A message for Barclaycard

[Dalmus]

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@12njoy wrote:

So this is my second go around with Barclaycard.  The first go around ended in me closing my accounts and I'm headed there again.  They have served their purpose once again in the tune of $200 cash back and 40,000 American Airline miles which complimented my Citi AA card nicely.  They CLD's two of my three accounts and I know the CashForward (5k) is next so I took the preemptive move and sent them a secure message basically stating that if they want to reduce the CashForward (which is within their right) to close all three accounts.  I currently have the CashForward (5k), Aviator (now at $500) and the Barclay Rewards (now at $500).  I refuse to pay an AF for a $500 card.  I have a $700 balance on the CashForward so I suspect they'll reduce the limit to approximately 1k at which time I'll pay the balance off and close all 3 accounts.  I've more than made up for the loss of $8,500 from Barclaycard with the addition of BB&T (6.5k), Citi Simplicity (4.9k), Macy's Amex (1k) and two $2,500 cli's from FNBO.  No love loss from either party at this point.  Let me reiterate that they have every right to close and/or reduce my lines if they so choose to do so.  This credit game is truly a give and take scenario.

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 Did anything in particular trigger the CLD?  Too many new accounts, or not enough usage?  I'm just curious.  Like you said, its their balance sheet, so they can manage it how they see fit.   I haven't been hit by them yet (knock on wood), but it wouldn't particularly bother me because I only use them for balance transfers lately.  In fact, one will be paid off in February... I've been curious to see if they CLD me when its done, or if they leave me alone and offer me another 12 month 0% offer after I let it sit idle for a few months.

[MrDisco99]

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@K-in-Boston wrote:

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@Anonymous wrote:

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@gdale6 wrote:

In all reality Fico needs adjustments to be made, to treat a 200 balance on a 500 CL card the same way as a 20000 balance on a 50K card is ridiculous.

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Well FICO doesn't know your income so they could be equal.  I don't think a single card utilization should factor in though.  If you have 200k of total CLI and you have a 900 balance on a 1000 dollar limit card and no other debt. How  is that different than having same total CLI and having a 900 balance on a 25k limit card.

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Good points.  Store cards can be a perfect example of that.  You go to buy some furniture for $3800, the store has a partnership with Synchrony or Comenity, they approve you for $4000, you get the furniture and the 0% payment plan, right? But then you have a maxed out "card" with 95% util that won't even get under 90% for a while since you've got 60 months of 0% APR promotional financing. You're not using it irresponsibly, so you really shouldn't be punished.  Okay, rant over.

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This is why I'm glad I already had a CashForward card with a fulfilled signup bonus when I applied for my Apple card.  I was able to move some credit from the CF to the Apple card for padding since they only gave me $3K to cover a $2700 purchase.  Giving myself a CLI to $4K puts my util on this card close to 70%, which isn't great, but it's better than 90%.

[Anonymous]

I got a called from Barclay regarding my Rewards Card 3 days ago.  They told me the reason why they called was because they see my Util ratio kinda high this month overall on all my CC debt on from Credit Report, not only my Rewards card (65% Util of $2500). It is true tho, I told them its because of this holiday season, I think its kinda normal, I bet you will see a lot of your card holders will be in the same situation like myself for the month of November and December. He was asking about my income and when Im planning to pay this balance down and how much I will pay. 

Few mins later, he said ok I will restore your credit limit and can use immediately! Wierd bank!

[longtimelurker]

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@gdale6 wrote:

In all reality Fico needs adjustments to be made, to treat a 200 balance on a 500 CL card the same way as a 20000 balance on a 50K card is ridiculous.

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I guess from the viewpoint of FICO and their customers, the question is whether the two situations are equally predictive.  If they are, no need to change!

And of course you would need to decide a threshold.   Is $200 on a $500CL card same or different as $2000 on a $5K card etc...

[NRB525]

OP, it sounds like you got some nice rewards for your time with Barclay.

Well played

[Anonymous]

So they saw your realization as an odd number so they reduce limits to make nice even figures. God complex and ocd, noice. No-ice as in a bad Brit accent.

[wasCB14]

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@longtimelurker wrote:

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@gdale6 wrote:

In all reality Fico needs adjustments to be made, to treat a 200 balance on a 500 CL card the same way as a 20000 balance on a 50K card is ridiculous.

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I guess from the viewpoint of FICO and their customers, the question is whether the two situations are equally predictive.  If they are, no need to change!

And of course you would need to decide a threshold.   Is $200 on a $500CL card same or different as $2000 on a $5K card etc...

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Most/all banks consider income, and Amex (maybe others) liquid assets. Without that context, how would a scoring system know whether a $2k balance is a concern for that customer or not? Maybe it's better to keep it simple and let banks evaluate the balance in the context of other information.

[12njoy]

Thanks NRB525. This time around I'm on top with Barclays, not so much that first merrygoround