Limit Decreased

ItchyCat

Hi

I have had a Barclaycard for many years with a high credit limit.  I don’t use it on a regular basis, just for large payments as I understand there is more protection on purchases made.  Within the last 12 months I have used it 3 times for 5k, 6k and 1k. Each of these transactions have been paid in full on the day my statement arrives.

Today I have a letter saying my credit limit is reducing to £250.  I am not unduly concerned by this, as I don’t “need” the credit, and im certainly not going to quibble, but I am curious as to what they have seen to warrant such a large reduction to the limit.  

Is this a sign of the times?  Any ideas? 

[Deleted User]

It's just part of Barclaycard's strategy to reduce available limits and use the funds more effectively.

Nothing to be concerned about.

ItchyCat

Thank you zx81.  With a limit of £250 I shall probably just close the card account down.

[Deleted User]

Probably best, although some people have reported success in asking Barclaycard not to reduce the limit. so if you really wanted to keep it, it may be worth a try.

They've always been a fairly soft touch when dealing with customer complaints.

ih8modem

This totally sucks.  From being under 40% of my limit to over 90%!  Credit score gonna hurt with this !

TadleyBaggie

You "credit score" is a meaningless made up number that no one else can see.

cymruchris

You're one of many going through the same process - there have been quite a multitude of threads stating the same. If you have other cards, and have no immediate need for credit, then closing it down probably isn't a bad option. If it was your only card - a call asking them to keep it open might have been worthwhile. 

ItchyCat

Hi

Thank you cymruchris.  I hadn’t realised others had asked the same question. I just assumed it was something to do with me, and that’s why I was curious as I have always used the card responsibly and paid it in full as soon as the statement arrived. I’m probably not making them enough money! 

I do have other cards but do not really have any need for credit apart from the purchase protection, so I am not concerned about closing the card down. 

Thank you for your help.

ManyWays

I have had the same but  not quite as far. I wonder who makes up these numbers? 
I dont use the card  for borrowing only for section 75 protection on large purchases so I think they dont make any money out of me.

Ebe_Scrooge

ManyWays said:

I dont use the card  for borrowing only for section 75 protection on large purchases so I think they dont make any money out of me.

The card company makes money every time you make a purchase on the card.  The retailer gets charged a fee by the card company for accepting the card, a percentage of the value of the transaction.  This is why many smaller/independent retailers - and most car dealerships - used to pass on the fee to the customer.  Now that they're not allowed to do this, they simply refuse to accept cards.

Yes, if you carry a balance and pay interest, that's a nice bonus for the card company - but their bread & butter is the fees they charge to the retailers.

busymummyof2

I got exactly the same letter yesterday, my limit was £4500 and decreased to £250 too.  I'd never used the card that much and paid it off in October but it was emergency fund and had planned to use it a bit over November and December, as I have no savings. I've had to use it this month and the balance is just over £300 so not sure what will happen.