I have been reading much information on this board regarding Barclay's tendency to keep a close eye on new approvals to make sure they aren't in the midst of a swipe-n-run credit grab. Today, I decided to call Barclay and see if I could unravel the mystery that is the CLD/closed account after the initial approval...
I spoke to two different backdoor reps to get some clarification. I outlined the fact that many friends I know are nervous about being approved for one of Barclay's cards because they have been known to be closed or dramatically reduced in limit due to varying numbers of inquiries shortly after being approved. Both of them were very kind and explained as follows (keep in mind this is limited feedback, but that the following points were verified independently by separate reps, so take FWIW):
1. An inquiry in and of itself after approval will not get you closed or CLD. A rash of inquiries WILL. I could not squeeze specific numbers out of them, but both basically said what is tantamount to "You know it when you see it". In other words, if Barclay is the 5th of a string of 10 within a very short period of time, you can expect that account to be impacted.
2. Post-approval inquiries combined with substantial initial Barclay card usage can often cause accounts to be closed. This is consistent with most of what I have read here, as many who register complaints about CLDs or closure based on a few additional inquiries typically also report substantial initial usage ($500 or above) as well. So if you're thinking of going on a mini app spree, be careful about how much you put on the Barclay card right away.
3. Util during the probie period is a big deal for Barclay. If they see util creeping up (especially theirs) and notice additional apps, they consider that a red flag for someone to extend themselves. They reduce CL or close the account altogether to minimize risk.
Botom-line here: This is a relatively easy card for many to obtain, but their RM is simultaneously stringent. I do not believe that the stray application after being approved will trigger closing accounts. That would be terrible decision-making from a business perspective, as they would be losing business from what are generally credit-worthy customers with track records of paying their debts. I do believe that red-flag behavior (such as furious applications for credit or multiple apps while util is high and/or climbing) or combinations of factors (like heavy initial usage COMBINED WITH apps after the approval) are what trigger these CLDs and closures.
I should also add that both reps were very bothered to hear that some new cardholders were nervous about having and using the cards, then having them impacted in a negative way or closed. I do not believe they want to have the reputation of a company that chops accounts (just ask Sprint what this does to business apropos their "firing" several hunred long-time customers a couple of years ago..they have never really recovered from the ensuing PR nightmare) of qualified cardholders. I think they are just spooked after what happened in 2008-2009 and want to guard their bases as best they can. That was my impression, anyway.
Again, just one man's assessment based on two lengthy conversations with 2 different backdoor reps. As is always the case, YMMV and each to his own experiences 
Good info thanks.
Recently got a Barclays US Air card after falling for a flight attendent's pitch on a flight, lots of benefits actually, that more than cover the annual fee of $89.
One was 1 airline mile for every $ of transfered balance to the card (0%) in the first 30 days (up to $10,000).
I was approved for $8800 on the card and moved $8000 over from a Citi card that had a 14% interest rate.
They pulled Transunion. So far no problems, I haven't been apping much the past few months (8 on TU during past 2 years) and my overall utility is under 25%.
But due to rumors about them, I was interested to see how they would treat me. We'll see, but the first 6 weeks have been OK, and they gave me the miles promised promptly.
Good info and I actually didn't share my Barclays experience but will now...
Last month I was approved for $10k by calling backdoor, because I was initially declined for too many INQ. I read all the posts here and elsewhere about how excessive Barclays is with respect to new accts and INQ, so I cancelled before the card was ever issued. A supervisor called me and said I should be fine but I just didn't want to deal with the headache of having a TL opened and closed within a month or two. I opened four accounts last month so figured I was prime for a closure/CLD. They don't offer anything I can't get elsewhere so rather than deal with that, I just decided to close.
@Anonymous wrote:
@CreditCrusader wrote:
@Anonymous wrote:Hmmm this is pretty interesting...I just opened a Barclaycard account at the end of a mini app spree after reconsideration...I was planning on putting a new macbook on my new card, maybe i should think again...
