First credit line decrease (Barclay)

[masscredit]

The credit world can be a roller coaster. I've had highs, I've had lows, I rebuilt to highs and now it's going downwards. The COVID/economic situation hasn't been good for me. My card balances have been increasing. I used to always PIF. Now it's minimums and maybe a little more. No missed payments. I received my first CLD this week. It was on my Barclay Rewards card. They shaved $2200 off of the limit. Reasons given were -

Proportion of balances to credit limits too high on revolving accounts

Proportion of loan balances to loan amounts is too high - this is for a car loan I've had for a year. Paid a another car loan off just before this one.

What surprised me is they only did it to one account. It went from $5400 to $3200. I still have an Apple Rewards card with an $18K limit.

[coldfusion]

BarclayUS being BarclayUS, it's no secret that they can be quick on the trigger. 

 Sorry you experienced this.  

[Remedios]

@masscredit  sorry this happened to you. 

Does that card have a balance right now? 

If it does, CLD will affect your utilization even more, so you might want to check if you have any existing BT offers. 

[cashorcharge]

Sorry to hear this.  Fingers crossed it will come back soon

[masscredit]

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@Remedios wrote:

@masscredit  sorry this happened to you. 

Does that card have a balance right now? 

If it does, CLD will affect your utilization even more, so you might want to check if you have any existing BT offers. 

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Yes it does. Currently at $2800. I was thinking the same thing about utilization. It makes the situation worst. I doubt they are going to restore the CL anytime soon. I BTed $1300 to the Apple card incase that helps to keep them from reducing that one too. It's a roll of the dice. 

[JDnyc84]

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@masscredit wrote:

The credit world can be a roller coaster. I've had highs, I've had lows, I rebuilt to highs and now it's going downwards. The COVID/economic situation hasn't been good for me. My card balances have been increasing. I used to always PIF. Now it's minimums and maybe a little more. No missed payments. I received my first CLD this week. It was on my Barclay Rewards card. They shaved $2200 off of the limit. Reasons given were -

Proportion of balances to credit limits too high on revolving accounts

Proportion of loan balances to loan amounts is too high - this is for a car loan I've had for a year. Paid a another car loan off just before this one.

What surprised me is they only did it to one account. It went from $5400 to $3200. I still have an Apple Rewards card with an $18K limit.

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Sorry to hear. Barclays is the only lender that's done this to me. Not a single late payment for years and mostly PIF, they sold one of my accounts to Mercury (much better service/more generous CL, though) and slashed one of my limits by a third or so. I look forward to avoiding business with them in the future.

[CreditCrusader]

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@masscredit wrote:

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@Remedios wrote:

@masscredit  sorry this happened to you. 

Does that card have a balance right now? 

If it does, CLD will affect your utilization even more, so you might want to check if you have any existing BT offers. 

---

Yes it does. Currently at $2800. I was thinking the same thing about utilization. It makes the situation worst. I doubt they are going to restore the CL anytime soon. I BTed $1300 to the Apple card incase that helps to keep them from reducing that one too. It's a roll of the dice. 

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If I read your initial post correctly, that card is the one they CLD'd.

IMO, they're balance chasing you...and they'll probably do it again once the rest of the balance is paid/transferred, so you'd be wise to take the suggestions above for your own benefit.

FYI, this is quite typical of Barclay. They are among the most jittery CC lenders in the world.

[masscredit]

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@CreditCrusader wrote:

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@masscredit wrote:

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@Remedios wrote:

@masscredit  sorry this happened to you. 

Does that card have a balance right now? 

If it does, CLD will affect your utilization even more, so you might want to check if you have any existing BT offers. 

---

Yes it does. Currently at $2800. I was thinking the same thing about utilization. It makes the situation worst. I doubt they are going to restore the CL anytime soon. I BTed $1300 to the Apple card incase that helps to keep them from reducing that one too. It's a roll of the dice. 

---

If I read your initial post correctly, that card is the one they CLD'd.

IMO, they're balance chasing you...and they'll probably do it again once the rest of the balance is paid/transferred, so you'd be wise to take the suggestions above for your own benefit.

FYI, this is quite typical of Barclay. They are among the most jittery CC lenders in the world.

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I've never experienced that. I thought they reduce the limit to the actual balance when that happens. I'll see if they reduce it any more as I pay it down.

[recoveringfrombk7]

@masscredit best of luck with turning things around.  Thanks for sharing your experience.

[NRB525]

My experience with multiple balance chasing events is they leave a buffer of available credit over the balance, but yeah, every few months ratchet it down again. None of those were with Barclay, but I would expect them to be the same. It avoids problems with interest charges putting you over limit.  

It continues until it stops, but you don't know when it stopped until you go several months with no more CLD.