Barclaycard limit reduction post covid

MSE_Petar

Hi all, we've just published a story on this topic, which you can find below.

Read the full story:
'Barclaycard unexpectedly cuts credit limits by £1,000s'

Click reply below to discuss. If you haven’t already, join the forum to reply.

mab3000

Nades84 said:

Hi everyone, my hubby has also had his limit cut. He received a letter yesterday and it’s going down from £9500 to £1050 next month. The new credit limit will actually be lower than the balance on the card at the moment (just over £1200), are they allowed to do that? His credit rating is really good and we’re worried them dropping it below his balance will really affect it and they’ll start to demand the money back 

In this scenario they have said that the credit limit will decrease, but won’t be lower than the current card balance, and once the balance is below the notified new card limit it will change to that. 

Imgrant1969

Imagine if they did it whilst you were on holiday and went to pay the hotel bill at the end, could be very awkward. I'm assuming the credit reduction is with immediate effect.

MrFrugalFever

Imgrant1969 said:

Imagine if they did it whilst you were on holiday and went to pay the hotel bill at the end, could be very awkward. I'm assuming the credit reduction is with immediate effect.

No there was 30 days notice IIRC

MiddleAgedDad

I also received the standard letter, earlier this week, with my credit limit reduced from £6200 down to £350.

I've never missed, or been late with a payment & currently have a £290 balance which I suspect is why they didn't reduce my limit right down to £250, as they appear to have done with other customers.

After utilising an opening balance transfer deal around five or six years ago, I've only used the card for occasional purchases, ironically making the biggest purchase in years, of £250 last month..

If they'd reduced the limit to £1000, I'd have probably kept the card but I'll settle the balance next month & close the account which was probably their intention..

Not much point in keeping a credit card with a credit limit of £350, when I have other cards with decent credit limits  & would generally use my debit card for smaller purchases.

cymruchris

MiddleAgedDad said:

I also received the standard letter, earlier this week, with my credit limit reduced from £6200 down to £350.

I've never missed, or been late with a payment & currently have a £290 balance which I suspect is why they didn't reduce my limit right down to £250, as they appear to have done with other customers.

After utilising an opening balance transfer deal around five or six years ago, I've only used the card for occasional purchases, ironically making the biggest purchase in years, of £250 last month..

If they'd reduced the limit to £1000, I'd have probably kept the card but I'll settle the balance next month & close the account which was probably their intention..

Not much point in keeping a credit card with a credit limit of £350, when I have other cards with decent credit limits  & would generally use my debit card for smaller purchases.

You've likely been selected by your own admission of rarely using it - so haven't really been a very profitable customer for them - as you say though you have other cards with decent limits - so it's no big deal, but I understand to some people it'll feel very personal when these things happen. There'll likely be a bunch of bods working together at a senior level getting paid large wads of cash for completing this exercise of reducing risk and exposure by encouraging people who haven't used their accounts much to close them.

Vansell_2

Actually just had 2 days notice and limit reduced by £1000

Andy81

Mine is being cut from £11.5k down to £4250 just £250 above the £4000 balance after only doing a balance transfer onto it a month ago.
My concern is I don't want to move the money again so soon as this will look bad on my credit file yet in doing what they've done it's now pushing me to around 89% of the card credit utilisation which will also have a negative effect on my credit score.
Experian has me on 989 of 999, always paid just above the minimum, no CCJ's, never missed a payment or took a holiday even after Covid put me on the box for 2 months on SSP and this just feels like a real kick in the teeth.

Alex9384

Oh I'm so curious if I'm gonna get the letter... I'll close the account with lightning speed, lol.

People already speculate about liquidity issues, etc.
Actually, I'm thinking about closing my Barclaycard anyway 'cause I feel like I can no longer rely on them. They can come up with this 'great idea' any day in the future.

Emmia

I've got a relatively low limit already, £2.5k which I'm happy with, and turn down increases. I usually spend £200 - £300 a month on the card, and always pay the balance in full. 

I'm not on a 0% and I haven't balance transferred for getting on for 15 years. Credit file is otherwise also in excellent shape - no missed payments etc. 

I don't have any other credit cards currently as I closed the second card I never used a few years ago, so I wonder if I'll also get the letter?