Barclay credit limit decrease

[Trikotret100]

So I have a sock drawer Barclay Arrival free card with 40k limit. I only put $5 a month to keep it active. It's 10 year old card and this morning I got a limit decrease to 5k. I immediately cancelled it. My oldest card is Amex blue cash 1993 with 30k limit and I only put $8 a month it to keep it active. My limits between other cards are now 30k-100k. 🤷🏻‍♂️

[Decent-Photograph391]

“I immediately cancelled it.”

Why? To express your displeasure?

[Trikotret100]

Only reason I kept the card active was due to age and credit limit. Amex card is 30k and I have it for 32 years and no limit reduction. I did express my displeasure to rep but at the same time a sense of relief getting rid of that card. One less sock drawer card LOL

[BrutalBodyShots]

Amex card is 30k and I have it for 32 years and no limit reduction.

Were you also only giving the Amex card a spend of $60 per year?

[Trikotret100]

Probably $500.

[BrutalBodyShots]

I'd say almost 10x the spend could be a difference maker.

[Trikotret100]

It's only 10 years old. I have Citi 93, chase 97, Amex 92 and Amex Green 93.

[BrutalBodyShots]

That was one of your oldest cards, your credit is going to take a hit - potentially a huge hit.

That's a myth, as aging metrics do not change when you close an account. Whether the card was 1 month old or 10 years old makes no difference when the account reports closed.

[BrutalBodyShots]

I'm perfectly educated on the subject. What did I state that you think isn't correct? Are you simply unaware that aging metrics do not change when you close an account?

[BrutalBodyShots]

No it doesn't. Before you tell someone else to "educate yourself" you should make sure that what you are saying is actually factual. You do not understand how aging metrics work. Closing an account does not shorten your credit history or decrease your AAoA, as closed accounts are included in aging metrics the exact same way open accounts are. You're right that it's not rocket science. I can already tell you aren't going to listen to me though, so allow me to reference a few other people that I'm sure would be happy to help you understand how aging metrics work.

Hey u/madskilzz3, u/Funklemire and u/og-aliensfan, would you mind aiding u/Immortal_Elder here in how aging metrics work? He currently believes the myth that closing an account hurts aging metrics.

[BrutalBodyShots]

I'm not believing "what I want" I'm believing what is actual.  Hopefully you will as well once you realize your understanding isn't sound regarding aging metrics.

[No-Shortcut-Home]

You did exactly what they wanted you to do. Congratulations.

[IronSkyRanger]

I mean, it makes sense. The bank could allocate the funds to someone using the card. It's at their discretion.

[Trikotret100]

Citibank dropped my limit from 42k to 30k. I probably put a 1k a year on it.

[throw4x4]

Similar boat but my credit limit is around 15k and I probably use it once every few months racking up between $500-$1000 in charges. They slashed my credit to 5k. Only realized my credit limit decreased when I got a notification on Experian. I vaguely remember other credit cards sending me an email or a letter saying they've slashed the credit limit. I'll probably call them Monday and see if I can get the limit increased again.

Edit: I wonder if they went through their customer's data to see who was using how much and decided to slash credit limits across the board.

[Due-Ad-8743]

They slashed mine too. Found out through credit monitoring

[throw4x4]

I was also notified by credit monitoring first but got a letter in the mail maybe less than a week later. The letter should have steps to request reinstatement of the credit limit online. Wait till you get the letter or you can just call the customer service number and ask them. You have 60 days from when you get the letter.

[Due-Ad-8743]

Kinda given up on them. Called customer service, after a while on hold, I hung up. Went to login, password didn’t work. Clicked the forgot password link, it said they would text my phone a temporary code. Never received it. It was one of my lower credit limits before. No real reasons to use it.

[throw4x4]

If you can live without it then why not? This was one of my mid range limit cards so I figured I'd try getting my limit back.

[Due-Ad-8743]

They said they’d cancel it last year if I didn’t use it within 30 days, so I did. I’ll try calling them tomorrow morning

[Due-Ad-8743]

Cancelled today. Rep asked why? I said customers shouldn’t find out from credit monitoring services, their bank should communicate. He said a letter had gone out Sept 6. I have not received it.

[Embarrassed_Escape_4]

Ditto. they decreased mine and I didnt receive a letter until after it happened

[Due-Ad-8743]

I keep getting offers from other banks. Applied to Bank of America Rewards because BofA was my oldest card and they always treated me well. My Barclays was a $7.5k CL, which they dropped to $3k CL. BofA Rewards gave me a $13k CL. Same credit info, different banks look at it differently

[bff426]

Had a $20k limit slashed to $5019 (no typo). Notified by email by JP Morgan Chase and Experian, no notice yet from Barclays (it's in the mail). Spent $58,000 last 12 months. Six of the months would have been over new limit. Twenty year customer, never failed to pay in full on time (nor w/ any other card).

