topic Re: Chase reducing credit lines in Business Credit

Chase reducing credit lines

red259 — Wed, 24 Nov 2021 19:45:44 GMT

Chase like other lenders seems to be tightening up on unused credit. I got a letter from them recently indicating that they have decided NOT to reduce my credit line for lack of use upon further review of my account like they said the would in initial letter. The kicker is I never got an initial letter from Chase telling me that they were going to lower my credit line for lack of use in the first place. Luckily I had recently put some transactions through the card and that apparently made Chase back off, but otherwise I would not have known until they cut my line. So make sure you are putting some spend on all your chase cards. Also, I have a different chase card that has seen a significant amount of spend recently so I am not sure if maybe that is what made them back off. Still I would just make sure to give your lesser used cards a bit of love if you want to keep the credit line where it is.

Re: Chase reducing credit lines

Anonymous — Wed, 24 Nov 2021 23:08:56 GMT

@red259 wrote:
Chase like other lenders seems to be tightening up on unused credit. I got a letter from them recently indicating that they have decided NOT to reduce my credit line for lack of use upon further review of my account like they said the would in initial letter. The kicker is I never got an initial letter from Chase telling me that they were going to lower my credit line for lack of use in the first place. Luckily I had recently put some transactions through the card and that apparently made Chase back off, but otherwise I would not have known until they cut my line. So make sure you are putting some spend on all your chase cards. Also, I have a different chase card that has seen a significant amount of spend recently so I am not sure if maybe that is what made them back off. Still I would just make sure to give your lesser used cards a bit of love if you want to keep the credit line where it is.

Good information as Chase noticed me for the same thing on a business card. Reason was under utilization (so you know they are correct - they did the same thing in 2008 and 2017). Did get a snail mail letter!

Re: Chase reducing credit lines

CreditCuriosity — Wed, 24 Nov 2021 22:58:08 GMT

Hmm didn't know chase was going through this for some. Just shows any lender can or will do so shrug.

Re: Chase reducing credit lines

K-in-Boston — Wed, 24 Nov 2021 23:04:48 GMT

I appear to be unaffected. Are these very large unused lines that are being gutted? Other than Freedom categories, I haven't given Chase much love the past year or so and never bothered to reallocate my CFU limit back to CSR after I paid off the intro BT.

Re: Chase reducing credit lines

red259 — Wed, 24 Nov 2021 23:30:21 GMT

@K-in-Boston wrote:
I appear to be unaffected. Are these very large unused lines that are being gutted? Other than Freedom categories, I haven't given Chase much love the past year or so and never bothered to reallocate my CFU limit back to CSR after I paid off the intro BT.

This happened on one my my non-AF ink cards. Credit line on that particular card isn't that large it is about $12k. I only use the card for specific charges so maybe run $300-$400 a month through it. I have been using other Chase cards pretty heavily though the last 2 or 3 months. It is a bit annoying because I reduced my own business limits by a substantial amount several months ago in hopes of freeing up some credit on the future apps. This is a card I have had for several years.

Re: Chase reducing credit lines

BearsCubsOtters — Thu, 25 Nov 2021 00:14:09 GMT

@Anonymous wrote:
@red259 wrote:
Chase like other lenders seems to be tightening up on unused credit. I got a letter from them recently indicating that they have decided NOT to reduce my credit line for lack of use upon further review of my account like they said the would in initial letter. The kicker is I never got an initial letter from Chase telling me that they were going to lower my credit line for lack of use in the first place. Luckily I had recently put some transactions through the card and that apparently made Chase back off, but otherwise I would not have known until they cut my line. So make sure you are putting some spend on all your chase cards. Also, I have a different chase card that has seen a significant amount of spend recently so I am not sure if maybe that is what made them back off. Still I would just make sure to give your lesser used cards a bit of love if you want to keep the credit line where it is.
Good information as Chase noticed me for the same thing on a business card. Reason was under utilization (so you know they are correct - they did the same thing in 2008 and 2017). Did get a snail mail letter!

+ 1

I have been watching the business forum to see if I was the only one. I received a letter on my Ink Unlimited last week. They are cutting the limit in half.

It seems that they are taking our credit lines away to give them to Amazon cardholders.....

I am closing the Ink Unlimited once the next cycle cuts so that I can move my points to my Ink Cash. I am not angry and they are correct that I have not been utilizing the card. Maybe if they made it a 2% card I would.

Re: Chase reducing credit lines

TSlop — Thu, 25 Nov 2021 00:43:44 GMT

I wouldn't be surprised if they did that to me. I only use a fraction of the limits that they gave me (no CLIs, but I have shifted them around twice I think). I just had a ~$800 statement on my CFU, which is high for me. I'm planning on apping for a CFF after December 4th, and I am most likely going to close my CF first. I'd imagine I'm close to their internal limit anyway.

Re: Chase reducing credit lines

4sallypat — Thu, 25 Nov 2021 01:30:01 GMT

I would not be surprised if Chase cuts all my current zero balance cards as I was turned off from their denial for the 250K SUB Marriott card they had...

Have no need to spend on my 3 Chase cards even for the holidays.

Still have a sour taste of them so they are all sock drawered.

Re: Chase reducing credit lines

Yasselife — Thu, 25 Nov 2021 01:34:24 GMT

@red259

Can you describe the lack of use with Chase, how many months and amount before the AA?

Re: Chase reducing credit lines

red259 — Thu, 25 Nov 2021 03:57:34 GMT

@Yasselife wrote:
@red259
Can you describe the lack of use with Chase, how many months and amount before the AA?

