Oldest Credit Card CLD ​🤬​

[Allkindabroke]

Today when I logged on the CL of my BarclayCard MC was cut from $24K to $5,019.  😒@ $19   The card was used for purchases March - July 2024 between $25-$200 each month.  All of my "sock drawer" cards get used at least 4 months every year.  I have a combined credit line of $300K across 18 cards.  85% of monthly purchases go on Amex Gold, the rest get spread to other cards.  

 

Customer service said the CLD was due to the amount of charges compared to credit line.   Barclay was my first unsecured card after BK but while it's the oldest card, I do have 2 other credit cards opened the same year.  I have two worries: 1.  This CLD will trigger other cards to do the same.  2.  If I close Barclay before the CLD reports, then my AAoA will tank.    FICO = 850 at all three credit bureaus. 

 

Would you just wait this out or is it much ado about nothing? 

 

 

[MarvBear]

This is just my opinion.  But, if a creditor lowers your credit limit, I would consider that as an Adverse Action.  Hence, they would owe you an adverse action letter with the written description of why they took action on your account.  I would be curious what that letter should say.

[MP80]

5 hours ago, Allkindabroke said:

Today when I logged on the CL of my BarclayCard MC was cut from $24K to $5,019.  😒@ $19   The card was used for purchases March - July 2024 between $25-$200 each month.  All of my "sock drawer" cards get used at least 4 months every year.  I have a combined credit line of $300K across 18 cards.  85% of monthly purchases go on Amex Gold, the rest get spread to other cards.  

 

Customer service said the CLD was due to the amount of charges compared to credit line.   Barclay was my first unsecured card after BK but while it's the oldest card, I do have 2 other credit cards opened the same year.  I have two worries: 1.  This CLD will trigger other cards to do the same.  2.  If I close Barclay before the CLD reports, then my AAoA will tank.    FICO = 850 at all three credit bureaus. 

 

Would you just wait this out or is it much ado about nothing? 

 

 

Going back further, three years ago, when Capital One was slashing people's credit lines, I had my own opinion on why they were doing that, which led to a debate on the issue, and eventually, Capital One's credit line cuts began to taper off to insignificance.

 

During the ongoing credit line cuts, Capital One acquired some co-branded retailer credit card portfolios, is this the same situation as Barclays' upcoming acquisition of GSGM credit cards? One would ask, is this dichotomy scenario valid, or should we not take it too seriously?

 

Barclays is buying GSGM card portfolio for $2 billion (on discount).

 

I care less what Barclays' is doing although I got the GSGM card soon to become underwritten by them, my GM card currently has a limit of $12,000.

Edited September 24, 2024 by MP80

[hdporter]

The line slash is unfortunate.  But you're already familiar with my take on issuer CLD's from the recent post on which you left emoticon feedback:  For someone like yourself, with a strong profile and who only lightly uses the card in any case, the cut is of no material consequence.

 

No other creditor is going to take significant notice; lines are reduced for many reasons having nothing to do with the credit performance of the account holder.

 

I see no advantage to you in closing the account.  Continue to use it as you have.  If you have a couple of minutes to spare in 6 mo, ask for a cli to see what happens.

[Flyingifr]

15 hours ago, Allkindabroke said:

Today when I logged on the CL of my BarclayCard MC was cut from $24K to $5,019.  😒@ $19   The card was used for purchases March - July 2024 between $25-$200 each month.  All of my "sock drawer" cards get used at least 4 months every year.  I have a combined credit line of $300K across 18 cards.  85% of monthly purchases go on Amex Gold, the rest get spread to other cards.  

 

Customer service said the CLD was due to the amount of charges compared to credit line.   Barclay was my first unsecured card after BK but while it's the oldest card, I do have 2 other credit cards opened the same year.  I have two worries: 1.  This CLD will trigger other cards to do the same.  2.  If I close Barclay before the CLD reports, then my AAoA will tank.    FICO = 850 at all three credit bureaus. 

 

Would you just wait this out or is it much ado about nothing? 

