DISCOVER IT Credit Limit DECREASE!!!

[GirlMelanie89]

Thank you guys so much for the advice, encouraging words and motivation. That's what I love about these forums!!! You guys are awesome!! (Minus the rude comment) 😊

[barbaralee]

Do lenders take your full credit report into account for a decrease? Is it possible another factor for the decrease is the BK? High utilization + BK less than 2 years old may not have looked good to them. Couple that with the fact that Discover has come down recently on people with BKs and are declining applications that have a BK reporting less than 2 years old. 

I wouldn't take it so hard, though, it really is nothing personal. 

On a side note: After the Discover gravy train ended they would not increase my credit for the life of me. I tried with my husband's and they didn't blink an eye, but I was getting decline after decline. One day I tried and it got declined. I called to recon, they had me submit it again. Declined again. CSR said so sad, so sorry. I disconnected with her, and called the recon line again. She had me submit it again. Declined again. This time the CSR asked: "Are you including all of your income?" I said no, just my own (my income is a paltry 32k and my utilization hovers around 2-4%). She told me to include my husband's and submit the request again. I did and BAM instant increase ($500, of course). Just thought that was interesting. 

[Anonymous]

Indeed, I love these forums!!

I'm sorry to hear of your CLD, I can only imagine and if it were me I would of been running in circles in shock. It's understandable from a creditors pov but that doesn't make it seem any less scary or shocking.

I've got to ask though, and it may seem like a silly question. I got my first credit card last September, and just added 2 new cards to my roster. So far I keep my util down to 9% on my Cap1 and that's been it. I want to keep it there or below every report. When you say across the board do you mean 85% utilization across all of your cards? So 85% of 11k?

I wish you the best of luck and hope they raise your CL again soon.

[GirlMelanie89]

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barbaralee wrote:

Do lenders take your full credit report into account for a decrease? Is it possible another factor for the decrease is the BK? High utilization + BK less than 2 years old may not have looked good to them. Couple that with the fact that Discover has come down recently on people with BKs and are declining applications that have a BK reporting less than 2 years old. 

I wouldn't take it so hard, though, it really is nothing personal. 

On a side note: After the Discover gravy train ended they would not increase my credit for the life of me. I tried with my husband's and they didn't blink an eye, but I was getting decline after decline. One day I tried and it got declined. I called to recon, they had me submit it again. Declined again. CSR said so sad, so sorry. I disconnected with her, and called the recon line again. She had me submit it again. Declined again. This time the CSR asked: "Are you including all of your income?" I said no, just my own (my income is a paltry 32k and my utilization hovers around 2-4%). She told me to include my husband's and submit the request again. I did and BAM instant increase ($500, of course). Just thought that was interesting. 

Their letter indicated that they did...And you are most likely correct. My util was definitely high (I'll give them that). Yeah I was surprised to have even got a card with them last year so I guess i cant be too mad... 

Wow! That is interesting!!  I wish I had a husband to include his income or just ahusband period.  Lmbo!! But thank you for the info! 

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[GirlMelanie89]

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@Anonymous wrote:
Indeed, I love these forums!!

I'm sorry to hear of your CLD, I can only imagine and if it were me I would of been running in circles in shock. It's understandable from a creditors pov but that doesn't make it seem any less scary or shocking.

I've got to ask though, and it may seem like a silly question. I got my first credit card last September, and just added 2 new cards to my roster. So far I keep my util down to 9% on my Cap1 and that's been it. I want to keep it there or below every report. When you say across the board do you mean 85% utilization across all of your cards? So 85% of 11k?

I wish you the best of luck and hope they raise your CL again soon.

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Aww thank you! And exactly! I knew I was going to pay all my CCs off but from their POV, they didnt so I guess I understand. But as you said, I was definitely shocked.  I was already having a bad day and that didnt help at all. But its my own fault. I will take responsibility for that. And no question is a silly question and yes, you are spot on...83% of $11k. Ive done it like that for years and had no issues, but I just got DISCOVER in August 2015 so they dont know my spending and paying habits. And with a BK, im sure it didnt look good from a birds eye view. And thank you so much! I hope so too! 

