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Discover lowered my limit——UPDATE

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icyhot
Valued Contributor

Re: Discover lowered my limit

i haven't checked my FICOs in months
Ch 7 BK discharged 12/2018
Bank Cards: NFCU Flagship Rewards $25K | NFCU Cash Rewards $20K |NFCU More Rewards Amex $17K | PenFed Power Cash $12.5K | PenFed Platinum Rewards $12.5K | PenFed Pathfinder Rewards $10K | PenFed Gold Card $7.5K | PayPal Cashback Mastercard $5K | Apple Card $3.5K
Store Cards: Bergdorf Goodman $10.5K | Neiman Marcus $7.5K | Care Credit $7K |
Scores: EX 656 | EQ 667 | TU 680


Goal Card: Amex Platinum (Amex IIB, waiting for 5 year mark)
Message 61 of 102
icyhot
Valued Contributor

Re: Discover lowered my limit

Yes but I don't plan to continue charging my rent and bills for long, especially not for the next year. The past 2 months have been draining as my income plummeted but I'm starting another job this month
Ch 7 BK discharged 12/2018
Bank Cards: NFCU Flagship Rewards $25K | NFCU Cash Rewards $20K |NFCU More Rewards Amex $17K | PenFed Power Cash $12.5K | PenFed Platinum Rewards $12.5K | PenFed Pathfinder Rewards $10K | PenFed Gold Card $7.5K | PayPal Cashback Mastercard $5K | Apple Card $3.5K
Store Cards: Bergdorf Goodman $10.5K | Neiman Marcus $7.5K | Care Credit $7K |
Scores: EX 656 | EQ 667 | TU 680


Goal Card: Amex Platinum (Amex IIB, waiting for 5 year mark)
Message 62 of 102
NRB525
Super Contributor

Re: Discover lowered my limit


@Skymogul wrote:

@icyhot wrote:
Thanks for the suggestion but I honestly don't think it's worth it to negatively impact my credit. While utilization is huge I have no collections, charge offs, public records, or a single late payment.

I can't stress how precarious your situation is. You're already here talking about a Discover CLD. It looks like you have a closed BofA with a high balance - involuntary close there (BofA spooks easily and often first)? You have about $9,400 of available credit by my calculations. That's less than a year of your rent alone, but adding all your other expenses I'd reckon you've got less than 6 months.  Any major CLDs or invountary closures are going to push you over the edge fast. You have significant balances and line with Capital One, and they have been doing major line decreases lately here. As has Citi who you also have significant lines and balances with.

 

While you don't have any late payments, you are not truly making your payments. You are charging everything so that you can pay your cards - in effect, you are charging your cards to pay your cards.

 

It's important to act before you slip and descend into judgments and garnishments. You have a few options now, but time is running out fast.


Most posters here on MyFico panic too quickly when it comes to lender AA. They've already loaned you the money. The question is not whether the lender is happy, I could care less if the lender is happy. The question is, can the borrower find a way to pay back the funds in some form?

 

I've been through multiple CLD/ balance chasing (BofA, Citi and Chase), multiple Closed by Lender accounts (Chase and Citi) and accounts I closed myself when Citi wanted to change the terms. Those are not End Of The World events.

 

OP has not missed any payments. There are still opportunities in the short term to work through this situation. Paying for expenses with credit cards is not the ideal situation to be in, but let's face it, if OP starts missing payments and really gets into financial difficulties, then the BK 7 or (depending on income situation ) BK 13 becomes a more obvious choice. At that point, these current charges are just one more part of what the lenders write off. From OP perspective, if the improved job prospects turn out correctly, then payment is a distinct possibility.

High Bal Jan 2009 $116k on $146k limits 80% Util.
Oct 2014 $46k on $127k 36% util EQ 722 TU 727 EX 727
April 2018 $18k on $344k 5% util EQ 806 TU 810 EX 812
Jan 2019 $7.6k on $360k EQ 832 TU 839 EX 831
March 2021 $33k on $312k EQ 796 TU 798 EX 801
May 2021 Paid all Installments and Mortgages, one new Mortgage EQ 761 TY 774 EX 777
April 2022 EQ=811 TU=807 EX=805 - TU VS 3.0 765
Message 63 of 102
Discover2016
Valued Contributor

Re: Discover lowered my limit


@NRB525 wrote:

@Skymogul wrote:

@icyhot wrote:
Thanks for the suggestion but I honestly don't think it's worth it to negatively impact my credit. While utilization is huge I have no collections, charge offs, public records, or a single late payment.

