Reply
Valued Member
chris288
Posts: 37
Registered: ‎04-29-2012

What are the best Banks and Credit Unions that rarely DROP your credit limit unexpectedly??

After my experience with Cabela's and Worlds Foremost Bank speaking with them regarding their credit card disclosures and procedures regarding credit limit, I wanted to ask everyone here what experiences they have had with banks and credit unions all of a sudden dropping your credit limit drastically or your CC?

 

I have Navy Fed, Pentagon, USAA, and Associated CC cards and none of them have ever dropped my credit limit or froze my account for any reason.  Even if I have had hight UTI's etc.

 

So what experiences has everyone here had with theses credit unions and others out there?  Which one's have the most tendacy to drop your credit limit unexpectadly?

 

Cabela's did mine after paying off 4k last month because of high limits on my other cards.

 

Thanks,

 

Chris

Established Contributor
djrez4
Posts: 504
Registered: ‎08-28-2012

Re: What are the best Banks and Credit Unions that rarely DROP your credit limit unexpectedly??

It's called balance chasing.  I imagine that all banks do it at one point or another.  When they see you as a repayment risk, they lower their exposure.  It hasn't happened to me personally, but I'm sure there are others here who have experienced it and can offer advice.

Frequent Contributor
mt2va
Posts: 495
Registered: ‎03-20-2009

Re: What are the best Banks and Credit Unions that rarely DROP your credit limit unexpectedly??

I've had Sears do this to me. (this was the regular Sears card backed by Citibank)



Gardening since: 4/16/14
Starting Scores 10/12: EQ 460 (FICO)/TU 502 (FAKO)/EX 474 (FAKO)
7/13: EQ 517 (FICO)/TU 546 (FAKO)/EX 581 (FAKO)
Current (4/14): EQ 580 (FICO)/TU 611 (FICO)/ EX 603 (FICO)



Valued Member
chris288
Posts: 37
Registered: ‎04-29-2012

Re: What are the best Banks and Credit Unions that rarely DROP your credit limit unexpectedly??

I agree that all banks and credit unions do this to some degree.  I have heard of certain banks and credit unions are more prone to dropping your limit than others.  They all do it to some degree.

 

I have 25k limit, 20k limits on Navy Fed and USAA and they have never dropped my limit.

 

 

Established Contributor
bettercreditguy1
Posts: 688
Registered: ‎02-11-2012

Re: What are the best Banks and Credit Unions that rarely DROP your credit limit unexpectedly??

My friend just experienced this event. A credit card, 25k limit. It was used regularly, not a lot. THEN, home improvement, used around 20k of the limit. It was paid full shortly after receipt of the statement.  Couple days later, the letter, limit decreased, less than 10k. I was told my friend was closing the account. I know other cards were opened with similiar limits. So you just don't know. I have always felt it is best to have three to five prime cards for reserve/options.

Starting scores 01/ 02/2012 EQ 707 TU 733 EXP 735 (FAKO)
Updated scores 04/13/2014 EQ 792 TU 763 EXP 768 (Fico)


Remember the Three P's: Pay early in Full, Pay on Time, Patience
Valued Member
chris288
Posts: 37
Registered: ‎04-29-2012

Re: What are the best Banks and Credit Unions that rarely DROP your credit limit unexpectedly??

I think that any and all banks can and will drop your credit limit.  Its also ironic that it seems everyone gets a limit drop whenever they pay off a very large amount on their cards.  So I believe the banks and credit unions see the opportunity to drop it no matter the credit score, history, etc.

 

What were the banks your friend had?  Basically I think this is something important for applying for CC cards in the future.  It will help people make the correct decision on what cards and banks to apply with from the get go.

 

I know that I will not do business with Cabela's anymore.  The account mgr I spoke with explained to me they get reports from Equifax monthly.  She said they on average hard pull your file 4-5 times a year.  She also explained that the last item they figure into the decision is payment history.  Because that is an easy decision.  If a payment is missed just once the credit limit automatically drops to $500.00 she said.

 

The number one thing they watch is the UTI on your card and other cards you have.  She also said they are factoring in the region you live in.  If its a higher BK or Foreclosure area they will drop your limit.

 

This was all info that the account mgr told me from Worlds Foremost Bank.

 

Its a whole new world


myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.

>> About myFICO
FICO Score - The Score that matters
Click to Verify - This site chose VeriSign SSL for secure e-commerce and confidential communications.
Fair Isaac Corporation is a BBB Accredited Financial Service in San Rafael, CA
FOLLOW US Social Media Facebook Twitter Pinterest Google+