topic Re: Someone Plz Explain CLD!!! in Credit Cards

Someone Plz Explain CLD!!!

toi34 — Fri, 15 May 2015 02:00:06 GMT

Discover CLD me by $500!

I have no new cards in over a year, no late payments in over 4 years, no charge-offs or collections showing on any report (not even "paid"), no overall high utilization, and for the last two years I've been making more than minimum payments on all my cards when I have a balance. For Discover this month I made a $600 payment, my statement cut on the 9th. Last night my full credit limit was available, but today I notice it has been cut by $500. The CSR didn't know why either, but gave me a number to call tomorrow.

Any theories why this could have happened? I didn't have a high CL to begin with.... I'm very disappointed...this has ruined my night.

Re: Someone Plz Explain CLD!!!

Anonymous — Fri, 15 May 2015 02:07:13 GMT

What's your utilization like on that card and others? When I was CLD'd and balance chased by Chase and Citi several years ago, they could tell I was sort of dog paddling to stay afloat.

Re: Someone Plz Explain CLD!!!

pizza1 — Fri, 15 May 2015 02:13:38 GMT

Sorry to hear this OP..

Like the poster said above...whats your limit/current utilization on the Discover card? How many cards are carrying balances on, and whats your overall TOTAL util amongst all cards?

Sure hope it gets worked out soon, call the number tomorrow and find out.

Re: Someone Plz Explain CLD!!!

toi34 — Fri, 15 May 2015 02:22:32 GMT

My internal utilization was high on that card because I purchased a Carnival Cruise ticket last month for Spring Break, but I paid it off this month before the statement cut {hence the $600 payment} SMH... I pay my household bills on my major CC's so I can get the points/cash back, but I pay them off before the statements cut. I do this every month so that I'm using the cards regularly, but they never report a balance to the bureau's. I have some balances on some of my store cards, but nothing major.

Re: Someone Plz Explain CLD!!!

dmFICO8 — Fri, 15 May 2015 02:23:02 GMT

Answer pizza1's questions would help get better understanding. You probably carry balance too long and the overall payment is not large enough, but Discover CLI train is still running on track, try every 17 days to see if you can regain or improve your CL.

Re: Someone Plz Explain CLD!!!

toi34 — Fri, 15 May 2015 02:24:41 GMT

Thansk dmFico08... I answered Pizza1.

Re: Someone Plz Explain CLD!!!

pizza1 — Fri, 15 May 2015 03:42:40 GMT

@toi34 wrote:
My internal utilization was high on that card because I purchased a Carnival Cruise ticket last month for Spring Break, but I paid it off this month before the statement cut {hence the $600 payment} SMH... I pay my household bills on my major CC's so I can get the points/cash back, but I pay them off before the statements cut. I do this every month so that I'm using the cards regularly, but they never report a balance to the bureau's. I have some balances on some of my store cards, but nothing major.

its not just majors count towards utilization, its ALL revolving cards...including retail(store). what is your total util? if you add up what you owe on ALL cards, and divide it by your total availabel credit, what would your % be? how many cards do you have balances on? There has to be a reason for the CLD..since youve made that payment already, Id call in the morning and inquire. Did your score drop suddenly? just brainstorming here, trying to figure out ideas to help out.

How high is high on the util on the Discover card? Like max or almost max? and since your payment...what is your util now on that one card? is it over 50%?

Re: Someone Plz Explain CLD!!!

Anonymous — Fri, 15 May 2015 03:50:00 GMT

Something else had to spook them.

Re: Someone Plz Explain CLD!!!

toi34 — Fri, 15 May 2015 04:04:10 GMT

@pizza1 wrote:
@toi34 wrote:
My internal utilization was high on that card because I purchased a Carnival Cruise ticket last month for Spring Break, but I paid it off this month before the statement cut {hence the $600 payment} SMH... I pay my household bills on my major CC's so I can get the points/cash back, but I pay them off before the statements cut. I do this every month so that I'm using the cards regularly, but they never report a balance to the bureau's. I have some balances on some of my store cards, but nothing major.

its not just majors count towards utilization, its ALL revolving cards...including retail(store). what is your total util? if you add up what you owe on ALL cards, and divide it by your total availabel credit, what would your % be? how many cards do you have balances on? There has to be a reason for the CLD..since youve made that payment already, Id call in the morning and inquire. Did your score drop suddenly? just brainstorming here, trying to figure out ideas to help out.