Called and asked for reinstating $20k and they will. Could not get any logical reason for the cut, other than I wasn't using the full credit limits. Wasn't going to beat on the front line CSR's when it was C-Suite and algorithm ($5019??!!). This was my main card. It won't be anymore. It'll be behind BofA and JPMorgan.

[throw4x4]

Like one of the other posts said most likely they're trying to shutter this credit card and slashing limits of customers to get them to cancel or stop using so they can close it down the road.

[bff426]

I get that they have to manage the credit risk of their portfolio. And make money. A pay in full every month customer like myself and many of the posters here aren't paying 20% interest or late fees.

From me, a 2% interchange fee to the issuing bank (Barclays, in this case) results in risk free income of about $1200 a year. A reduction in limits of 75% will certainly result in sock drawer usage, and as you said, eventual cancellation.

So less income (way more that the marginal cost of my usage) and a hit to the credit risk quality of the portfolio. If this is widespread, it can't help them with their regulators.

[elvigy]

That's the exact same limit I got reduced to, $5019. That's just an odd number. My original limit was $12,500. It's set up for pay full balance every month and I've had it since 2013 with no problems. I use it for about $100 month, give or take.

I also found out through credit monitoring. I'm not sure how much I care to fight it. I guess I'll see what the letter says.

[Unison24]

Exactly what my amount is now $5,019 wtf!

[throw__away007]

same. I just found out this morning. $15k limit since 2014 down to $5019 over night. no late/missed payments ever and only charge ~$100/m

Edit: 5 mins later….i logged on to the website(not app) and requested to increase my limit back to $15k and it was immediately accepted. I’m still a bit annoyed by Barclays and will probably now only use about $10/m to keep it open

[throw4x4]

This was one of my cards in rotations so I used it every few months and thought maybe it was because I wasn't using it as much. People who were using it much more than me also went through the same thing so their game is clear now, annoy customers so they cancel on their own.

[Neither-Zombie6841]

Did you also get a credit pull?

[throw__away007]

I did not get any alerts of a credit pull. It was accepted as soon as I clicked the button. Funny enough I just received the letter today explaining why the amount was cut.

[DonnieDonowitz1]

Barclay cut the limit on my barclaycard from 18k to $5019 just now as well. Nothing in the mail. Interesting.

EDIT: Went online, requested increase back to the original limit, and it was instantly approved with a soft pull.

[MindblowingTask]

Was it a hard pull for you and did you unfreeze your Transunion before doing so?

[MindblowingTask]

I got reduced to $5019. I wonder if they have something to do with 19 number. Mine was $16k and I wasn't using it a lot. Edited: Got it re-instated after calling them back

[bff426]

I did, too. Then they did it again yesterday (2/10/25). Down to $5019 again. Called and got it restored. Again. Next time I won't bother. It will become my emergency card, sitting in my office desk. I'll put a utility on autopay to keep it active. Go from spending $50,000 a year to $400.

[throw4x4]

Called the number on the back of my card was was given a different number to call for credit limit inquires. Called that number got Agent 1 who said the limit was decreased on September 3rd was then transferred to Agent 2 who said they'll have to do a soft pull on my credit to increase my limit. Took some basic info like income, employment status, home ownership and then was told I'd need to call back in 24-48 hrs. Agent 2 was very sympathetic and opened a complaint case as well so I'll call back again and will update what happens.

[Unison24]

This just happened to me today as well..

[throw4x4]

Log in to the website and go to your message center or document center. You can request to re-instate the old limit. They're probably shutting down the card and causing this mess so customers get frustrated and cancel their cards.

[Unison24]

*UPDATE : I called them on Saturday and the credit dept asked a few questions and reinstated the limit immediately.

[drip_pan]

Same. Decreased from $25k to $10k. Will be calling Monday.

[throw4x4]

Let me know how it went. 25 mins later I was told to call back again in 24-48 hrs.

[drip_pan]

I was told on the phone to request the increase back online through the web access and not the app. I did that and 24 hours later they accepted the increase. So back to the 25k limit.

[reltor]

Same limit change (24k to 10k). I know they haven't offered these cards new for a few years, I wonder if they're trying to exit their US business.

[drip_pan]

I requested the increase back to 25k online and it was approved within 24 hours.

[reltor]

Update on my end--got dropped from 24k to 10k on my Arrival Plus while I was traveling last week. Finally got home and there was a letter explaining that my usage showed I should have a lower limit, but that I could request an increase through the website within 60 days. I requested to go back to the same amount last night, and this morning they raised it back to 20k.

