Automatic CLD with Chase?

[mohammadmoghimi]

Hi,

I have received a voice message from Chase lending services that they want to speak to me. I went and checked my account on the website and I saw a huge CLD. I have three cards with chase:

- Sapphire 9.5k limit (~9k balance with a 0% apr balance transfer offer, just paying minimum balance due every month)
- Freedom 15k limit (pay in full, very minimal use ~few hundred per month)
- IHG 2k limit (pay in full, very minimal use, less than 100 per month on average)

So my Freedom's limit has been cut to 3.5k from 15k and IHG is 1k from 2k.

Is this normal? How can I get my limit back? I have basically invested the 9k. What should I ask? Do you guys think that the CLD is final? or negotiable? I was thinking of applying for more chase cards for the points or Slate for a free loan maybe. I certainly want to keep my Chase Freedom's limit? What do you guys think?

[OmarGB9]

I think the fact that you don't seem to use their cards much and only pay the minimum on the CSP doesn't sit well with them. They feel "left out" I guess? lol. But anyway, you may be able to get your limits back if you call and plead your case. YMMV.

[Callandra]

It never hurts to call and explain your situation to a human being. Others have gotten limits restored upon explanation. Depending on your income and credit, the $9k balance with you only paying the minimums may have made them nervous (and more so if you have balances on other cards as well). 

Good luck and hope it works out for you. 

[Anonymous]

Without any other info my guess would be that it has to do with making only min payments on a maxed out card. It's enough to make any lender nervous. They just want to reduce the risk of you running up a bal on your other accts. Call and explain your situation. I would start making more than the min payments even with the 0% Apr.

[yfan]

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@mohammadmoghimi wrote:

Is this normal? How can I get my limit back? I have basically invested the 9k. What should I ask? Do you guys think that the CLD is final? or negotiable? I was thinking of applying for more chase cards for the points or Slate for a free loan maybe. I certainly want to keep my Chase Freedom's limit? What do you guys think?

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I would like to what the bolded part above means. What do you mean you have "basically invested" the 9K? Do you own a business? Did you pay a vendor? Did you buy an engagement ring?

Also, did anything change in your credit reports that might have spooked them (other than basically the maxed out CSP)?

Chase is a cocky lender. They don't like it when you use them for the offers and don't give them any business.

[-Cal-]

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@mohammadmoghimi wrote:

Hi,

I have received a voice message from Chase lending services that they want to speak to me. I went and checked my account on the website and I saw a huge CLD. I have three cards with chase:

- Sapphire 9.5k limit (~9k balance with a 0% apr balance transfer offer, just paying minimum balance due every month)
- Freedom 15k limit (pay in full, very minimal use ~few hundred per month)
- IHG 2k limit (pay in full, very minimal use, less than 100 per month on average)

So my Freedom's limit has been cut to 3.5k from 15k and IHG is 1k from 2k.

Is this normal? How can I get my limit back? I have basically invested the 9k. What should I ask? Do you guys think that the CLD is final? or negotiable? I was thinking of applying for more chase cards for the points or Slate for a free loan maybe. I certainly want to keep my Chase Freedom's limit? What do you guys think?

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95% percent utilization and paying minimum balance are most likely what caused your CLD. 

[mohammadmoghimi]

I have literally invested the money bonds, stocks that sort of things. I'm at about 10% gain now so far (20% APY). I'm not going to details here.

and BTW, I called them yesterday and asked about the last day to pay the CS debit not to pay interest. They might have put a note in my account.

[yfan]

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@mohammadmoghimi wrote:

I have literally invested the money bonds, stocks that sort of things. I'm at about 10% gain now so far (20% APY). I'm not going to details here.

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Ah. So does this mean that should you need to, you could cash out those investments and pay the bill?

[kdm31091]

You need to pay off debt before worrying about investing. Your gains are being washed away by the fact that youre paying credit card interest.

Honestly, can you really blame Chase? You barely use two cards you have with them. Then the third one youre maxing out and making minimum payments. As a whole, you dont look good.

Everyone wants a huge limit, and all the benefits, without actually giving the lender any business. That isn't how it works. Just like they determine if you deserve a CLI because youre using the card heavily (only one factor but still), if you barely use a card they may decide to CLD you.

[go_FICO_self]

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@kdm31091 wrote:
You need to pay off debt before worrying about investing. Your gains are being washed away by the fact that youre paying credit card interest.

Honestly, can you really blame Chase? You barely use two cards you have with them. Then the third one youre maxing out and making minimum payments. As a whole, you dont look good.

Everyone wants a huge limit, and all the benefits, without actually giving the lender any business. That isn't how it works. Just like they determine if you deserve a CLI because youre using the card heavily (only one factor but still), if you barely use a card they may decide to CLD you.

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OP stated it's 0%. you may now get off your soap box.