Credit Cards

[EaglesFan2006]

Out of curiousity, why would a CC lower the credit limit of a customer?  It hasn't happened to me, and I have spotless payment history, but I was searching the web and came across that possibility.  I'm wondering, how common is this practice?  Does anyone have any experience with it?  If so, how drasticly might they cut your limit?  And what are the reasons aside from poor payment history? 

[Elcid89]

Many reasons. Lack of usage. Recent opening of new accounts elsewhere. The lender restructuring its risk profile, etc.

[EaglesFan2006]

Okay...so I'm nervous.  I opened up a Citi and Chase card in June.  I also have Barclay Card with a high utilization, but I pay the bulk of it off every month.  My other CC's are Cap One and they are paid down, and I don't use them...nor do I care too.  However, I just financed some furniture and used my Citi card for the down payment...so that card will have high util until I pay it in two weeks.  So, could they really cut my CL for that?  I didn't even consider this as a possibility.  It seems like garbage if you ask me.  I haven't done anything wrong since I got those cards, and I have flawless payment history elsewhere.

[EaglesFan2006]

One more note...since Citi and Chase are both new, would they even be doing account sweeps before the 6 month mark to even consider something like this?

[creditnocash]

The only one that is inq sensitive is Barclays. But of your using it regularly I won't even think twice.

Unless you append like 4-5 cards at once since you got it.

[Elcid89]

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EaglesFan2006 wrote:

Okay...so I'm nervous.  I opened up a Citi and Chase card in June.  I also have Barclay Card with a high utilization, but I pay the bulk of it off every month.  My other CC's are Cap One and they are paid down, and I don't use them...nor do I care too.  However, I just financed some furniture and used my Citi card for the down payment...so that card will have high util until I pay it in two weeks.  So, could they really cut my CL for that?  I didn't even consider this as a possibility.  It seems like garbage if you ask me.  I haven't done anything wrong since I got those cards, and I have flawless payment history elsewhere.

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I think that you may be worrying yourself to death for no reason. In the odd event that they decreased a limit, which doesn't happen as often as people think, you can always call in and usually get it restored unless your payment history has been bad (there or elsewhere).

[EaglesFan2006]

I've heard that about Barclay...I'm more concerned with the other two.  But I figure the 6 month mark isnt until January, and at point I won't be as worried about util.  Does that make sense as far as those two checking accounts before then?

[creditnocash]

I wouldn't worry about citi or chase. Just keep doing what your doing.

[Elcid89]

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EaglesFan2006 wrote:

I've heard that about Barclay...I'm more concerned with the other two.  But I figure the 6 month mark isnt until January, and at point I won't be as worried about util.  Does that make sense as far as those two checking accounts before then?

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Read previous comment, and try to chill out. You're going to give yourself a stroke.

As long as your utilization doesn't shoot up and STAY up, they could care less. They WANT you to use the cards. If you don't, they make no money. As long as you are utilizing and paying as you described above, I would be surprised if your limits don't increase. They'd certainly stand little chance of decreasing.

[LS2982]

I agree with Elcid, your worrying for nothing. Keep using your cards and making big payments and you'll be just fine.