Jubeyy wrote:
A scenario:
Say I have a $3000 card nearly maxed out and pay $1000 towards it on a Monday and made my outstanding balance $2000... if my limit was being chased down, how many days would it take to happen? Tuesday, the next day? Instantly? A week? And what would it be chased down to... $2050? (I hear they stay $50 above your current balance).
Also, which credit card issuers are more notorius for doing this (and at what speed) ...I have both a Cap One and a BofA.
Sorry for the weird questions...but I figured if anyone would know it'd be someone on this board! Thanks.
That's an almost impossible question to answer, unfortunately. The banks can reduce your credit limit at any given time. I guess it would depend upon how aggressively they're pursuing the balance & restricting your ability to incur additional debt with them. I've read accounts of it happening instantly, within a few days, next billing cycle, etc... And, I've read accounts of credit lines being cut down to the balance due, up to $100 to $500 over the current balance in balance chasing situations.
I think that ALL of the banks have fallen into notoriety for balance chasing of late. At what speed? Who knows for certain, but from the accounts, it usually seems to happen fairly swiftly after a paydown. If your balance is being chased they're not going to give you an opportunity to charge up again after a pay down. I just doubt that anyone can pin them down to a specific timeframe for each lender. We tend to read about AA in clusters, so maybe if you do a search by lender that you're interested in, you'll be able to extrapolate an anecdotal timeframe.
