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Credit Line Decrease - Just Venting

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socal2013
New Member

Credit Line Decrease - Just Venting

Had a Golfsmith/Synchrony credit line of $4200 ($0 balance) for over 8 years. Golfsmith goes out of business and closes my account, thus affecting my available credit %. In turn, when Barclays finds out, they say that my credit usage % is too high and they reduce my credit line by $1700, again hurting my credit score. I've had this Barclays card for over 11 years and NEVER had a single late payment. In fact, I havent had a single late payment on anything in over 17 years. I called Barclays to complain. Then they had a "manager" call me to discuss. They told me that they could not put my credit line back to where it was. I told them that I am really upset that they would treat an 11-plus year customer with perfect repayment history like this.... they didn't seem to care. When I told them that I will never use their card again and that my parents (whom I handle their finances) will never again use their Barclay's card either..... they still didn't care, said that there is nothing they can do...... over a $1700 credit line..... so my credit lines/ available credit has been reduced $5, 900 in the last couple of weeks.... crazy

Message 1 of 10
9 REPLIES 9
Anonymous
Not applicable

Re: Credit Line Decrease - Just Venting

I personally won't touch store cards, with retail tanking and a lot of future bankruptcies ahead, it's just too risky.

 

If you have a store card that you rely on to keep utilization low overall, monitor those chains and if there's a hint of bankruptcy or an announcement, get a new TL with someone else.

 

Relying on a store card for the majority of your overall available credit is risky.  The retail environment is horrible and may only get worse, so expect more TL closures ahead.

Message 2 of 10
grillandwinemaster
Valued Contributor

Re: Credit Line Decrease - Just Venting

Sorry this is happening to you OP.

 

Unfortunately, there's quite a few threads going on where lenders are reducing credit Lines.  Even previously reputed lenders  to Be "Rock Solid" such as Cap1 are reducing credit Lines.  

 

Perhaps they, ( the creditors) are bracing themselves for an upcoming credit crunch?? Just a thought...

 

Again, I'm sorry this is happening to you. Perhaps all of us would do well to get all of our finances/credit reports in order to brace whatever may or may not come to fruition. 


Current Scores 3/2016 Equifax 676 Transunion 697 Experian 648 Goal Scores: 720's accross the board. Gardening Goal: 3/2017
Message 3 of 10
Anonymous
Not applicable

Re: Credit Line Decrease - Just Venting

Sorry to hear about your problems. Since "Golfsmith" went out of business there wasn't much Synchrony could do. As for Barclays, that's another story. I have only had one card with Barclays, the "Rewards" Mastercard. I could never get a CLI nor would they open a new card for me (wanted Jet Blue). I noticed from reading this and other boards that Barclays is unpredictable. For some they give cards and CLI easily, for others with excellent credit (I'm not there yet) they will not do anything. My personal opinion is to get in with someone else (Chase, Citi, BoA, CapitalOne, AMEX, Discover or a local bank or CU) and forget Barclays. They decreased my CL from $1k to $650, no missed or late payments with them or anyone. I have a small balance now, and am paying it off this month. I will ask for a CLI next month and if they refuse I'll probably close it as I only use it now to pad, but a loss of $650 will not hurt that much. I used it as my main driver in the past and nothing so if no CLI I'll close it so they don't and beat them to it 

Message 4 of 10
pizza1
Community Leader
Super Contributor

Re: Credit Line Decrease - Just Venting

Sorry OP this happened. Barclays keeps very close tabs on folks..they personally SP me twice in 3 weeks already. But they always so that to me...lol.

This is just a reminder to everyone that a lender, at any given time can/will take AA/CLD.

This is why I keep a util reporting of 1-2% only at all times, in case I personally were to have AA taken on me, it wouldnt faze me /my reports one bit, and won't drop my score, or increase overall util.

Probably a good reminder to everyone that (if they can), to keep an overall low utilization, and get balances paid down, and to not overspend unless needed. I understand things arise like medical, dental, pet, home repairs that need it etc...
Message 5 of 10
Skymogul
New Contributor

Re: Credit Line Decrease - Just Venting

TL;DR - It's not you personally; credit markets are starting to tighten up.

