Barclaycard abruptly large credit limit decrease, affect on credit file 30 October 2020 at 7:38PM in Stoozing: free cash from credit cards 15 replies 2K views

Chrysalis

So Barclaycard have decided to give me 2 months warning they are reducing my limit by about 75%, the new limit is not much over the current balance.
The stated reason is based on data they have on me, so obviously vague.
All my other cards as things stand, are still the same and have available 0% offers.
My concern is there may be a potential chain reaction, they routinely check the credit file, and if they see a sudden drop in limit on a card, they may react to that as some kind of warning sign and also reduce their limits as well as removing offers.

So what I am thinking is to preempt that happening and to just close the Barclaycard account (paying it off whilst doing so), my thinking is that doesnt look as bad as a sudden large drop of a limit.

I am curious what others think on this.

bradders1983

It really depends how often you max other credit cards out, or if they hold balances.  It wont matter one bit if you dont.

Chrysalis

No cards are maxed out but some hold 0% balances, I take advantage of cheap money.  Also like to have open credit available just in case of emergencies.  So i do value been able to have access to 0% and large limit's.
So the question is not if it matters, but which scenario makes it more likely to have negative consequences on my other credit card suppliers.  Keep the card with lower limit or close it?

DayDreamerandGeneralWaster

I think many cc companies have been reducing their limits. If you gave other cards available to you with available balance it doesn't matter too much. 

[Deleted User]

^ They are reducing for people who appear to be struggling to pay the balances off, not just in general and may well want to stop people like the OP just moving cash around without ever really paying it off. Not everyone is affected

ItchyCat

Deleted_User said:

^ They are reducing for people who appear to be struggling to pay the balances off, not just in general and may well want to stop people like the OP just moving cash around without ever really paying it off. Not everyone is affected

Not true.

I have been told today my limit is reducing to £250 from 12k.  I use it periodically for large purchases that are paid in full when the statement arrives.  

So maybe not everyone is affected, but it’s also not just those who appear be struggling.

b3nsavage

This has happened to me too.  I have a limit of £10,800 with a balance of £774. They are reducing my limit to £800, so just over my balance. 
My credit report has a score of 624/710 on creditkarma and my last missed payment was 58 months ago.  I am using 16% of my total available credit. 
My question - am i better to clear the balance and close the account rather than have a low limit with a relatively high balance?  They do so that if i can prove my income, they will review it, but i am not hopeful about that and dont want to waste the time (the limit reduces on 30 Nov) 
Any advice/discussion would be useful. 
Thanks in advance 
Ben 

bradders1983

The advice would be that the three digit score is utterly, utterly meaningless and is not seen by any lender.

b3nsavage

bradders1983 said:

The advice would be that the three digit score is utterly, utterly meaningless and is not seen by any lender.

ok - I get that.   Still not sure what to do with the balance/limit situation though. 

Thrugelmir

b3nsavage said:

This has happened to me too.  I have a limit of £10,800 with a balance of £774. They are reducing my limit to £800, so just over my balance. 
My credit report has a score of 624/710 on creditkarma and my last missed payment was 58 months ago.  I am using 16% of my total available credit. 
My question - am i better to clear the balance and close the account rather than have a low limit with a relatively high balance?  They do so that if i can prove my income, they will review it, but i am not hopeful about that and dont want to waste the time (the limit reduces on 30 Nov) 
Any advice/discussion would be useful. 
Thanks in advance 
Ben 

Do you have other cards available? 

b3nsavage

Thrugelmir said:

b3nsavage said:

This has happened to me too.  I have a limit of £10,800 with a balance of £774. They are reducing my limit to £800, so just over my balance. 
My credit report has a score of 624/710 on creditkarma and my last missed payment was 58 months ago.  I am using 16% of my total available credit. 
My question - am i better to clear the balance and close the account rather than have a low limit with a relatively high balance?  They do so that if i can prove my income, they will review it, but i am not hopeful about that and dont want to waste the time (the limit reduces on 30 Nov) 
Any advice/discussion would be useful. 
Thanks in advance 
Ben 

Do you have other cards available? 

Hi - yes I do. I have plenty of credit available on other cards. So I am thinking perhaps move this to another so that I dont have a situation where my balance is right up against my limit? 
Thanks for your help 
Ben