Barclay SM CLD

[Bman70]

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@Anonymous wrote:

I got a letter in the mail yesterday from Barclay saying that the CL on my Sallie Mae had been reduced from $6400 to $3550.  The reason in the letter are Derrogatory Public Record or Collection and Age of Accounts.  I haven't had anything negative in my CRs in over two years, but I'll 100% agree with age of accounts.  I'm sure that was just a roundabout way of saying too many new accounts.  

My scores today are EQ 704, TU 708 (which dropped 8 points with the CLD), and EX 692.  Overall Util is ~8%.  

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Does that mean every negative dropped off over two years ago? Or that two years was the last time a negative item occurred? It's unlikely they would say that, if there's no negative at all. In fact I would call and ask to get the credit line reinstated if there really aren't any lates / collections etc. still reporting. 

[Man-Of-Steel]

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@SouthJamaica wrote:

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@Man-Of-Steel wrote:

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@Anonymous wrote:

I got a letter in the mail yesterday from Barclay saying that the CL on my Sallie Mae had been reduced from $6400 to $3550.  The reason in the letter are Derrogatory Public Record or Collection and Age of Accounts.  I haven't had anything negative in my CRs in over two years, but I'll 100% agree with age of accounts.  I'm sure that was just a roundabout way of saying too many new accounts.  

My scores today are EQ 704, TU 708 (which dropped 8 points with the CLD), and EX 692.  Overall Util is ~8%.  

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Sorry to hear about the CLD.  Do you mind sharing the number of new accounts you added in the last 6 months and last 12 months?  I'm guessing that you may be currently carrying a balance on your Sallie Mae account.

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May-Of-Steel, I infer from your comment that OP's carrying a balance was a factor in triggering the adverse action.

Can you elaborate on that? I would have thought that they like people to carry a balance.

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It has been reported that Barclays can get nervous when you carry a balance with them.  Especially if they suspect that you may be involved in what they consider to be aggressive credit seeking.  Outside of a dormant card that has received a CLD, I can't say that I've heard of someone receiving a CLD on an account when they weren't carrying a balance.

[Anonymous]

Barclays CLD away 14k when they were paid. Lowes was 85%.

[Anonymous]

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@Man-Of-Steel wrote:

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@SouthJamaica wrote:

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@Man-Of-Steel wrote:

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@Anonymous wrote:

I got a letter in the mail yesterday from Barclay saying that the CL on my Sallie Mae had been reduced from $6400 to $3550.  The reason in the letter are Derrogatory Public Record or Collection and Age of Accounts.  I haven't had anything negative in my CRs in over two years, but I'll 100% agree with age of accounts.  I'm sure that was just a roundabout way of saying too many new accounts.  

My scores today are EQ 704, TU 708 (which dropped 8 points with the CLD), and EX 692.  Overall Util is ~8%.  

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Sorry to hear about the CLD.  Do you mind sharing the number of new accounts you added in the last 6 months and last 12 months?  I'm guessing that you may be currently carrying a balance on your Sallie Mae account.

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May-Of-Steel, I infer from your comment that OP's carrying a balance was a factor in triggering the adverse action.

Can you elaborate on that? I would have thought that they like people to carry a balance.

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It has been reported that Barclays can get nervous when you carry a balance with them.  Especially if they suspect that you may be involved in what they consider to be aggressive credit seeking.  Outside of a dormant card that has received a CLD, I can't say that I've heard of someone receiving a CLD on an account when they weren't carrying a balance.

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I have had the opposite. I use both Ring and Apple and carry balances on both. I have a zero purchase on Apple. Imho the trigger was doing something very different with your account that was picked up by the computer, that is using the checks frequently when you had not before. That was different behavior that made them look at your account, I am guessing. 

