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Just got a notice from Chase that my CL will be cut to $8,600 in 30 days.  It's currently $17,200.  If I remember correctly, it was also cut by 4k or 5k in the 2008 credit crunch.  

"In reviewing your credit card account, we saw you spent far below your available credit limit in the last 12 months.  Because of your limited usage, we're lowering your limit to $8,600...blah blah blah."  
 

I've been charging a couple hundred on it per month and always PIF.   It's a 25 year-old CL, so I'll just keep using it as I have.   I hope they'll leave it alone now.  


 

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In the credit world of gaming skills, You can work hard to ensure that things go smoothly, and banks can still find a way to annoy you. I say, hell to them and PIF before the statement cut, and "IF" you can't stand their humiliation just close your account.
 

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2 hours ago, MP80 said:

In the credit world of gaming skills, You can work hard to ensure that things go smoothly, and banks can still find a way to annoy you. I say, hell to them and PIF before the statement cut, and "IF" you can't stand their humiliation just close your account.
 

This would be cutting off your nose to spite your face IMO.  Lenders are tightening up.  It happened in 2008 and is happening again.  It is just business and risk management.  At least they didn’t close it altogether.  I would just use it as you have been and at some point look to either do a CLI or account combination.  They will not care one iota if you close the account, and it won’t impact them at all.  All you’d be doing is closing a well seasoned positive trade line with a decent limit and hurting your own utilization.

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A CLD on a lightly used credit line is hardly an insult.  In fact, I can't think of any scenario where the adage "It's just business" is more appropriate.

 

It's an unfortunate event, particularly when it may have taken some effort to achieve that particular limit.  However, it's an "injury" from which prospects for a complete recovery are very strong.

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5 hours ago, cv91915 said:

My spouse got the same letter this week (Marriott Visa).

 

$61,905 -> $30,900

 

They're sawing limits in half. :( 

Damn that must have been some quality combining before 5/24. Sucks to lose something that will probably never be able to be recouped. 

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6 hours ago, CTSoxFan said:

This would be cutting off your nose to spite your face IMO.  Lenders are tightening up.  It happened in 2008 and is happening again.  It is just business and risk management.  At least they didn’t close it altogether.  I would just use it as you have been and at some point look to either do a CLI or account combination.  They will not care one iota if you close the account, and it won’t impact them at all.  All you’d be doing is closing a well seasoned positive trade line with a decent limit and hurting your own utilization.

Sure it happened in 2008 and happened again, but people like me and others did not.

 

When you are in an asymmetric game, it is not your responsibility to decide the rules, which is why you should always make some contingency plans to deal with uncertainty.

 

OP has not disclosed his credit profile nor his credit utilization, we only know his two decades of history on his Chase credit card. Your analysis on a thin credit file or a dirty file your summation would be correct, "you would not be cutting off your nose to spite your face." Evidently, people with higher FICO scores and thicker documents file will not be an acolyte on your idiom. Hehe... (nose and face)

 

I simply mentioned Chase's OP dilemma. I think he must have a lot of credit cards (15-20). This AA affects everyone differently. Anyone who gets a high FICO score will not sweat or pay attention to it. In fact, with a high score, you can immediately get approval in one day up to $100K. (Tweak's rebuilding on CreditBoards)

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I have 7 cards with just over 140k in available credit.  Credit history 27 years.  FICO provided by Chase is 839.  I PIF on all cards each month, and only let one of them report a balance.  Utilization is 0%.  

I don't take this CLD personally at all.  It's still a workable limit for my purposes, and the age of the account alone is enough of an incentive to keep it open.  I just hope they will leave me alone now.  

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8 hours ago, ademas said:

I have 7 cards with just over 140k in available credit.  Credit history 27 years.  FICO provided by Chase is 839.  I PIF on all cards each month, and only let one of them report a balance.  Utilization is 0%.  

I don't take this CLD personally at all.  It's still a workable limit for my purposes, and the age of the account alone is enough of an incentive to keep it open.  I just hope they will leave me alone now.  

At the beginning of May, Chase Bank asked me to update my annual income after logging in to my credit card account, so I did it. They left me alone, and nothing happened since then.


Your credit report information is sufficient, no need to expand or enhance any functions. Objectively speaking, I would apply for more cards to diversify my credit status in the issuing bank and increase the credit limit to the maximum.  :D

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I wrote about this happening with my Chase cards back in 2008.  They balance "chase"d my credit card accounts which caused my fico score to drop even more as my available credit was looking like it was always near maxed out on those cards.  I remembered this as they were the ONLY card issuer that had done this to me. Based on the responses from others on this forum when I wrote about it, you would think they all worked for Chase.  "Well that should be expected in the recession environment we were in" Blah, blah, blah.  This time around...I have no personal Chase cards.  Not one of my card issuers has touched my lines...at least not yet.  When you need credit the most, that's when Chase sticks the dagger in you.  I get that they are protecting their own ass, but not at my expense.  Thank you.

