Barclaycard limit reduction post covid

trust.no.1

I got a couple of those letters in last years cull. I strongly believe it was payback for the 2K or so PPI payout that I got off them previously

Alex9384

mustiuc said:

I'm not starting any argument here and I'll stop with this post. 
First of all learn how cards/transactions work and how they make money and then say you beat the banks/cards.
Secondly, if some of you spent thousands each month to receive pennies as "points or rewards" and consider "beating the system/banks" then I can't have a serious conversation with you about this topic.
Personally I consider if you really have the means of spending 5-10k a month on a monthly basis, you don't really care of £30/month compared to the available money. For me the single logical thing will be poor people acting to be rich by putting everything on CC for the sake of "honey, today we got a fiver in points whilst we booked a 7k holiday we can't afford" - but virgin were generous giving us a high limit because we have a "perfect credit rating".
I prefer having 0 debt rather than "beating the system" with 25-50k on my name.

Have fun beating the system and earning 0. peanuts in interest/rewards. 

PS. Don't know why I'm so nasty today... Maybe I've seen too many of my family/friends living their life and beating the system. 

Seems like you forgot you are on money saving forum. Many people on here are not financially illiterate.

I only buy stuff that I would have to buy anyway, just using credit cards instead of debit cards. I don't buy stuff I can't afford. Anything I buy can be paid for by cash immediately, but why not to use bank's money and keep my own if I can and don't pay any interest on it for 17 months? I really don't see any logic behind it, except when someone is going to apply for a mortgage and don't want to have any other debt, or, in worse case, someone is financially illiterate, those people tend to say things like "Omg, stay away from credit cards, that's pure evil, you buy a hot dog with it once and never get out of debt!"

Alex9384

Thrugelmir said:

Rather like a sofa you buy on 48 months interest free credit. The actual cost of the goods are less than 30% of the selling price.  New car dealers make more from the leasing/financing deals than they do from selling the vehicle. The buy now pay later culture  is no free lunch. Big business is always one step ahead of the consumer. 

Or you can still check if there's any difference in price when buying it on credit or with cash. If the price is the same for those who pay cash/debit card, then there's no reason why not to use a credit card. Of course, when buying a more expensive item, I first check online if I can get it for a better price elsewhere.

I still can't see how banks are making money off me. Not "thanks to me" (by using their card) but off me, like fees and interest being leeched out of my accounts. I log into all my accounts several times every single week, so I think I would have noticed if that was the case...

SnowTiger

Barclaycard slashing people's credit limits despite them doing nothing wrong - Mirror Online: 

Barclaycard has slashed the credit limit of some of its customers by thousands and thousands of pounds sparking anger and confusion.

One customer's credit limit was cut by 85% despite her not missing any payments, not applying for new cards and being in the same job on the same money.

She told Mirror Money:  "It’s just so strange! Got a text out the blue yesterday saying: Hi, we’ve dropped your limit from £3,000 to £450.

"I know nothing’s changed, which is why it’s so weird!"

The only explanation she got was in a letter sent to her that read: "We know this might not be ideal, but we've had to lower your credit limit."

That's from an article published in August 2020.

It appears that Barclaycard has form when it comes to slashing credit limits en masse.

No letter for me yet.

Thrugelmir

SnowTiger said:

Barclaycard slashing people's credit limits despite them doing nothing wrong - Mirror Online: 

Barclaycard has slashed the credit limit of some of its customers by thousands and thousands of pounds sparking anger and confusion.

One customer's credit limit was cut by 85% despite her not missing any payments, not applying for new cards and being in the same job on the same money.

She told Mirror Money:  "It’s just so strange! Got a text out the blue yesterday saying: Hi, we’ve dropped your limit from £3,000 to £450.

"I know nothing’s changed, which is why it’s so weird!"

The only explanation she got was in a letter sent to her that read: "We know this might not be ideal, but we've had to lower your credit limit."

That's from an article published in August 2020.

It appears that Barclaycard has form when it comes to slashing credit limits en masse.

No letter for me yet.

Since when was there a right to a credit limit?  No doubt there'll be a mass protest organised via Facebook outside Barclays HQ as a consequence of the letters being sent out. 

kaMelo

Of course it could just be the fact that Barclays were fined £26 million for being too generous with credit.
https://www.moneysavingexpert.com/news/2020/12/barclays-fined-26m-treatment-customers-fca/

Or the fact they have paid redress to customers who complained they were put into financial difficulty by Barclays being too generous with credit limits.
https://www.moneysavingexpert.com/news/2020/10/refunds-for-barclaycard-customers-whose-credit-limits-were-set-t/

Maybe Barclays has had enough of whining customers, serial complainers, irresponsible borrowers, serial chargeback/S75 claimers, etc.
We will never know the criteria they use for what they are doing, inevitably some "innocents" will be caught up in it but ultimately Barclays can and are reducing credit limits.  Customers who this happens to can either accept it or throw a strop and close the card in retaliation. Either way Barclays gets what it wants.

Dandytf

Seems from reading mser's experiences, paying balance in full hasn't made any difference in Barclaycards limits reductions.
Very interested in this thread, as I've only just managed to return to Barclays forward card. 2nd time.

This is post sc dmp, and I plan to use 850 wisely , and maybe an apr reduction going forward.
I remember from past experience, Barclaycard weren't slow in slicing my long term 0% balance transfer card limit , which had been offered when I called to close my cleared in full original Forward card.

These limit reductions, seem to be at Barclaycards discretion using their favoured decision making.
Maybe the lesson for everyone is, Don't have anymore than a few hundred outstanding for a considerable time.

thanks

marenello

@funkycredit can I ask, when you moved from Platinum to Reward, did you have to close your account and wait 6 months? I've been told this is the process if you want to move from Platinum to Reward. Thanks

marenello

funkycredit said:

Yet ironically credit cards are typically used for emergency spending, of course as well as rewards & section 75 etc. 

My BC is one of the lowest limits so I don't use it. But I've just swapped from Platinum to Reward so plan to put the next couple of holidays on it as my Amex cards have all met their requirements now; so why not. 

If they reduce my limit then it's daft as there's a genuine reason I don't use my card, it's there for certain things as and when needed. 

Luckily my main bank Santander aren't reducing limits, but then I do have cards with almost every provider. 

Still madness though that BC are implying they'll reduce limits to the previous years highest spend! 

@funkycredit can I ask, when you moved from Platinum to Reward, did you have to close your account and wait 6 months? I've been told this is the process if you want to move from Platinum to Reward. Thanks

funkycredit

marenello said:

@funkycredit can I ask, when you moved from Platinum to Reward, did you have to close your account and wait 6 months? I've been told this is the process if you want to move from Platinum to Reward. Thanks

Hiya

no it's an app update. You now pick to upgrade card under card options. See image below - head to cards then select to upgrade - 

You'll then see this page - 




And once upgraded you see this -