topic Re: What to do about CLD's? in Credit Cards

What to do about CLD's?

v8eaterWRX — Sat, 13 Sep 2008 19:57:17 GMT

So I bought my first house a few months ago. At the time I had around $10k in cc debt and around 75% still available. Seems that as soon as the mortgage showed on my credit report I had CLD's on nearly all my cards dropping me to around 30% available and taking a huge shot to the jaw of my FICO score.

I generally charge up around $3k a month and pay the balances off at statement on my WAMU and only run balances on the other cards. Odd thing is that WAMU was the biggest cld. I am now hestiant to pay off the balance and watch my CL decrease again. Why on earth would they do this? I NEVER miss payments, and never make payments less than 3x the minimums.

Re: What to do about CLD's?

Anonymous — Sat, 13 Sep 2008 20:46:12 GMT

Yesterday, I read an article that 6 of the major credit card issuers will decrease credit limits this year if they see only the slightest hint that someone might pose a credit risk. Having high debt is one of the risks. I don't have the link at the moment, but Amex, WaMu or Wells Fargo were 3 of the 6. So you are one among many.

They are just limiting their risks.

Message Edited by Ulan on 09-13-2008 01:46 PM

Re: What to do about CLD's?

wmarat — Sat, 13 Sep 2008 20:49:21 GMT

Pay off your balances and ask for CLI in 6 months.

v8eaterWRX wrote:
So I bought my first house a few months ago. At the time I had around $10k in cc debt and around 75% still available. Seems that as soon as the mortgage showed on my credit report I had CLD's on nearly all my cards dropping me to around 30% available and taking a huge shot to the jaw of my FICO score.

I generally charge up around $3k a month and pay the balances off at statement on my WAMU and only run balances on the other cards. Odd thing is that WAMU was the biggest cld. I am now hestiant to pay off the balance and watch my CL decrease again. Why on earth would they do this? I NEVER miss payments, and never make payments less than 3x the minimums.

Re: What to do about CLD's?

v8eaterWRX — Sat, 13 Sep 2008 21:03:28 GMT

Wells Fargo was the other one. Doesnt make sense to me given the fact that I have never had any issues with either of the banks. Both of them had huge limits and just cut back to nothing.

Re: What to do about CLD's?

Anonymous — Sat, 13 Sep 2008 21:26:50 GMT

It's a pity I don't have the link to that article, but it made sense. Borrowers who roughly know your income have a very close look at your total credit line this year. If they think that you are pretty much maxed out with payments now, they want you to avoid taking on any additional credit card debt that would make matters worse. And a mortgage payment reduces the money you have available to spend on other things considerably.

You had a 25% utilization on your credit cards. They want you to pay down your debt. With nearly 70% utilization now, you don't really have any other option.

Re: What to do about CLD's?

wmarat — Sat, 13 Sep 2008 21:42:32 GMT

I am about to shop for morgage in few months. When I get morgage I do expect that at least Amex will CLD me. Unblemished payment history, always PIF, but they are very nervous now. If it happens, I am going to wait 6 months and ask CLI.