Limit Cut

Adams_Dad

Barclaycard of course my credit limits by about 75%.  However, in the last year my income has increased, my payments to Barclaycard have increased and my outgoings have decreased so I can't understand why they have done this.  They mention affordability in general terms but as I've been paying around twice of the minimum and have no other significant credit, I've proved that I can afford the payments.
I've tried talking to them on the phone but after three quarters of an hour hour-by-hour just got fobbed off with the offer of a call back within 10 days!
Anyone else experiencing this?  Any tips on getting it reconsidered?

bradders1983

Yes, loads of people. They are reducing liabilities in the middle of a global pandemic, as is their right to do so.

MovingForwards

Loads, plenty of threads on MSE about it.

sunshineholiday

Adams_Dad said:

Barclaycard of course my credit limits by about 75%.  

I think I may have had the biggest Barclay card cut ever1 From an £18000 limit (zreo balance, but used often) to....£250
I recieved the letter the day after it had already actioned...

Needless to say, I cancelled immediately via the secure chat, but I have to say I was surprised at the severity of the cut!

Ah well!

captainlongtoes

No decrease on my account, but I won't be surprised if it's on the way.

Thrugelmir

Adams_Dad said:

 I've proved that I can afford the payments.

Only has long as you have a job. Barclaycard will be actively derisking and reducing the possibility that people will spend money they don't have. Only to default on the debt. 

sourcrates

Lots of customers are seeing credit limits on their cards slashed by thousands of pounds, despite them not doing anything wrong, this is because banks are looking to reduce risk as the economy heads south, mainly due to COVID-19.

Barclaycard are not alone in doing this, most lenders are doing the same thing, pulling up the drawbridge and doing what banks do best, look after number one.

Emmia

Adams_Dad said:

Barclaycard of course my credit limits by about 75%.  However, in the last year my income has increased, my payments to Barclaycard have increased and my outgoings have decreased so I can't understand why they have done this.  They mention affordability in general terms but as I've been paying around twice of the minimum and have no other significant credit, I've proved that I can afford the payments.
I've tried talking to them on the phone but after three quarters of an hour hour-by-hour just got fobbed off with the offer of a call back within 10 days!
Anyone else experiencing this?  Any tips on getting it reconsidered?

If you're only making twice the minimum payment, you're not clearing the balance in full - so I'd question the affordability of this debt.

From Barclaycard's perspective you're probably someone at a higher risk of defaulting, and so unsurprisingly they're taking steps to reduce their exposure.

[Deleted User]

If you were paying the balance in full every month, you would be shown to be managing your debt fine and have no reason to have a limit cut, by paying less and getting interest every month it shows the bank you can't afford the lifestyle you are living (purely from a data point of view) so they have cut your limit to reduce the chance of you running up too much debt. You need to pay the balance off in full every month for a while and they may put it up again. I have a Barclaycard which I use as a balance transfer card, they put my limit UP this April by £1500, following an increase last year of the same amount. This is paid off on a fixed monthly amount of well over the minimum. I have 2 other cards both paid in full each month, neither have been reduced

onlyfoolsandparking

Emmia said:

Adams_Dad said:

Barclaycard of course my credit limits by about 75%.  However, in the last year my income has increased, my payments to Barclaycard have increased and my outgoings have decreased so I can't understand why they have done this.  They mention affordability in general terms but as I've been paying around twice of the minimum and have no other significant credit, I've proved that I can afford the payments.
I've tried talking to them on the phone but after three quarters of an hour hour-by-hour just got fobbed off with the offer of a call back within 10 days!
Anyone else experiencing this?  Any tips on getting it reconsidered?

If you're only making twice the minimum payment, you're not clearing the balance in full - so I'd question the affordability of this debt.

From Barclaycard's perspective you're probably someone at a higher risk of defaulting, and so unsurprisingly they're taking steps to reduce their exposure.

Deleted_User said:

If you were paying the balance in full every month, you would be shown to be managing your debt fine and have no reason to have a limit cut, by paying less and getting interest every month it shows the bank you can't afford the lifestyle you are living (purely from a data point of view) so they have cut your limit to reduce the chance of you running up too much debt. You need to pay the balance off in full every month for a while and they may put it up again. I have a Barclaycard which I use as a balance transfer card, they put my limit UP this April by £1500, following an increase last year of the same amount. This is paid off on a fixed monthly amount of well over the minimum. I have 2 other cards both paid in full each month, neither have been reduced

So how do those answers work for the people who DO pay off their balances in full and have had their limits cut?

Emmia

High utilisation with a high limit could also quickly become a risk of default if the holder loses their income, even if the balance is usually cleared each month. A provider might therefore decide to de risk that person too. 

Past payment does not necessarily guarantee future payment