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Barclays cancelling my card

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I have a Barclay card with £15k limit and did have £4k outstanding, I have been paying the minimum every month without fail, for 3yrs
I had a letter saying it was persistent debt and they are going to cancel my card on the 4t April, unless I take out a loan to pay the balance off
I have since paid off £2k so balance now £2k but the are still saying they will cancel my card if I dont take out a loan.
Anyone else had this experience or any advice what to do? I dont want to lose the card as the limit is quite handy for a rainy day
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Comments

  • If you can't clear it, then it'll be cancelled.

    You could apply elsewhere, but you may find it difficult with a poor credit history. 
  • grumbler
    grumbler Posts: 58,629 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic

    I have since paid off £2k so balance now £2k but the are still saying they will cancel my card if I dont take out a loan.
    Anyone else had this experience or any advice what to do? I dont want to lose the card as the limit is quite handy for a rainy day
    Apply for a loan? It'll be much cheaper than a  CC if you can get it.
    And in the future remember - minimum payments for a long time is a red flag for the CC provider. Always pay at least a little more than the minimum.

  • CliveOfIndia
    CliveOfIndia Posts: 2,533 Forumite
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    If you've only been paying the minimum for 3 years then yes, they are obliged to take the "persistent debt" approach.  I'm a little surprised they are advocating taking out a loan - I would have expected them to simply request that the balance is repaid (by whatever means are suitable to your circumstances).  If you are considering taking out a loan, then you need to be prepared to be offered a less-than-ideal interest rate given your credit history.
    Are you able to repay the outstanding balance without resorting to a loan?  Is there any chance you might be able to shift some or all of the debt to an interest-free balance transfer deal?
     I dont want to lose the card as the limit is quite handy for a rainy day
    To be brutally honest, if you're only ever paying the minimum then this may be a blessing in disguise.  Borrowing on a credit card (unless it has a low- or zero-percent offer in place) is an extremely expensive way of borrowing.  Please don't interpret this as being "nasty", it's intended merely as a statement of fact.

  • Thanks for the reply, I only kept a balance on the card as previously when I cleared a card down before they decreased the card limit, even though I have a perfect credit score 997
  • Brie
    Brie Posts: 14,725 Ambassador
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    It may be that they also think that if you aren't paying it off quicker that the high limit is not sustainable and they would likely cut it to the minimum in any case.  

    Credit scores aren't always looked at but I'd suggest you check it anyway just for an indication and then go to one of the "will I get a card" tools here on MSE to see what else is available, particularly if there's a zero % balance transfer available.  MBNA is usually quite good with deals and credit limits in my experience.  
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  • grumbler
    grumbler Posts: 58,629 Forumite
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    edited 22 March 2023 at 1:09PM
    I only kept a balance on the card as previously when I cleared a card down before they decreased the card limit, even though I have a perfect credit score 997
    Keeping £4K balance is a far too expensive way of keeping your credit limit.  This is even ignoring the fact that it's just your belief  that the result is what you expect. I always pay my CC balances in full and I remember the limits only rising not decreasing.
    Just apply for a second card if the limit you have is insufficient.

  • penners324
    penners324 Posts: 3,511 Forumite
    Sixth Anniversary 1,000 Posts Name Dropper
    Thanks for the reply, I only kept a balance on the card as previously when I cleared a card down before they decreased the card limit, even though I have a perfect credit score 997
    So you're paying £000s in interest to keep a high limit and keep your credit score up?

    Madness
  • paul_c123
    paul_c123 Posts: 469 Forumite
    Third Anniversary 100 Posts Name Dropper
    If you are deemed to be in persistent debt, you would/should have got many letters/other comms notifying you of this before any change of management of your credit card or closure threatened etc.
  • scott_lithgows
    scott_lithgows Posts: 1,427 Forumite
    Part of the Furniture 1,000 Posts Photogenic Combo Breaker
    Surprised at this,Wife was doing the same,Bcard then upped her minimum payment then sent her a 'deal' to pay it off at a lower rate 
    She was offered a new card as the existing one was closed by this deal but she knocked it back.
    I have a deep burning indifference
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