[Ghoshida]

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@Anonymous wrote:

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@Man-Of-Steel wrote:

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@SouthJamaica wrote:

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@Man-Of-Steel wrote:

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@Anonymous wrote:

I got a letter in the mail yesterday from Barclay saying that the CL on my Sallie Mae had been reduced from $6400 to $3550.  The reason in the letter are Derrogatory Public Record or Collection and Age of Accounts.  I haven't had anything negative in my CRs in over two years, but I'll 100% agree with age of accounts.  I'm sure that was just a roundabout way of saying too many new accounts.  

My scores today are EQ 704, TU 708 (which dropped 8 points with the CLD), and EX 692.  Overall Util is ~8%.  

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Sorry to hear about the CLD.  Do you mind sharing the number of new accounts you added in the last 6 months and last 12 months?  I'm guessing that you may be currently carrying a balance on your Sallie Mae account.

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May-Of-Steel, I infer from your comment that OP's carrying a balance was a factor in triggering the adverse action.

Can you elaborate on that? I would have thought that they like people to carry a balance.

---

It has been reported that Barclays can get nervous when you carry a balance with them.  Especially if they suspect that you may be involved in what they consider to be aggressive credit seeking.  Outside of a dormant card that has received a CLD, I can't say that I've heard of someone receiving a CLD on an account when they weren't carrying a balance.

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I have had the opposite. I use both Ring and Apple and carry balances on both. I have a zero purchase on Apple. Imho the trigger was doing something very different with your account that was picked up by the computer, that is using the checks frequently when you had not before. That was different behavior that made them look at your account, I am guessing. 

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It's a bad idea generalizing any type of action for any lender.

When I first got my Barclay's SMMC, I quickly built up a balance and for about 6-7 months, carried close to 80-90% of my $3k CL. It was at 0% promo APR. I was carrying balance on my 0% AMEX ($1k CL) and 0% US Bank ($1k CL) as well, and also the Chase Freedom ($2k CL). Barclays didn't bat an eyelid, and the moment I got hold of some big funds and paid off the recurring debt on the SMMC (as well as the AMEX, the Freedom, the US Bank, the Discover It etc.) Barclays just doubled my CL to $6k. 

That doesn't mean people haven't faced AA for carrying a balance either.

Typically it's not just one thing that results in an AA. It's not just whether or not you carry a balance. It's how much balance you carry, whether you're actively seeking credit elsewhere, whether you're carrying high balances everywhere, what percentage of your income forms that balance, whether or not you recently missed payments, etc. altogether determines whether you're going to be able to pay back the debt or not. 

A customer needs to check out a lot of boxes before a bank takes an adverse action. However, there are exceptions to that rule too. Some banks may be vulnerable themselves (e.g. the Duck card) and they may take AA not because the customer's a bad one but because the bank's in trouble otherwise. That said, it's very unlikely that a regular joe (or jill) engaging in typical purchasing behaviour with a guaranteed paying back history will face AA. 

[Imperfectfuture]

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@Anonymous wrote:

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@Man-Of-Steel wrote:

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@Anonymous wrote:

I got a letter in the mail yesterday from Barclay saying that the CL on my Sallie Mae had been reduced from $6400 to $3550.  The reason in the letter are Derrogatory Public Record or Collection and Age of Accounts.  I haven't had anything negative in my CRs in over two years, but I'll 100% agree with age of accounts.  I'm sure that was just a roundabout way of saying too many new accounts.  

My scores today are EQ 704, TU 708 (which dropped 8 points with the CLD), and EX 692.  Overall Util is ~8%.  

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Sorry to hear about the CLD.  Do you mind sharing the number of new accounts you added in the last 6 months and last 12 months?  I'm guessing that you may be currently carrying a balance on your Sallie Mae account.

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I've added 4 accounts in the last 6 months and 9 total for the last year.  I never carried a balance with Barclay until recently.  I used one of the 0% checks they send pretty much every week.  Crazy me thought they'd actually like me to use one.  The balance today is ~$900.  

