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Anyone had Cap One decrease their credit line?

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Anonymous
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Anyone had Cap One decrease their credit line?

I've had a cap one visa for 10 years at 6%  limit was 6600.00

 

I"ve maxed it out but paid on time.

 

I recently got a letter that said they were lowering my credit limit to  $500 

 

the reasons they gave were that I had "too few or no new mortgage accounts"

and/or

the paydown on my account was insufficient.  

 

I've never had an mortgage account, so that ridiculous.

 

My account had less than a 100 balance over the last two years.

 

My credit score is 725-750; good enough that I just leased a new car.

 

do I have any hope in getting it reinstated?

 

Is this happening to anyone else? 

Message 1 of 5
4 REPLIES 4
Creditaddict
Legendary Contributor

Re: Anyone had Cap One decrease their credit line?

My parents got a CLD a few months back after taking advantage of a BT offer Capital One sent them, still util. less than 50% of credit line, the account is about 13 years old.  I don't think my mom even bothered calling, still a pretty high credit line just now high util vs before cld.
Message 2 of 5
Anonymous
Not applicable

Re: Anyone had Cap One decrease their credit line?

With the economy they are jumpy and you likely scared them when you maxed the card out and didnt PIF.
Message 3 of 5
Anonymous
Not applicable

Re: Anyone had Cap One decrease their credit line?

With Capital One this doesn't make a difference my parents paid in full and they decreased their credit line over 90% from 11k to 1k.

The reason? Well they said that when you pay in full it looks like your in financial trouble. It doesn't make much sense to me, but this is what they where told. Smiley Happy

Message 4 of 5
Anonymous
Not applicable

Re: Anyone had Cap One decrease their credit line?

It appears at this time CapOne likes to diversify their risk exposure by extending 10 CL's at $1k each rather than a single $10k CL.  They don't accept customer initiated CLI requests any more.  And they have CLD quite a few long term accounts with good histories and good credit.

 

The problem:  (IMO) is that CapOne and other banks no longer "trust" past experience in light of current economic climate.  I think they are "bear-ish" and taking the "hedge your risk" strategy by reducing CL's, denying CLI requests and treating all accounts with caution and suspician.  Too many people who had great finances for the past 10 years are now finding themselves in less fortunate circumstances....and CapOne doesn't seem to want to find that out through defaults on larger CL's.

 

I think that it also depends on what they have on file for your income.  In the past you could have a $40k annual income and have a $10k CL for "good behavior" over time and history.  But IMO they now are enforcing strict DTI based upon what they have on file or believe to be your income....so it might be a good idea to update them if your income has improved significantly.

 

If you have had an account for 10 plus years, whether you keep it or not, it is going to be on your CR's for quite a while.  But closing the account or threats of closure are not going to yield any reconsideration from CapOne at this time.

 

Keep the account in good standing.  Update your income information with them so that you can be properly analyzed for DTI.  Finally, seek out a good CU (IMO) for stable CL's.

 

Smiley Wink

 

 

Message 5 of 5
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