Credit Limit Decrease - close accounts?

[racer-x]

Sorry for the mumbo jumbo spelling...iphone

[TRC_WA]

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@takeshi74 wrote:

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That's the real reason.  Calm down and don't let emotion (and your other problems and their related stress) decide for you.  You indicated that you went from little credit to a lot of credit in a relatively short time.  That's risky behavior for creditors.  Closing those accounts will not improve your situation.  Even with the CLD's you have much more available credit thant the $500 you had with Capital One.

Instead of blaming creditors you need to reassess your approach in adding new accounts.  Thin profiles are much more limited in what they can do when adding credit versus more established profiles.

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+1

That's exactly why I gardened a year prior to my 4 new account spree last month... and am gardening another year in 2015.

Bottom line is opening a lot of new accounts just doesn't look good with thin profiles...  like mine is rebuilding from BK13.

The AA on OP's accounts doesn't surprise me at all...

[Anonymous]

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@racer-x wrote:
Vegan- the cards with that CLD'd have been PIF, so no need for balance transfers now. I probably should have done that when it happened a month ago.

What the creditors dont realize is that my income has gone from &65k to $100k since i opened most of these accounts.

I did tell boa that and she started to resd me an income disclosre statement of sorts. I was just making small talk.

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Good to hear that you paid those off
why not call the chase Lending department directly and ask them if they can reinstate your previous CL
They may be able to do something for you since you PIF
If it requres HP then mybe wait a while

[Anonymous]

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@Anonymous wrote:

Sorry to hear that this happened to you especially when you are going through rough patch
maybe 18 month ago my averall CC balance got to 35% of my total CL of 130k
even though I got my cc debt spread out evenly between 7 ccs I had at the time I got a call from BoA asking me whats up
They wanted to know if I was out of work or something
Luckily I didn't tell them anything they didn't want to hear and no CLD from any bank
Did you tell BoA you are temporaily out of work?
I think closing those accounts won't help
Banks periodically monitor your report and other banks may be alarmed that you have 90% utilization on Chase and discover accounts
They might lower your available credit line too
I would act quickly to move balance to other cards
If the banks call you again don't tell them anything voluntarily let them find out for themselves

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I don't want to sound harsh here, but I think this is exactly the time that creditors should be weary.  When they have an short history with a customer, and suddenly his account usage skyrockets that is an indication that something may be wrong and the creditors are holding an increased risk.

I don't have statistics in front of me, but I highly doubt that most bankruptcies happen during a smooth patch.  As much as we'd like to think creditors are our friends, they aren't.  Banks are a business and they're not in the business to lose money.

Again, I'm sorry that you're going through a rough patch racer-x, but this is conservative behavior from a bank.  Try to put yourself in their shoes, they don't have the manpower to follow up on every risky case.  To an underwriter, you're a statistic on a page and statisticlly it was becoming a risky investment to keep extending you such a large credit line.  The only issue I have with this scenario is that there seemed to be a lack of advanced notice.

[Membersince2013]

Its called balancing chasing and they'll probably close the accounts after you pay them off anyway.

[racer-x]

Happy - i didnt start the thread making uses or blaming the credit card vompanies for doing what they did. It was nice to see boa call me to inquire about the situation snd it would have been nice if chase and disc ectended the same courtesy.

Im not mad or salty, it doesnt affect my life in any way.

What they dont know is that i gave a very good size 401k that i vould easily take a loan from and have 0% utization in a couple days.

No worries of bk here, but if ciurse they dont know that.

Again, lets not lise track, the thread was about whether or not to close the accts. its not about me feeling like i was wronged.

Thanks for the input

[Anonymous]

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@racer-x wrote:
Happy - i didnt start the thread making uses or blaming the credit card vompanies for doing what they did. It was nice to see boa call me to inquire about the situation snd it would have been nice if chase and disc ectended the same courtesy.

Im not mad or salty, it doesnt affect my life in any way.

What they dont know is that i gave a very good size 401k that i vould easily take a loan from and have 0% utization in a couple days.

No worries of bk here, but if ciurse they dont know that.

Again, lets not lise track, the thread was about whether or not to close the accts. its not about me feeling like i was wronged.

Thanks for the input

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Sorry I misinterpreted your original question.  In my opinion, it's nice to have the total CL, especially with no AF cards.  If you're upset with the company, put it in the SD.  The company will pay to maintain the card (however little), and get nothing from it.  

Close the card if it has an annual fee.

Close the card if it's a "younger" account bringing down your AAoA.

Keep the card open otherwise IMO.

[Creditaddict]

Since you have now PIF, I think it's fairly common to be able to ring up Chase and they will review about going back to original credit lines.

I would try this first and then I would move CL's to keep maybe freedom and csp or just freedom depending on your usage and close the other 2 after moving the CL's.

[B335is]

OP,

What kind of boat did you get?  I'm not going to add my opinion because if I were in your situation, I would get emotional and PIF/close the accts.  Anybody can Monday morning quarterback your situation, just think about it for a few days before you do anything rash.