 

 

Cutting a CL to $5019? Let me guess - your balance is almost $5,000. This seems to be what is affectionately known as "Balance Chasing" - they cut your Credit Limit to make any future use of their card impossible, and as you pay down the balance they continue to do so, having the Credit Limit chase the balance down to $0. Then they will close the account on you. Its only positive purpose at this time is it is a positive effect on your AAOA. On the negative side, they just drastically reduced the Denominator (bottom number) of your Utilization fraction up making your Util higher. Believe me, they did you no favor, because while I have never heard of a CC issuer decreasing a Credit Limit because a different CC card company did, the driving of your FICO score down because of your increased Util could very well have adverse effects on your other cards. Your only saving grace is that at 850 even after the probably CL reductions you still should have an excellent score. The loss of points almost certainly will not knock you into the 600-700 range.

[Allkindabroke]

3 hours ago, Flyingifr said:

Cutting a CL to $5019? Let me guess - your balance is almost $5,000. This seems to be what is affectionately known as "Balance Chasing" - they cut your Credit Limit to make any future use of their card impossible, and as you pay down the balance they continue to do so, having the Credit Limit chase the balance down to $0. Then they will close the account on you. Its only positive purpose at this time is it is a positive effect on your AAOA. On the negative side, they just drastically reduced the Denominator (bottom number) of your Utilization fraction up making your Util higher. Believe me, they did you no favor, because while I have never heard of a CC issuer decreasing a Credit Limit because a different CC card company did, the driving of your FICO score down because of your increased Util could very well have adverse effects on your other cards. Your only saving grace is that at 850 even after the probably CL reductions you still should have an excellent score. The loss of points almost certainly will not knock you into the 600-700 range.

No balance on the card.  I survived bk and don't want to go back.  I pay all my cards in full monthly.  

[TeeSharice]

Synchrony did that to my Sams Club card back in March 2024-  cut my limit to less than $100 of my current balance-  I PIF and almost closed it but stuck it in the sock drawer.   In June/July they raised it back to within $500 of original limit

 

These creditors make no sense

[Flyingifr]

Then the issue is their CPA's will only let the company have a certain allowance for Accounts Receivable for Balance Sheet matters (to indicate solvency of the company for the Securities & Exchange Commission among many others) and having a $30,000 credit line and only using at most $2,000 of it tells them you don't need a $30,000 credit line, and that what they cut from you can be used for other customers who need the lines. From a Balance Sheet perspective, you are tying up more Accounts Receivable than you are using and arr limiting their income ability from other customers who will use those credit lines.

[supern8ural]

53 minutes ago, Allkindabroke said:

No balance on the card.  I survived bk and don't want to go back.  I pay all my cards in full monthly.  

 

Well then the good news is they probably aren't going to close your acct. then.  It does suck to lose that big CL though because it keeps your utilization nice and low without you having to manage it.

[Flyingifr]

8 minutes ago, supern8ural said:

 

Well then the good news is they probably aren't going to close your acct. then.  It does suck to lose that big CL though because it keeps your utilization nice and low without you having to manage it.

In this case, an AZEO would really not care if a CL was cut as long as the total amounts of CL's and the actual debt reported a within a tolerance where it costs no FICO points then it really doesn't matter. $1,000 with total lines of $50,000 is the same as $1,000 with total lines of $1,000,000 as far as FICO is concerned.

[supern8ural]

8 minutes ago, Flyingifr said:

In this case, an AZEO would really not care if a CL was cut as long as the total amounts of CL's and the actual debt reported a within a tolerance where it costs no FICO points then it really doesn't matter. $1,000 with total lines of $50,000 is the same as $1,000 with total lines of $1,000,000 as far as FICO is concerned.

 

Oh, understood, my point was it's nice to have say a CL of 10-20x your monthly spend because you can post sub-10% utilization without every having to "manage" your spending and payments.  I don't know where the OP falls; for me, a 5k limit will be about the minimum for me to even let me just pay close to the due date as opposed to having to pay early to avoid running out of credit if I'm putting all my spend on that card - I know this because I opened a Discover It last year and because of the double cash back it was my primary card for a while; it started off with a $2k limit, then $5k, now it's $8k and no longer my DD anyway...

