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daisyduke
Posts: 1,320
Registered: ‎04-18-2009
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When do banks start to slash CL's?

having just got back into the world of using credit, this time RESPONSIBLY.  I'm wondering if the two banks that issued my cards will change their minds?  and if so, when might this happen? when would they need to revisit Daisy's limits?   i understand NOT USING the cards won't benefit me, I need to use em or lose em i guess....and start to build healthy positive TL's..

 

I got 2 k from Nordstrom and 4K from Target.

 

But what if these two banks decide, you know what, she doesn't need it. let's slash her down to 150.00...i know it's fluid. and there's no guarantee what you got today is what they want to give tomorrow. But at what point do the creditors really start slashing? Sure it probably has to do with lots of factors, internal credit scoring systems or external, e balance you've been carrying on your cards, history, economic situations...but red flags?

 

I read so many posts. don't use your best buy visa card or whatever for three months, and boom, they slash it or cancel it. rate jacking (an entirely diff topic) , slashing limits. I wonder why my ex has not been affected by BOFA slashing. I'm a au on this account. his limit on this card is 7K...here's a guy who always pays on time and doesn't have late payments or missing payments, zero issues, generally, he lives well within his means......good beacon score in the mid 700's, doesn't carry a balance that long, highest reporting balance for this card is like 1500...then he paid if off in two payments. But his limit has NOT been slashed. And his rate has NOT been jacked. He also has his mortgage through Bofa, so maybe b/c his mortgage is through their products, they won't slash him or he'll be the last guy to get slashed. i don't know.

 

thanks in advance for your opinion.


Starting Score: 682 EQ, 663 TU
Current Score: 687 EQ - 705 TU on 7/18/10
Goal Score: 700 + both EQ and TU


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DickC
Posts: 260
Registered: ‎05-21-2009
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Re: When do banks start to slash CL's?


daisyduke wrote:

having just got back into the world of using credit, this time RESPONSIBLY.  I'm wondering if the two banks that issued my cards will change their minds?  and if so, when might this happen? when would they need to revisit Daisy's limits?   i understand NOT USING the cards won't benefit me, I need to use em or lose em i guess....and start to build healthy positive TL's..

 

I got 2 k from Nordstrom and 4K from Target.

 

But what if these two banks decide, you know what, she doesn't need it. let's slash her down to 150.00...i know it's fluid. and there's no guarantee what you got today is what they want to give tomorrow. But at what point do the creditors really start slashing? Sure it probably has to do with lots of factors, internal credit scoring systems or external, e balance you've been carrying on your cards, history, economic situations...but red flags?

 

I read so many posts. don't use your best buy visa card or whatever for three months, and boom, they slash it or cancel it. rate jacking (an entirely diff topic) , slashing limits. I wonder why my ex has not been affected by BOFA slashing. I'm a au on this account. his limit on this card is 7K...here's a guy who always pays on time and doesn't have late payments or missing payments, zero issues, generally, he lives well within his means......good beacon score in the mid 700's, doesn't carry a balance that long, highest reporting balance for this card is like 1500...then he paid if off in two payments. But his limit has NOT been slashed. And his rate has NOT been jacked. He also has his mortgage through Bofa, so maybe b/c his mortgage is through their products, they won't slash him or he'll be the last guy to get slashed. i don't know.

 

thanks in advance for your opinion.


 

Daisy, I think there are many issues involved, including use of cards, etc, and a major issue is the Bank that issues the cards exposure in the credit market. Many large banks have given large CL's to people that are just sitting useless and I think they will be cut.

 

Now I am going to say something that I'm sure will irritate a great many on here but thats ok. Looking at something REALISTICALLY is far better then turning a blind eye.

 

The best advice I could give you is use your cards, pay your bills and I think you will be fine. Use the card like its INTENDED to be used. You buy things, you pay them off and if there is an emergency or big item needed, you buy it. You pay it off and thats how it works.

 

To many people here seem to be obsessed with micromanaging their credit and that does no good. Now a lot may disagree with me but the truth is, Ive been using credit since 1965, worked over 25 years in a business where I made credit decisions so I know just a bit about the process.