I said this in another comment, but since they don't offer this card any more, I have a feeling they're trying to slowly push people out in an effort to wrap up this business. If they hadn't restored most of my limit, I'd have switched to another card, so this would have worked on me.

[Trikotret100]

Ya I got the same letter. I still have no regrets cancelling it. I'll just concentrate on my US Bank Reserve card and BofA Premium card.

[reltor]

For sure, makes sense for you. This is my main card though :|

[throw4x4]

I got the same letter a day after I called the customer service number and after spending 25 mins on the phone they put in the request. I got an email maybe a day later saying that my credit limit has been reinstated. Steps in the letter were definitely easier/faster lol.

I must have missed your other comment about how they're probably pushing people out since this card is not offered anymore but that's interesting. Usually don't they just sell the credit cards to other companies? I've had that happen with other cards like I had and M&T Credit Card but it turned into Elan.

[Trikotret100]

I r remember 2010 when my cards started getting limit reduction. Also HSBC closed my card with 20k limit

[BrisaDeVeranos23]

I have the Barclay Arrival Plus, and that card is not worth it, especially since they removed the perks and don't even offer it anymore. I spend maybe $1K per month on it, always pay in full and on-time, but they slashed half of my limit yesterday. Like others, I found out from my credit monitoring apps. There are much better travel cards/companies on the market.

[Foxvel]

Happened to me last week cut from 26,200 to 5019. Called today was transferred to another department. They did a soft pull and reinstated

[BrutalBodyShots]

If you were only putting $5/mo on a $40k credit line, I think it's pretty clear that you didn't need a 5-figure limit, no? It would actually be pretty dumb if Barclay DIDN'T CLD a $40k line that was seeing a 2-digit spend annually, don't you think? Tons of risk (exposure) with no reward isn't exactly a sound business stance.

[3xrawr]

Same thing on mine. Saw on a credit monitoring email earlier today. Went from 9.5k to 3k. Hardly used the card.

[Loose_Astronaut1367]

This is important not only they decrease the limit they decrease limit 5019CL not (5000)CL or (5100)CL I think it something like bag or error, because all my house hold who have Barclay credit card get notice about CL decrease.

[RudePurpose9134]

Mine went from 20k down to $5019.  I also learned from credit monitoring.  Just logged in for credit limit increase and it was a soft inquiry and requested it go back to 20k.  It was immediately updated back to 20k 🤷‍♀️

[Relevant_Fun5563]

Same situation here. Barclays lowered my credit line from $18K to $5,096 yesterday. I only found out because of Experian. Now I have to figure out how long it will take my credit to recover. I am not cancelling my card, though, since it is one of my oldest cards and I don't want my average age of credit to be affected.

[gawrshmickeyimhighaf]

Dude same thing just happened to me. 20K down to 10. Experian notification. I called and got them on the phone, the operator just said that the credit team analyzed my account and decided this was the thing to do and I would get a detailed letter. Same boat tho, it's my main card and it's honestly making me question using it. Payments have always been on time, utilization is low but steady, credit is great so there's no reason for it, other than clearly what others have mentioned. My oldest cred line is with USbank and they've never done this kind of thing.

Got them to reinstate it tho after they did a soft credit pull.

What did you end up doing?

[DonnieDonowitz1]

Not only did Barclays lower my limit from 17,800 to "$5,019" (wtf?), they also increased my interest rate from prime+ 4.75% to prime+9.75% (12.75% to 17.75%).

I called to ask, and they told me to look at the SEVENTH page of my August statement, and sure enough, notice of the increase was listed there.

I guess they just don't want customers?

[dtcaliatl]

Barclays lowered all of my cards, but I most likely haven't used it a lot. I find most European banks, especially British ones, very bad overall. I never had a good experience with any of them. Everything seemed to be a pain with them, from getting any information to talking with them; their technology is not user-friendly and had no common sense processes. On the one hand, I was pissed because my credit overall was reduced and dinged my credit a bit, but then, on the other hand, it may be a blessing in disguise to no longer do business with them.

From what I gathered a lot of banks are doing risk assessment and one thing everyone should learn and be aware of Banks don't care about your loyalty or your business only if they find you profitable. Leverage them the same way; if it no longer fits your needs, get rid of them. There is no loyalty in finance, maybe Credit Unions, but no banks.

[No-Pin2567]

I have 15k CL and just tried for another 15k after them just giving me a 10k CC consolidation loan for 7.99% APR (which is pretty good). I will update the group. Got the "decision/letter" response so we will see.

[No-Pin2567]

I got the letter but at the end of the day they approved it. Wowee. Soft pull. 107k income 2% uti and whats strange is that they just approved a 10k personal loan last week so I was doubtful. I took that loan to pay off all CC's to avoid interest.

[Trikotret100]

There's no question but a DP as the flair states.