Bank of America--Warning

[bdhu2001]

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@keithB wrote:

So what was Discover's reason for dropping your credit line 95%?

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@bdhu2001 wrote:

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@RecoveredDebtaholic wrote:

Experienced this a few years ago with BOA, Chase, Citi, and Discover, I had carried large balances for a while back then and paid off in full several trade lines in one furious bill pay session. Discover closed, Chase closed, BOA CLD to a lousy 500 from 6k, citi CLD roughly the same. I understood their actions especially as this was around the time of the financial crisis. It blows but look at the bright side, you paid off the debt and it's off your back. 

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This happened to me with BofA and Discover & I never paid late or had a high balance with them.  I had high balances with other cards, because of 0% interest transfer deals. BofA said they sent a letter.  I never saw theirs, but I did see Discovers.

Anyway, I figure their loss.  I'm an excellent risk and always pay ahead of time. Discover took my limit from 10K to 500.  Now that they provide a fico score, I buy water and pay them in full each month (before the charge hits).  It's still activity so I get to see my score.  Discover  has asked why I won't use their card more and do I want my limit increased.

My next FICO TU statement, provided by Discover should have me at 800 or close.  After that, I'll only use the discover 2 -3 times per year to see how aging of accounts & dropping of credit inquiries are affecting my score. However, if my TU score is 800 or more, I won't even use it that often.

@Anonymous all honesty only two of my cards get consistent usage American Express @Anonymous & FirstBankcard every where else that I charge.  My children use my Shell card so that gets a regular workout too, but not by me.

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I'm sorry.  I didn't see your question until now.  This was back when the banks were cancelling credit during the credit crisis.  They didn't give me a specific reason.  The letter just showed the new reduced limit. Back then I moved balances to get those great balance transfer rates.  I was unaware of utilization and didn't realize their lowering my limit would affect my FICO score.  

Throughout my credit history I've had my two favorite cards and keep them at balances that allow me to obtain whatever I really want or need.  Back then, I also had a 3rd card that was my favorite go-to card for balance transfers.  When that card decided they wanted to charge annual fees, I closed the account.  It was my oldest card and I was FICO illiterate back then.  

In addition, I've always been able to buy any car I wanted when I decided I wanted a new car(not into cars so usually my husband has to convince me to retire my old cars or my kids state they need them) and that held true even after closing my oldest card and Discover lowering my CL.  Since I own my home.  Nothing else concerned me.

Once Discover lowered the CL, none of their offers applied to me.  I still get the offers, but what can you do with $500.  

When I decided to buy a second home and relocate, I noticed my FICO score was 751 and researched the Internet to see what score was needed for the best interest rate. That's when I discovered utilization and the various different versions of FICO scores. Thus I took money out of savings and paid everything down to 7%.