Credit Card Center Advertiser Disclosure†
07-15-2010 12:58 PM
I have two cc's with BofA that I am trying to pay down, but each time I get a decent chunk paid they lower the limit to around $100 over my balance. This is killing my utilization numbers and I can't get ahead b/c they keep doing it.
I have cc's with Chase and USAA as well - should I concentrate on paying them down to help the overall ratio? Or will BofA quit lowering my limit at some point?
07-15-2010 01:07 PM
Sounds like your overall utilization is too high and this is one of the first things most creditors look at, especially BoA.
You may want to try calling the backdoor # and speak with an analyst but chances are they won't put your limit back unless your profile is in good shape. Either way, get rid of that debt as soon as you can.
07-15-2010 01:24 PM
If you reduce your debt you will be a lower risk to BofA. It might be better to pay off the other cards first, which improves your utilization before they have a chance to lower it again. No guarantees on this one, so if the other cards are significantly lower APR's you may not want to do it.
07-15-2010 01:47 PM
I agree with Wolf. Begin paying down your other cards asap.
For future reference, try not to carry large balances for a long period of time, which increases your utilization and makes you look like more of a credit risk.
07-15-2010 02:25 PM
Are your scores low/lower than when you initially were approved for this card? If so, what factors have changed (UTIL, etc)
It may just be they are scared. If I may also ask, whats your current BAL and CL?
07-15-2010 02:29 PM
They are chasing your balance. Once you pay it off, they are more than likely going to close your CC.
07-15-2010 03:21 PM
My score was probably around 710-720 when I got it, but it was a Chase card then with Upromise. BofA bought it a couple years ago not long after I'd transfered balances to pay them off, making the balance close to the limit. It was $18,800 then, now has been lowered to $14,900. Balance is currently $13,900 and both times they've lowered it it's been when the available credit got to around $1800.
My score is now at 666.
I have another BofA card they've also lowered the limit on - the original limit was $8800, now it's $6600 with a balance of $6200. The limit was $7200 until I got to $6400 then they lowered it to $6600.
07-15-2010 04:05 PM
Both BofA and Chase did that too me. My utilization was very high, and when I finally was able to pay some down, they would lower my limit, making utilization that much worse. I finally was able to pay off all my cards by getting a personal loan, and that helped a lot. My score went up significally, and I actualy just got a CLI from BofA.
Forums posts are not provided or commissioned by FICO. Forums posts have not been reviewed, approved or otherwise endorsed by FICO. It is not FICO's responsibility to ensure all posts and/or questions are answered.† Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
* For complete information, see the terms and conditions on the credit card issuer’s website. Once you click apply for this card, you will be directed to the issuer’s website where you may review the terms and conditions of the card before applying. While myFICO always strives to present the most accurate information, we show a summary to help you choose a product, not the full legal terms - and before applying you should understand the full terms of products as stated by the issuer itself.
IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more
FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.