Help! Credit limit changed - will it affect my credit file?

red

Hi everyone....not sure if anyone can help with this, but I am having a bit of an issue with credit checks - I have looked at both my files with Experian and Equifax. Both are clean, except for the number of credit checks that I have made which are close to the limit for the year.

However, one change that happened recently is that Barclaycard wrote to me telling me they were reducing my credit limit. It has reduced significantly - from around £5,500 to £1,200. I only had the credit card because of the 0% offer that was posted on this website so I'm not bothered about the reduction in the credit.

I don't understand why this has happened - I have made never defaulted on a payment. More importantly, I think this is affecting my credit file..I put an application for a 3 phone which was turned down, and the only reason I can see for it is the Barclaycard credit change....

If anyone has ANY advice or feedback on similar experiences either particularly with 3 and Barclaycard, please let me know!!!

jimbo26

I doubt a lowered limit would affect your score negatively. In fact it should have the opposite effect, you have less available credit.

You need to get a copy of your credit files from the major credit reference files and check them thoroughly.

red

jimbo26 wrote: »

I doubt a lowered limit would affect your score negatively. In fact it should have the opposite effect, you have less available credit.

You need to get a copy of your credit files from the major credit reference files and check them thoroughly.

Thanks! I have, and both files are clean. There is one account that had a couple of payments paid late, but that was last year and has been settled.

CannyJock

Lol, that's how she knows about the number of checks

The checks that you make yourself on your file aren't visible to anyone except you and the CRA.

Sounds like Barclaycard are reducing the amount of unused credit on your card. If the card now has a nil balance at the end of the 0% offer, then you could take a tip from the stoozers and try and get a repeat offer. Read Clariman's article on it for some tips: http://www.stoozing.com/a_extend.htm

If they won't play ball and you don't need the card then would be worth cancelling it.

If you've got other cards "unused" then that will count as available credit from a scoring point of view.

red

CannyJock wrote: »

Lol, that's how she knows about the number of checks

The checks that you make yourself on your file aren't visible to anyone except you and the CRA.

Sounds like Barclaycard are reducing the amount of unused credit on your card. If the card now has a nil balance at the end of the 0% offer, then you could take a tip from the stoozers and try and get a repeat offer. Read Clariman's article on it for some tips: http://www.stoozing.com/a_extend.htm

If they won't play ball and you don't need the card then would be worth cancelling it.

If you've got other cards "unused" then that will count as available credit from a scoring point of view.

Thanks CannyJock (great name too!) There is about £1,000 left on it, and in the next month or so I'll be able to clear it if necessary. I'm not too concerned about the Barclaycard - searching on the web, it seems they are doing the same to a lot of customers. I am just concerned as I am now being refused credit for a mobile phone...this has never happened before, and I know everyone is reviewing their lending and credit policies, but it seems odd that I am stumbling on this...

CannyJock

I got a pile of free pay-as-you-go SIMS through the door this week. If you do need to go down that road, make sure you don't pay for your SIM

Paul_Herring

jimbo26 wrote: »

I doubt a lowered limit would affect your score negatively. In fact it should have the opposite effect, you have less available credit.

It could adversely affect the 'score' if the overall proportion of unused credit has drastically decreased.