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Tips how not to get cl decreased ?

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kugel
Valued Contributor

Tips how not to get cl decreased ?

I got some good cards with good cl now
I need tips how is the best way to keep the account to prevent From creditors surprising u with lowering the cl like I had in the past
Are credit unions less a chance from getting this surprises ?
I know the best way is keep all accounts payed before statement cuts so it shows zero balance on the credit report
Anything else I need to know ?
Message 1 of 7
6 REPLIES 6
kdm31091
Super Contributor

Re: Tips how not to get cl decreased ?


@kugel wrote:
I got some good cards with good cl now
I need tips how is the best way to keep the account to prevent From creditors surprising u with lowering the cl like I had in the past
Are credit unions less a chance from getting this surprises ?
I know the best way is keep all accounts payed before statement cuts so it shows zero balance on the credit report
Anything else I need to know ?

Although it can and does happen, it is something that people stress about more than they need to, in general. You don't have to obsess about paying before statement cuts to prevent AA (which is CL decrease, account closure, etc). In fact, never letting a balance report can bite you in the behind in a sense because your credit report will appear as if you simply never use the card, which is not a good thing for history's sake. For this reason, I sometimes will let balances report. You cannot just worry about FICO scoring models; you have to look at the big picture. If you lose a few points by not optimizing, so be it. Of course, that doesn't mean I'd let a card report with 90% utilization if I could help it, but some reporting is not a bad thing.

 

All one can really do to hopefully prevent AA is pay their bills on time and keep accounts in good standing, along with avoiding excessive inquiries and new accounts. It can be easy to fall into the rush of new approvals and end up opening far too many new accounts, and this combined with mounting balances can trigger AA. Sometimes people are also their own worst enemy; if you call in for APR reductions and such that aren't really necessary, these result in an account review. If your account isn't in the best shape, it's best not to be calling so that a human reviews your account, as something bad could result.

 

All told though, don't be paranoid about it. It's just a card. Use it and pay it and deal with AA if and when it happens. This forum makes it seem much more common than it really is because many  have aggressive credit habits compared to the general population.

Message 2 of 7
Berk
Established Contributor

Re: Tips how not to get cl decreased ?


@kdm31091 wrote:

@kugel wrote:
I got some good cards with good cl now
I need tips how is the best way to keep the account to prevent From creditors surprising u with lowering the cl like I had in the past
Are credit unions less a chance from getting this surprises ?
I know the best way is keep all accounts payed before statement cuts so it shows zero balance on the credit report
Anything else I need to know ?

 

 

All told though, don't be paranoid about it. It's just a card. Use it and pay it and deal with AA if and when it happens. This forum makes it seem much more common than it really is because many  have aggressive credit habits compared to the general population.


+1 on the highlighted above. Remember, whoever owns the money you are borrowing can change the amount of money they lend you whenever they want - it is their money. However, if you don't set off any alarms the chance of that ever happening is slim to none.

Message 3 of 7
Anonymous
Not applicable

Re: Tips how not to get cl decreased ?

Just think about it from the standpoint of the lender. What are some things that would worry you about debtors if you were the creditor? Things like maxing out a card or several cards and only paying the minimums, applying for tons of new credit at once, late payments, etc. are what get them to start looking at you. Just keep balances low and pay on time and generally you should be good.
Message 4 of 7
kugel
Valued Contributor

Re: Tips how not to get cl decreased ?

Was planing applying in nov 4 cards I guess I shouldn't
Message 5 of 7
Anonymous
Not applicable

Re: Tips how not to get cl decreased ?

That is up to you. I have done that before with no adverse action, but that doesn't mean much though. If your balances are all low, you would have less chance of AA, than if otherwise. I dont think AA is really commonplace, it's just that this is place where a lot of people who are credit junkies congregate lol, so you see it here and there. Lenders probably see a lot of the people here as somewhat more risky, not to mention the fact that people like to cry here when bad things happen.
Message 6 of 7
SouthJamaica
Mega Contributor

Re: Tips how not to get cl decreased ?


@kugel wrote:
I got some good cards with good cl now
I need tips how is the best way to keep the account to prevent From creditors surprising u with lowering the cl like I had in the past
Are credit unions less a chance from getting this surprises ?
I know the best way is keep all accounts payed before statement cuts so it shows zero balance on the credit report
Anything else I need to know ?

It depends on what banks you're with.

 

Some don't do that kind of thing.

 

Some do, but you can go nuts worrying about it.

 

E.g., Barclays adverse action can result from (a) using account too much (b) using account too little (c) opening up too many new accounts elsewhere, (d) using balance transfers, (e) using cash advances. So what's the point of even thinking about it.

 

I think it's fair to say that what causes adverse action is where a bank's algorithm has you pegged as either being in financial trouble or as being someone who might engage in "bustout fraud".

 

So my general advice, other than the obvious advice of paying your bills on time, is to do everything in moderation.

 

I can't guarantee that will keep you safe, but it seems like the best course.

 

And if adverse action occurs when you haven't engaged in risky behavior, I think you should get on the horn right away and get some human intervention, because algorithms can be, and often are, wrong.

 

 


Total revolving limits 741200 (620700 reporting) FICO 8: EQ 701 TU 704 EX 685

Message 7 of 7
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