 or 4 cards. Keeping it open is advisable?

adamp87

I would use your MBNA account for something monthly, just to keep it being used otherwise they may do the same

You could ask Barclays if they will keep your account open too, seems odd that they are to reduce it & then close it a month later..

Potentially more credit available shows lenders you are trusted, & it means your utilisation percentages can be lower too.