 

IMO, macro forces at work with the resurgence of CLDs:

 

  • Brexit is officially underway, which has negatively impacted both the pound and the euro, especially causing reserve requirement problems for European G-SIBs (Global Systemically Important Banks) like Barclay's. Not to mention Deutche-induced skittishness. Other G-SIBs like Citi and Chase will have to tighten up too.
  • In the US, prime is headed upward as the Fed has two more rate increases on the table for the year yet. As prime increases, minimum payments will increase, and so will default risks. Banks will take this out on sub-720s more than anyone else.
  • Even US D-SIBs (Domestic Systemically Important Banks) like Cap 1 will be looking at the prime increasing, its impact on their ability to pass Dodd-Frank stress tests and tightening their exposure accordingly.
  • The US economy has had a LONG mid-cycle run. Signs of late cycle are getting stronger, which will also induce banks to tighten up ahead of a (could be years, but closer than not) recessionary phase.

 

Message 6 of 10
Anonymous
Not applicable

Re: Credit Line Decrease - Just Venting

Sorry to hear OP but once again.. don't get why anyone does business with Synchrony or Barclays.. Too many other better institutions.
Message 7 of 10
Anonymous
Not applicable

Re: Credit Line Decrease - Just Venting


@Skymogul wrote:

TL;DR - It's not you personally; credit markets are starting to tighten up.

 

IMO, macro forces at work with the resurgence of CLDs:

 

  • Brexit is officially underway, which has negatively impacted both the pound and the euro, especially causing reserve requirement problems for European G-SIBs (Global Systemically Important Banks) like Barclay's. Not to mention Deutche-induced skittishness. Other G-SIBs like Citi and Chase will have to tighten up too.
  • In the US, prime is headed upward as the Fed has two more rate increases on the table for the year yet. As prime increases, minimum payments will increase, and so will default risks. Banks will take this out on sub-720s more than anyone else.
  • Even US D-SIBs (Domestic Systemically Important Banks) like Cap 1 will be looking at the prime increasing, its impact on their ability to pass Dodd-Frank stress tests and tightening their exposure accordingly.
  • The US economy has had a LONG mid-cycle run. Signs of late cycle are getting stronger, which will also induce banks to tighten up ahead of a (could be years, but closer than not) recessionary phase.

 


Does any of this mean a correction in housing prices? I would love that.

Message 8 of 10
longtimelurker
Epic Contributor

Re: Credit Line Decrease - Just Venting


@socal2013 wrote:

Had a Golfsmith/Synchrony credit line of $4200 ($0 balance) for over 8 years. Golfsmith goes out of business and closes my account, thus affecting my available credit %. In turn, when Barclays finds out, they say that my credit usage % is too high and they reduce my credit line by $1700, again hurting my credit score. I've had this Barclays card for over 11 years and NEVER had a single late payment. In fact, I havent had a single late payment on anything in over 17 years. I called Barclays to complain. Then they had a "manager" call me to discuss. They told me that they could not put my credit line back to where it was. I told them that I am really upset that they would treat an 11-plus year customer with perfect repayment history like this.... they didn't seem to care. When I told th, em that I will never use their card again and that my parents (whom I handle their finances) will never again use their Barclay's card either..... they still didn't care, said that there is nothing they can do...... over a $1700 credit line..... so my credit lines/ available credit has been reduced $5, 900 in the last couple of weeks.... crazy


I'm not too surprised that Barclays doesn't care:  if you step back, and think how you would react to someone saying, in your job, the equivalent of "I will never use your card again and neither will my parents..."   Probably not going to impact their profits much (especially if $1700 is worth complaining about) and so a pointless threat.

Message 9 of 10
Anonymous
Not applicable

Re: Credit Line Decrease - Just Venting

I kicked Barclays to the curb a while back.  Got my credit reports and saw how much they soft pulled me and I didn't like it.  I am a one percenter when it comes to utilization.  

 

I am prepared if Comenity or Synchrony loses another partner.

 

Diversify and be in control of you.  Try to prepare for disaster by not placing all your eggs in one basket.  Get rid of schizo partnerships.

Message 10 of 10
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