I can't stress how precarious your situation is. You're already here talking about a Discover CLD. It looks like you have a closed BofA with a high balance - involuntary close there (BofA spooks easily and often first)? You have about $9,400 of available credit by my calculations. That's less than a year of your rent alone, but adding all your other expenses I'd reckon you've got less than 6 months.  Any major CLDs or invountary closures are going to push you over the edge fast. You have significant balances and line with Capital One, and they have been doing major line decreases lately here. As has Citi who you also have significant lines and balances with.

 

While you don't have any late payments, you are not truly making your payments. You are charging everything so that you can pay your cards - in effect, you are charging your cards to pay your cards.

 

It's important to act before you slip and descend into judgments and garnishments. You have a few options now, but time is running out fast.


Most posters here on MyFico panic too quickly when it comes to lender AA. They've already loaned you the money. The question is not whether the lender is happy, I could care less if the lender is happy. The question is, can the borrower find a way to pay back the funds in some form?

 

I've been through multiple CLD/ balance chasing (BofA, Citi and Chase), multiple Closed by Lender accounts (Chase and Citi) and accounts I closed myself when Citi wanted to change the terms. Those are not End Of The World events.

 

OP has not missed any payments. There are still opportunities in the short term to work through this situation. Paying for expenses with credit cards is not the ideal situation to be in, but let's face it, if OP starts missing payments and really gets into financial difficulties, then the BK 7 or (depending on income situation ) BK 13 becomes a more obvious choice. At that point, these current charges are just one more part of what the lenders write off. From OP perspective, if the improved job prospects turn out correctly, then payment is a distinct possibility.


This 100%, AA sucks for sure, but some people on this fourm are under the mistaken belief that AA damages your credit report or "ruins your credit". As your case highlights, you can have multiple AA's through the years and still have 800+ scores. 

Gardening until September 2025
Next app: Mortgage in September 2025
Message 64 of 102
Skymogul
New Contributor

Re: Discover lowered my limit


@NRB525 wrote:

Most posters here on MyFico panic too quickly when it comes to lender AA. They've already loaned you the money. The question is not whether the lender is happy, I could care less if the lender is happy. The question is, can the borrower find a way to pay back the funds in some form?

 

I've been through multiple CLD/ balance chasing (BofA, Citi and Chase), multiple Closed by Lender accounts (Chase and Citi) and accounts I closed myself when Citi wanted to change the terms. Those are not End Of The World events.

 

OP has not missed any payments. There are still opportunities in the short term to work through this situation. Paying for expenses with credit cards is not the ideal situation to be in, but let's face it, if OP starts missing payments and really gets into financial difficulties, then the BK 7 or (depending on income situation ) BK 13 becomes a more obvious choice. At that point, these current charges are just one more part of what the lenders write off. From OP perspective, if the improved job prospects turn out correctly, then payment is a distinct possibility.


My concern for the OP is not score related. It's that ~$31K of his $52K of balances are at 0% APR right now and he's not making it. Once those promos come off, those minimums will at least double. That assumes a 12% rate (he appears to be paying ~1%/month of principal). Given his utilization, I doubt those rates are that low - probably more like 20%+, meaning they will about TRIPLE. Meanwhile, with his utilization and given the accounts he has open, it's unlikely he'll be able to keep the shell game going with new 0% APR intro lines.

 

OP is concerned about his CLD because he is living entirely off credit and doesn't have much left. 52K of a little more than 60K used.

 

Unless his new job is going to bring his monthly net income to > $3K, he's in big, huge trouble already. Even if it does, he's looking at a decade of revolving/paying down balances without some kind of major cash injection. Not a question of hope/feelings. Just a question of math.

