Barclaycard changing their mind about credit limit increase

user1977

I had an email from Barclaycard a couple of months ago saying they were going to increase my credit limit - not something I had requested or for which I have any immediate need, but no problem.

But have just received a further email saying:

After running some final checks, including a review with the Credit Reference Agencies, we can see that something has changed on your account or with your financial situation. Based on this, we’re sorry to say that we don’t think an increase is right for you at the moment and your limit will need to stay as it is.

which has got me a bit stumped because I can't think of anything noteworthy which has happened in the use of my account or likely to have featured on my credit records. The last material thing which might have been recorded was me redeeming a mortgage in November - would that not have filtered through until after February and caused Barclaycard to think I'm a worse risk because I no longer have a mortgage?

Just hoping there's an innocent explanation like that, and not something bizarre on my records by mistake!

martinbainbridge1975

would have thought the mortgage update would have shown in 30-60 days from redemption

seems a little odd, have you looked at credit files online? taken out any new forms of credit?

surreysaver

That's probably just a cover-all excuse and not tailored to you.
Maybe its Barclaycard that have moved the goalposts, rather than anything you have done 

badmemory

Redeeming you mortgage would reduce what they see as your ability to repay debt.  Just shows how really good their processes are.  If you don't have debts then you are seen as not worthy of receiving credit.

etienneg

This is exactly the same as happened to me two or three months ago, including the wording of the Barclaycard message. Nothing had changed on my credit file, so I think that's just generic wording.

My credit limit with Barclaycard is ample for month to month use, but I had to split a large holiday payment earlier in the year between two cards, both of which were paid off (by DD) when the statements came. So a modest increase in credit limit by Barclaycard would have been welcome, but I'm not losing any sleep over the eventual decline. It is annoying, though, to be offered an increase which is subsequently declined when there is no change in credit files. Being cynical, I wonder if Barclaycard just wanted an excuse to do a further hard search to check that there was no adverse entry!

So I hope you will feel reassured by my identical experience.

user1977

badmemory said:

Redeeming you mortgage would reduce what they see as your ability to repay debt.  Just shows how really good their processes are.  If you don't have debts then you are seen as not worthy of receiving credit.

Yes, I get the logic behind that - it's the only reason I can think of.

I've checked my credit records and there are no surprises on any of them.

elasto

I am another who has been offered a credit limit increase which subsequently got withdrawn without any obvious  variance in my credit file. 

As others have suggested I chalked it up to the bank's criteria changing rather than specifically my situation.

cymruchris

Barclaycard have a reputation for being quite fickle with their credit limits - it wasn't that long ago that they reduced the limit of thousands of cards without any real explanation. Most likely it's just a rolling change in business appetite for their overall credit limits going up and down, and then applied to groups of end users.

It's not something I'd worry about. 

surreysaver

I'm lucky. They put my credit limit up last month. And I subsequently used it to do a 0% money transfer!

housebuyer143

I know this is old but they do this to me every 6 months. I also got a letter in April saying it would be increased. I text to accept it, nothing. I waited until the date passed, nothing. 
I got another letter in December saying they were going to increase my credit limit in Jan. I waited until the date passed and nothing. 

I wish they would stop sending me letters if they have no intention of increasing it. It's terrible behaviour.  
It's likely nothing you have done, just Barclaycard offering increases without first doing any checks as to whether you would qualify.

surreysaver

housebuyer143 said:

I know this is old but they do this to me every 6 months. I also got a letter in April saying it would be increased. I text to accept it, nothing. I waited until the date passed, nothing. 
I got another letter in December saying they were going to increase my credit limit in Jan. I waited until the date passed and nothing. 

I wish they would stop sending me letters if they have no intention of increasing it. It's terrible behaviour.  
It's likely nothing you have done, just Barclaycard offering increases without first doing any checks as to whether you would qualify.

Its normally do nothing to accept the increase?  It's text to say you don't want it - could this be what's happened to you?