How high is high on the util on the Discover card? Like max or almost max? and since your payment...what is your util now on that one card? is it over 50%?

I'll just have to wait and see in the morning, but to answer your questions: my utilization on Discover and all of my other majors report $0 every month (read my explanation why in an earlier comment). The cards I have balances on total 37% utilization, maybe lower now since my May payments have posted.

My Discover card was not and is not maxed out. No collections have popped-up or nothing like that -- it's inexplicable!

But I've been reading older posts about CLD's and some suggest that making a big payment can trigger a CLD? Is this true...if so, that is just LAME!

I have also been hitting the luv button (x10) since everyone is getting CLI's and I've never had one , I've had the card for just over a year.

But anyway, thanks for brainstorming with me. I'll report back tomorrow.

Re: Someone Plz Explain CLD!!!

happypill — Fri, 15 May 2015 04:10:20 GMT

I'm wondering if you've changed your spending pattern recently. Was the cruise you paid for significantly different from your normal spending pattern?

Re: Someone Plz Explain CLD!!!

pizza1 — Fri, 15 May 2015 04:16:17 GMT

hopefully it all gets worked out once you call. surely a big payment wouldnt trigger a CLD. and $600 really isn't that big of a payment, so Im at a loss here. please let us know, and good luck on the phone call.! What a pain to have to deal with

Re: Someone Plz Explain CLD!!!

toi34 — Fri, 15 May 2015 04:16:57 GMT

@happypill wrote:
I'm wondering if you've changed your spending pattern recently. Was the cruise you paid for significantly different from your normal spending pattern?

Yes; I've never put that much at one time on that card, but look at the limit, it's not like I could go 'hog wild' anyway. LOL.....

Re: Someone Plz Explain CLD!!!

NRB525 — Fri, 15 May 2015 04:51:13 GMT

@toi34 wrote:
@happypill wrote:
I'm wondering if you've changed your spending pattern recently. Was the cruise you paid for significantly different from your normal spending pattern?
Yes; I've never put that much at one time on that card, but look at the limit, it's not like I could go 'hog wild' anyway. LOL.....

I only saw the one charge on the Discover card. Is that a new charge for them?

Here's my estimation:

You've got a number of store cards carrying balances, sounds like it adds up to a high percentage. Thus, open, carried balances with only 2x (estimating here) minimum payments being made. On each card, if you are carrying a balance, the Minimum Required Payment and Actual Payment are displayed each month. That sets up one payment pattern. The CCC algorithms look at it and say... hmmmm... this cardholder is only making some small X the Minimum Payment. Watch closely for failure..."

You said your regular cards are all paid before statement cut? That leads to no balance reported, no Minimum Payment reporting, and without that, no Actual Payment reports either (because you aren't carrying a balance) but it also does not report your balance. (nrb climbs up on soapbox...) IF you let the actual usage of each of those regular cards report natually on the credit report, the Open Amount shows, no Minimum payment shows, and No Payment shows, which communicates; There was no minimum payment, the amount was PIF off that statement, month after month for multiple cards. This sets up an entirely different payment pattern: PIF, no balances carried. Other CCC look at this and their algorithms say "Ah! Nice! This person PIF every month." But, alas, you didn't let the balances report, so, aw shucks, you didn't get credit for PIF all those months.

Then, out of the blue, you do one large (relatively) charge to the Discover card, and their algorithm begins to freak out "OMG! here comes the minimum payments! Secure the bank! CLD!" Your PIF just passed their algorithm in the night as it was on its way to CLD based on some new calculation of the CL they see fitting your style.

