SIGforum.com    Main Page  Hop To Forum Categories  What's Your Deal!    Credit card company lowered my line of credit
Page 1 2 
Go
New
Find
Notify
Tools
Reply
  
Credit card company lowered my line of credit Login/Join 
Member
posted
Today I get a letter from Citi Card stating they are lowing my available line of credit. I had a 15k line and they lowered it 7500. They say I was not using enough. I usually average around 1000 a month and always pay in full. I have 800+ credit score.

I have never heard of lowering your available line of credit. What reason would they have to lower the amount? I always thought it looked better on the credit score to have a higher line of credit with a lower balance.


_____________________________

There is no cure for stupidity, you either die from it or with it.
 
Posts: 4364 | Location: Pittsburgh, PA, USA | Registered: February 27, 2001Reply With QuoteReport This Post
Nosce te ipsum
Picture of Woodman
posted Hide Post
Chase was going to close my account for non-use. I used it for one day and it is back to hibernation.

During the 2008 meltdown BofA got their panties in a wringer. Lowered my unsecured CC from $30k to $3k. I told them to cancel it.

Banking went through a "batshit crazy" phase, regularly raising credit limits with no more to recommend one then regularly paying a balance in full. A few years later I cancelled many and called the others, telling them to set credit at $10k and never raise it.



My life ambition is to be as cool as Alan Bibey
 
Posts: 7853 | Location: Mid-Atlantic Region | Registered: March 24, 2004Reply With QuoteReport This Post
Member
posted Hide Post
I did not use my Discover card for five years
The doubled my limit and offered me no interest for a year,

I've used it more in the last three months than I have in four years
And!
My fico went up 20 points !





Safety, Situational Awareness and proficiency.



Neck Ties, Hats and ammo brass, Never ,ever touch'em w/o asking first
 
Posts: 50383 | Location: Henry County , Il | Registered: February 10, 2004Reply With QuoteReport This Post
Man of few words

Picture of remsig
posted Hide Post
I had a WM store card and recently noticed my card was "disabled" and then I received an email stating they cancelled my card because I hadn't used it in the last 18 months. I don't care about them closing it but I hope it doesn't affect my credit score.
 
Posts: 7432 | Location: NE Ohio | Registered: July 03, 2001Reply With QuoteReport This Post
Member
posted Hide Post
How much available credit you have affects your score. It indicates that the CC companies trust you enough to give you that much credit. Cancelling a card usually hurts your credit because you now have less available credit in your name.

This all assumes that you are responsible with your credit. If you have a high credit limit, but have your cards all maxed out, that hurts, not helps.

It’s best to have a lot of available credit, but have low balances.
 
Posts: 2104 | Location: South FL | Registered: February 09, 2007Reply With QuoteReport This Post
His Royal Hiney
Picture of Rey HRH
posted Hide Post
quote:
Originally posted by gpbst3:
Today I get a letter from Citi Card stating they are lowing my available line of credit. I had a 15k line and they lowered it 7500. They say I was not using enough. I usually average around 1000 a month and always pay in full. I have 800+ credit score.

I have never heard of lowering your available line of credit. What reason would they have to lower the amount? I always thought it looked better on the credit score to have a higher line of credit with a lower balance.


Amex did that to me. I called and I said I was about to use it for a big purchase. They restored the credit limit. And I did use it.



"It did not really matter what we expected from life, but rather what life expected from us. We needed to stop asking about the meaning of life, and instead to think of ourselves as those who were being questioned by life – daily and hourly. Our answer must consist not in talk and meditation, but in right action and in right conduct. Life ultimately means taking the responsibility to find the right answer to its problems and to fulfill the tasks which it constantly sets for each individual." Viktor Frankl, Man's Search for Meaning, 1946.
 
Posts: 15827 | Location: Bay Area, CA | Registered: March 24, 2011Reply With QuoteReport This Post
Do the next
right thing
Picture of bobtheelf
posted Hide Post
I got one of those.