 

At a $2k CL I *had* to pay early because my monthly spend was typically $1500ish; I couldn't use the card if I racked up a big balance one month and then didn't pay it off as soon as the statement cut.  $5k opened up a lot of breathing room.

[Allkindabroke]

Thanks for the advice, everyone! 🙏

 

All of my bank accounts with credit alerts were in my inbox this morning showing the CLD.   If there's any damage that's going to be done, then it's already out there which makes closing the account futile.   

 

I agree with the logic that other lenders may not follow suit.  I was spooked because my two highest limit cards are SDFCU at $50K and Best Buy at $30K and my average monthly spend on these combined might be $500.  The Amex Gold gets the bulk at $1.5K monthly.  

 

Before the Barclays CLD, my lowest card limit was $10K which gave me some flexibility with utilization since my monthly spend isn't that high.  Barclay's has insured that the only thing I'll use their MC for is my monthly $1.99 Hulu subscription.  

 

[Flyingifr]

19 hours ago, supern8ural said:

 

Oh, understood, my point was it's nice to have say a CL of 10-20x your monthly spend because you can post sub-10% utilization without every having to "manage" your spending and payments.  I don't know where the OP falls; for me, a 5k limit will be about the minimum for me to even let me just pay close to the due date as opposed to having to pay early to avoid running out of credit if I'm putting all my spend on that card - I know this because I opened a Discover It last year and because of the double cash back it was my primary card for a while; it started off with a $2k limit, then $5k, now it's $8k and no longer my DD anyway...

 

At a $2k CL I *had* to pay early because my monthly spend was typically $1500ish; I couldn't use the card if I racked up a big balance one month and then didn't pay it off as soon as the statement cut.  $5k opened up a lot of breathing room.

I never said Credit Card issues were nice. It was a business decision, plain and simple. OK, so they made a business decision to cut your Limit. Now you get to make a business decision - to keep their card in your wallet or in your sock drawer.  They are not the only card you have, nor will they be the last. They may cut your CL but they cannot cut the effect they have, as the oldest, on your AAOA.

[supern8ural]

23 minutes ago, Flyingifr said:

I never said Credit Card issues were nice. It was a business decision, plain and simple. OK, so they made a business decision to cut your Limit. Now you get to make a business decision - to keep their card in your wallet or in your sock drawer.  They are not the only card you have, nor will they be the last. They may cut your CL but they cannot cut the effect they have, as the oldest, on your AAOA.

 

For sure it's a game.  I want the fat limit to make my scores better, they want a lower limit to decrease their risk.  We have to meet in the middle somehwere

[Flyingifr]

1 hour ago, supern8ural said:

 

For sure it's a game.  I want the fat limit to make my scores better, they want a lower limit to decrease their risk.  We have to meet in the middle somehwere

Right you are -  but they have the power to move the goal-posts as they choose when they choose. You only have the power to accept their moving the goal posts or play on a  different field with a different opponent, who has the same powers the current one has. The power is certainly not equal.

Edited September 25, 2024 by Flyingifr

[centex]

This is ALWAYS a risk, but becomes a greater risk when the economy sucks, like now. It's different when money is cheap. Right now, it's not. It's not late 70's/early 80's expensive, but it ain't free money right now...my shredder eats a lot of 5-8% loan offers from various lenders. I don't need the money and I damned sure don't need it at five to eight percent...

[StantheMan]

3 hours ago, centex said:

This is ALWAYS a risk, but becomes a greater risk when the economy sucks, like now. It's different when money is cheap. Right now, it's not. It's not late 70's/early 80's expensive, but it ain't free money right now...my shredder eats a lot of 5-8% loan offers from various lenders. I don't need the money and I damned sure don't need it at five to eight percent...

 

Correct me if I’m mistaken. If one could actually get a loan at 5 or 6% why not let’s say buy a car and put down 5 to 10k and put the loan in a high yield savings account on top of the amount already on deposit. Use the account as collateral for the purchase. Wouldn’t you actually be virtually getting an almost free loan?

[StantheMan]

6 hours ago, StantheMan said:

 

Correct me if I’m mistaken. If one could actually get a loan at 5 or 6% why not let’s say buy a car and put down 5 to 10k and put the loan in a high yield savings account on top of the amount already on deposit. Use the account as collateral for the purchase. Wouldn’t you actually be virtually getting an almost free loan?

