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Spending limit reduced from £3500 to £100

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eezyrider
eezyrider Posts: 22 Forumite
Part of the Furniture 10 Posts Name Dropper Combo Breaker
Barclaycard Platinum. Would this be because I rarely use the card? I have an Experian score of 999, only one other credit card (zero balance) and no debt or borrowing. Checking the app, it says I cannot increase my spending limit as it has been imposed or something like.

Experian updates at the end of the month so I'll have to wait and see if any fraud has happened in my name I guess or if this affects my credit rating. If it does I'll cancel the card.

Comments

  • Grumpy_chap
    Grumpy_chap Posts: 18,286 Forumite
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    There are many reports of Barclaycard reducing credit limits, so you are not in an unusual position.
  • born_again
    born_again Posts: 20,488 Forumite
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    It will not effect your credit history. Which is the only thing that matters. Score/Rating is a pointless figure.

    If you are not using the credit, then they will reduce it. As a card that is not being used is at increased risk of fraud not being picked up. As card holder stops checking the account, as they are not using it.

    A simple case of use it or lose it. 🤷‍♀️
    Life in the slow lane
  • badmemory
    badmemory Posts: 9,604 Forumite
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    I get a letter every couple of years from them about reducing my limit because I haven't used it.  So I use it & limit is not reduced.  Initial limit on mine is slightly lower £3k & threatening down to £100.  Are you sure you are getting/checking your "mail".  Mail = post, email, notes on your credit card account.
  • Brie
    Brie Posts: 14,741 Ambassador
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    They reduced my limit from about £20k to £1400 a few years back.  The reason being that they could not prove my income.  Shall I let you guess who I worked for at the time?  

    Realistically though - I think they were tired of me complaining about the (lack of) customer service where I was given wrong information about my account every single time I did a 0% balance transfer.  
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  • eezyrider
    eezyrider Posts: 22 Forumite
    Part of the Furniture 10 Posts Name Dropper Combo Breaker
    badmemory said:
    I get a letter every couple of years from them about reducing my limit because I haven't used it.  So I use it & limit is not reduced.  Initial limit on mine is slightly lower £3k & threatening down to £100.  Are you sure you are getting/checking your "mail".  Mail = post, email, notes on your credit card account.
    I got an email to say my card had been amended and to log in to the app to check. I don't recall getting anything else.

    Admittedly I rarely use the card. It's more for emergency when I used to travel a lot but I'm still surprised because there is more than double my old limit sitting in my Barclays current account, an amount which has been maintained for years. 
  • born_again
    born_again Posts: 20,488 Forumite
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    eezyrider said:
    badmemory said:
    I get a letter every couple of years from them about reducing my limit because I haven't used it.  So I use it & limit is not reduced.  Initial limit on mine is slightly lower £3k & threatening down to £100.  Are you sure you are getting/checking your "mail".  Mail = post, email, notes on your credit card account.
    I got an email to say my card had been amended and to log in to the app to check. I don't recall getting anything else.

    Admittedly I rarely use the card. It's more for emergency when I used to travel a lot but I'm still surprised because there is more than double my old limit sitting in my Barclays current account, an amount which has been maintained for years. 
    Means nothing, as it could disappear overnight.
    Life in the slow lane
  • CliveOfIndia
    CliveOfIndia Posts: 2,541 Forumite
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    Most banks will reduce your limit if you don't use the card much, anecdotally Barclaycard do seem to be rather more over-zealous in this respect than most others.
    There are many reasons, but one of the simplest is simply profit.  Even if you always clear the card in full and never pay any fees or interest, the bank still makes a steady income from the fees they charge the retailer every time you make a purchase.
    There is a finite amount of credit they have available to distribute amongst their customers.  Quite simply, if you're not using much of your credit, and thus not making much money for them, they'll cut your limit and offer it to someone else who will use it.
    That's perhaps a slight over-simplification, but that's the gist of it.
  • zagfles
    zagfles Posts: 21,452 Forumite
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    Might sound pedantic but it's not a spending limit, it's a credit limit. They are different. Just in case you're under the illusion that it's a monthly spending limit, as that could lead you to exceeding the credit limit (for instance if you spend £100 in month 1, then spend £100 in month 2 before the month 1 payment is made). 
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