I have spent the roughly same amount for years on the card. My behavior didn't change their analysis did. It wasn't an unused card it was just was an underutilized card. In the end they changed their mind but others may not be as lucky. The comment about amazon cards is interesting. I hear that people are getting approved for chase amazon cards and even southwest cards even though they are over 5/24. Think chase is really trying to encourage more amazon accounts and offering bigger credit lines than normal on amazon cards.

Re: Chase reducing credit lines

BearsCubsOtters — Sun, 28 Nov 2021 15:54:37 GMT

@BearsCubsOtters wrote:
@Anonymous wrote:
@red259 wrote:
Chase like other lenders seems to be tightening up on unused credit. I got a letter from them recently indicating that they have decided NOT to reduce my credit line for lack of use upon further review of my account like they said the would in initial letter. The kicker is I never got an initial letter from Chase telling me that they were going to lower my credit line for lack of use in the first place. Luckily I had recently put some transactions through the card and that apparently made Chase back off, but otherwise I would not have known until they cut my line. So make sure you are putting some spend on all your chase cards. Also, I have a different chase card that has seen a significant amount of spend recently so I am not sure if maybe that is what made them back off. Still I would just make sure to give your lesser used cards a bit of love if you want to keep the credit line where it is.
Good information as Chase noticed me for the same thing on a business card. Reason was under utilization (so you know they are correct - they did the same thing in 2008 and 2017). Did get a snail mail letter!
+ 1

I have been watching the business forum to see if I was the only one. I received a letter on my Ink Unlimited last week. They are cutting the limit in half.

It seems that they are taking our credit lines away to give them to Amazon cardholders.....

I am closing the Ink Unlimited once the next cycle cuts so that I can move my points to my Ink Cash. I am not angry and they are correct that I have not been utilizing the card. Maybe if they made it a 2% card I would.

Updating....in my letter, at the bottom which I had not read before, Chase gave me the option of calling in to prevent the CLD. So I did. Quick and painless with no questions. Either they are hoping people will not notice or this letter is to serve as a warning that one should use their Chase cards more often.

Re: Chase reducing credit lines

mikeef — Wed, 01 Dec 2021 16:22:02 GMT

Since I have both personal & business accounts with Chase, I thought I would weigh in. As you can see in the image I'm in a little too much debt with Chase right now!

However, they have not lowered my limits, in fact they sent me a letter on both my business Cash Ink card and personal Chase Freedom card that I'm eligible to take out regular cash term loans with the available credit starting on December 15th.

I think its simply too much of a risk for a bank to keep large credit lines open on cards that are not utilized, as they are most likely candidates for desperation charges for those businesses & consumers in financial trouble. Banks are comfortable with a large residual payment amount that grows at a steady pace so they know you can and will be able to make the payment, but a line of $25k with no balance is a large liability waiting to happen. The other reason would be if something changed on your personal credit, like if your balance to available credt is growing significantly.

Re: Chase reducing credit lines

Anonymous — Tue, 30 Nov 2021 22:31:44 GMT

I received a letter a few weeks ago saying they were reducing the limit on SW card to match usage. They indicated if I wanted to keep the current limit, I had to call in and ask them to keep the limit and not reduce. But I suspect I don't start using the line harder than I've been, another letter is coming.

Re: Chase reducing credit lines

Anonymous — Tue, 30 Nov 2021 22:48:39 GMT

@BearsCubsOtters

Read your post and reread the letter. Called in and the Chase Ink Business representative was able to note my account not to reduce the CL. Like other posters have mentioned, Chase may be looking for an increase in utilization! As we all know, it is just "business"!

Re: Chase reducing credit lines

BearsCubsOtters — Fri, 03 Dec 2021 07:23:15 GMT

@mikeef wrote:
c

Since I have both personal & business accounts with Chase, I thought I would weigh in. As you can see in the image I'm in a little too much debt with Chase right now!
However, they have not lowered my limits, in fact they sent me a letter on both my business Cash Ink card and personal Chase Freedom card that I'm eligible to take out regular cash term loans with the available credit starting on December 15th.

I think its simply too much of a risk for a bank to keep large credit lines open on cards that are not utilized, as they are most likely candidates for desperation charges for those businesses & consumers in financial trouble. Banks are comfortable with a large residual payment amount that grows at a steady pace so they know you can and will be able to make the payment, but a line of $25k with no balance is a large liability waiting to happen. The other reason would be if something changed on your personal credit, like if your balance to available credt is growing significantly.

Yeah, other credit card banks have stated the same; that too much available unused credit is a risk.

It also loses money for them as they have to keep reserves for our credit lines. Why not take some credit away from someone whom clearly is not using it and give that credit instead to someone who is/will? It seems Capital One in recent years follows this philosophy.

I have no proof, but I really do believe that this move comes at the same time that Chase is approving massive starting limits on new Amazon cards and large credit line increases on existing Amazon cards. Rob Peter to pay Paul? Maybe a coincidence or strategic. Who knows.

Re: Chase reducing credit lines

BearsCubsOtters — Thu, 02 Dec 2021 16:29:42 GMT

@Anonymous

Yes, thank you. I did re-read the letter and noticed at the bottom the option to call in and opt out of the CLD. I did so and it was painless. I posted about that somewhere....

I will use it a bit more as it is my oldest, reported busines card.

Re: Chase reducing credit lines

Anonymous — Thu, 02 Dec 2021 19:29:51 GMT

Chase decreased my biz limit big time. I too have a bit of a balance with them. 1 biz and 2 personal but I paid off the biz and bam. I am now chunking away at the personal. I am a bit miffed.