I called them and told them to restore it and they did.

Back in 2008 Amex did the same thing, but wouldn't restore it. I closed both of my cards with them.
 
Posts: 3252 | Location: Nashville | Registered: July 23, 2012Reply With QuoteReport This Post
Member
Picture of 1KPerDay
posted Hide Post
I’ve had them do that. And I recently had Citibank and another card cancel my $20K limit cards for non use. It’s been probably a year since I had balances on them (0% balance transfers). My credit score is 800+.

We recently paid off our house and my college loans. My credit score dropped to like 720 because there was “no record of recurring loan payments.” LOL. Whatever, idiots. If you don’t want my money I guess I won’t give you any.


---------------------------
My hovercraft is full of eels.
 
Posts: 2405 | Registered: February 27, 2013Reply With QuoteReport This Post
Page late and a dollar short
posted Hide Post
Chase just sent me a letter advising me of the same thing. Suppose it's time to pay them a visit.


-------------------------------------——————
————————--Ignorance is a powerful tool if applied at the right time, even, usually, surpassing knowledge(E.J.Potter, A.K.A. The Michigan Madman)
 
Posts: 6388 | Location: Livingston County Michigan USA | Registered: August 11, 2002Reply With QuoteReport This Post
Void Where Prohibited
Picture of WaterburyBob
posted Hide Post
Amex did that to me back in 2008, also.



"If Gun Control worked, Chicago would look like Mayberry, not Thunderdome" - Cam Edwards
 
Posts: 15210 | Location: Under the Boot of Tyranny in Connectistan | Registered: February 02, 2005Reply With QuoteReport This Post
Member
posted Hide Post
It was in the news recently- Credit Card Companies are worried about increased risk with all the people being laid off \ unemployed. They were reducing available credit and closing accounts to head off potential defaults.

quote:
Nearly 50 Million Cardholders Had Credit Limits Reduced, Card Closed Involuntarily in Last Month Due to COVID-19 Impact


https://www.prnewswire.com/new...mpact-301051973.html


____________________________________________________

The butcher with the sharpest knife has the warmest heart.
 
Posts: 12380 | Location: Bottom of Lake Washington | Registered: March 06, 2007Reply With QuoteReport This Post
quarter MOA visionary
Picture of smschulz
posted Hide Post
quote:
Originally posted by gpbst3:
Today I get a letter from Citi Card stating they are lowing my available line of credit. I had a 15k line and they lowered it 7500. They say I was not using enough. I usually average around 1000 a month and always pay in full. I have 800+ credit score.

I have never heard of lowering your available line of credit. What reason would they have to lower the amount? I always thought it looked better on the credit score to have a higher line of credit with a lower balance.


It matters not as you are smart and pay off at the end of the month aka no interest and CC interest is only slightly better than a loan shark.
I wouldn't care ~ I too have a similar situation and pay cash or pay off the CC each month and have a very high credit score.
Who would ever want to finance $15K on a CC anyway?
Don't sweat it.
 
Posts: 18074 | Location: Houston, TX | Registered: June 11, 2006Reply With QuoteReport This Post
Member
Picture of 280nosler
posted Hide Post
Banks can and do reduce credit limits as a means to control their loan liabilities. They tend to do this in times of fiscal and economic retrenchment. I had the same thing done to me in 2008 with a HELOC. We had a $20,000 line, that was $11,000 drawn for a kitchen renovation when the bank trimmed it to $12,000.

Whatever you do, do not cancel the card if it is your oldest account. My wife cancelled her oldest account, and hew next oldest was only 3 years old, and her credit score dropped by 40 points because the duration of your open credit history is so heavily weighed.




Nut up or Shut up!
 
Posts: 8581 | Location: 1200 yards out | Registered: January 20, 2010Reply With QuoteReport This Post
Three Generations
of Service
Picture of PHPaul
posted Hide Post
Got my notice from Chase/Amazon today. Don't give a shit, $300 is a big month for me on that card and I pay it off every month.




