Paid off large Barclaycard balance - now reduced limit

[crashcrackers]

I've just paid off 2500 of a 4000 on a Barclaycard. today they messaged to say they're reducing my limit down to 2000. 

I paid of the balance to get my 'credit used' to below 50% as suggested on my latest credit report. 

 

Now its back up to more than 50%.

Is it normal for Barclaycard to do this?

[dx100uk]

They are entitled to yes

why are you so worried about a credit score

M uch of the advice on cra sites is worthless twaddle

[unclebulgaria67]

Credit card providers went through a period of increasing credit limits before Covid and are now going through process of reducing credit available probably due to Covid damaged economy.

 

I had not used my credit card for awhile and my provider wrote to me saying that they would cancel it if I were not using it. I have had the same Bank providing the card over 30 years !  I had to start using it and to pay it off each month, just to keep the card. 

[ssett]

7 hours ago, unclebulgaria67 said:

Credit card providers went through a period of increasing credit limits before Covid and are now going through process of reducing credit available probably due to Covid damaged economy.

 

I had not used my credit card for awhile and my provider wrote to me saying that they would cancel it if I were not using it. I have had the same Bank providing the card over 30 years !  I had to start using it and to pay it off each month, just to keep the card. 

That's interesting.

 

A credit card company that I have card for that I haven't been using for some time either (limit set way before the pandemic) sent me a letter to say they want to reduce my limit by about 40% if I didn't say anything. I asked if I wanted to increase it again if they did - would they give me the same limit - all they said was that I would have to wait 6 months before I could ask! Hmm... I doubt very much if they would agree to the same limit that took me a long time to get in the first place!

 

So I said, No Thanks!

Edited February 1, 2021 by ssett
Change for limit set date information

[slick132]

Hi Cashcrackers,

 

Concentrate on looking after yourself, just like CCard Co's do !

 

They were exposed to you having £4K on credit which you've reduced to £1.5K so they've reset your limit to £2K to limit their ongoing exposure.

 

Nothing unusual in the present climate and this may reflect other aspects of you credit profile, or just be a precaution on the part of BC.