CLDS in the last 12-24 months?

[Anonymous]

Someone recently posted about experiencing a few CLDs in the last 12-24 months.  That person feels that they had to do with using almost none of his/her available credit.  (Total CL around 250k.)

Has this happened to anyone else?  Equivalently, can anyone report that this hasn't happened to them?  We are talking about people for whom all of the following are true:

Consistently have good scores (760+)

Consistently have very low utilization (< 7%)

Several credit cards (7+)

Big total CL (100k or more)

If somebody did experience a CLD, we'd want them to rule out obvious causes before they post about it.  For example....

     *  If you reported a lower annual income to the issuer. 

     *  The CLD happened in connection with the issuer granting you another line of credit.  (For example, I got a CLD from BOA, but that is because I was opening another credit card with them.  So that doesn't count.) 

     *  Some kind of negative event happened (e.g. a late payment to that issuer, even if it was just a couple days).

     *  No purchases on the card for > 7 months

Anybody have any thoughts, one way or the other?

[Anonymous]

CGID, are you looking to evaluate the final bullet point on your list above, that is the length of time credit goes unused before it gets closed, possibly relative to total credit limits?

It would strike me as odd (and possibly creditors, too) if someone had $250k in credit lines and basically never used any of it.  That definitely could be viewed as a liability and I could see CLDs being the result.

When speaking about barely using any of their available credit, are you speaking in terms of swipes (as in not using the credit lines at all) or in terms of dollars, as in they are using their credit lines but perhaps just for a cup of coffee type purchases?

[Anonymous]

Basically I am trying to see if anybody besides our friend Getrdone1 (whom you and I have been chatting with on another thread) has experienced CLDs, but also trying to exclude all causes EXCEPT having almost all of one's CL being unused.

Getrdone1 seemed to say that he may be typically reporting $50 out of 250k.  If so, I agree his situation way be really extreme.  So I am trying to relax that a bit.  I'd like to compare his experience with people who (like him) have extremely low utilizations, but perhaps not so low that we are talking about 0.02%.  Basically people who spend at least $500 a month, keep their cards active, etc.  Is that sufficent to avoid CLDs?

For example I have not had his experience, but every card of mine reports a balance at least every 5 months and I spend at least 1k per month with a typical utilization of 1-2% (occasionally 0.5% and sometimes higher, like 5%.).

[Anonymous]

Is he saying that he's reporting $50 out of $250k or using $50 out of $250k?  I think usage is paramount, not necessarily reporting a balance... but perhaps I misunderstood what he was getting at in that thread.

I am looking forward to hearing any CLD stories out there though, as it's relatively rare to hear about them happening outside of a "good" reason for it, many of which you mentioned previously.

[sarge12]

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@Anonymous wrote:

Someone recently posted about experiencing a few CLDs in the last 12-24 months.  That person feels that they had to do with using almost none of his/her available credit.  (Total CL around 250k.)

Has this happened to anyone else?  Equivalently, can anyone report that this hasn't happened to them?  We are talking about people for whom all of the following are true:

Consistently have good scores (760+)

Consistently have very low utilization (< 7%)

Several credit cards (7+)

Big total CL (100k or more)

If somebody did experience a CLD, we'd want them to rule out obvious causes before they post about it.  For example....

     *  If you reported a lower annual income to the issuer. 

     *  The CLD happened in connection with the issuer granting you another line of credit.  (For example, I got a CLD from BOA, but that is because I was opening another credit card with them.  So that doesn't count.) 

     *  Some kind of negative event happened (e.g. a late payment to that issuer, even if it was just a couple days).

     *  No purchases on the card for > 7 months

Anybody have any thoughts, one way or the other?

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CGID...So far I have not had any CLD's...but as I always PIF every card except the 1 I let my sister use (and pay), I'm nervous about it. I may be OK though because the CLI is over 10k on only 2 of my 16 cards. I do meet all 4 of the catagories above. If any CLD me I will let you know, because low use could be the only thing in my report to cause it. Chase did CLD my CFU card in order to CLI my Amazon Prime Visa the same amount, but that does not count.

[sarge12]

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@Anonymous wrote:

Basically I am trying to see if anybody besides our friend Getrdone1 (whom you and I have been chatting with on another thread) has experienced CLDs, but also trying to exclude all causes EXCEPT having almost all of one's CL being unused.

Getrdone1 seemed to say that he may be typically reporting $50 out of 250k.  If so, I agree his situation way be really extreme.  So I am trying to relax that a bit.  I'd like to compare his experience with people who (like him) have extremely low utilizations, but perhaps not so low that we are talking about 0.02%.  Basically people who spend at least $500 a month, keep their cards active, etc.  Is that sufficent to avoid CLDs?

For example I have not had his experience, but every card of mine reports a balance at least every 5 months and I spend at least 1k per month with a typical utilization of 1-2% (occasionally 0.5% and sometimes higher, like 5%.).

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longtimelurker and CreditCuriosity both had huge CLD's on their Capital One accounts.

[Anonymous]

Did LTL and CC they tell us why they think that may have happened?  Also, when did it happen?

[Anonymous]

From what I've been reading recently there seems to be some CLD's when it comes to Cap1 holders. I'm not remembering any major changes that were discussed that lead to the CLD's though. 

[HeavenOhio]

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@Anonymous wrote:

Did LTL and CC they tell us why they think that may have happened?  Also, when did it happen?

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Both CLDs happened on Saturday, April 8. And both were dropped from ~35k to 10k.

Both CC and LTL have acknowledged that they haven't been using the accounts very much. CC specifically mentioned $100 a month or so.

These are the official reasons given by CapOne:

• Credit limit(s) are too high -
• Current account(s) not used enough -
• Balance(s) on non-Capital One revolving trade(s) are too low

CC's Topic

LTL's Topic

[Anonymous]

Thanks Heaven!  Based on the two threads, it sounds like this may be limited to Cap One cards (no other issuer) that have huge credit limits (> 30k) and are also wildly under-utilized (e.g. $100 on a 30k card).  No reports coming in for lower CL Cap One cards or those that are used a bit more.

I found it interesting that Cap One made its decision in part based on seeing the balances being reported on cards from other issuers.  (I.e. they see a person who's balances are very low there too.)

Assuming Cap One is not using trended data, that may suggest that a person who makes a regular habit of AZEO (All cards at Zero Except One) is perhaps putting himself at risk for a CLD.  At least based on this very limited sample, which of course right now is just the behavior of one issuer. 

PS.  What I couldn't tell for sure is whether these cases might have involved cards that were rarely used at all.  For example, at the time of CLD, had their been no transaction on the card for > 90 days?  > 150 days?  I am sensing that is not the problem (that the cards were still used once every three months) but that's a guess on my part.  I couldn't tell from the threads for sure.