Barclaycard limit reduction post covid

Alex9384

I haven't received anything yet.
I paid off my balance over the 0% introductory period, from around 3k, each month £275 down to zero. Since then, I spend each month between £5 and £20, just to have an active direct debit and to maintain my history of payments. Credit limit £6000. No letter so far.

GrumpyDil

Think that may be because you use the card more regularly than others on here.

The impression I get from reading the thread is that most (not all tho) people are using the card for balance transfers and that's it. 

mammacaz

Years ago if you wanted to close a credit card with a balance you would contact them and set up a payment plan to clear the balance and the card would be closed with no interest going forward.
Question, is this still possible to do?

GrumpyDil

Don't recall you could ever do a no interest option, unless you were having trouble paying the card and entered onto an agreement, which would impact your credit report. 

confused.com2

I've had the letter today, limit gone from £14,000 to £250. Insulting really! You'd get a better limit on a credit repairing card! Already closed it. My brother had the same today, he has a balance and he's in the process of clearing debt, he's had a big limit drop and concerned how it'll effect his credit worthiness as now he'll be using much more of his available credit. He's on an interest free offer and they've reduced it to £100 over what he currently owes.

onlyfoolsandparking

Barclaycard=RUTHLESS

Going by the tone of this thread I would think Barclaycard will lose 1000's of customers going forward, will they care, probably not!!  

Shakin_Steve

Both the wife and me have what I'd call fairly low limits (£7000 and £5500 respectively). We make sure we keep them ticking over by spending £100-200 each month. No letter(s) so far.

loweyr

This has just happened to us £6000 down to £250. 

Initial instinct is just to get rid of it - we don’t use it very often and pay off in full. Really we’ve only used it to build a good credit rating.

But... it’s out only credit card. We do have a small loan and a mortgage. Will it affect our credit rating to not have a credit card at all? 

How does available credit work? Is it based on how much available credit you have in credit cards or does it take into account your current account balance (ours is always fairly high).

Would love to hear people’s thoughts...

onlyfoolsandparking

loweyr said:

This has just happened to us £6000 down to £250. 

Initial instinct is just to get rid of it - we don’t use it very often and pay off in full. Really we’ve only used it to build a good credit rating.

But... it’s out only credit card. We do have a small loan and a mortgage. Will it affect our credit rating to not have a credit card at all? 

How does available credit work? Is it based on how much available credit you have in credit cards or does it take into account your current account balance (ours is always fairly high).

Would love to hear people’s thoughts...

If it were me I would definitely get at least one new card if you are gonna be left without any credit cards. I currently have 7 cards and OH has 3 so losing the 2 Barclaycards won't make a jots worth of difference with my purchasing power. I don't know whether it will affect your 'credit rating' not having any cards, I don't have/use cards to gain anything in that area but just from a S75 protection point of view it's worth having at least one card. 

Oh and yes definitely get rid of Barclaycard, a limit of only £250 'might' make it look like your uncreditworthy.

Templeton10

In recent years, Barclaycard seem to have an annual review of customers' cards, reducing limits to under £1000.  It happened to me, last year and I just closed the account.  Several months later, I reapplied for a new card and received a limit of £10,000. I suspect that it's to promote more frequent use of its cards.  After all, if the card is just dormant or people are spending just £100-200, per month, on it, I imagine that Barclaycard is making very little profit.