Message 65 of 102
sarge12
Senior Contributor

Re: Discover lowered my limit


@icyhot wrote:
I only have one balance that's larger than the CL and that's the closed BOFA card. Groceries are covered by assistance and I pay for gas directly from my Uber earnings. I won't have to worry about childcare because I'm receiving help in that regard. My issue with BK, and this may be trivial, is that I don't want to give up ALL my cards and burn so many lenders. I still want to keep my Amex and Chase cards an not include them, but they'd probably see the BK and take action on me anyway

Bankruptcy courts do not allow you exclude any usecured creditors. In fact, failure to include any creditor is grounds fo dismissal...all creditors must be disclosed, period. Bankruptcy is a drastic, but often necessary action, but at that point, you have to come entirely clean, and even a hint of trying to hide credit lines or assets is major trouble you do not want any part of, believe me on that. Follow the rules, and bankruptcy can give you a second chance. I am living proof that credit can be rehabilitated after bankruptcy...I in my lifetime have filed both ch13 and ch7, but I did finally learn and at least one of my scores has been 800+ since at least 2010, and I now always PIF. Although I regret my irresponsible actions that caused my massive debts to lead to BK, the only regret about filing is I did not do it sooner.

TU fico08=812 07/16/23
EX fico08=809 07/16/23
EQ fico09=812 07/16/23
EX fico09=821 07/16/23
EQ fico bankcard08=832 07/16/23
TU Fico Bankcard 08=840 07/16/23
EQ NG1 fico=802 04/17/21
EQ Resilience index score=58 03/09/21
Unknown score from EX=784 used by Cap1 07/10/20
Message 66 of 102
sarge12
Senior Contributor

Re: Discover lowered my limit


@icyhot wrote:
I had a $5500 limit with a $2685 balance transfer and they lowered my limit to $2900. My utilization is already through the roof, over 60%, so I'm thinking about just closing it. I feel like the more I pay it off the more they'll lower it

icyhot...Now that I've read all the posts on these threads, let me say that neither you or anyone else can continuousl live off of credit cards. If paying as much as possible is not resulting in lowering your debt load appreciably in the near future, then bankruptcy is almost a certainty in the future. You simply can't live on the hope that your situation will miraculously improve. It may, but it also may worsen as life happens and your assets age and need repair or replacement. You should not count on what you might be able to earn in income in the future. You need to look at your finances and be able to see real progress, not just being able to tread water by paying interest on the credit cards only. If you can see no reasonable progress on paying down the principle, then you are likely only delaying the inevitable bankruptcy, and more important you are delaying the recovery. Please do not make the mistake of adding years of time to your misfortunes by adding years of just paying interest with poor credit, on top of the years that the BK will be reported. I'm not tring to be harsh, but that is as sensible as delaying replacing bad brakes on a car...they will still eventually have to be replaced, but it might be after the bad brakes cause a wreck. I urge you to speak with a competent BK attorney, as the fact that you have not had any late payments is only because you are borrowing from Peter to pay Paul, which puts you at Peters mercy, and eventually Peter will say no. Once a credit hole has been dug deep enough, it is often impossible to dig your way out. Bankruptcy is not the end of the World, even if the creditors try to convince you it is.

TU fico08=812 07/16/23
EX fico08=809 07/16/23
EQ fico09=812 07/16/23
EX fico09=821 07/16/23
EQ fico bankcard08=832 07/16/23
TU Fico Bankcard 08=840 07/16/23
EQ NG1 fico=802 04/17/21
EQ Resilience index score=58 03/09/21
Unknown score from EX=784 used by Cap1 07/10/20
Message 67 of 102
CreditInspired
Community Leader
Super Contributor

Re: Discover lowered my limit


@sarge12 wrote:

@icyhot wrote:
I only have one balance that's larger than the CL and that's the closed BOFA card. Groceries are covered by assistance and I pay for gas directly from my Uber earnings. I won't have to worry about childcare because I'm receiving help in that regard. My issue with BK, and this may be trivial, is that I don't want to give up ALL my cards and burn so many lenders. I still want to keep my Amex and Chase cards an not include them, but they'd probably see the BK and take action on me anyway

Bankruptcy courts do not allow you exclude any usecured creditors. In fact, failure to include any creditor is grounds fo dismissal...all creditors must be disclosed, period. Bankruptcy is a drastic, but often necessary action, but at that point, you have to come entirely clean, and even a hint of trying to hide credit lines or assets is major trouble you do not want any part of, believe me on that. Follow the rules, and bankruptcy can give you a second chance. I am living proof that credit can be rehabilitated after bankruptcy...I in my lifetime have filed both ch13 and ch7, but I did finally learn and at least one of my scores has been 800+ since at least 2010, and I now always PIF. Although I regret my irresponsible actions that caused my massive debts to lead to BK, the only regret about filing is I did not do it sooner.


