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Will redeeming Barclay's rewards possibly cause AA?

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Divaofsongs
Frequent Contributor

Will redeeming Barclay's rewards possibly cause AA?

I know this may seem like a silly question, but I have read some scenarios about Barclay's having some strange reasons for AA and I want to make sure I am not doing something that may inadvertently prompt it to happen. I have their rewards card and I am about 2 weeks away from my 6th statement cut. I have about $70 in rewards points available and I want to redeem them as a statement credit right now so they will reflect on my 6th statement, the one that is notorious for an auto CLI. I am really looking forward to the auto CLI and plan to use Barclay's as my main card when I get an increase so I don't want to do anything to mess it up. I am wondering if using reqards points before the 6 month auto CLI may affect whether I get the CLI or not. 

 

So my question is.....will using my rewards points right before my 6th statement cuts possibly cause them to look at my account for AA? I am recovering from a BK a year ago and I am just so worried about doing anything to cause them to close my account or give me a CLD or any type of AA. I have Cap One also, but as soon as Barclay's gives me a decent CLI, I will SD the Cap One card and use Barclay's exclusively because I know they can and likely will grow with me, unlike Cap One. 

 

Has anyone ever heard of AA resulting from the use of rewards points to help pay off a balance? My CL is $1500, I have been using approximately $700 a month of my CL and paying multiple payments a month to keep my utilization under 30% at all times. My current balance is $225 and I just made a payment of $400 last week so the use of the rewards points would be in addition to my $400 payment this month. 

 

I have kept a 15-20% balance reporting each month, and I have made 2 BT's since I opened the account, trying to follow the formula I have been reading about to get a good CLI at the 6th statement cut. 

 

Any advice or comments about using the rewards points before the auto CLI?

 

 

Chap 7 BK Discharge Aug 2013 (Initial CL/Current CL): Discover IT ($5.5K/$32.5K) Cap1 QS ($500/$30K) Amazon ($700/$8K) Barclay's MC ($1,300/$10.3K) Upromise ($500/$33K) Lowe's ($900/$13K) Sportsman's Visa ($17K) WF Amex ($13K) AMEX BCE ($10K) AMEX Gold NPSL - FICO's: All 740+
Message 1 of 14
13 REPLIES 13
northface28
Established Contributor

Re: Will redeeming Barclay's rewards possibly cause AA?

CapOne grows, who ever told you that is a liar or doesnt know what they are talking about. I  got a card from them 3 years ago that started at $2K, now its $10k. Sorry if that sounds harsh but the hate/ignorance towards CapOne is out of control.

BK Discharged 9/11

Cap1 Quiksilver Visa Signature $41k| Discover IT $24k| Barclays Uber VISA $16.2k|BOA Cash Rewards $8.4k| BOA BBR $6k|AMEX Cash Magnet $12.8k|AMEX BCP $16.6k|Huntington Voice $5.5k|Citi Double Cash $5.7k| US Bank Cash+ $6.5k
Message 2 of 14
Divaofsongs
Frequent Contributor

Re: Will redeeming Barclay's rewards possibly cause AA?

I don't hate Cap One by any means, I am very grateful to them for being the first bank to approve my auto loan and 2 unsecured cards. I have already received CLI's on my cards with them at 6 months. The first went from $300 to $1600 and the second went from $500 to $2500.

 

I do not doubt that they may give me more another CLI in the future but I have heard and read of people having their cards for a decade without a second CLI. My aunt has credit scores in the high 700's and spotless credit with cards that have limits in excess of $30k but her Cap One card is still at $500, where it began over 10 years ago. She has request a CLI countless times and is always declined. 

 

I have a credit steps card and I was told by three different reps that after the first CLI on the 6th statement, it is probable I may not get another CLI. Two reps told me I may have to close the card and app for a different card altogether if I want a higher CLI. It depends on what card or version of the card you have. The last rep I spoke to told me that both of my cards had a overall limit of $3000 and once I get there, it is not possible to get an increase higher than $3000, which is the card's limit. So, I can only go by what I have read, heard, know first hand, and most importantly, have been told by reps that work for the company regarding my particular card accounts with them. 

 

It is possible that you do not have the credit steps card or if you do, your card may have different overall limits and conditions. Is your card a credit steps card? Most credit steps cards start at $200 - $500 limit and recieve only one CLI at the 6th statement cut, which is automatic. 

Chap 7 BK Discharge Aug 2013 (Initial CL/Current CL): Discover IT ($5.5K/$32.5K) Cap1 QS ($500/$30K) Amazon ($700/$8K) Barclay's MC ($1,300/$10.3K) Upromise ($500/$33K) Lowe's ($900/$13K) Sportsman's Visa ($17K) WF Amex ($13K) AMEX BCE ($10K) AMEX Gold NPSL - FICO's: All 740+
Message 3 of 14
Closingracer99
Valued Contributor

Re: Will redeeming Barclay's rewards possibly cause AA?


@northface28 wrote:

CapOne grows, who ever told you that is a liar or doesnt know what they are talking about. I  got a card from them 3 years ago that started at $2K, now its $10k. Sorry if that sounds harsh but the hate/ignorance towards CapOne is out of control.