Disregard my last post. The car dealer will get paid monthly but will lose in essence by giving free financing.

Edited September 26, 2024 by StantheMan

[Glacier]

Barclay's did this to me as well.  I just went in and asked for an increase back to where it was and it was instantly approved.  

[Allkindabroke]

Fast forward a month and there was no change on any of the FICO scores   850 all three bureaus (humble brag) 

[swingline]

Barclays is at it again, and since the OP mentioned their $5019 limit, I thought it'd made more sense to piggyback on this thread than start a new one since it looks like their attack on me is identical to the OP. I have a couple hundred thousand in credit limits and around an 850 FICO, and Barclay's had previously slashed me to $5019, and they just knocked me down to $3019.  

 

I've had the account for about 8 years, which is my average age of open credit, so I will probably keep it around, though I'm really tempted to call Malaria and cancel it!

 

 

 

 

 

[chicagorich]

3 hours ago, swingline said:

Barclays is at it again, and since the OP mentioned their $5019 limit, I thought it'd made more sense to piggyback on this thread than start a new one since it looks like their attack on me is identical to the OP. I have a couple hundred thousand in credit limits and around an 850 FICO, and Barclay's had previously slashed me to $5019, and they just knocked me down to $3019.  

 

I've had the account for about 8 years, which is my average age of open credit, so I will probably keep it around, though I'm really tempted to call Malaria and cancel it!

 

 

 

 

 

Ouch, I better watch out. I have a 2% Priceline card with a $16K limit. Monthly spend is $300 to $700, so no where near the limit. I just opened up Barclays high yield savings, maybe that will distract their attention some.

[Flyingifr]

IMHO a CLD is the signal to take my business elsewhere - permanently. I can see CLDs for people who are near their CL and/or starting to miss payments or even paying the absolute minimum and cont9inuing to charge, but a CLD for someone with 10% or less Util and is paying in Full every month? One has to wonder what their "Ideal cardholder" is.

Edited February 12, 2025 by Flyingifr

[swingline]

2 hours ago, Flyingifr said:

IMHO a CLD is the signal to take my business elsewhere - permanently. I can see CLDs for people who are near their CL and/or starting to miss payments or even paying the absolute minimum and cont9inuing to charge, but a CLD for someone with 10% or less Util and is paying in Full every month? One has to wonder what their "Ideal cardholder" is.

 

I'm guessing their ideal is probably someone with a good credit score who uses around 60% of available balance. 

 

But from a risk perspective customers maybe those who aren't using a card are calculated as a higher risk because they "could" max out quickly if something happens. And maybe those people who do that due to some big adverse event or less likely to pay back?  Maybe there is a maximum amount of credit they can safely lend as an institution and they don't want to waste that risk on people who aren't earning them revenue? I'm totally pulling these guesses out my a$$ though. 

 

But to your point, the only reason I am leaning towards keeping it, is it is slightly below my average age of open credit and can buffer me if I open up something new to get a bonus. In fact, I only opened it 7 years ago to get a few hundred dollars as a bonus. I also had a Juniper card I'd had for almost 20 years that became a Barclays, and I called to bluff about closing it to get something, and the Malarian jumped the gun and closed it and said it was impossible to reopen. That was a savage hit, but I kind of brought it on myself. 

 

[Flyingifr]

On 9/23/2024 at 5:13 PM, MarvBear said:

This is just my opinion.  But, if a creditor lowers your credit limit, I would consider that as an Adverse Action.  Hence, they would owe you an adverse action letter with the written description of why they took action on your account.  I would be curious what that letter should say.

Since the CLD did not result from anything they got from a CRA they would not have to say that it was based on info from a CRA that they would have to name,  Therefore, they can use any of the following reasons to give you the CLD:

 

You are ugly and we don't want ugly people carrying our card

Your dog peed on your neighbor's lawn

The high tide in the Bay of Fundy wasn't high enough

The Executive Rest Rooms in our home office ran out of toilet paper and now the CEO has to use his sleeve

Easter has been called off this year because they found the body.