Just don't want any accounts closed by lender, will leave a lasting mark of AA.
AAoA won't be immediately impacted.
Good luck!
AAoA won't be immediately impacted.
Good luck!
@4drules wrote:
@Leadberry wrote:
@4drules wrote:I have recently been thinking of how to make the best decision for having emergency funds for me and my wife just in case. Reason being is that we are expecting our first child this month and want to have the funds in case of the unexpected. We recently figured that it would be best to pay down one of my credit cards that has a high balance and rely on the available credit for those funds. Well here goes, I have a credit card that has $8,300 credit limit with $8,050 balance and with our tax returns we made a $6,000 payment and literally the next day we get an email stating that the credit limit has been revised and when I checked it my heart sunk. The credit limit had dropped from the original $8,300 when opened to $2,086 right after they recieved the huge payment leaving us with a $36 available credit. I have already beat myself up thinking I screwed up but never thought this could happen, I figured I could drop my debt % ratio dramitically but now this basically made it the same as it was before, it should have went from 56% to 39% but now it would go to only 46%. I mean I feel like I should have just paid off another loan I had which is an installment loan and would have gotten alot extra $ monthly banked instead of only lowering my payments, or even a freaking secured credit card and atleast have that available credit but I just feel blah right now because if I call the company in 30-40 days and ask them to review my account and to reinstate my credit line to a higher one my credit would not allow because the credit limit decrease was literally $5,964 of the $6,000 payment. What are ya'll thought's and have you ever seen this big of a decrease with such a payment. I will add that when I applied for this citi simplicity card my credit was 756 and right this moment is 669.
If a $6,000 payment only drops your util by 17%, are you saying you have over $35,000 in revolving debt, or does that include the installment loans?
Edit: Also, these CLD's will sometimes end in account closure after the balance is fully paid.
Unfortunately I have $19,258 in revolving debt compared to the $34,305 credit limits on them but after this pyment and the credit limit decrease it's not gonna bring it down as much as I thought. I had some cards a few years back when I was in my early 20's and got carried away and now in my mid 20's I bought my first house and got this citi simplicity card right after closing on the house when my credit was at it's peak and the expenses on fixing the house up and repairing things kind of added up quick and put me in this situation I'm in now. I do have to incude that on all my credit burueas that there isn't one single payment that has ever been late but I guess they aren't concerned about that just my debt.
$19k before your payment? Then I think this is a good thing. You just paid off almost a third of your revolving debt, which is great. The CLD is very unfortunate, but it is not a derogatory thing on your CR's. There are other lenders out there, so it's not the end of the world. I think it would be beneficial if you were to pay off the card and close it yourself before Citi has a chance to close it on you.
What is most important now is to rein in the spending, set up a budget and pay down the rest of those debts. Depending on your income, you may not need to sell off a lot of possessions to help you, but it certainly will make the process go quicker. If you need help setting up an action plan, I suggest you start another thread detailing each of your accounts and their CL's, balances and APR's, as well as your income and total expenses. Best of luck!
Side note, only sell things you will not replace later. Would be counter productive to sell something at half price just to buy again at a later time at full price (again) making the cost of that item 150% of the original price + interest you may have paid.
But if you purchased say an ATV that you realized you really didn't need / want or even use by all means sell that bad boy!
But if you purchased say an ATV that you realized you really didn't need / want or even use by all means sell that bad boy!
@CreditScholar wrote:
@4drules wrote:
@SunriseEarth wrote:First, congrats to you and your DW on expecting your first child! Parenting is a very good motivation to ensure that you are prepared for a rainy day.
And yes, you are definitely getting balance chased by Citi. Since the CC had a 97% UTIL, you were getting dinged for it being maxed out and for it's effect on your overall UTIL. I would call in once you can and see if they can reconsider their decision to CLD. You should also take steps to lower your UTIL with other lenders to prevent them from taking AA. This is a frustrating event, but with time and a good plan, scores will rebound and you'll definitely be able to use credit as a "rainy day" backup again.
Thank You! What is balance chased exactly, I think i kind of follow what it means but want to clarify it for good measure? My problem is now I'm very hesitant about paying down any other cards I have which are high balances of fear of them doing this same exact thing since last year my Best Buy cc was maxed and when I paid the minimum payment and got the balance down $700 they also revised it to $500 less of the original credit limit. Almost like they are waiting for me to get it paid down so much so that they can decrease the limit.
That's exactly what balance chasing is. It probably means that they've deemed you too risky, so every time you make a payment they cut your limits. This is so you can't charge anymore.
When a lender balance-chases you, there's a good chance that they're done with you (at least for the time being). Carrying high balances for a prolonged period of time has made some suspect that you might not be able to pay off what you owe. Therefore they don't want to lend you any more money, hence balance chasing.
What is considered a prolonged period of time? Granted what OP did was clearly a prolonged period of time, but how long can we safely carry a balance?
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Sorry to hear this OP, Citi isnt all that people think it is, its a big F in my book. God I miss the old days, get a card max it out, get another and so on, cant get away with that today and is why I have 10-15 extra cards lying around that I use maybe 2x a year just to have plenty of open available credit to keep the wolves at bay. There is no more respect or caring for their customer all you or I are to them is a number. I dont deal with any of the so called "prime" banks I wouldnt be caught dead with a card from any of them. I advise you to keep the faith, look to local & national CUs for your future credit and tell Citi to stuff it once you pay that card off. The best to you 
Do you have an idea of how to pay off your debt or what your plan of action will be? I concur with others who advised to post your stats in regards to what your interest rates are, what your min. payment is, etc. I would also recommend a budgetting software, something like You Need a Budget. Have you looked into the snowball method, or anything along those lines?
It it is great to have an emergency fund for baby, but it sucks having family and massive debt. Thankfully the debt can be handled just as long as it is approached correctly and both you and your wife are on board with being debt free.
Shameless plug.. Good group of folks on this thread.. We may be able to help you figure out a plan of attack if you haven't allready
http://ficoforums.myfico.com/t5/Credit-Cards/The-GREAT-CC-Payoff-Challenge/td-p/2689987
OFFICIAL GARDEN START DATE: 10-05-2014... TARGET GARDEN END DATE: 06-01-2016 Lets Git 'r' dun
