Limit Cut

[Deleted User]

onlyfoolsandparking said:

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?

Using too little credit, past payment issues, different issuer, what they posted here isn't the full story, computer algorithm got spooked, who knows. My oldest card I had for maybe 20 years and it was nearly 10k limit, I brought it down a few years ago, it's up about 5k again now, second I just use for fuel and supermarket and spend maybe 1/4 of the limit monthly and hasn't been touched, BT card as I said is going up

onlyfoolsandparking

Deleted_User said:

onlyfoolsandparking said:

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?

Using too little credit, past payment issues, different issuer, what they posted here isn't the full story, computer algorithm got spooked, who knows. My oldest card I had for maybe 20 years and it was nearly 10k limit, I brought it down a few years ago, it's up about 5k again now, second I just use for fuel and supermarket and spend maybe 1/4 of the limit monthly and hasn't been touched, BT card as I said is going up

And until they post the 'full story' (if they do of course) we will never know will we. Only useful info I can gather regarding limit cuts is Barclaycard seem to be one of the main ones that are doing it. They are of course entitled to reduce their risk as they see fit but I don't think anyone can draw any cast iron conclusions as to why they are doing it.

dazzammm2

Aqua has slashed my credit limit AND increased my APR by 5% and my credit score has plummeted. I rarely use the card and when I do I pay the full balance

D3xt3r5L4b

dazzammm2 said:

Aqua has slashed my credit limit AND increased my APR by 5% and my credit score has plummeted. I rarely use the card and when I do I pay the full balance

Ignore your “plummeting score”

upsidedownpancake

dazzammm2 said:

Aqua has slashed my credit limit AND increased my APR by 5% and my credit score has plummeted. I rarely use the card and when I do I pay the full balance

If you're not using it, you're not making them any money.  Better that the credit be offered to someone who will use it.

John_

sourcrates said:

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.

Have you not claimed in the past that banks were at fault for giving people too much credit? You seem to be criticising them for doing the opposite now; what changed your view?

sourcrates

John_ said:

sourcrates said:

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.

Have you not claimed in the past that banks were at fault for giving people too much credit? You seem to be criticising them for doing the opposite now; what changed your view?

Can`t recall, I may have suggested that was so in the 80`s but times change, as do views.

Not really a criticism, more a statement of fact, nothing more.