Credit limit reduced?

Wanno

Has anyne else had their credit limit reduced at Barclaycard?

I recently, ust after Christmas did a balance transfer to Barcalycard platinum and have now closed the old credit card account don. I get a letter through the post today saying that they have reviewed my file and are reducing my credit limit by 2000 pounds odd. Theres reference about my credit score as well.

Why would they do this? If my credit score was fine to open the account, how can it now make so much difference? I am going to check my credit score as soon as possible- but I am perplexed why they would do this?

Is it a credit crunch issue, or should I be worried that I am a bad customer or something?

passatrider

I too had a letter from Barclaycard today telling me exactly the same thing! They had reviewed my credit status and reduced my limit by £500. Iam really bemused as I have a very good credit rating and never missed any payments on my cards.
My guess is that as I'm using the card for balance transfers only and not spending any money on it, then they make no money from me.

dr_adidas01

Yes i've had mine reduced as well 2 weeks ago, though I didn't get any notice they were going to do it either, it wasn't until I logged on and noticed that my limit had been reduced I found out.

I called them to ask why (Indian Call Centre) and was told that they review customers accounts based on there credit file and any information they have from Barclays Bank (whom I also bank with).

So I checked my credit file's (Eqifax & Experian) and low and behold nothing had changed. So I then wondered if its because I pay my balance in full every month, therefore they dont get any interest out of me, as that can be the only explanation.

Also since in the terms and conditions it states that they have to give 30 days notice to inform you of any changes to your account, Including credit increases or decreases.

I'm now sending in a letter stating they have breached there terms and conditions and am going to ask that my limit be restored. :mad:

Wanno

Thanks people.

Thats useful to know about the 30 days notice. I had to buy some new work clothes and put it on the credit card and was suprised when the card wouldn't authorise another payment- I just thought they might have thought it was suspicious because of the sudden spending. If they charge me or anything goes on the record then I will kick off about the 30 days limit as I have found out today- not 2 days ago from when it actually took effect.:mad:

jimbo26

Wanno wrote: »

I am going to check my credit score as soon as possible- something?

Don't waste your money. The Experian credit score has no bearing on a credit card company's decision. It's a money making thing.

All Barclays are doing is lowering their exposure to risk.

Bismarck

jimbo26 wrote: »

Don't waste your money. The Experian credit score has no bearing on a credit card company's decision. It's a money making thing.

All Barclays are doing is lowering their exposure to risk.

Agree that credit score is irrelevant....
Barclaycard upped my credit limits on both accounts in January and my risk profile hasn't changes...I think they're doing an overhaul of their limits in general and basing the limit balances on some profit-related computer decisions. They may well say it's risk related but I doubt it...

JBeau

I also had a letter from Barclays yesterday. They have reduced my credit limit by half! I do not use it, only as a method to pay off the debt cheaply.
This is why I am no longer a good "spending" customer for them, however really pleased about the info on 30 days notice to any changes.

speedbird1973

well they put mine up by £2k.. so at least you know where your reduced limit is going!


Needless to say I have 0% £2.5k balance due to run out in 6months they're trying to get me to spend another 5k ontop of that balance..

I'm a "good" customer! lol

benf90

dr_adidas01 wrote: »

Also since in the terms and conditions it states that they have to give 30 days notice to inform you of any changes to your account, Including credit increases or decreases.

I'm now sending in a letter stating they have breached there terms and conditions and am going to ask that my limit be restored. :mad:

Are you sure the 30 days notice covers credit limits?

The 30 days' notice is usually for changes to the terms and conditions. The terms and conditions will usually state something along the lines "we'll set and tell you your credit limit from time to time", this is usually under a separate heading 'Credit Limit'.

As the T&Cs won't be changing, only the credit limit, then I doubt they have to give you 30 days' notice. I'm not saying you're wrong, but it would just seem a bit stupid for them to have such a clause in their T&Cs.

I've not known any credit card company give notice that a limit will be reduced, they just go ahead and do it. Giving customers notice would allow some to go out and spend on the card up to their limit before the company could reduce it.

Bismarck

benf90 wrote: »

Are you sure the 30 days notice covers credit limits?

The 30 days' notice is usually for changes to the terms and conditions. The terms and conditions will usually state something along the lines "we'll set and tell you your credit limit from time to time", this is usually under a separate heading 'Credit Limit'.

As the T&Cs won't be changing, only the credit limit, then I doubt they have to give you 30 days' notice. I'm not saying you're wrong, but it would just seem a bit stupid for them to have such a clause in their T&Cs.

I've not known any credit card company give notice that a limit will be reduced, they just go ahead and do it. Giving customers notice would allow some to go out and spend on the card up to their limit before the company could reduce it.

agree that I would be surprised if they did give you warning...."here, have 30 days to spend money we don't want to lend to you"