[NRB525]

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@GirlMelanie89 wrote:

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@Anonymous wrote:
Indeed, I love these forums!!

I'm sorry to hear of your CLD, I can only imagine and if it were me I would of been running in circles in shock. It's understandable from a creditors pov but that doesn't make it seem any less scary or shocking.

I've got to ask though, and it may seem like a silly question. I got my first credit card last September, and just added 2 new cards to my roster. So far I keep my util down to 9% on my Cap1 and that's been it. I want to keep it there or below every report. When you say across the board do you mean 85% utilization across all of your cards? So 85% of 11k?

I wish you the best of luck and hope they raise your CL again soon.

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Aww thank you! And exactly! I knew I was going to pay all my CCs off but from their POV, they didnt so I guess I understand. But as you said, I was definitely shocked.  I was already having a bad day and that didnt help at all. But its my own fault. I will take responsibility for that. And no question is a silly question and yes, you are spot on...83% of $11k. Ive done it like that for years and had no issues, but I just got DISCOVER in August 2015 so they dont know my spending and paying habits. And with a BK, im sure it didnt look good from a birds eye view. And thank you so much! I hope so too! 

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Sorry to hear of the CLD, I've had many a few years ago after the credit crisis.  It will get better

A couple of points:

1) You may run up balances during the holidays, but since the BK that has only the second such holiday cycle, and Discover was not part of the earlier cycle.

2) With only $11k of total CL, and you knowing you would pay them off soon, I actually think you are doing it right. Sure, Discover had a CLD, but no other cards did, right? Those other cards now see you cycle ( a couple of times at least ) from 80% or more utilization on their card, now paid off, and that will help you in the long run.

3) Do Not! Sock Drawer Discover!  At $500 limit, get back in there and take advantage of the 5% on gas. The CL will recover, usage will help. Don't be afraid to use heavily and PIF on that card now.

4) They sent me a temporary CLI offer, from $5k to $8k, which ran from May 2014 to May 2015. I used the paired BT offer, loaded up over 90% on the BT, and then a couple months later, while the BT was on (I had paid less than $2k on the BT) they sent me a Spend $1k, get $100 back offer, along with 0% APR on new purchases. After the CL went down to $5k again, I asked for a CLI and only got $1k increase to $6k. Then I asked for an APR reduction, and the reasons letter I got said customers cannot get an APR reduction within 4 months of a CLD, and the change from $8k temporary back to $5k counts as a CLD. I suspect that 4 month wait might influence certain decisions on their part, but after my 4 month wait, I got a $500 then a $1,500 CLI, so am back up to $8 CL again ( and paying down from a $4k, now $3k balance built of a BT offer and another 0% APR on purchases for a year). Use the Discover! Call them to ask about offers!

Can you list out the other cards you have, their limit, when the card was opened, and the high balance each card has had during the last holiday cycle? Many folks here will gravitate to recommending "low utilization always", and that is a fine choice to make, but high utilization is not always and everywhere bad, does not always lead to AA. Again, only Discover (new to you) reacted. Let's see who did NOT react, for data points.

[Anonymous]

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@GirlMelanie89 wrote:

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@Anonymous wrote:

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@GirlMelanie89 wrote:

Well this morning, I woke up to my DISCOVER It card limit being decreased to $500 from $1600. The letter indicated that my high utilization across my cards (83%) caused them to lower it. I am devastated. My util is always high after the holidays and then I pay them down to 0% between February and March and never had an issue. I had just paid off all of my balances and was waiting for my CR to update to show this. I called the AR team and they said that I have to wait 90 days to even be considered for an increase. 

Well DISCOVER, welcome to my sock drawer.

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I've heard this happening a LOT with Discover.  Usually the call before a CLD.  I actually got one of those calls, and survived.

I had just bought my house, and my score dropped a bit.  They either called and left a VM or sent a letter, requesting I call them back (I checked to make sure the number was legit, always a good idea).  The CSR asked me a bunch of questions about my score dropping.  I explained that I had just purchased a house (and actually had gotten their card to help build my credit for the purchase, said I really appreciated that it seemed to work), updated my income (got a pay bump for taking the transfer), and we talked about some other stuff.  They left my CL alone.  I have actually managed to get three CLIs since.

