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    • Danielle1985x
    • By Danielle1985x 12th Mar 18, 7:03 PM
    • 22Posts
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    Danielle1985x
    Credit limit reduced from 5000 to 260?
    • #1
    • 12th Mar 18, 7:03 PM
    Credit limit reduced from 5000 to 260? 12th Mar 18 at 7:03 PM
    Hi guys.

    Iíve just had a letter from Barclays telling me that theyíre reducing my credit limit, from £5,000 to £260!!! I did a balance transfer to a new card a month or so ago, and had a balance of around £3500, which I ideally would like to get paid off. The Barclaycard is now clear. The new card has a credit limit of £4,600.
    My credit score isnít great, but Iíve never missed a payment or been late and have banked with Barclays for the entire time Iíve held a bank account. I donít have a lot of debt, the £3,500, £6000 on a pcp which finishes in October and my mortgage?

    Is my credit going to take a hit because of this now? The account has only been open around a year, should I just close it? I have another Nationwide card that Iíve had around 6 years and is clear which I was just keeping open so Iíve had at least one of my accounts a long time.

    What do you guys think?
Page 1
    • worried jim
    • By worried jim 12th Mar 18, 7:07 PM
    • 9,224 Posts
    • 14,227 Thanks
    worried jim
    • #2
    • 12th Mar 18, 7:07 PM
    • #2
    • 12th Mar 18, 7:07 PM
    They no longer want you as a customer.
    "Only two things are infinite-the universe and human stupidity, and I'm not so sure about the universe"
    Albert Einstein
    • zx81
    • By zx81 12th Mar 18, 7:07 PM
    • 17,257 Posts
    • 18,349 Thanks
    zx81
    • #3
    • 12th Mar 18, 7:07 PM
    • #3
    • 12th Mar 18, 7:07 PM
    It will just show on your credit files and lenders will take their own view.

    No real need for concern if the rest of your file shows good credit management.

    Don't worry about the credit score.
    • Shakin Steve
    • By Shakin Steve 12th Mar 18, 8:01 PM
    • 1,455 Posts
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    Shakin Steve
    • #4
    • 12th Mar 18, 8:01 PM
    • #4
    • 12th Mar 18, 8:01 PM
    When Barclays gave you a credit limit of £5000, they will have done a hard search and assessed affordability. Now they know that you have another card with a balance of £3500, they probably think £8500 unaffordable.
    I came into this world with nothing and I've got most of it left.
    • Gary_Dexter
    • By Gary_Dexter 12th Mar 18, 8:46 PM
    • 1,294 Posts
    • 743 Thanks
    Gary_Dexter
    • #5
    • 12th Mar 18, 8:46 PM
    • #5
    • 12th Mar 18, 8:46 PM
    They obviously don't want you as a customer anymore.

    You've transferred away a balance that could be earning interest and now they've lost "interest" in you
    • Ben8282
    • By Ben8282 13th Mar 18, 4:39 AM
    • 2,348 Posts
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    Ben8282
    • #6
    • 13th Mar 18, 4:39 AM
    • #6
    • 13th Mar 18, 4:39 AM
    This is a massive reduction and is unlikely to have been triggered by transferring your balance elsewhere.
    You say that you have never missed a payment or been late but you also say that your credit score is not great. Although the credit score is meaningless in terms of obtaining new credit, it is at least indicative and the fact that it is not great would imply that there is something adverse somewhere on your credit files .
    • Danielle1985x
    • By Danielle1985x 13th Mar 18, 7:48 AM
    • 22 Posts
    • 3 Thanks
    Danielle1985x
    • #7
    • 13th Mar 18, 7:48 AM
    • #7
    • 13th Mar 18, 7:48 AM
    I missed a payment on a catalogue account about 7 months ago now, I guess this is the reason why but donít understand why they would reduce it 7 months later and I canít see that theyíve done a credit search on me.

    Should I close the card?
    • Gary_Dexter
    • By Gary_Dexter 13th Mar 18, 8:43 AM
    • 1,294 Posts
    • 743 Thanks
    Gary_Dexter
    • #8
    • 13th Mar 18, 8:43 AM
    • #8
    • 13th Mar 18, 8:43 AM
    Have you actually contacted the card issuer and asked them why they have done it?

    That's usually a good start...
    • bengal-stripe
    • By bengal-stripe 13th Mar 18, 8:58 AM
    • 3,194 Posts
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    bengal-stripe
    • #9
    • 13th Mar 18, 8:58 AM
    • #9
    • 13th Mar 18, 8:58 AM
    I missed a payment on a catalogue account about 7 months ago now,
    Originally posted by Danielle1985x
    So that makes it seven missed payments in as many months.

