Barclaycard limit reduction post covid

funkycredit

You can request One Time Access links from Barclaycard. I've had one - basically a secure link is sent to you via email and last a set number of days and let's you upload income info. 

https://www.barclaycard.co.uk/personal/results?q=one%20time%20access%20proof%20of%20income&facets=barclaycard/en/personal/help/account-servicing/one-time-access-proof-of-income&offset=0&total=10&origin=www.barclaycard.co.uk/personal

shell16

I too received a letter form Barclays confirming that my credit limit of £14000 would be reduced to £6550 from May 21.  The only problem I had was a balance of £5932 which would mean I would be using around 90% of the credit available on the new Limit being proposed!

They did state that if i could provide evidence in the form of proof of income then the new proposed limit would be reviewed.  Ok.....but they wanted this posting.  Problem is im working from home and do not have access to a printer, the work I do is paperless.

I used their chat facility on the app and to say im fuming is an understatement!

I have been a customer of Barclaycard for over 25 years, never missed a payment, my earnings havent reduced during covid in fact im better off working from home by £450 a month and my credit score has gone up etc, I didnt even request any payment holidays as i really didnt need them. 

I confirmed how concerned I was at their decision to reduce the limit and advised this would adversely affect my credit score.  It was like banging my head against a brick wall, it was literally falling on deaf ears.  They just reconfirmed I needed to 'Try' and post through proof of income.  I asked for an alternative way in the form of email.  This was not acceptable!  Post or nothing!

Im literally fuming, I have told them I will move my balance and close my account (which I just have to my own bank Lloyds) at a reduced annual rate of 3.9% for 36 months from 16.17% with Barclays.  Once this has gone through, the account will be closed.

They are not doing themselves any favours here, they must be losing thousands of customers (many very loyal like myself)  but I will not be threatened with unrealistic, unsubstantiated reasons as to why they made the decision they have.

Good Riddance Barclaycard! 

[Deleted User]

Don't take it personally. Just make the best financial decision for yourself and take the emotion out of it.  

In fact, they've done you a huge favour in getting you to shift the balance to a much lower rate.

And since you're still revolving a balance, do yourself another favour and keep the Barclaycard open, to help with your utilisation.

[Deleted User]

shell16 said:

I too received a letter form Barclays confirming that my credit limit of £14000 would be reduced to £6550 from May 21.  The only problem I had was a balance of £5932 which would mean I would be using around 90% of the credit available on the new Limit being proposed!

They did state that if i could provide evidence in the form of proof of income then the new proposed limit would be reviewed.  Ok.....but they wanted this posting.  Problem is im working from home and do not have access to a printer, the work I do is paperless.

I used their chat facility on the app and to say im fuming is an understatement!

I have been a customer of Barclaycard for over 25 years, never missed a payment, my earnings havent reduced during covid in fact im better off working from home by £450 a month and my credit score has gone up etc, I didnt even request any payment holidays as i really didnt need them. 

I confirmed how concerned I was at their decision to reduce the limit and advised this would adversely affect my credit score.  It was like banging my head against a brick wall, it was literally falling on deaf ears.  They just reconfirmed I needed to 'Try' and post through proof of income.  I asked for an alternative way in the form of email.  This was not acceptable!  Post or nothing!

Im literally fuming, I have told them I will move my balance and close my account (which I just have to my own bank Lloyds) at a reduced annual rate of 3.9% for 36 months from 16.17% with Barclays.  Once this has gone through, the account will be closed.

They are not doing themselves any favours here, they must be losing thousands of customers (many very loyal like myself)  but I will not be threatened with unrealistic, unsubstantiated reasons as to why they made the decision they have.

Good Riddance Barclaycard! 

Fortunately for you there is no such thing as a credit score and whatever magic number the CRAs pluck out of thin air has no relation to whatever future credit you may be offered. 

They might lose a few customers yes, far better they do that than get fines and more problems from future bandwagon grifters trying to complain about irresponsible lending 

SnowTiger

The Daily Mail has published another article about Barclaycard slashing credit card limits: 

Barclaycard customers who have had their credit limits cut by as much as 95 per cent have faced yet more confusion, after wrongly being told new limits were based on their average balances over the last two years.

Several customers, many of whom have had perfect payment histories, told This is Money they were informed the cuts were based on average spending, rather than the maximum balance they had accumulated.

[..]

A spokesperson [for Barclaycard] said: 'I can confirm that Barclaycard does not use customers' average balances to calculate limit decreases.

'For some customers, their new limit is higher than their peak balance over the past two years, which means that they should be able to continue using the card in the same way as before.'

Therefore, it appears new limits are based on peak spend during the past two years.

Presumably other criteria is also used to determine who has their limit reduced and what their new limit will be.  No letter for me (yet) and my maximum utilisation has been less than 10% during the past two years.

The article mentions up to 100,000 customers have been affected. I won't quote huge swathes from it. It's here: https://www.dailymail.co.uk/money/cardsloans/article-9517351/Barclaycard-customers-facing-credit-limit-cuts-handed-confusion.html

Alex9384

A bit off topic, but does anyone know if they do a hard search for credit limit increase?
First they say it won't affect your "credit score" but then at the bottom they mention CRA check.

kaMelo

Alex9384 said:

A bit off topic, but does anyone know if they do a hard search for credit limit increase?
First they say it won't affect your "credit score" but then at the bottom they mention CRA check.

I can't say for certain only what I think but, if you ask for a limit increase I would imagine they would carry out a search as you are asking them for a credit extension. I would imagine the search would be a full "hard" search to ascertain your financial position.
If however they were to offer you a credit limit increase and you accepted I would imagine no search would be carried out as they were already happy enough with your financial position to have offered the increase.

dr_adidas01

Alex9384 said:

A bit off topic, but does anyone know if they do a hard search for credit limit increase?
First they say it won't affect your "credit score" but then at the bottom they mention CRA check.

Nope I've never had a hard search for any credit limit increase i've either done manually or received automatically from Barclaycard, I think they use there automatic feed from the CRA's that they get each month to decide if you are eligible for an increase and what the maximum amount they are prepared to got to based on your risk.

Dandytf

It means they'll let you know IF your limit can be increased.
If so CRA check will follow.

[Deleted User]

This is purely anecdotal but I bumped my Halifax card up by £1000 and they don't seem to have even done a soft search.