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I wish I had received a call before they jumped the gun. But I too should have handled the sitatuion differently. Im glad they didnt bothe yours and congrats on the noew house!!!

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Thanks.  You'll get there, too.  It just takes hard work and patience (I have the hard work down pat, patience though needs some work).  Also, just try to roll with the setbacks (I know, easier said than done)

[GirlMelanie89]

Sorry to hear of the CLD, I've had many a few years ago after the credit crisis.  It will get better

A couple of points:

1) You may run up balances during the holidays, but since the BK that has only the second such holiday cycle, and Discover was not part of the earlier cycle.

2) With only $11k of total CL, and you knowing you would pay them off soon, I actually think you are doing it right. Sure, Discover had a CLD, but no other cards did, right? Those other cards now see you cycle ( a couple of times at least ) from 80% or more utilization on their card, now paid off, and that will help you in the long run.

3) Do Not! Sock Drawer Discover!  At $500 limit, get back in there and take advantage of the 5% on gas. The CL will recover, usage will help. Don't be afraid to use heavily and PIF on that card now.

4) They sent me a temporary CLI offer, from $5k to $8k, which ran from May 2014 to May 2015. I used the paired BT offer, loaded up over 90% on the BT, and then a couple months later, while the BT was on (I had paid less than $2k on the BT) they sent me a Spend $1k, get $100 back offer, along with 0% APR on new purchases. After the CL went down to $5k again, I asked for a CLI and only got $1k increase to $6k. Then I asked for an APR reduction, and the reasons letter I got said customers cannot get an APR reduction within 4 months of a CLD, and the change from $8k temporary back to $5k counts as a CLD. I suspect that 4 month wait might influence certain decisions on their part, but after my 4 month wait, I got a $500 then a $1,500 CLI, so am back up to $8 CL again ( and paying down from a $4k, now $3k balance built of a BT offer and another 0% APR on purchases for a year). Use the Discover! Call them to ask about offers!

Can you list out the other cards you have, their limit, when the card was opened, and the high balance each card has had during the last holiday cycle? Many folks here will gravitate to recommending "low utilization always", and that is a fine choice to make, but high utilization is not always and everywhere bad, does not always lead to AA. Again, only Discover (new to you) reacted. Let's see who did NOT react, for data points.

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Thank you so much for your input! At least I dont feel like it royally messed up. I like your perspective. And no, no other cards decreased at all...I mean theyre not high cards but Ill try me best to recollect the speciifics of each account. Wow! Thats awesome! That would have helped me tremendously. You got all the promos! I love your positivity and optimism!! Great points and ideas!

Here goes...

I cant recall the exact dates these cards wer open, but they were all opend after my May 2014 BK.

Discover - $1600 (now $500) Had a medium balance 

Cap1 Secured - $500 Had a high balance

Quicksilver - $2100 Had a $1800 balance

Navy Cash - $1000 Had a high balance

Navy Cash - $500 Had a high balance

Navy LOC - $5000 (this had a $4900 balance alone)

PayPal Smart Conect - $500 Had a balance

Local CU - $500 Had a small balance

Wal-Mart - $600 Had a high balance

Meijers - $750 Had a high balance

Overstock - $1050

EXPRESS - $1050

NY&CO - $250

Old Navy - $200

JCP - $700 Had a balance

Lowes - $300 Had a balance

Speedway - $400 

Amazon - $600 Had a balance

Care Credit - $500 $25.00 balance

So the take away was Comenity and Synchrony backed banks didnt decrease my limit and all cards are now paid in full!!! Great feeling!! 

But the damage is done and I will definitely use this as a learning experience and garden these low limits up if at all possible! Thanks again for the encouragement and that detailed post! 

[Anonymous]

 I wish I had a husband to include his income or just ahusband period.  

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Well, there is a bit of MyFICOAfterDark going on over on the demographics thread

[Anonymous]

Good thing I never had a CLD despite high utilization on my cards.. There was a point 4/5 of my accounts were 90% utilized and one I overcharged (Discover). Only one account had 0% and that was Fingerhut LOL. My CS dropped below to the 590's but I recovered so quickly.