Barclaycard customers have reported reductions to the credit card limits they’re offered. The move has sparked outraged customers to hit out at Barclaycard online.
“I closed the account and took out another card elsewhere instead.”
Customers have said Barclaycard has never checked on their financial status, but slashed limits to unstably low levels, This is Money reports.
Barclaycard has said the decision was due to “the ongoing economic impact of coronavirus” on the UK.
Barclaycard has not commented on the number of customers impacted.
A Barclaycard spokesperson said: “As with many other lenders, our credit risk models take into account changes in the UK economy, as these may impact our customers’ ability to manage their borrowing effectively.
“Over the past year, we have had to take into account the ongoing economic impact of coronavirus, and this has resulted in an increase in the number of customers receiving credit limit decreases.
“Having up-to-date credit risk models is part of our commitment to being a responsible lender, to help ensure that customers are not borrowing more than they can comfortably afford.
“For some customers, where we don’t believe that their current limit is affordable, we provide information on how to appeal the limit change by verifying their income.
“When we reduce a customer’s credit limit, we will not reduce it to below their current balance, and we will ensure that they at least have sufficient headroom on their account to continue essential spending.”
For those keeping on top of their finances, it may be they’re asking what the best credit card for everyday use is right now.
On the topic of the best credit card for everyday use, money comparison website Moneyfacts.co.uk said: “This will depend on your individual requirements, though arguably, a card that offers cashback or rewards will be best for everyday spending.”
Each week, Moneyfacts highlights the best of the latest products or rate changes on the consumer finance market via its Pick of the Week.
While it may not be right for everyone, those looking for a balance transfer credit card may be interested to know the one Moneyfacts showcased most recently was Virgin Money’s 29-month Balance Transfer Credit Card Mastercard.
It offers an introductory rate for balance transfers of zero percent for 29 months.
The introductory rate for purchases is zero percent for three months.
Commenting on the deal, Rachel Springall, Finance Expert at Moneyfacts.co.uk, said: “In its latest update, Virgin Money has improved the introductory interest-free balance term on its Balance Transfer Credit Card Mastercard by one month, to 29 months but also seen an increase to the transfer fee.
“The card now has one of the longest terms available to customers searching for a zero percent balance transfer credit card.
“One element to note is its introductory balance transfer fee, which is now 3.00 percent within the first 60 days of account opening, up from 2.70 percent, outside of this offer the fee rises to 5.00 percent so borrowers would be wise to compare and plan carefully before they apply and make subsequent transfers.
“The card earns an Outstanding Moneyfacts product rating in the process.”