 

You see people screaming they cant get a CLI and yet in another thread tell people how they have 'sockdrawered" their CC's. Now you don't have to be a brain surgeon to see that is not a productive practice. The problem lies in the fact that so many have only lived in "good times" where credit had been recklessly thrown around. Those days are OVER and frankly I expect it to get much worse as many bankers state that the CC Bubble is the next one to burst and I think they are right.

 

Do as you are doing Daisy. Use your cards and pay your bills. Thats the best way to have success in credit. Don't be obsessed with trying to get CLI's or be upset if you get a CLD. Banks have acted tremendously irresponsible regarding unsecured credit and they are paying for it now. Many are taking measures to change that and they will.

 

Personally, the people that use their cards  properly will always be fine. You speak of your ex and it sounds like he is being a responsible customer. We have not suffered any CLD's or Interest rate hikes on our 4 CC's. Perhaps it is because I have never asked for a CLI and have tuened down the ones offered the last 10 years. I am still mass mailed offers for CC's which I turn. I don't check my credit report every day  and as a matter of fact, I have never seen my FICO Score.  All I know is I once asked my banks Manager what my credit score was and he said it was good enough to get any credit product they offered at their best terms so I have not worried. 

 

I am sure you are doing what is right Daisy and I have no doubt you will be fine. The main thing is that credit is like anything in life. Either you control it or it controls you. I only hope you never get to the point where it has the upper hand.

 

Best wishes to you in reaching all your credit goals.

Valued Contributor
daisyduke
Posts: 1,320
Registered: ‎04-18-2009
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Re: When do banks start to slash CL's?

DickC, thank you for your thoughtful response. will take that advice!!


Starting Score: 682 EQ, 663 TU
Current Score: 687 EQ - 705 TU on 7/18/10
Goal Score: 700 + both EQ and TU


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DickC
Posts: 260
Registered: ‎05-21-2009
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Re: When do banks start to slash CL's?


daisyduke wrote:

DickC, thank you for your thoughtful response. will take that advice!!


 

Thank you for the kind words Daisy. I have no doubt you will certainly be successful in your endeavors.
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haulingthescoreup
Posts: 28,115
Registered: ‎04-01-2007
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Re: When do banks start to slash CL's?

I'd just always make sure to have in everyday savings at least the amount of your CC balances. In other words, use your CC's for convenience, for rewards, etc, but not to string out repayments. That way, if you do get CLD'd, you won't be a victim. You can just shrug and pay it off. Like I say in my siggy, be the master of your credit, rather than vice versa.

I think that things are just going to get stranger and stranger between now and February. It's just amazing to see what banks are doing now. But they can shake the money tree all they like with me; I don't owe them anything that I can't pay off promptly. And I sleep very well at night as a result. :smileywink:
* 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
Valued Contributor
daisyduke
Posts: 1,320
Registered: ‎04-18-2009
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Re: When do banks start to slash CL's?

Hauling, your advice is always on the money. thanks for that.

Starting Score: 682 EQ, 663 TU
Current Score: 687 EQ - 705 TU on 7/18/10
Goal Score: 700 + both EQ and TU


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New Member
BigCowboy
Posts: 2
Registered: ‎11-26-2008
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Re: When do banks start to slash CL's?

Hauling, I like the way you think!  I have gotten credit limits slashed, but since I pay-in-full each month, big deal.

 

-BigCowboy

 

Frequent Contributor
DickC
Posts: 260
Registered: ‎05-21-2009
0

Re: When do banks start to slash CL's?

Hauling, that is always the best way to be. Actually, if people have the discipline, they can use their cards a LOT, pay them off and satisfy the CC Issuers.

 

We charge almost everything we would normally pay cash for and then just PIF when the bill comes. That way there is plenty of CC Activity and I am not worried about the Interest rate. People would be surprised, if they just kept the card ACTIVE they would eliminate about 80% of all their credit problems.

 

I just think that many are not disciplined enough to charge something , put the money aside and PIF when the bill comes.

 

Then, if you have a true emergency you dont have to worry if your credit limit has been cut. You have satisfied the banks idea of keeping the card active and thats important. 

 


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