Barclaycard reduced my credit limit by 97%!

Malkytheheed

Looks like they have done you a favour as you weren't paying off in full every month. Bin the card. Start using a debit card until you can pay of a credit card in full every month. 

noclaf

It seems like all the lenders are reigning in the limits or at least that's what I've observed from my own experiences.
My credit rating took a hit earlier this year as my limit was reduced on a Santander credit card by over £3k. A few years back when stoozing was all the rage I had a £9.4k limit on my Santander card. It's now below £6.5k.
As my cc utilisation then jumped as a result of the reduced credit limit it's negatively impacted my credit rating, annoying but is what it is. Just be wary, maybe now is the time to bring down cc debt as quick as we can within reason (referring to 0% here).

CRISPIANNE3

jo5ephedward5 said:

I just received a 'nice' letter from Barclaycard reducing my credit limit from £9400 to £250, and of course, no notice period it was effective from the date they write the letter which was a week ago!

I have a 999 credit rating, very good income, never missed payment, always paid double the min payment, and have had less than 50% credit utilisation for several years so I have no idea who their ideal customer is, but I clearly no longer fit the bill.

I've spoken with them this morning to get a little more information, but of course, they just fob you off, their rationale was it was a high limit and paying double the minimum is still considered a low payment, so they feel the reduction is appropriate...I could understand some reduction but over 97% for someone who can clearly afford it seems insane. 

My biggest concern now is that such a low limit will be a red flag on my credit file and I'm about to apply for a new mortgage, I've just closed the Barclaycard so fingers crossed it's closed before it affects me too much.

We had a letter like a lot of people but in our case they gave us a choice. After messaging them it was agreed the limits would remain the same but they advised to make sure the cards are used once a year.  However in your case it does seem extreme. At least you are paying double the min payment. With us when the cards are used we clear the balances off in full each month. 

Sea_Shell

I'll be expecting a letter then!!

I've got a £10000 limit, and since my 0% balance expired and was paid off, I've only occasionally used it for the odd thing and paid off in full.

I didn't ask for, or need, that limit at the time.

It's reassuring to know it's there, but wouldn't be a problem if it was reduced or withdrawn.

LordSomebody

Mine was cut from £12,400 to £3,500 in May. 

LadyEvoDriver

I've just had a similar letter today.  Limit cut from £7,200 to £2,400.  I use my Barclaycard every month and pay in full every month as well.  Heaven knows what I've done to now have this cut.  Two months ago I needed just over £1,000 for a single vet bill so having a card with a decent limit is definitely worthwhile. Hopefully I'll never need more than the new limit but I'm somewhat edgy that they are likely to cut it again.  The date of the letter was 14th August. It arrived today, 19th August. The date of the reduction of my limit: 18th August!  Barclaycard, at the very least, need to get their letters out 1st class post and give their customers time to know that this drop is coming, even if it's just a day or two!

Shakin_Steve

LadyEvoDriver said:

I've just had a similar letter today.  Limit cut from £7,200 to £2,400.  I use my Barclaycard every month and pay in full every month as well.  Heaven knows what I've done to now have this cut.  Two months ago I needed just over £1,000 for a single vet bill so having a card with a decent limit is definitely worthwhile. Hopefully I'll never need more than the new limit but I'm somewhat edgy that they are likely to cut it again.  The date of the letter was 14th August. It arrived today, 19th August. The date of the reduction of my limit: 18th August!  Barclaycard, at the very least, need to get their letters out 1st class post and give their customers time to know that this drop is coming, even if it's just a day or two!

As has already been said, it's probably intentional so that people don't decide to have a quick splurge before the limit reduction comes into force. 

bradders1983

Shakin_Steve said:

LadyEvoDriver said:

I've just had a similar letter today.  Limit cut from £7,200 to £2,400.  I use my Barclaycard every month and pay in full every month as well.  Heaven knows what I've done to now have this cut.  Two months ago I needed just over £1,000 for a single vet bill so having a card with a decent limit is definitely worthwhile. Hopefully I'll never need more than the new limit but I'm somewhat edgy that they are likely to cut it again.  The date of the letter was 14th August. It arrived today, 19th August. The date of the reduction of my limit: 18th August!  Barclaycard, at the very least, need to get their letters out 1st class post and give their customers time to know that this drop is coming, even if it's just a day or two!

As has already been said, it's probably intentional so that people don't decide to have a quick splurge before the limit reduction comes into force. 

Also done to stop people spending money and then coming back on here moaning that the reduction means they have been slapped with a load of over limit fees. Cant win no matter what way they do it.

Time2Go_25

LadyEvoDriver said:

 Barclaycard, at the very least, need to get their letters out 1st class post and give their customers time to know that this drop is coming, even if it's just a day or two!

Why what are you going to do with that knowledge. I had letters about both of my cards, they gave me the option of texting a number to keep my limits, I chose to just cancel them instead as I hardly ever use them. If you do still need a larger limit, phone and speak to them, you never know the might agree.

FinanceFerret

Some AI has probably decided that there are more profitable ways to allocate that £9.4k, not every bank wants so-called 999 rated customers, so they've done everything but close your account, which you finished off for them.  Why not build up a £9k emergency fund in cash so you don't have to rely on a card for it?