CLDs on high limit cards w/not enough spend?

[morgacj2004]

My wife received a 37.5k CLD on her Venture card 2 months ago. She closed the card at my suggestion. The card actually was used for zero APR 3%BT several times but never had a Val greater than 3k. 

[Anonymous]

More data points continue to come in regarding this issue with Capital One.  I'm glad to hear that this hasn't been an issue with some of the bigger credit card issuers like Chase, Amex and Citi.

[Anonymous]

I found this thread after getting a CLD letter from Cap One.  I keep this particular card alive as it is my oldest card (over ten years), I don't carry balances on any card I own, and my FICO is north of 800.  They reduced me from 15k to 10k for the reason stated by others, not using a significant portion of credit line.

Cheapos.  Ah well, I saw their $5,000 reduction and raised to $10,000 the amount I then transfered from a Cap One savings account to another slightly-higher-interest online savings account I had after reading the letter.

I'm guessing what they did won't impact my credit score much, if at all... zero or close-to-zero percent utilization across all my accounts is still zero or close-to-zero after their reduction.  Annoying as this is, it is WAY more preferable than having them simply close the account, which would impact credit scoring.

edit to add: online credit watching services were already showing new (lowered) limit for that card and score was not impacted, so that is good.

[Anonymous]

Yeah, for those that PIF and don't carry balances and/or only allow small balances to report, CLDs have essentially no impact.  A $30 reported balance on a $500 credit card, $5000 credit card or $50,000 credit card results in single-digit utilization regardless of the limit and will all be scored the same with respect to utilization under FICO scoring.

[pizza1]

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@iheartwings wrote:

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@Anonymous wrote:

iheartwings, thanks for your post above and pasting the exact reasoning letter.  That's exactly what I was looking for with this thread.  So, it seems the 2-3 examples we have so far of this happening has been with Capital One.  Has anyone experienced the same thing with any other creditors?

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De nada. I let very little report on my cards for utilization purposes to optimize my FICO score - found it interesting that CapOne didn't like that, as if they were saying, "We know you're spending, and we know it's not with us, but we can't tell with whom, so we're going to punish you." 

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LOL...this literally made me laugh!! hahaha

[Anonymous]

Good thread. I am following. My CL with QS is 23k. I have done several transfers during the life of the card, but usually only use them for a small reoccuring charge. I'll keep a closer watch now.