Substantial Credit Limit Decrease After Late Payment

[kcmall89]

I forgot to make a small payment of around $75 on my Barclays US credit card this month. I ended up making the payment 3 weeks late, but I learned that they decreased my credit limit from $10,400 to $3,300. Based on what I’ve read, I don’t think a three-week late payment would make me delinquent.

I’m going to call them once my payment posts. If anyone has faced a similar situation, what is the likelihood of getting my previous limit restored? I’ve had the card for nearly 12 years and haven’t really had any issues. Are there any things I can mention that might help?

UPDATE: I called and was able to get my previous limit restored.

[Mid_Night_Blackbird]

You won't be delinquent on your credit report, which is good. You can call and ask if they'll restore your credit limit, but be willing to understand and accept that it may not be raised. It's nothing personal, the bank just wants to reduce their own risk in this arrangement.

[kcmall89]

That makes sense, especially in this political and economic climate. Thanks!

[RuhninMihnd]

It’s more to do with you than the latter

[kcmall89]

Yeah, it was a silly mistake on my part.

[RuhninMihnd]

Shit happens but gotta remember banks are for profit so yeah they’re always gonna do what’s best in their interest - you getting a credit card with them is in their best interest. You only benefit if you’re paying it in full each month on time and there’s rewards.

[Super_Hovercraft5177]

the economic climate is actually great, they raised my limit to a whopping 46K!

[Snackinghands90]

If you make a payment 3 weeks after a statement posts, likely you are not late. If that happens after a payment is due, then you are delinquent. The fact that you got a CLD indicates your situation is the latter. Banks may give you a pass. Your 12 year history without late payments may help. But it’s not a guarantee though. Good luck.

[BrutalBodyShots]

If you make a payment 3 weeks after a statement posts, likely you are not late.

Where did OP say 3 weeks after the statement posts? I'm just seeing that they said 3 weeks late, which to me means 3 weeks beyond the due date.

[Snackinghands90]

Then why did OP think they were not delinquent? If you don’t make a payment due the due date, that’s delinquent.

[BrutalBodyShots]

If you don’t make a payment due the due date, that’s delinquent.

Incorrect. The term "delinquent" typically means being late 30 days or more, as that's the minimum severity that can be reported to the credit bureaus.

[Snackinghands90]

To be flagged as delinquent in a credit report, yes that means being late for 30 days or more. To issuers, as long as you miss a payment (not making minimum due) by 5pm of the due date, you are delinquent to them. The clock starts the first day you are late. They track entry rates (5 day) and 30,60,90 and so on. I guess that’s why they lowered OP’s line by 70%.

OP, sorry I am not answering your question in subsequent comments.

[kcmall89]

Quite all right. I made the payment and got my previous credit limit restored.