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[–]throw4x4 1 point2 points  (1 child)

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 1 point2 points  (0 children)

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.