+1 Sarge.

 

The bolded part is what I hope OP understands. This is an overwhelming debt load. If the decision to file BK has to be made, just make the decision sooner rather than later.


|| AmX Cash Magnet $40.5K || NFCU CashRewards $30K || Discover IT $24.7K || Macys $24.2K || NFCU CLOC $15K || NFCU Platinum $15K || CitiCostco $12.7K || Chase FU $12.7K || Apple Card $7K || BOA CashRewards $6K
Message 68 of 102
CreditInspired
Community Leader
Super Contributor

Re: Discover lowered my limit


@icyhot wrote:
Yes but I don't plan to continue charging my rent and bills for long, especially not for the next year. The past 2 months have been draining as my income plummeted but I'm starting another job this month

"Especially not for the next year" -- This is not a good plan if I'm reading that you plan on doing this for another few months. I think if I remember correctly, two months have already been charged. You may be able to fly under the radar for another 1-2 months rent but I think upon an AR, this pattern will be noticed -- charging bills and large amounts, making minimum payments. Also, since you work for Uber, is your car purchased through them. If no, call the lender and ask if a month or two of your car payments can be put at the end of the loan. My brother has done this a couple of time. Again, good luck.


|| AmX Cash Magnet $40.5K || NFCU CashRewards $30K || Discover IT $24.7K || Macys $24.2K || NFCU CLOC $15K || NFCU Platinum $15K || CitiCostco $12.7K || Chase FU $12.7K || Apple Card $7K || BOA CashRewards $6K
Message 69 of 102
CreditInspired
Community Leader
Super Contributor

Re: Discover lowered my limit


@sarge12 wrote:

@icyhot wrote:
I had a $5500 limit with a $2685 balance transfer and they lowered my limit to $2900. My utilization is already through the roof, over 60%, so I'm thinking about just closing it. I feel like the more I pay it off the more they'll lower it

icyhot...Now that I've read all the posts on these threads, let me say that neither you or anyone else can continuousl live off of credit cards. If paying as much as possible is not resulting in lowering your debt load appreciably in the near future, then bankruptcy is almost a certainty in the future. You simply can't live on the hope that your situation will miraculously improve. It may, but it also may worsen as life happens and your assets age and need repair or replacement. You should not count on what you might be able to earn in income in the future. You need to look at your finances and be able to see real progress, not just being able to tread water by paying interest on the credit cards only. If you can see no reasonable progress on paying down the principle, then you are likely only delaying the inevitable bankruptcy, and more important you are delaying the recovery. Please do not make the mistake of adding years of time to your misfortunes by adding years of just paying interest with poor credit, on top of the years that the BK will be reported. I'm not tring to be harsh, but that is as sensible as delaying replacing bad brakes on a car...they will still eventually have to be replaced, but it might be after the bad brakes cause a wreck. I urge you to speak with a competent BK attorney, as the fact that you have not had any late payments is only because you are borrowing from Peter to pay Paul, which puts you at Peters mercy, and eventually Peter will say no. Once a credit hole has been dug deep enough, it is often impossible to dig your way out. Bankruptcy is not the end of the World, even if the creditors try to convince you it is.


+100

These are exactly the words i wanted to articulate.There are just so many major points here that OP should take note of and I have highlighted them.


|| AmX Cash Magnet $40.5K || NFCU CashRewards $30K || Discover IT $24.7K || Macys $24.2K || NFCU CLOC $15K || NFCU Platinum $15K || CitiCostco $12.7K || Chase FU $12.7K || Apple Card $7K || BOA CashRewards $6K
Message 70 of 102
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