Barclaycard Have Slashed My credit Limit

BReasonable

Last month I transferred the balance of my Barclaycard to Tesco Bank Clubcard because their interest free period was ending and Tesco were offering a new 12 month interest free balance transfer deal. 
Now I've just had a letter from Barclaycard telling me that they've slashed my credit limit from £10000 to a pathetic £300. This will harm my credit rating because I'm now using over 50% of my available credit limits, although it's all interest free. One of the deals expires in November and I was hoping to transfer it to Barclaycard.
Barclaycard say I can appeal, is it worth it? or are they on to me for being a card tart?

bradders1983

They are well within their right to amend a credit limit at any time, as per the terms you will have agreed to. And yes they are probably on to you, you dont make them any money.

Credit scores are meaningless, btw.

D3xt3r5L4b

Take no notice of your “rating”. 

You can contact Barclaycard and ask for your limit to not be decreased but it’s down to them. 

BReasonable

Yes I know the actual scores are meaningless but they do take into account how much of your credit limits you're using. I was using just over 50% of my total limit of £35700, this has now been slashed to £26000 and I'm now using almost 70% of it.
I realise that the world doesn't owe me a living but it's galling that this had to happen to my largest individual card limit when I've kept an impeccable payment record.
I won't appeal, it only helps them with their customer intelligence, better to keep them in the dark as much as possible.  

bradders1983

The real worry should be that you have £18k on credit cards, but I suppose you know that. It doesnt look good if its 20% or 90% of your limits tbh 

CRISPIANNE3

bradders1983 said:

The real worry should be that you have £18k on credit cards, but I suppose you know that. It doesnt look good if its 20% or 90% of your limits tbh 

More of a worry if you do not have assets behind you to repay the debt.

BReasonable

CRISPIANNE3 said:

bradders1983 said:

The real worry should be that you have £18k on credit cards, but I suppose you know that. It doesnt look good if its 20% or 90% of your limits tbh 

More of a worry if you do not have assets behind you to repay the debt.

If I find that I can't transfer the debt any more and I face interest charges then I would pay off the debt by putting my Self Invested Pension Plan into drawdown and use the 25% of it which tax free to wipe out the debts just before interest becomes payable on each of them.
Then I would have to re-build my retirement fund by putting cash into ISAs.  I hope that Barclaycard's drastic action doesn't mean that my little game that I've played for 12 years now is over, but if it is, I'll just have to live with it.
The lump that is due to start attracting interest in November is relatively small and I could find the money if all else fails, more of a concern is a much bigger lump in an offer that ends in February 2021.. 
I've paid transfer fees which are partly offset by up to 56 days free credit, Clubcard points, Nectar points etc. but I've never paid interest.

collins74

That is an astonishing amount for a limit to be reduced. I used to be with Barclaycard and found their customer service excellent. I’d appeal if I was you. Even a partial increase would help and as you rightly state, it can impact how lenders view your credit profile.