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?

The reason I don’t keep money is my credit current account is for security. I think they are more open to scammers. It does not pay any interest either. It not a case of paying interest or borrow. I put all my big spends on credit card and they pay it off each month when I get paid. I find it easier to budget this way. If I had a breakdown or needed to stay overnight the credit card would be used. I think a lot of people use a credit card this way.

I had a letter on Friday saying Lloyds were doing the same with my MasterCard. Dropped from several thousand to £500. I regularly spend over £1000 per month, never missed a payment. I have a 6 figure salary and my credit rating has been excellent for years. There are no markers on my credit files, I have signed up to two to check. It is not my only credit card, but I want a non-Amex one for flexibility. I haven't had any changes in credit limits or anything else that anyone on this thread has said might impact.

I am - to use an MN buzzword - raging! And won't be letting it go until I get a proper explanation and reinstatement, as having a credit limit slashed like this may easily impact future credit requirements.

You aren't using it enough to make them any money or not going close enough to the limit for them to think the limit is appropriate. It's a compliment really 🙂

HPpened to me with a natwest credit card once. Far forward a few years when finances were tough and I'd gone from paying it off in full every month to only doing minimum repayments & they increased my limit!

Tell me how that's responsible lending.?

Thank you for explaining that - really helpful! I’ll ring them up tomorrow and request the reinstatement, mentioning what you said about utilisation and responsible lending. Appreciate the advice!

And find that no one accepts it.

Not often a problem. Yes it’s not accepted everywhere but I have other cards as back up. As it is I’ve got near £300 in Cashback this year from using it. £300 of free money? Yes please.

I get cashback on my barclaycard.

But there’s no such thing as a credit score. They’re arbitrary, made up…

They’re not. A credit score is based on a number of factors in your financial history - how much credit you have at your disposal and what percentage of it you’re using, whether you’ve missed payments or not - that information is used to extrapolate a figure up to 1,000 which is a snapshot of financial responsibility. You can see how it’s worked out here. Sorry for the crazy link!

https://www.clearscore.com/credit-scores?utmsource=GoogleAds&utmmedium=cpc&utmcampaign=UKCSGOOGLESEARCHALL-WEBACQCREDITSCOREGENERICCREDITSCORE&gclsrc=aw.ds&gadsource=1&%243p=agoogleadwords&%24alwaysdeeplink=false&~adsetid=129112512945&~campaignid=15231064944&~channel=g&~keyword=credit%20score&~placement&~campaign=UKCSGOOGLESEARCHALL-WEBACQGENERICCREDIT-SCOREVBBSUP-ACIssuer&gclid=EAIaIQobChMIuNmj8tewiQMVHIBQBh1kmQuMEAAYAiAAEgJ0GfDBwE&branchmatchid=1366494624709192066

This.

Although also you say you've always left a buffer so I assume never getting close to your limit. That's why they've reduced it, because you're not using it.

That’s what they want you to believe. Every credit reference agency has their own ‘scoring’ system and so that’s why your ‘score’ is different depending on where you check. What’s important is your credit history - do you pay on time, have you ever defaulted, do you pay off in full, what proportion of your credit do you use, and so on.

Each company makes up their own criteria for how they score you and each lender decides their own risk criteria. There is no such thing as a universal credit score. The things they assess are similar but still ultimate made up.

And that’s what determines the credit score. 🙄

No need for the eye rolling (are you okay?). There is no such thing as a credit score. You do not have a number attached to you. It’s entirely constructed, as previous posters have said. Google it if you don’t believe me 😉

But you have three / four different ‘scores’ depending on which agency you choose to look on. Some scores are out of a 1000, others 600 etc. There is no such thing as your true overall credit score.

How can it be “entirely constructed” when it’s based on data?

One definitive credit score for each person isn't a thing, all lenders have their own ways of determining whether to/how much to lend. You might get a general idea from the big credit reference agencies but an actual number universally used doesnt exist

an actual number universally used doesnt exist

At no point have I said it does - my initial post actually said it was a score of up to 1,000. Nonetheless credit scores are based on data, they’re not “entirely constructed” nor are they “arbitrary” or “made up”.

But they are made up, they are made up by the credit agencies. Made up using some data yes, but still totally made up.

When you ask a lender to lend you money, they don’t see ‘your credit score’ they see your credit history and from that form a judgement on whether they want to lend to you or not.

One company may base their decision purely on payment history, others may take an overall view. None of them base it on your ‘credit score’

Sometimes people do things just because they’re assholes (that’s American too.)

I think they've probably had a knuckle rap about the credit they've allowed clients in the past, they're very big on "helping" clients to avoid persistent debt now. They had suspending my card for a while (despite me always paying over the minimum payment). Although I paid it off in full a few months ago, and phoned them to request closure of the account. They've just messaged me to advise that they've reduced my limit to £1k.

I cut the card up so I will leave it for now, unless it starts affecting my credit score, but it's annoying when I very clearly requested closure of the account!

Made up using some data yes, but still totally made up.

Can’t be both - evidence based or made up. Make your mind up.

Its a made up number, based on data but the output is still made up by the credit search companies. They literally make up their own numbers based on their own criteria.

Once again, it can’t be both. Anyway I’m bored with arguing with someone who quite literally doesn’t know the difference between fact and fiction.