lenders checking existing customers credit files

Harrysplan

Hi, 

I understand that lenders can check the credit files of their customers - I think that is one the terms that we sign up to when we sign the credit agreement. My Barclaycard credit limit has recently been reduced. This isn't a problem for me as I am trying to pay it off anyway, so I don't need a high limit. I can only assume that Barclaycard have made this decision due to me having high card utilisation on my other credit cards BUT there is no record of Barclaycard searching my credit file recently. I have checked my credit report on all of the main CRA's. 

Surely there would a record of Barclaycard checking my file in the search section of the report? Or don't they have to do this for existing customers?? 

Sly72

If they do a search it will show, but can take a while to appear.  Other option is send in a GPDR request asking for all info on your file and state you want to know why limit has been reduced, they may redact info.

eskbanker

Harrysplan said:

My Barclaycard credit limit has recently been reduced. This isn't a problem for me as I am trying to pay it off anyway, so I don't need a high limit. I can only assume that Barclaycard have made this decision due to me having high card utilisation on my other credit cards BUT there is no record of Barclaycard searching my credit file recently.

They could simply have decided to reduce your limit based on your borrowing and repayment history on your card with them, i.e. there are other possibilities to consider other than them reviewing your wider credit utilisation?  In the same way you've decided you don't need a high limit, they may have simultaneously reached the conclusion that they're no longer prepared to offer you one....

MEM62

Harrysplan said:

I can only assume that Barclaycard have made this decision due to me having high card utilisation on my other credit cards 

Why would you assume that?  Barclays will have a number of criterion by which they consider your credit limit.   

Hoenir

Harrysplan said:

 This isn't a problem for me as I am trying to pay it off anyway, so I don't need a high limit. 

The "limit" costs Barclaycard money. Purely from a business perspective. Trimming credit limits is a productive exercise to get a team to undertake.

Easy to overthink matters and seek explantions which have no bearing.  

Mr_Blue52

Barclaycard will have its own internal credit scoring program which would not require search on your credit reports.

If you are not using the limit, then Barclaycard & other card providers can reduce it. Technically it is their money & they don’t want to have a higher exposure if a card has been defaulted.