When do lenders typically do a CLD?

[vbulljon]

Hello, I have a question that I would like to ask.

Well I was unemployed about a year and a half ago, have 4 CC's with limits equaling $3,600.

Long story short, I maxed them all out and they have been maxed out for about a year. No late payments, always early. But continued to keep them maxed out.

I have locked all my CC's away and am going to aggressivly pay them off, and use them smarter. I also promised myself to stay HP free for two years.

Now heres my question, when I start paying them all off fast, should I worry about CLD's? I dont want to start fixing my credit and then realize they are chasing the balance. I want to get more credit, but first I need to elimitate the balances I have now.

During my journey, what should I worry about or do diffrently? should I still use them as I am paying them off, but very little? Or dont use them at all until they are at a $0 balance.

Thanks!

[vbulljon]

I want to keep my limits, not have them decrease, I am pretty much asking what do I have to do to keep that from happening?

All advice welcome!

[flan]

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@vbulljon wrote:

I want to keep my limits, not have them decrease, I am pretty much asking what do I have to do to keep that from happening?

All advice welcome!

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If your lenders are going to balance chase you (cut your limits as you pay them down, and then close the account, or leave it with a tiny limit), there's not much you can do about it.  It's too late to do the things you could have that would prevent it: not run your cards up to the limit, and leave them there for months.  You can call your lenders up and tell them you're paying the balances down, which might, or might not, make them less worried about you. 

[Closingracer99]

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@flan wrote:

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@vbulljon wrote:

I want to keep my limits, not have them decrease, I am pretty much asking what do I have to do to keep that from happening?

All advice welcome!

---

If your lenders are going to balance chase you (cut your limits as you pay them down, and then close the account, or leave it with a tiny limit), there's not much you can do about it.  It's too late to do the things you could have that would prevent it: not run your cards up to the limit, and leave them there for months.  You can call your lenders up and tell them you're paying the balances down, which might, or might not, make them less worried about you. 

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Wouldn't paying about $100+ over the min Help as well? or some decent amount over the min amount help?

[vbulljon]

Hey, 

They are not yet chasing the balance, my question was what can I do NOW to avoid that.

I am going to be paying 50-60+ plus the min balance.

Would that lower me on the radar?

Thanks

[Closingracer99]

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@vbulljon wrote:

Hey, 

They are not yet chasing the balance, my question was what can I do NOW to avoid that.

I am going to be paying 50-60+ plus the min balance.

Would that lower me on the radar?

Thanks

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If I was in charge And see your paying more then the Min balance that would put you lower on the radar but that is just me.  It's probably a computer running numbers and puts a % on your file 

[Creditaddict]

You are focusing on the wrong thing.

While it sucks to have a CLD, especially when you are working to get debt free... any negative side of a CLD to your credit is only going to matter as long as you stay in debt... your utilization is a key part in your credit score... by a lender CLD you are not having negative information go to your credit, you are simply "possibly" increasing your util. like you didn't make a big payment... but if you are out of debt then your CL's will no longer matter!

now if you want to list who your 4 credit cards are with we can suggest who to pay off first that is least likely to CLD but it's still going to be a bit of anyones guess... how big of payments are you talking about making to wipe this debt out over what period of time? do you know your current credit scores?

[CreditScholar]

At this point I don't think you'll be able to avoid balancing chasing. As soon as you start to pay down your cards, you'll find that at least some (if not all) of the lenders will begin. Any lender seeing several maxed out cards for such a long period will have their risk indicators flashing.

[vbulljon]

So your saying that when I begin paying my cards down rapidly they will (if not all) start to probably balance chase me? Dont understand.

OR they might balance chase me?

Current cards as of right now are.

WF 1140/1200 limit

Capital One 500/500

Chase 500/500

Discover 1400/1400

Capital One Venture 0/300 limit (this card was just added a week ago but has not shown up on CR, will not be using this card until others are paid off)(but will put a few dollars here and there on it to show activity)

I cant get the aprs at the moment, not in front of my pc to pull statements. 

But at the moment, this is what I plan to pay every two weeks, so twice a month.

WF - min payment is $35, will be paying $120 a month.

Capital One - min payment $15, will be paying $50 a month.

Chase - min payment $25, wil be paying $75 a month.

Discover - Min payment $45, will be paying also $120 a month.

Once the capital one and chase are paid off I will put those payments towards WF and discover. 

Thoughts?

Did I dig myself out of the hole with this game plan?

Thanks already for your thoughts and replies.

[Creditaddict]

Since we are talking about such small limits I bet you actually won't see any CLD especially on your capital one and chase.
Wells would be the only one I would think would have a chance but I just dislike them so I'm more keen to think they will do nasty things but otherwise I think you have a good payment plan and don't worry about "what if" on CLD... Just stick to your goal to debt free!