This is why I think it is a long term bad idea to have "all cards report zero but one": There's no history of handling a payment flow that the other CCC can read and get comfortable with. Combine that with carrying a bunch of high percentage balances at some low monthly payment rate and it's "Danger, Will Robinson!"

Good luck, hoping for the best with the call to find out what happened.

Re: Someone Plz Explain CLD!!!

Anonymous — Fri, 15 May 2015 05:03:10 GMT

@NRB525 wrote:
@toi34 wrote:
@happypill wrote:
I'm wondering if you've changed your spending pattern recently. Was the cruise you paid for significantly different from your normal spending pattern?
Yes; I've never put that much at one time on that card, but look at the limit, it's not like I could go 'hog wild' anyway. LOL.....
I only saw the one charge on the Discover card. Is that a new charge for them?
Here's my estimation:

You've got a number of store cards carrying balances, sounds like it adds up to a high percentage. Thus, open, carried balances with only 2x (estimating here) minimum payments being made. On each card, if you are carrying a balance, the Minimum Required Payment and Actual Payment are displayed each month. That sets up one payment pattern. The CCC algorithms look at it and say... hmmmm... this cardholder is only making some small X the Minimum Payment. Watch closely for failure..."

You said your regular cards are all paid before statement cut? That leads to no balance reported, no Minimum Payment reporting, and without that, no Actual Payment reports either (because you aren't carrying a balance) but it also does not report your balance. (nrb climbs up on soapbox...) IF you let the actual usage of each of those regular cards report natually on the credit report, the Open Amount shows, no Minimum payment shows, and No Payment shows, which communicates; There was no minimum payment, the amount was PIF off that statement, month after month for multiple cards. This sets up an entirely different payment pattern: PIF, no balances carried. Other CCC look at this and their algorithms say "Ah! Nice! This person PIF every month." But, alas, you didn't let the balances report, so, aw shucks, you didn't get credit for PIF all those months.

Then, out of the blue, you do one large (relatively) charge to the Discover card, and their algorithm begins to freak out "OMG! here comes the minimum payments! Secure the bank! CLD!" Your PIF just passed their algorithm in the night as it was on its way to CLD based on some new calculation of the CL they see fitting your style.

This is why I think it is a long term bad idea to have "all cards report zero but one": There's no history of handling a payment flow that the other CCC can read and get comfortable with. Combine that with carrying a bunch of high percentage balances at some low monthly payment rate and it's "Danger, Will Robinson!"

Good luck, hoping for the best with the call to find out what happened.

You just summed it up.

This is why I let larger balances report. And have still gotten nice approvals even with 60% utilization reporting on any one or two cards.

Re: Someone Plz Explain CLD!!!

Anonymous — Fri, 15 May 2015 06:10:05 GMT

{Mod Cut. I think someone wants a vacation}

Re: Someone Plz Explain CLD!!!

pizza1 — Fri, 15 May 2015 06:10:38 GMT

@Anonymous wrote:
{Edited}

Did you even read the post? is a CLD, not a CLI..Im sure the OP doesnt want to be congratulated on a CLD. Ae you drunk, lol? Ive noticed a few of your posts tonight dont make sense at all..

Re: Someone Plz Explain CLD!!!

Anonymous — Fri, 15 May 2015 06:10:59 GMT

@Anonymous wrote:
{Edited}

Why? For a CLD?

Re: Someone Plz Explain CLD!!!

Jerry45 — Fri, 15 May 2015 10:56:11 GMT

I was thinking the same thing, but are credit cards not to be used for big ticket items like Cruise Tickets? It has to be something else.

Re: Someone Plz Explain CLD!!!

Jerry45 — Fri, 15 May 2015 10:59:57 GMT

NRB, thank you for the very informative post. I was planning on using my Chase card for a Overseas Plane ticket, and I do PIF my other cards to a 0 Balance. I hope I do not pull a trigger also

Re: Someone Plz Explain CLD!!!

Jerry45 — Fri, 15 May 2015 11:02:17 GMT

Wow, Nix. My whole strategy of keeping only one account with a balance, is starting to fly thru the window. Luckily I have no store cards, except for Sportsmans, which is a Visa.