Barclaycard abruptly large credit limit decrease, affect on credit file

Chrysalis

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

Well their algorithms arent very good as I ended up paying the balance off in full with cash (which was under 20% utilisation).  Also they are my only card provider who reduced my limit, the others havent been touched as of yet.  None of my cards are close to their limits, and I pay above the minimum payments.
With that said I wasnt very profitable, no missed/late payments so no penalty fees, also only using the card for 0% services.

Tim11111000111

Did you see this story? https://www.moneysavingexpert.com/news/2020/10/refunds-for-barclaycard-customers-whose-credit-limits-were-set-t/

I suspect Barclaycard have been clamping down on credit limits to avoid a recurrence. I wouldn't try to read too much into why yours in particular was reduced.

Chrysalis

Yeah once I found out it was happening to many other people I wasnt as bothered, my only concern at that point was the affect on my credit worthyness as having a card balance right at its limit isnt good, and I was concerned how other lenders would look at a limit that suddenly dropped massively, but I expect most will now ignore that as they are doing it as a widespread policy.
Ironically those with a high balance will be the ones left with higher limits given they seem to be reducing limits to just above balance.

[Deleted User]

Chrysalis said:

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

Well their algorithms arent very good as I ended up paying the balance off in full with cash (which was under 20% utilisation).  Also they are my only card provider who reduced my limit, the others havent been touched as of yet.  None of my cards are close to their limits, and I pay above the minimum payments.
With that said I wasnt very profitable, no missed/late payments so no penalty fees, also only using the card for 0% services.

Algorithms are general, not user specific. Me pointing out the facts doesn't mean it applies to every one equally. Providers are cracking down on persistent debt problems, it's a regulatory thing. You are probably avoiding it because you are paying above minimum so paying some debt off but at the same time, they may the next time around if you are not able to pay balances off balances getting interest.

Also it's a complete myth that providers don't make money if they don't have fees, they make money every time you spend through merchant fees

MrFrugalFever

ItchyCat said:

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.

I too have made several large purchases but paid off in full.

had £16,750 credit limit with barclaycard, now got £5,500.

no other debt.... weird.

their loss 😂