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Senior Contributor
ilovepizza
Posts: 3,071
Registered: ‎05-17-2007
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Identifying what triggers CLDs. Paid minimum payment 3 times in a row hit with BIG CLD.

I got busy and allowed only minimum payments on all credit cards. Then I was hit with a big CLD from a credit card with a $0 bal. Since they look at your credit reports what you do on other cards affect all.

 

So paying minimum payments 3 times in a row can trigger CLDs. CLDs can be contagious too when other banks see what is going on. Try to avoid.

 

Of course missing payments, very high debt can cause clds too.

 

Please post of you know other reasons for CLDs.

 

If we never set higher goals we would never get as far.
sol, credit 101, acr, abbreviations, calc
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lawskool09
Posts: 171
Registered: ‎03-04-2008
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Re: Identifying what triggers CLDs. Paid minimum payment 3 times in a row hit with BIG CLD.

you can get CLD when people, who have the same auto leander as you, don't pay their bills.
4/23/08 EX-614 EQ-624 TU-635
5/6/08 EX-660 EQ-628 TU-685
5/12/08 EX-660 EQ-652 TU-685
12/08/08 EX-670 EQ-670 TU-674
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haulingthescoreup
Posts: 28,098
Registered: ‎04-01-2007

Re: Identifying what triggers CLDs. Paid minimum payment 3 times in a row hit with BIG CLD.

BofA is routinely cutting CL's in half on members, regardless of util, scores, history, etc etc. The trigger is that they gave such generous CLI's in the past that no one needed the new amounts. :smileyvery-happy:

You can call and get some or all of it back, although they wanted to know what I needed it for, and they updated financials.

In BofA's case, it's that they need to reduce the amount of extended credit on their books, so that they don't have to maintain such huge cash reserves. I'm sure that there is an element of this in all current CLD's.
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
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FretlessMayhem
Posts: 3,279
Registered: ‎08-03-2007

Re: Identifying what triggers CLDs. Paid minimum payment 3 times in a row hit with BIG CLD.

Like Hauling said, I think the biggest reason nowadays is the economy. Banks are trying to reduce their exposure all around after the mega-CL era.
Here we go again...
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Cleanmachine
Posts: 399
Registered: ‎04-30-2008
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Re: Identifying what triggers CLDs. Paid minimum payment 3 times in a row hit with BIG CLD.

I tend to disagree that making minimum payments three times in a row would trigger a credit line decrease.

 

As long as you are complying with the Terms & Agreement, this in itself would not cause adverse action.

 

Credit Issuers review your overall all debt and if you are not making any progress in lower this debt, this "may" cause a credit line decrease along with other adverse action. What they consider progress in lowering debt is anyone's guess.

 

I have several cards that I just pay the minimum every month for over a year and have not had any credit limit decreases. Of course my overall monthly debt being reported is lowered each month.

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ilovepizza
Posts: 3,071
Registered: ‎05-17-2007
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Re: Identifying what triggers CLDs. Paid minimum payment 3 times in a row hit with BIG CLD.


Cleanmachine wrote:

.....and if you are not making any progress in lower this debt, this "may" cause a credit line decrease along with other adverse action.



Exactly what happened. I continued to use my credit card increasing the debt monthly while allowing auto pay to debit the minimum. I knew I wouldn't be late on bills with auto pay but didn't expect this simple action to trigger a CLD. The amounts growing may be 100% more debt each month but the over all $$ amounts were minimal.

 

I see what you are saying, my debt while small was growing not shrinking.

If we never set higher goals we would never get as far.
sol, credit 101, acr, abbreviations, calc
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Revike
Posts: 720
Registered: ‎05-04-2007
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Re: Identifying what triggers CLDs. Paid minimum payment 3 times in a row hit with BIG CLD.


ilovepizza wrote:

I got busy and allowed only minimum payments on all credit cards. Then I was hit with a big CLD from a credit card with a $0 bal. Since they look at your credit reports what you do on other cards affect all.

 

So paying minimum payments 3 times in a row can trigger CLDs. CLDs can be contagious too when other banks see what is going on. Try to avoid.

 


There is no way for one creditor to determine whether you made minimum payments on other accounts.

 

You could have a $3000 balance report on Bank A, pay it off, then charge $2900 in new purchases which reports the following month. Bank B cannot determine if the $2900 new balance is from new charges or carried from the previous month's balance after a minimum payment.

 

These days, as mentioned above, several banks (especially BOA) are doing large waves of CLDs to reduce "exposure". Customers with low Fico scores, high Fico scores, balances, no balances, are all affected. It is essentially a waste of time to try to compile a list of "triggers". BOA is doing 4 million CLDs in their latest wave. They are not individually analyzing 4 million accounts for payment behavior or patterns. They are most likely running a computer algorithm, designed to reach a goal of X dollars of total CLD. About the only thing that is predictable is that someone with a $20K CL will be reduced to a $10K CL sooner than someone with a $2K CL will be reduced to a $1K CL ...

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ilovepizza
Posts: 3,071
Registered: ‎05-17-2007
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Re: Identifying what triggers CLDs. Paid minimum payment 3 times in a row hit with BIG CLD.

[ Edited ]

Maybe... They told me it was my activity when I tried to fight the CLD.

 

CR does show last payment.

ie...

Month 1 bal $500 payment $10

Month 2 bal $1000 payment $15

Month 3 bal $1500 payment $20

Now month 4 $0 bal paymnet $1520. I stopped the trend.

 

This was just an example not actual figures.

 

That's what my CR looked like. Of course each month the bal is replaced with most current payment, so they would need to be monitoring every month to see a trend.

Message Edited by ilovepizza on 04-27-2009 04:53 PM
If we never set higher goals we would never get as far.
sol, credit 101, acr, abbreviations, calc
Established Member
xelda
Posts: 15
Registered: ‎08-12-2008
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Re: Identifying what triggers CLDs. Paid minimum payment 3 times in a row hit with BIG CLD.


Revike wrote:

There is no way for one creditor to determine whether you made minimum payments on other accounts.

 

You could have a $3000 balance report on Bank A, pay it off, then charge $2900 in new purchases which reports the following month. Bank B cannot determine if the $2900 new balance is from new charges or carried from the previous month's balance after a minimum payment.


Yes, they can.  Your report will show that your most recent payment was $3000.

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haulingthescoreup
Posts: 28,098
Registered: ‎04-01-2007
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Re: Identifying what triggers CLDs. Paid minimum payment 3 times in a row hit with BIG CLD.


ilovepizza wrote:

Maybe... They told me it was my activity when I tried to fight the CLD.

 

CR does show last payment.

ie...

Month 1 bal $500 payment $10

Month 2 bal $1000 payment $15

Month 3 bal $1500 payment $20

Now month 4 $0 bal paymnet $1520. I stopped the trend.

 

This was just an example not actual figures.

 

That's what my CR looked like. Of course each month the bal is replaced with most current payment, so they would need to be monitoring every month to see a trend.



pizza, which bank was this, and what percentage of your CL did you lose? (if I may ask)
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007

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