LOL and it  is warranted .... You have read the amount of hoops people have gone through to Get CLI's?    My measly $500 CL is quite a joke with my Quick silver card considering I have around $30,000 of credit avaliable to me from 3 Chase cards m Discover, 2 Amex card, 2 Citi Cards, Best buy store card and Amazon store card.  Contacting FB or EO office shouldn't be a requirement to get CLI's 


My Cards: Amex BCE: $9,000, Amex Hilton HHonors: $2,000, Amex ED: $12,000, Barclays NFL extra points: $3,000, Bank of America MLB cash rewards: $17,000, BBVA compass NBA Amex triple double rewards: $17,000, Chase Amazon: $1,000, Chase Freedom: $9,000, Chase Sapphire: $5,000, Chase Slate: $5,000, Chase Disney: $4,000, Citi Double Cash: $5,400, Citi AA plat: $5,500, Citi Simplicity: $3,000, Citi Thank you preferred: $8,800, Capital one GM: $2,000, Capital one PlayStation: $3,000, Gamestop: $1,150, Amazon Store: $5,000, Ebay MasterCard: $5,000, American Eagle Storecard: $750, Macy's: $500
EX: 744, TU:750, EQ: 740
Message 4 of 14
longtimelurker
Epic Contributor

Re: Will redeeming Barclay's rewards possibly cause AA?

But to answer OPs question, I very much doubt that redeeming will impact the auto-CLI chances.  If it is a concern, and you don't need the $70 right now, then delay redeeming.   But my guess is that whether or not the CLI is given depends on usage and payment history rather than if you used any rewards.

 

And the pattern isn't very clear.  I got a 6-month CLI on my Rewards, but not on my Sallie Mae (whereas many others have on the SM).

Message 5 of 14
lonelyisland
Frequent Contributor

Re: Will redeeming Barclay's rewards possibly cause AA?

There are no problems with using barclay rewards as statement credits and getting the CLI. 

When I had my rewards card, I cashed in the rewards all the time as statment credits, and still got my 2X CLI at the 6th statement. 

 

I think the reports of Barclay AA are somewhat inflated, or perhaps based on old policies. My original rewards card, and now My Sallie Mae were both parts of app sprees, and I have never had any problems with Barclay. 

 

CARDS: CAPITAL ONE QUICKSILVER 10K | NORDSTROM STORE CARD 2K
Message 6 of 14
score_building
Senior Contributor

Re: Will redeeming Barclay's rewards possibly cause AA?

With a recent BK reporting, looking for an increase on a new account...considering they're probably reviewing repayment score etc with a fine tooth comb, even though I agree with longtime--generally speaking it shouldn't be an issue--based on OP, perhaps skip posting the rewards credit until you see if they grant the CLI, just to err on the side of caution. At least then there's no room for doubt as to whether or not it had any impact, however unlikely.

DCU EQ 5.0, Citi EQ 08 Bankcard, PenFed EX NG2
EX 08: AFCU, Amex, Chase, PSECU EX 98(?)
TU 08: Barclays, Discover
Message 7 of 14
Kenny
Moderator Emeritus

Re: Will redeeming Barclay's rewards possibly cause AA?

I've redeemed quite often from Barclays and no AA. This sounds like a silly gimmick from someone. 

Message 8 of 14
Dw4250
Valued Contributor

Re: Will redeeming Barclay's rewards possibly cause AA?

Nah seems unlikely....

Rewards are a way for CCC to incentivize you to use their product. It strains credulity to think they would then turn around and burn you (AA) for playing by the rules they set up. If you are MSing that would be different. But simply cashing in your rewards points should not invite any trouble.

If you feel you are being penalized for using reward points, I would pay off the balance, cut the cards and close the account. You wouldn't want to do business with a CCC like that...but I'm 99.99% sure Barclays (and other major card companies) do not ding you for reward point usage.
Message 9 of 14
PlasticOrPlastic
Established Contributor

Re: Will redeeming Barclay's rewards possibly cause AA?


@Closingracer99 wrote:

@northface28 wrote:

CapOne grows, who ever told you that is a liar or doesnt know what they are talking about. I  got a card from them 3 years ago that started at $2K, now its $10k. Sorry if that sounds harsh but the hate/ignorance towards CapOne is out of control.


LOL and it  is warranted .... You have read the amount of hoops people have gone through to Get CLI's?    My measly $500 CL is quite a joke with my Quick silver card considering I have around $30,000 of credit avaliable to me from 3 Chase cards m Discover, 2 Amex card, 2 Citi Cards, Best buy store card and Amazon store card.  Contacting FB or EO office shouldn't be a requirement to get CLI's 


Agreed!  Capital One didn't grow with me after almost 4 years.  I spent almost a month getting a $500 increase on my QS1, I appreciate them for giving me a chance after my BK but as far as growing not a chance.  Barclay and Discover gave me thousands in CLI's after only a few months...I'd never have another Cap1 in my wallet. 

 

Now to the OP, using your rewards for a statement credit most certainly wont cause AA.  Barclays (and most credit card comapanies) like when you earn rewards/CB and throw them right back onto your bill.  I used my Barclay rewards for statement credits and the only thing it ever got me was auto CLI's!  Go ahead and use that 70 bucks and enjoy your upcoming CLI!

Message 10 of 14
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