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This has been mentioned in their ring blog.  If long term no use, then sudden use, it prompts the computer to do an assessment.  I tended to keep scores above 740 for barclays.  I also use the cards, with very little down time (trimming will begin in bit, arrival first).  I have had no problems, and did a balance transfer with SM.  They have since sent three sets of checks, but I like to keep the transfers under 20%.  On the other hand, I abuse my citi DP fairly regularly, want a cli on that card, and Chase ink.

[Imperfectfuture]

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@Ghoshida wrote:

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@Anonymous wrote:

I got a letter in the mail yesterday from Barclay saying that the CL on my Sallie Mae had been reduced from $6400 to $3550.  The reason in the letter are Derrogatory Public Record or Collection and Age of Accounts.  I haven't had anything negative in my CRs in over two years, but I'll 100% agree with age of accounts.  I'm sure that was just a roundabout way of saying too many new accounts.  

My scores today are EQ 704, TU 708 (which dropped 8 points with the CLD), and EX 692.  Overall Util is ~8%.  

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I'm assuming you're monitoring your credit reports every month or so.

If you're not, you might want to make sure that no surprise negatives have cropped up. It can be an error on the CRA's part, like tacking on a negative from a person with a name similar to yours but who's not you. 

If nothing like that shows up, give Barclay a call to make sure they saw your profile only. The part in bold is the more critical reason. They wouldn't add it if it was simply too many new accounts. They'd have said it's too many new accounts. They're known to be pretty blunt that way.

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Like this answer as well.  

[Anonymous]

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@Ghoshida wrote:

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@Anonymous wrote:

I got a letter in the mail yesterday from Barclay saying that the CL on my Sallie Mae had been reduced from $6400 to $3550.  The reason in the letter are Derrogatory Public Record or Collection and Age of Accounts.  I haven't had anything negative in my CRs in over two years, but I'll 100% agree with age of accounts.  I'm sure that was just a roundabout way of saying too many new accounts.  

My scores today are EQ 704, TU 708 (which dropped 8 points with the CLD), and EX 692.  Overall Util is ~8%.  

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I'm assuming you're monitoring your credit reports every month or so.

If you're not, you might want to make sure that no surprise negatives have cropped up. It can be an error on the CRA's part, like tacking on a negative from a person with a name similar to yours but who's not you. 

If nothing like that shows up, give Barclay a call to make sure they saw your profile only. The part in bold is the more critical reason. They wouldn't add it if it was simply too many new accounts. They'd have said it's too many new accounts. They're known to be pretty blunt that way.

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Ghoshida, yes I do monitor my credit reports.  I subsribe here and get alerts.  I also get scores from Discover, Barclay, Walmart, Amex, etc. every month.   I went through the reports right after the letter, because bad info had been reported to EQ about this time last year, but the lender corrected it quickly.   

That being said, to adress something someone else said, I do have one collection still showing on all CRAs.  It won't fall off until this time next year.  Same deal with some lates for student loans.  But none of this is new info to me or to Barclay.  They approved me AND gave me a soft pull CLI with worse stuff than that showing.  

I'm honestly not complaining.  I'm just providing a few data points. 

[baller4life]

Have you talked to Barclays Portfolio Credit dept. to try and have the limit reinstated? Sometimes just a simple explanation of whatever are their issues will fix it. Number in backdoor numbers thread.

[Ghoshida]

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@baller4life wrote:
Have you talked to Barclays Portfolio Credit dept. to try and have the limit reinstated? Sometimes just a simple explanation of whatever are their issues will fix it. Number in backdoor numbers thread.

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Agree to this.

Anyway, OP, since you've checked the CRs and know that nothing new came up, you may be right and Barclay may have been okay with the old baddies but probably the new accounts broke their back.

Also you seem content with the current limit given that the SMMC doesn't probably get more than $1k spend a month anyway. 

So it's your call given some time will be spent going through Barclay's backdoor to get it reinstated. Whatever you decide, good luck!