topic Re: Uber Visa Credit Line Reduction in Credit Cards

Uber Visa Credit Line Reduction

Anonymous — Thu, 22 Nov 2018 20:32:31 GMT

Opened Uber Visa account roughly 8 months ago...account was approved with a BK on File. Account is in positive payment standing. Has anyone else had this experience with that Card? This is extremely frustrating and have never..NEVER since opening any new accounts since my BK has this happend. I find this "rollback" and reasoning very odd.

Re: Uber Visa Credit Line Reduction

wasCB14 — Thu, 22 Nov 2018 20:36:51 GMT

Maybe they only barely approved you, and haven't liked subsequent changes to your credit (a few new accounts since Uber, maybe?).

Maybe their appetite for risk is changing if they're worried about general consumer trends.

I assume you use it enough that inactivity isn't a potential factor.

Re: Uber Visa Credit Line Reduction

Gmood1 — Thu, 22 Nov 2018 20:38:10 GMT

Nothing odd about it once you consider who the account holder is.
Sorry about your CLD. It happens quite often with Barclays. You can do a search about it here. You'll get many others that have experienced the same thing.

Re: Uber Visa Credit Line Reduction

AverageJoesCredit — Thu, 22 Nov 2018 20:47:08 GMT

What was your limit? Reduction? Current Fico scores? Thanks

Re: Uber Visa Credit Line Reduction

Anonymous — Thu, 22 Nov 2018 20:47:36 GMT

Good to know. I do have 2 other Barclay's accounts so it's making me kind of nervous now. The aformentioned account is used reguarly for Uber and lyft charges..and made it the primary go-to card for ride sharing services. Could it be uptick in more frequent charges since migrating to that card and usage greatly increased? Im thinking not. It's just a tad puzzling is all...iv'e never had this happen before and the reason for it is kind of dumb. I have had a couple of new accounts open/inquiries. #Odd

Re: Uber Visa Credit Line Reduction

kdm31091 — Thu, 22 Nov 2018 20:48:14 GMT

Unfortunately it's kind of common with Barclay and there are many reasons as to why it could have happened. New accounts, increased utilization, low activity on the account, etc. In general they are risk averse and are quick to CLD/shutdown compared to some other banks.

Sometimes you can get the decision reversed by calling an analyst.

Re: Uber Visa Credit Line Reduction

Anonymous — Thu, 22 Nov 2018 20:54:02 GMT

I think i know which account I will be closing after paying it down

Re: Uber Visa Credit Line Reduction

NRB525 — Fri, 23 Nov 2018 02:15:28 GMT

@AverageJoesCredit wrote:
What was your limit? Reduction? Current Fico scores? Thanks

Bump

Re: Uber Visa Credit Line Reduction

Anonymous — Fri, 23 Nov 2018 04:45:16 GMT

@Anonymous wrote:
I think i know which account I will be closing after paying it down

That's a common reaction but not always the best. If you have found the card useful, and the remaining CL is OK, it may be worth continuing to use. Just as we don't pile all of our spend on a card just because we get a CLI, no need to do the reverse.

Re: Uber Visa Credit Line Reduction

wasCB14 — Fri, 23 Nov 2018 04:57:50 GMT

@Anonymous wrote:
@Anonymous wrote:
I think i know which account I will be closing after paying it down
That's a common reaction but not always the best. If you have found the card useful, and the remaining CL is OK, it may be worth continuing to use. Just as we don't pile all of our spend on a card just because we get a CLI, no need to do the reverse.

It may be more satisfying to keep the account open and, by only using the card for bonus categories and paying in full, make them continue to lose money on you.

Of course, many of us do that already, even with lenders we're happy with.

Re: Uber Visa Credit Line Reduction

Anonymous — Fri, 23 Nov 2018 05:11:20 GMT

Maybe because the CL available (the one before they reduced it) was too much when comparing to the average spending on the card. As you have a BK on file, if they can reduce their risks by reducing your credit line to minimize their potential loss in the future, they will. Economically speaking, it makes sense but I get it, it’s not good because your utilization will go up but if you think like a bank, it makes sense.

Also, I’d keep the card. Canceling it right now will reduce even more your overal credit line and bring your utilization up. Coming back from a BK, closing accounts is not something that you wanna do. You should be thankful that they are giving you a credit line so don’t get upset at them for trying to minimize their risk.

Re: Uber Visa Credit Line Reduction

staticvoidmain — Fri, 23 Nov 2018 06:41:54 GMT

@Anonymous wrote:
I think i know which account I will be closing after paying it down

I do understand this. If this happens to me as well, I'd close it. I know, FICO logic tells us not to (already three advices above against it), but I would not want to deal with them anymore. I'd cut my losses (as my lowest CL, not that much, which I even had to fight for to begin with), and be happier not having to think about it, really.

Re: Uber Visa Credit Line Reduction

UpperNwGuy — Fri, 23 Nov 2018 06:58:38 GMT

Don’t close it.

Re: Uber Visa Credit Line Reduction

AverageJoesCredit — Fri, 23 Nov 2018 12:04:32 GMT

Op, do you mind sharing your stats? Fico scores at present? Initial credit line and the reduced version? What kind of balance were you carrying ? Thanks. These can help others in similar situation.

Re: Uber Visa Credit Line Reduction

kdm31091 — Fri, 23 Nov 2018 12:54:31 GMT

All that closing it will do is hurt you (in the short term) and Barclay won't care. People think they are "getting back at" the banks by closing the account after some form of AA, but the reality is the bank doesn't care. So it's best to put emotion aside.

