Any downside to self-initiated major CLD?

[Anonymous]

I would keep the card and the limit. What harm does it do? I have several cards I use for a specific purpose and while I use them, I don't use them often. I have no plans to close them or to have the limits reduced. I like my low utilization. Just my thoughts on the subject. Certainly you can do whatever you think is the best.

[Anonymous]

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@manyquestions wrote:

If you want to create a $500 card for testing utilization and you have two Chase cards, you can call them and reallocate most of the limit from one Chase card to your other Chase card. I've done the same thing with AMEX cards online. With some creditors they have rules about how old the cards need to be or how often you can move limits, but all in all I have never experienced anything negative from it.

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Correct, this can be done with Chase and several other creditors as well.  Unfortunately, I don't have a second Capital One card... nor do I have 2 cards through any creditor for that matter.  It makes sense for me to do this with the CO card since it's a SD card that already has a pretty low limit relative to my other cards.  My biggest fear would be that anyone doing a manual review could see the very low limit and that could possibly influence how they view my profile and/or impact other SLs, CLIs, etc.  This probably wouldn't be the case, but could in theory be an issue.

[Anonymous]

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@Anonymous wrote:

I would keep the card and the limit. What harm does it do? I have several cards I use for a specific purpose and while I use them, I don't use them often. I have no plans to close them or to have the limits reduced. I like my low utilization. Just my thoughts on the subject. Certainly you can do whatever you think is the best.

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If I keep the limit, I can't do any utilization testing.  I'm not willing to max out a limit in the thousands for example, where if it were in the hundreds that would be simple.  If I don't do a CLD I'll still keep the card (and limit) but it will be a SD card that I can't (don't) use for testing purposes which is what I'm after here.

[SouthJamaica]

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@Anonymous wrote:

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@Anonymous wrote:

I would keep the card and the limit. What harm does it do? I have several cards I use for a specific purpose and while I use them, I don't use them often. I have no plans to close them or to have the limits reduced. I like my low utilization. Just my thoughts on the subject. Certainly you can do whatever you think is the best.

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If I keep the limit, I can't do any utilization testing.  I'm not willing to max out a limit in the thousands for example, where if it were in the hundreds that would be simple.  If I don't do a CLD I'll still keep the card (and limit) but it will be a SD card that I can't (don't) use for testing purposes which is what I'm after here.

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I have no knowledge on this but a strong gut feeling that you shouldn't do it, and that a credit limit decrease will somewhere somehow come back to bite you.

[JLK93]

No lender cares about a voluntary CLD or a low limit card. They look at the highest limit cards, age, FICO scores and other factors.

I've requested voluntary CLDs to very low limits, for good reasons, and experienced no blowback.

For example, I've reduced AMEX cards to $500 credit limits so as to transfer the limits to other Amex cards. Then, Amex has given me auto CLIs on the cards that had their credit limits reduced. I've requested reduced limits on Chase cards so as to acquire more Chase cards and accumulate rewards. Never a problem.

It is simply not an issue. Unless, you consider the acquisition of rewards and higher limit cards a problem.

A voluntary CLD for the purpose of FICO utilization testing is a responsible action.

[Anonymous]

Thanks for the replies guys.  Interesting the opposing viewpoints on this; it certainly doesn't make my decision easy

I guess I'll start by contacting CO and sort of feeling them out.  I would like to know if it's possible to get a self-initiated CLI raised back up at some point (should I desire).  Ultimately I don't care... no anyway, but if I were to pick up a CO card at some point down the road that suits me or if they release a new product that would work for me it would be nice to be able to transfer over a decent limit rather than $500, for example.

That's all way in the future though.  For now, I'm just concerned with the whole CLD idea for testing purposes.