Might Capital One Lower My Limit if I Pay off Total Balance?

[SoshiHomie84]

I really want to pay off my Capital One Platinum card down to around $300 out of a $3500 limit. But I'm worried that they might lower my limit if I do this. Is it common to do that, especially since I've carriend a high utilization on the card for 3-4 years now. 

I'm just starting to rebuild and I want to do the right things, but it worries me that this might make it easier for them to knock me down to a $500 limit. 

I just opened an HSN ($500) and an Express ($350) account via the shopping card trick (so happy to finally get some approvals) and my credit report it not good with a few 90s and 120s on student loans. There was even a 120 on the Capital One card, butt they let me pay it down and gave me back my privileges when I did that. 

I have not missed a payment on anything for 20 months, and 41 months with Capital One.

Should I be worried? Should I incrementally pay it down over a few months rather than one lump sum? My FICOs are around 575-585, but they're up almost 130 points from where they were a 15 months ago. 

[lg8302ch]

Personally I would  be happy to take the risk of a lower CL if it meant I will not have to pay high interest anymore.  In case Cap1 does balance chase  I would simply use the card with multiple payments and PIF in the future. You can re-build with a lower limit on the card as well...just keep reporting util low by paying down the bill before statement cut. Good luck

[Gunnar419]

It's possible you might get balance chased given the baddies and new credit on your CR, but I agree it's worth taking the risk to save yourself interest payments.

[Tallfish0919]

I paid off my card a couple months ago, then they decided to bump up my credit limit from $300 to $1800.

[jnc]

I have the same fear. We are currently hugging the limit on our BofA card with a 14k limit. It is our plan to have that paid down to under 5k by the end of the year, possibly further. And, I am afraid they will lower our limit.  Now, mind you, we don't need 14k of available credit but I figure, the more credit I have available, the easier it will be to keep it to under 9% usage.

I did pay down a Sears card last year and they raised my limit from 800 to 1150. So, perhaps I'm worried for nothing. (This same card lowered the limit down to the 800 shortly after our foreclosure in 2009). 

But I'll be honest, this is part of the reason its taken me this long to go ahead and pay it down. With both Sears and Kohls lowering my limits and Amex closing our account entirely a few years back (despite a perfect history with them)... I've just been afraid of what these creditors will do to me next

I'm hoping we have improved our credit enough that it won't be an issue now. We shall see!

Good luck to you!

[titanofold]

You are worrying unnecessarily. If they balance chase, well then they balance chase. All they're trying to do is reduce their risk exposure, which is understandable.

You have a choice: Keep yourself in a paralyzing predicament, or eliminate your debt and improve your credit.

Given your recent good payment history, I think it is unlikely that they would balance chase. Further, once you do have it paid off, you'll be in an excellent position to get other lines of credit.

[SunriseEarth]

Pay it down and keep the UTIL down.   I honestly think CapOne would have taken AA already if they wanted to. 

[SoshiHomie84]

Thanks guys for the reassurance. I'll pay $1500 this month and $1500 next month. Hopefully all things will remain the same except my FICO which will go up . Score Simulator said from 585 to (615-655)

[gdale6]

I think you will be fine, balance chasing usually occurs when you are tens of thousands in debt with multi cards at the limit. I would pay it off all at once just to stop the interest charges. Good luck