Is the card useful to you? Ostensibly you obtained it for the benefits. If the benefits are useful, don't close it out of anger. Just let things cool down. You can still use the card and enjoy the benefits.

Re: Uber Visa Credit Line Reduction

RonM21 — Fri, 23 Nov 2018 19:45:19 GMT

OP, I'm sorry this happened to you, and as mentioned earlier in the thread, Barclays tends to be more known for this. One of the common reasons is using one of their balance transfer options, but that doesn't sound like the case here.

I first starting using credit cards in 2013 and they were one of the first two cards I got. About 7 months later I took a balance transfer offer from them and they AA'd me after paying it off within 3 months. This is the only time I've ever experienced an AA. But I can tell you eventually they did raise my limit again. So, it is not always a bad ending.

As others have stated, for now, I'd keep it open and let things shake out. Then, revisit and see where it stands.

Re: Uber Visa Credit Line Reduction

pipeguy — Fri, 23 Nov 2018 22:36:10 GMT

@staticvoidmain wrote:
@Anonymous wrote:
I think i know which account I will be closing after paying it down
I do understand this. If this happens to me as well, I'd close it. I know, FICO logic tells us not to (already three advices above against it), but I would not want to deal with them anymore. I'd cut my losses (as my lowest CL, not that much, which I even had to fight for to begin with), and be happier not having to think about it, really.

When Barclay's reduced my credit limits on two "perfect history" cards earlier this year ($15k RING and $11k Cash Rewards) I closed the accounts. Recently Citi-backed Home Depot reduced my credit limit from $25k to $5001 for non-use (strange number) I closed the account (my DW has a $25k HD account too). I refuse to do business with lenders that see me as a "special case for concern".

I currently have too much revolving credit but this is not a new or recent issue ($400k +/-) and too many cards so its no big deal for me to close cards I don't need. I'm retired as of March 1, 2019, and moving to a place where there is much less traffic and it doesn't snow and I'm planning on closing all but maybe 6-8 cards (currently have 24) so again it's not really an issue. While I understand that this paragraph has little to do with the OP's situation or credit history, it's more to say it is YOU that should "manage" your card portfolio and be in control, not begging for acceptance from lenders.

I understand that coming off a BK or rebuilding requires a bit of humble pie in getting accepted for the accounts you want or find useful, I'm just not interested in constantly watching my six for a credit card account that has proactively reacted negatively when I've given them no reason for concern - Barclays and Comenity are on MY blacklist and are not getting off it.

Re: Uber Visa Credit Line Reduction

HeavenOhio — Fri, 23 Nov 2018 20:51:15 GMT

@Anonymous wrote:
I think i know which account I will be closing after paying it down

Not paying down the account may be the problem. Combine that with a bankruptcy, and the computers in charge will see increased risk.

Re: Uber Visa Credit Line Reduction

kdm31091 — Fri, 23 Nov 2018 21:01:20 GMT

We all like a utilization buffer but from the banks POV it makes total sense to reduce limits on cards we aren’t actively using. Yes it sucks but business wise it makes total sense.

Luckily there’s many lenders out there for everyone to choose from.

Re: Uber Visa Credit Line Reduction

DaveInAZ — Fri, 23 Nov 2018 22:00:13 GMT

Everytime I see one of these Baraclays CLD posts I head off to Barclays and check - nope, everything still fine there.

I know Barclays is well known for their CLD actions - credit limit decrease, credit limit decrease balance chasing (lowering CL as you pay down the balance), and other nefarious actions. And we know the more common reasons - opening too many new accounts after approval, and inactivity.

But I have to say Barclays has been stellar for me. I accepted a mailer pre-approval for Rewards MC in April 2012, my 2nd CC after the Jan. 2011 discharge of my BK7, CL was $3k. My 2nd Barclays card was an NFL card in March 2015, CL of $5k, so $8k combined. Today my CL between Rewards MC & Uber is double that, $16,200, all auto CLIs except for a $2500 SL for Cash Forward. And I've done 3 PCs, "PC" the Barclays way - app & get approved for the new card you want and then call and move the CL from the old card you no longer want to the new one and close the old one.

I got he NFL card solely for the SUB and 15 month 0% BT, I used the BT to payoff a Prosper loan, saving hundreds in interest. Once the BT was paid off I app'd & was approved for Cash Forward and called & moved the CL from NFL to it & closed NFL. Cash Forward really is a lousy CC, only 1.5% rewards and a ridiculous $50 minimum to redeem rewards. So this spring I app'd for Uber. I got the "we need more time" message so I quickly called in to their excellent Credit Analyst team. The rep approved Uber, but only if I closed Cash Forward and moved the CL to Uber. Fine, that's exactly what I wanted, and I got the SUB for Uber, as I did for Cash Forward.

My Rewards MC, 6 1/2 years old, is almost a daily driver as it's a 2% rewards card for me. It gives 2% for gas, groceries & utilities so I use it to pay my electric bill and since Barclays is very "loose" on grocery coding it gives me 2% at my local Family Dollar & Walmart. Uber just gets the 4% dining. I tried it for 2% on PayPal but that's hit or miss and I have the PayPal 2% Cashback MC (and PP Credit for $99+ purchases), so why risk a miss?

Sorry for those who get hit with Barclays CLD, but they've been great for me. Maybe it's the luck of (my 50%) Irish?