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Posted (edited)

I just checked my Chase cards. Nothing decreased yet. If it happens to me, I won't sweat it. Stuff happens.

With an Amex card I have, the limit was chopped in half a couple months ago because I only charge pencils on it. That's the only card so far that has had a limit decrease in a very long time. As far as how many Visa/Mastercards I have, let's just say it's a lot. ;)

Edited by Burgerwars

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Still untouched here as well. Put a lot of spend on Chase so far this billing cycle. Way more than normal. PIF twice a month and don’t sweat it. 

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23 minutes ago, kaylee34 said:

 PIF twice a month and don’t sweat it. 

Are your limits that insufficient for your spending needs? 

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15 hours ago, shifter said:

Are your limits that insufficient for your spending needs? 

My limits are far more than sufficient even pushing 10x my normal spend through it this month. Whatever card I'm using as a daily driver at the time gets PIF twice a month. Just habit. 

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I would not be surprised if there is a CLD in my future, wouldn't blame them. Even if they cut my CL in half it would still be enough and would not effect my utilization.

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7 hours ago, kaylee34 said:

My limits are far more than sufficient even pushing 10x my normal spend through it this month. Whatever card I'm using as a daily driver at the time gets PIF twice a month. Just habit. 

Wouldn't recommend the practice. Looks bad to creditors. 

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1 hour ago, shifter said:

Wouldn't recommend the practice. Looks bad to creditors. 

Which practice? PIF twice a month or drastically ramping up spend? 
 

Like dvd, I could have all my lines chopped by half or even two thirds and I’d still have far beyond what I need and my utilization would be unaffected.
 

If Chase has an issue with what I’m spending this cycle, so be it. I have others I can pull out my wallet. URs don’t mean enough to me that I’d care if they shut me down completely.
 

My little two branch bank would have a cow and blow up my phone before they pushed the full statement balance this month though. 

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10 hours ago, shifter said:

Paying multiple times a month is a red flag. Just not advised. 

How so?  Is paying bi-weekly also not advised for someone revolving/paying down a large balance?    

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2 hours ago, Debtsuccinylcholine said:

How so?  Is paying bi-weekly also not advised for someone revolving/paying down a large balance?    

There are SOME lenders who view multiple payments in a cycle as an indicator of a consumer living hand-to-mouth.  Further, an account with a 'large balance' is NOT one which you should be charging to on a regular basis.  Continuing to charge to a card with a huge balance is on par with the consumer who takes a cash advance and continues to put purchases on the card...the interest paid is typically far more than they ever imagined.

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18 hours ago, centex said:

There are SOME lenders who view multiple payments in a cycle as an indicator of a consumer living hand-to-mouth.  Further, an account with a 'large balance' is NOT one which you should be charging to on a regular basis.  Continuing to charge to a card with a huge balance is on par with the consumer who takes a cash advance and continues to put purchases on the card...the interest paid is typically far more than they ever imagined.

Centex - do we have a list of lenders that tend to frown on this?  I've been doing this for years!  I pay my CITI, Chase, and BOA cards not bi-weekly, or on a schedule but whenever my balance gets closed to 30 % and I always PIF before the cycle.  Just took a quick look on my account and I made 3 payments to CITI and 2 payments to Chase this past cycle. BOA only one time.

I have plenty of available credit but we spend 25K-30K plus per month.  I've asked BOA and they said they could care less but never inquired with Citi or Chase.  Chase being my lowest line out of the 3.  

Any input on this is greatly appreciated!

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I wouldn't be worried about making multiple payments in a month.  I think there are much bigger red flags to lenders like carrying large balances for long periods of time, paying at or just above the minimum (especially on a large balance), being at or over your CL, taking cash advances, etc.

 

The only thing I would ask about making multiple payments is...why?  Assuming you have enough available credit for your needs, as long as you PIF by the due date you aren't paying any interest.  If you want to have a $0 balance report just pay the balance the day before the statement cuts and you should be fine.  Of course this means you'll have to pay 2 months worth of charges in one month to get into the cycle of PIF before statement cut.  

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19 minutes ago, CTSoxFan said:

I wouldn't be worried about making multiple payments in a month.  I think there are much bigger red flags to lenders like carrying large balances for long periods of time, paying at or just above the minimum (especially on a large balance), being at or over your CL, taking cash advances, etc.

 

The only thing I would ask about making multiple payments is...why?  Assuming you have enough available credit for your needs, as long as you PIF by the due date you aren't paying any interest.  If you want to have a $0 balance report just pay the balance the day before the statement cuts and you should be fine.  Of course this means you'll have to pay 2 months worth of charges in one month to get into the cycle of PIF before statement cut.  

Well this will probably sound a bit naive - but I thought we never wanted to go over 30%. Not just for scoring but so lenders see that as well.  This has always been my motivation for doing it.  

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