To be honest with you, I don't think it's the initial purchase itself that presents a problem. It's that purchase combined with multiple apps AFTER approval that would seem to make Barclay's nervous.
And that's understandable since it would logically signal someone eager to run up massive debt in a short time. However, I really can't see a stand-alone purchase being an issue.
Well I'm in garden mode now that I have this new Barclays. I didn't think I had a chance for approval because of all of my inq's to begin with and relatively low scores, but they approved after i called backdoor. It a small limit compared with most people's cards, but the $1500 TL that they gave me is my largest to date, so I really can't afford to lose such a significant TL, plus this card is the closest thing I will have to a prime card, so it seems I may have to work to keep it.
Would you reccomend me calling them and asking what THEY think I should do? They seem like reasonable people over the phone, and an upside is that theyre based in the US
I really don't think that contacting them preemptively would be necessary at this juncture unless you have a slew of inquiries set to hit your report and you want to explain to them in advance. Putting the brakes on any new apps for several consecutive months (I have frozen all three bureaus from pulls) and perhaps setting up automatic payments (they have two options...min bal and PIF, both on due date listed on statement) would be a good will gesture to them that you're serious about managing this card responsibly.
Of course, every person's approach is not similar, but this is the one I have chosen. I figure that no apps + PIF via autopay for 6 months will put them at ease and put me in line for a sweet CLI once all that gardening reaps a pretty harvest!
@CreditCrusader wrote:
@Anonymous wrote:
@CreditCrusader wrote:
@Anonymous wrote:Hmmm this is pretty interesting...I just opened a Barclaycard account at the end of a mini app spree after reconsideration...I was planning on putting a new macbook on my new card, maybe i should think again...
To be honest with you, I don't think it's the initial purchase itself that presents a problem. It's that purchase combined with multiple apps AFTER approval that would seem to make Barclay's nervous.
And that's understandable since it would logically signal someone eager to run up massive debt in a short time. However, I really can't see a stand-alone purchase being an issue.
Well I'm in garden mode now that I have this new Barclays. I didn't think I had a chance for approval because of all of my inq's to begin with and relatively low scores, but they approved after i called backdoor. It a small limit compared with most people's cards, but the $1500 TL that they gave me is my largest to date, so I really can't afford to lose such a significant TL, plus this card is the closest thing I will have to a prime card, so it seems I may have to work to keep it.
Would you reccomend me calling them and asking what THEY think I should do? They seem like reasonable people over the phone, and an upside is that theyre based in the US
I really don't think that contacting them preemptively would be necessary at this juncture unless you have a slew of inquiries set to hit your report and you want to explain to them in advance. Putting the brakes on any new apps for several consecutive months (I have frozen all three bureaus from pulls) and perhaps setting up automatic payments (they have two options...min bal and PIF, both on due date listed on statement) would be a good will gesture to them that you're serious about managing this card responsibly.
Of course, every person's approach is similar, but this is the one I have chosen. I figure that no apps + PIF via autopay for 6 months will put them at ease and put me in line for a sweet CLI once all that gardening reaps a pretty harvest!
Well I think that most of my inq's have already hit over the last week or so, save for maybe 1, Once I get the card, I will set up autopay on it, and over the next 3-4 months, I'm going to work on zeroing all of my balances out and trying to keep a 10-15% uti on the new barclaycard. I have no further plans for apping in the near future until I can close some of my less favorable cards for more prime cards (cough cough, first premier)
@CreditCrusader wrote:Had they already reported your line to the bureaus? Mine was reported the day after I was approved and well before the card arrived.
After I closed, I faxed a letter to the credit bureau disputes team and requested that the account not get reported. A credit bureau rep called me and I told them I didn't yet agree to the terms by signing the card, nor have I activated it and received it, etc. After some haggling, she confirmed it would not get reported.