@Anonymous wrote:Have a Chase card that was opened in May 2005. Limit was $6500. In the past few years they have been naughty and reduced my credit line. First time was in June 2009 when they decreased to $3400 because I had the audacity to use a convenience check that they offered me, they reinstated to $5500, then in Fall 2009 dropped it back to $4400. Made large payment in March, 2010 and limit was reduced to $3700. At the time, I didn't argue. Limit held steady at $3700 for all of 2010, I carried a balance close to limit some of that time, never made large payments trying to avoid losing the credit line again. I made an effort to pay down a bunch of balances this spring, waited until after those had posted before I made a big payment on Chase. Paid $1000 in March, no fallout; paid another $500 in April to get the balance to under 50% of the limit. Signed on today to review new statement and BAM limit is reduced to $2400!!! My credit has greatly improved from where it has stood at various points over the last 5 years, I have NEVER been late or over limit on this account. I am baffled and greatly annoyed. I like the int rate on this card, and am beyond frustrated at their balance chasing.
Any advice? I already fired off an email to customer service asking why the limit reduction.
I'm really sorry to hear about the CLD and balance chasing. 
It's, unfortunately, a recurring theme that we see when balances are carried for an extended period of time, on maxed out cards, with minimum payments being made. As soon as you start making a dent in the debt, they go after the credit line to make sure that you can't charge it up again.
The thing is that you created a bit of a catch-22. Your carrying a balance close to the limit, while making small payments more than likely singled you out as a risk. I think it's a bit of myth that you can effectively protect your credit line by keeping the card maxed out, and making the minimum (or close to it) payment. The bank can close your card with the balance. They can chase you right down to zero, etc... And, if you're on their radar, and making a concerted effort to do exactly what's got them nervous, you're not going to get off of their radar.
If you can PIF, I'd do that, and let the credit line chips fall where they may. You're better off demonstrating that you don't need their line of credit-- it's ironic how that makes them clamor for your business. Once you've PIF'd, use the card, and continue to PIF. Then, ask for the CLI. Show them that you're not on the brink, financially (and I'm not saying that you are, I'm just using the "minimum payments" view that your lender may have), and watch them come back around to your side.
@Anonymous wrote:
@Anonymous wrote:Have a Chase card that was opened in May 2005. Limit was $6500. In the past few years they have been naughty and reduced my credit line. First time was in June 2009 when they decreased to $3400 because I had the audacity to use a convenience check that they offered me, they reinstated to $5500, then in Fall 2009 dropped it back to $4400. Made large payment in March, 2010 and limit was reduced to $3700. At the time, I didn't argue. Limit held steady at $3700 for all of 2010, I carried a balance close to limit some of that time, never made large payments trying to avoid losing the credit line again. I made an effort to pay down a bunch of balances this spring, waited until after those had posted before I made a big payment on Chase. Paid $1000 in March, no fallout; paid another $500 in April to get the balance to under 50% of the limit. Signed on today to review new statement and BAM limit is reduced to $2400!!! My credit has greatly improved from where it has stood at various points over the last 5 years, I have NEVER been late or over limit on this account. I am baffled and greatly annoyed. I like the int rate on this card, and am beyond frustrated at their balance chasing.
Any advice? I already fired off an email to customer service asking why the limit reduction.
I'm really sorry to hear about the CLD and balance chasing.
The thing is that you created a bit of a catch-22. Your carrying a balance close to the limit, while making small payments more than likely singled you out as a risk. I think it's a bit of myth that you can effectively protect your credit line by keeping the card maxed out, and making the minimum (or close to it) payment. The bank can close your card with the balance. They can chase you right down to zero, etc... And, if you're on their radar, and making a concerted effort to do exactly what's got them nervous, you're not going to get off of their radar.
If you can PIF, I'd do that, and let the credit line chips fall where they may. You're better off demonstrating that you don't need their line of credit-- it's ironic how that makes them clamor for your business. Once you've PIF'd, use the card, and continue to PIF. Then, ask for the CLI. Show them that you're not on the brink, financially (and I'm not saying that you are, I'm just using the "minimum payments" view that your lender may have), and watch them come back around to your side.
Couldn't agree more... once you are in the banks sites to keep an eye on your account and your credit... not much is going to change it. Once you finish paying off Chase and your other cards, then go back to Chase and say hey do you think you can give me my CL back now that it's paid off. (Hard pull of course with Chase).
If you are looking for an alternative card, I would seriously consider Discover. They do not take AA on your account for carying a balance close to your credit line. Trust me on that..I carried a balance at my limit for almost two years! Since paid off btw 
I had Chase, but decided it was one to close. Of all my cards, I found they were the worst when it came to phone customer service. Among the best cards in my opinion would be Discover, Citi, and believe it or not Capital One (although you must call backdoor number for everything and ignore the number on the back of your card.)
Good luck with Chase though!