To be pissed that Barclaycard decreased my credit limit?

[BusyGreyCat]

Got a notification today that Barclaycard has decided to lower my credit limit, and honestly, I’m pretty annoyed. I haven’t missed any payments, and my credit score is fine, so this feels like it came out of nowhere.

AIBU to think it’s unreasonable for credit companies to make changes like this without any warning? Has anyone else had this happen recently? I get that they’re trying to manage risk or whatever, but it feels like a punishment when I’ve done nothing wrong.

What would you do in this situation? Any tips on getting the limit restored, or should I consider moving to a different provider?

That sounds strange, I wonder if they've done a random credit check?

Were you close to the limit?

There is always a reason and it doesn’t have to be missed payments. It can be decreased if you’ve only ever been making the minimum payment on the card, it can be if you’ve got multiple transactions that look like cash withdrawals, it could be if you’ve recently taken out new credit even if thats a car finance and you can afford the payments. It’s never for no reason at all.

Halifax did that to me. I had a £5k limit, and they reduced it twice, first to £3k and then to £1k. I suspect that it was because I didn't spend much, hardly used it and always paid it off on time. I only used the credit card for things like holiday deposits, furniture and large kitchen appliances to get the protection offered by the card, and presumably I wasn't spending enough or paying them any interest so they decided I wasn't a customer worth bothering with.

Yeah, it does feel out of the blue! I thought they only did that if there were issues with missed payments or a drop in credit score. Maybe they’re tightening limits across the board? I’ll reach out to see if I can get some answers.

Did you receive a letter to explain why?

Why does it matter though? If you’re not using it?

Nope, not even close! I’ve kept a decent buffer, which is why this feels so frustrating. Just can’t figure out what triggered it.

Yes but are you only ever making the minimum payment?

YABU to say you're "pissed". That means you're drunk*. Maybe that's why Barclays did it.

*or American

Well, that’s what’s confusing me—my other credit card actually gave me an increase over twice its limit just about three weeks ago. That’s part of why this feels out of the blue.

Nope, I always pay it off in full.

What would I do?

Ring them up and have a conversation, isn't that pretty much the only thing to do? I don't like webchats so avoid them wherever possible

They do it because periodically they amend their lending and affordability criteria, so if they applied their current criteria to you when you took out the credit card in the past, you would have been provided a smaller credit limit.

It won't be anything you've done. It will be to comply with banking rules and regulations regarding lending that are constantly being looked at reviewed.

Did it to me with an overdraft. Very annoying.

Do you need the credit? If you pay it off, get an Amex - you get better perks!

Yes, but it’s very generic and doesn’t really reflect my situation. It just says things like “we want to make sure no one’s borrowing more than they can comfortably afford” and mentions factors like missed payments or checks with Credit Reference Agencies. None of which apply to me.

Currys did this to me. I had £2000 credit, only a couple of months left to pay, never missed a payment but they decreased it to around £500. I closed my account as I didn’t need it any longer.

It’s more about the principle for me. I like having a cushion for unexpected expenses, and a sudden reduction just feels unsettling, especially when I’ve been responsible with it. Plus, it can impact my credit utilisation ratio, even if I’m not using the full limit.

It would matter to me because a higher credit limit means a higher credit score

I don’t necessarily need it, but it’s useful for managing expenses and having a buffer. Amex is a good shout though - might be time to look into those perks!

I had this with NatWest a couple of years ago. Never even close to my limit and they lowered it.

Even though I'd never get close to the decreased limit either I was still affronted 🤣and called them up. explanation was they reviewed limits constantly and they could see from spending/payment habits I didn't need the original higher limit and asked me if I wanted it reinstating for anything (bit embarrassed to say no after all that 😬)

I bet it's that op.

It happens occasionally when people don't ever really use most of their limit, particularly when economic outlook is iffy. It helps them lower their risk.

This is probably your answer then, overall you have been given access to a higher credit option elsewhere, BC are not comfortable that you would be easily able to repay both if you suddenly maxed them both out.

Well, that’s what’s confusing me—my other credit card actually gave me an increase over twice its limit just about three weeks ago. That’s part of why this feels out of the blue.

This will be why. They will have assessed that over all, you have too much credit available to you!

Barclaycard did the same to me a couple of years ago, I never used the card much anyway so just closed the account.