Be careful when following the masses. Sometimes the M is silent.
 
Posts: 12566 | Location: Downeast Maine | Registered: March 10, 2010Reply With QuoteReport This Post
Spread the Disease
Picture of flesheatingvirus
posted Hide Post
This just happened to my wife. I’ve never experienced it.


________________________________________

-- Fear is the mind-killer. Fear is the little-death that brings total obliteration. I will face my fear. I will permit it to pass over me and through me. And when it has gone past me I will turn the inner eye to see its path. Where the fear has gone there will be nothing. Only I will remain. --
 
Posts: 15334 | Location: New Mexico | Registered: October 14, 2005Reply With QuoteReport This Post
I Wanna Missile
Picture of tanksoldier
posted Hide Post
CC companies are lowering credit limits across the board. They are reducing their exposure in the event of a recession.

The average US household CC debt has doubled in the last 3 months, and the CC companies are n the hook for that money ultimately since it is unsecured debt.



"I am a Soldier. I fight where I'm told and I win where I fight."
GEN George S. Patton, Jr.
 
Posts: 21522 | Location: Eastern plains of Colorado | Registered: January 25, 2006Reply With QuoteReport This Post
Member
posted Hide Post
The extra $600 tagged onto Unemployment Payments expires soon. The true effect of the current situation has worked its way through the system yet.


____________________________________________________

The butcher with the sharpest knife has the warmest heart.
 
Posts: 12380 | Location: Bottom of Lake Washington | Registered: March 06, 2007Reply With QuoteReport This Post
Experienced Slacker
posted Hide Post
Capital One just sent me a letter this week telling me my account was closed due to inactivity.
No "hey go and buy something" just buh-bye.

Had a $14k limit and was with them for a couple decades.

My credit rating is over 800 and it will really peeve me if this ends up being significant.
 
Posts: 6446 | Registered: May 12, 2004Reply With QuoteReport This Post
Member
Picture of just1tym
posted Hide Post
One of the unrealized side effects of having to retire early due to an unexpected disability from a well paid career was a drastic change to my income to debt ratio. Many things are now outside my reach like credit card available limits, future house loans and credit scores. I kept within the 800 range previously but now have taken a ding due to my fixed SSI income. I avoid too those pesky pop-ups in my banking card online sites that ask you to update your income profile Smile

I've learned in time to work within my means and fortunately had a decent amount of savings and a pension. You never expect the unexpected and I thought I would be employed for 30yrs plus, but it just didn't go as planned for me. I've made adjustments and just glad to hold my ground. Things happen, be prepared and anticipate side effects of employment disruption if possible. My creditworthiness was one that I hadn't given better thought to, lesson learned.


Regards, Will G.
 
Posts: 8851 | Location: 140 mi to Margaritaville, FL | Registered: January 02, 2008Reply With QuoteReport This Post
I can't tell if I'm
tired, or just lazy
Picture of ggile
posted Hide Post
quote:
Originally posted by gpbst3:
Today I get a letter from Citi Card stating they are lowing my available line of credit. I had a 15k line and they lowered it 7500. They say I was not using enough. I usually average around 1000 a month and always pay in full. I have 800+ credit score.

I have never heard of lowering your available line of credit. What reason would they have to lower the amount? I always thought it looked better on the credit score to have a higher line of credit with a lower balance.


They did this to me too and for similar reasons.


_____________________________

"The problems we face today exist because the people who work for a living are outnumbered by those who vote for a living."
 
Posts: 1452 | Location: Lake County South Dakota-pheasant country | Registered: June 20, 2005Reply With QuoteReport This Post
  Powered by Social Strata Page 1 2  
 

SIGforum.com    Main Page  Hop To Forum Categories  What's Your Deal!    Credit card company lowered my line of credit

© SIGforum 2020