Barclaycard limit reduction post covid

funkycredit

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.

No they do not. They use the feed data and what they already know. If you try to increase it then at the end you'll get a yes or no. 

So if you enter a limit higher than the maximum they'll offer the maximum. Example if your limit is £5k and you ask for £10k; if they're happy with £8k the message would say we can offer £8k but not £10k. 

If they won't go higher than your current limit then it just says sorry - we need to establish affordability blah blah. 

But 100% no searches are ever performed whether you request and are accepted or declined. 

Alex9384

Thanks guys. I actually increased my Barclaycard limit manually in the past from 5k to 6k and there was no search, but I can't recall any message about CRA check. The first line says it will not affect my "credit score" so by "CRA check" they probably mean either a soft search or the monthly feed like some of you said?

Grade_A_Reject

Everyone seems to be taking the same knee-jerk response of closing their accounts which is probably what Barclaycard wants.

A more indignant reaction would be to keep the card and spend a few pence on it each month with a DD setup to collect the balance in full thus leaving Barclaycard with the cost and hassle of collecting the DD and also putting a nice "paid on time" marker on your credit file. 

[Deleted User]

Grade_A_Reject said:

Everyone seems to be taking the same knee-jerk response of closing their accounts which is probably what Barclaycard wants.

A more indignant reaction would be to keep the card and spend a few pence on it each month with a DD setup to collect the balance in full thus leaving Barclaycard with the cost and hassle of collecting the DD and also putting a nice "paid on time" marker on your credit file. 

Barclays get a merchant fee every time you spend and I don't know what "cost and hassle" you think a massive bank has from collecting DD monthly but it'll be less than peanuts - even SMEs using third party DD processers pay around 20p a time

Superhoopza

funkycredit said:

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.

No they do not. They use the feed data and what they already know. If you try to increase it then at the end you'll get a yes or no. 

So if you enter a limit higher than the maximum they'll offer the maximum. Example if your limit is £5k and you ask for £10k; if they're happy with £8k the message would say we can offer £8k but not £10k. 

If they won't go higher than your current limit then it just says sorry - we need to establish affordability blah blah. 

But 100% no searches are ever performed whether you request and are accepted or declined. 

Would it be risky to do this right now in case they actually then proceed to lower your limit? I'd only do it to improve my utilisation rate as opposed to needing to access more funds. Im improving the utilisation rate by making payments but this would speed up the process.

Thanks

funkycredit

Superhoop91 said:

funkycredit said:

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.

No they do not. They use the feed data and what they already know. If you try to increase it then at the end you'll get a yes or no. 

So if you enter a limit higher than the maximum they'll offer the maximum. Example if your limit is £5k and you ask for £10k; if they're happy with £8k the message would say we can offer £8k but not £10k. 

If they won't go higher than your current limit then it just says sorry - we need to establish affordability blah blah. 

But 100% no searches are ever performed whether you request and are accepted or declined. 

Would it be risky to do this right now in case they actually then proceed to lower your limit? I'd only do it to improve my utilisation rate as opposed to needing to access more funds. Im improving the utilisation rate by making payments but this would speed up the process.

Thanks

You're allowed to request a limit review at any time. However if successful you must wait 4 months. It's there when you open the page so no, I don't think they'd use this to reduce a limit - why would they? Do you suppose it flags up as a CLI decline so they think let's reduce this one? I don't - it's just a tool, one of many which wouldn't trigger any special flags. Same as most other cards, increases are based on the feed and behaviour with that lender. 

The reductions have been explained by BC quite publicly now; I've not had one but I did prove income when I opened my account a year ago so it's still valid and they're happy at that presumably? 

I guess it's case by case. But I doubt asking for an automated decision based on their limit portal would create a reduction. 

onthebench

I have had Barclaycards since my student days, 25 years or so now. I have two cards with a combined credit limit of £25,000 and have yet to receive a letter cutting the limits, despite having been in "persistent debt" on one of them for quite some time until early last year. (I now have a zero balance on one card and only a small balance on the other.)

My wife by contrast had a letter cutting her limit from £11,000 or so to £750 - she hadn't used her card for a couple of years or more.

To be honest I would be glad to see the back of them - at the worst stage of my debt a few years ago the minimum payments across the two cards were approaching £500 a month. I dread to think how much they have had from me over the years - maybe they are hoping for a relapse which is why they haven't reduced my limit! Sorry Barclays, ain't gonna happen

Superhoopza

funkycredit said:

Superhoop91 said:

funkycredit said:

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.

No they do not. They use the feed data and what they already know. If you try to increase it then at the end you'll get a yes or no. 

So if you enter a limit higher than the maximum they'll offer the maximum. Example if your limit is £5k and you ask for £10k; if they're happy with £8k the message would say we can offer £8k but not £10k. 

If they won't go higher than your current limit then it just says sorry - we need to establish affordability blah blah. 

But 100% no searches are ever performed whether you request and are accepted or declined. 

Would it be risky to do this right now in case they actually then proceed to lower your limit? I'd only do it to improve my utilisation rate as opposed to needing to access more funds. Im improving the utilisation rate by making payments but this would speed up the process.

Thanks

You're allowed to request a limit review at any time. However if successful you must wait 4 months. It's there when you open the page so no, I don't think they'd use this to reduce a limit - why would they? Do you suppose it flags up as a CLI decline so they think let's reduce this one? I don't - it's just a tool, one of many which wouldn't trigger any special flags. Same as most other cards, increases are based on the feed and behaviour with that lender. 

The reductions have been explained by BC quite publicly now; I've not had one but I did prove income when I opened my account a year ago so it's still valid and they're happy at that presumably? 

I guess it's case by case. But I doubt asking for an automated decision based on their limit portal would create a reduction. 

Thank you

FIFIJ

I had a similar letter giving 5 weeks notice of a close to two thousand pound reduction in my credit limit. What is most annoying about this is the fact that it was not the highest interest rate debt, nor the priority debt for me to clear. I have been persistently paying down my debt in the last 12 months,managing to repay several loans and credit cards finally . This was post divorce debt which had racked up from lawyers fees and having to pay out my lower income earning husband . I am annoyed at having to divert my money into this debt rather than carrying on with my debt reduction strategy . I am also shocked that they just expected me to repay that money in 5 weeks since the reduction brings my credit limit below the balance. No one seems to have commented so far about how difficult it can be to suddenly find that money at such short notice. 

kaMelo

FIFIJ said:

I had a similar letter giving 5 weeks notice of a close to two thousand pound reduction in my credit limit. What is most annoying about this is the fact that it was not the highest interest rate debt, nor the priority debt for me to clear. I have been persistently paying down my debt in the last 12 months,managing to repay several loans and credit cards finally . This was post divorce debt which had racked up from lawyers fees and having to pay out my lower income earning husband . I am annoyed at having to divert my money into this debt rather than carrying on with my debt reduction strategy . I am also shocked that they just expected me to repay that money in 5 weeks since the reduction brings my credit limit below the balance. No one seems to have commented so far about how difficult it can be to suddenly find that money at such short notice. 

They can't reduce your credit limit below your current balance.  You agreed to make at least the minimum payment and as long as you do they cannot unilaterally impose new conditions that penalise you financially, such as increasing the interest rate or reduce credit limit below your current balance.
If this is what they are proposing to do then I would suggest calling them and point out their proposed credit limit reduction is less than your current balance which you are paying back in line with the agreement.
Be aware that whilst they cannot put you in a worse financial position unilaterally they can however close your card to new spending, merely allowing the account to stay open whilst you pay it off in line with the agreement you already have.