    My credit score is poor, I have 6 missed payments on a catalogue account 4 months ago.
    Originally posted by Danielle1985x
    • MABLE
    • By MABLE 13th Mar 18, 9:17 AM
    • 3,546 Posts
    • 1,864 Thanks
    MABLE
    Originally Posted by Danielle1985x View Post
    My credit score is poor, I have 6 missed payments on a catalogue account 4 months ago.


    And there is the answer!
    • chattychappy
    • By chattychappy 13th Mar 18, 10:07 AM
    • 6,805 Posts
    • 3,699 Thanks
    chattychappy
    and I canít see that theyíve done a credit search on me.
    Originally posted by Danielle1985x
    Some lenders get a continuous feed in return for supplying their own monthly updates.

    Don't bother closing the account (they might close it anyway). Just carry on, ensuring you make payments on time. In the case of the transferred balance, don't pay just the minimum even if it's on 0%. Pay at least £1 more. That avoids a minimum payment marker which can make you look distressed.
    • Heng Leng
    • By Heng Leng 13th Mar 18, 1:55 PM
    • 4,552 Posts
    • 1,426 Thanks
    Heng Leng
    Some lenders get a continuous feed in return for supplying their own monthly updates.

    Don't bother closing the account (they might close it anyway). Just carry on, ensuring you make payments on time. In the case of the transferred balance, don't pay just the minimum even if it's on 0%. Pay at least £1 more. That avoids a minimum payment marker which can make you look distressed.
    Originally posted by chattychappy
    I had that marker applied by BC card a few year ago even though I was making a minimum payment + £1. I called up but was closing at end of the 0% offer, so didn't think it was worth pursuing further- just be aware.
    • Thrugelmir
    • By Thrugelmir 14th Mar 18, 7:08 PM
    • 58,925 Posts
    • 52,250 Thanks
    Thrugelmir
    Hi guys.

    I!!!8217;ve just had a letter from Barclays telling me that they!!!8217;re reducing my credit limit, from £5,000 to £260!!! I did a balance transfer to a new card a month or so ago, and had a balance of around £3500, which I ideally would like to get paid off. The Barclaycard is now clear. The new card has a credit limit of £4,600.
    Originally posted by Danielle1985x
    Sounds as they are blocking you from transferring the balance back at a later date. There is a general tightening down by lenders. Following the recent non regulatory intervention of the authorities. Though one assumes only a matter of time before something is imposed on lenders. Credit cards appear to be the next area. Following mortgages and pay day loans.
    Financial disasters happen when the last person who can remember what went wrong last time has left the building.
    • owen_money
    • By owen_money 15th Mar 18, 1:30 PM
    • 493 Posts
    • 585 Thanks
    owen_money
    It will just show on your credit files and lenders will take their own view.

    No real need for concern if the rest of your file shows good credit management.

    Don't worry about the credit score.
    Originally posted by zx81
    There is no credit score, its just a made up number
    One man's folly is another man's wife. Helen Roland (1876 - 1950)
    • zx81
    • By zx81 15th Mar 18, 1:32 PM
    • 17,257 Posts
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    zx81
    Good to know.
    • owen_money
    • By owen_money 15th Mar 18, 1:38 PM
    • 493 Posts
    • 585 Thanks
    owen_money
    Good to know.
    Originally posted by zx81
    Just so you know
    One man's folly is another man's wife. Helen Roland (1876 - 1950)
    • enthusiasticsaver
    • By enthusiasticsaver 15th Mar 18, 1:40 PM
    • 6,609 Posts
    • 13,860 Thanks
    enthusiasticsaver
    I personally would not have three active credit cards so I think I would close it. You still have your Nationwide which you should aim to repay in full each month plus the one with the BT on. It may well be that Barclaycard have seen you have a card with a large limit elsewhere and decided that you have too much credit available. There is a general tightening of credit availability going on at the moment.
    Debt free and mortgage free and early retiree. Living the dream

    I'm a Board Guide on the Debt-Free Wannabe, Mortgages and Endowments, Banking and Budgeting boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Pease remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com
    • owen_money
    • By owen_money 15th Mar 18, 1:57 PM
    • 493 Posts
    • 585 Thanks
    owen_money
    Happy to help
    One man's folly is another man's wife. Helen Roland (1876 - 1950)
    • carlislelass
    • By carlislelass 15th Mar 18, 3:30 PM
    • 1,694 Posts
    • 4,233 Thanks
    carlislelass
    Have you actually contacted the card issuer and asked them why they have done it?

    That's usually a good start...
    Originally posted by Gary_Dexter
    Probably won't say
    • nic_c
    • By nic_c 15th Mar 18, 5:22 PM
    • 1,523 Posts
    • 832 Thanks
    nic_c
    I personally would not have three active credit cards so I think I would close it.
    Originally posted by enthusiasticsaver
    Really? I'd better not say how many I have . Mind you I've closed a few down now so at least I'm in single figures
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