topic Re: Automatic CLD with Chase? in Credit Cards

Automatic CLD with Chase?

mohammadmoghimi — Tue, 07 Jul 2015 19:56:50 GMT

Hi,

I have received a voice message from Chase lending services that they want to speak to me. I went and checked my account on the website and I saw a huge CLD. I have three cards with chase:

- Sapphire 9.5k limit (~9k balance with a 0% apr balance transfer offer, just paying minimum balance due every month)
- Freedom 15k limit (pay in full, very minimal use ~few hundred per month)
- IHG 2k limit (pay in full, very minimal use, less than 100 per month on average)

So my Freedom's limit has been cut to 3.5k from 15k and IHG is 1k from 2k.

Is this normal? How can I get my limit back? I have basically invested the 9k. What should I ask? Do you guys think that the CLD is final? or negotiable? I was thinking of applying for more chase cards for the points or Slate for a free loan maybe. I certainly want to keep my Chase Freedom's limit? What do you guys think?

Re: Automatic CLD with Chase?

OmarGB9 — Tue, 07 Jul 2015 20:00:18 GMT

I think the fact that you don't seem to use their cards much and only pay the minimum on the CSP doesn't sit well with them. They feel "left out" I guess? lol. But anyway, you may be able to get your limits back if you call and plead your case. YMMV.

Re: Automatic CLD with Chase?

Callandra — Tue, 07 Jul 2015 20:07:31 GMT

It never hurts to call and explain your situation to a human being. Others have gotten limits restored upon explanation. Depending on your income and credit, the $9k balance with you only paying the minimums may have made them nervous (and more so if you have balances on other cards as well).

Good luck and hope it works out for you.

Re: Automatic CLD with Chase?

Anonymous — Tue, 07 Jul 2015 20:15:05 GMT

Without any other info my guess would be that it has to do with making only min payments on a maxed out card. It's enough to make any lender nervous. They just want to reduce the risk of you running up a bal on your other accts. Call and explain your situation. I would start making more than the min payments even with the 0% Apr.

Re: Automatic CLD with Chase?

yfan — Tue, 07 Jul 2015 20:15:45 GMT

@mohammadmoghimi wrote:

Is this normal? How can I get my limit back? I have basically invested the 9k. What should I ask? Do you guys think that the CLD is final? or negotiable? I was thinking of applying for more chase cards for the points or Slate for a free loan maybe. I certainly want to keep my Chase Freedom's limit? What do you guys think?

I would like to what the bolded part above means. What do you mean you have "basically invested" the 9K? Do you own a business? Did you pay a vendor? Did you buy an engagement ring?

Also, did anything change in your credit reports that might have spooked them (other than basically the maxed out CSP)?

Chase is a cocky lender. They don't like it when you use them for the offers and don't give them any business.

Re: Automatic CLD with Chase?

-Cal- — Tue, 07 Jul 2015 20:36:15 GMT

@mohammadmoghimi wrote:
Hi,

I have received a voice message from Chase lending services that they want to speak to me. I went and checked my account on the website and I saw a huge CLD. I have three cards with chase:

- Sapphire 9.5k limit (~9k balance with a 0% apr balance transfer offer, just paying minimum balance due every month)
- Freedom 15k limit (pay in full, very minimal use ~few hundred per month)
- IHG 2k limit (pay in full, very minimal use, less than 100 per month on average)

So my Freedom's limit has been cut to 3.5k from 15k and IHG is 1k from 2k.

Is this normal? How can I get my limit back? I have basically invested the 9k. What should I ask? Do you guys think that the CLD is final? or negotiable? I was thinking of applying for more chase cards for the points or Slate for a free loan maybe. I certainly want to keep my Chase Freedom's limit? What do you guys think?

95% percent utilization and paying minimum balance are most likely what caused your CLD.

Re: Automatic CLD with Chase?

mohammadmoghimi — Tue, 07 Jul 2015 20:45:01 GMT

I have literally invested the money bonds, stocks that sort of things. I'm at about 10% gain now so far (20% APY). I'm not going to details here.

and BTW, I called them yesterday and asked about the last day to pay the CS debit not to pay interest. They might have put a note in my account.

Re: Automatic CLD with Chase?

yfan — Tue, 07 Jul 2015 20:48:09 GMT

@mohammadmoghimi wrote:
I have literally invested the money bonds, stocks that sort of things. I'm at about 10% gain now so far (20% APY). I'm not going to details here.

Ah. So does this mean that should you need to, you could cash out those investments and pay the bill?

Re: Automatic CLD with Chase?

kdm31091 — Tue, 07 Jul 2015 21:09:39 GMT

You need to pay off debt before worrying about investing. Your gains are being washed away by the fact that youre paying credit card interest.

Honestly, can you really blame Chase? You barely use two cards you have with them. Then the third one youre maxing out and making minimum payments. As a whole, you dont look good.

Everyone wants a huge limit, and all the benefits, without actually giving the lender any business. That isn't how it works. Just like they determine if you deserve a CLI because youre using the card heavily (only one factor but still), if you barely use a card they may decide to CLD you.

Re: Automatic CLD with Chase?

go_FICO_self — Tue, 07 Jul 2015 21:23:05 GMT

@kdm31091 wrote:
You need to pay off debt before worrying about investing. Your gains are being washed away by the fact that youre paying credit card interest.

Honestly, can you really blame Chase? You barely use two cards you have with them. Then the third one youre maxing out and making minimum payments. As a whole, you dont look good.

Everyone wants a huge limit, and all the benefits, without actually giving the lender any business. That isn't how it works. Just like they determine if you deserve a CLI because youre using the card heavily (only one factor but still), if you barely use a card they may decide to CLD you.

OP stated it's 0%. you may now get off your soap box.

Re: Automatic CLD with Chase?

Anonymous — Tue, 07 Jul 2015 21:32:17 GMT

I agree with others that it was more than likely the 95% util on the CS with only minimum payments that scared them. Can you quickly make a large payment on your CS? If so, I have heard if you call them up and offer to make a large payment on the balance, explain your situation (i.e. was taking advantage of the 0% APR, etc) that they have reinstated credit lines to others, so it may work for you as well. Worth a try.

Re: Automatic CLD with Chase?

kdm31091 — Tue, 07 Jul 2015 21:34:38 GMT

I missed the 0 percent part, my bad.

I stand behind the rest of my post. With OP barely using 2 of the cards, and the other maxed out with min payments, im not even slightly surprised about the CLD. They can call and try to get it reinstated, but what im getting at is that its not like this is out of the clear blue sky. I can see why Chase did it, as upsetting as it may be.

Good luck OP.

Re: Automatic CLD with Chase?

yfan — Tue, 07 Jul 2015 21:36:43 GMT

@go_FICO_self wrote:
@kdm31091 wrote:
You need to pay off debt before worrying about investing. Your gains are being washed away by the fact that youre paying credit card interest.

Honestly, can you really blame Chase? You barely use two cards you have with them. Then the third one youre maxing out and making minimum payments. As a whole, you dont look good.

Everyone wants a huge limit, and all the benefits, without actually giving the lender any business. That isn't how it works. Just like they determine if you deserve a CLI because youre using the card heavily (only one factor but still), if you barely use a card they may decide to CLD you.
OP stated it's 0%. you may now get off your soap box.

Despite kdm's oversight of this factoid, given that the OP mentions having invested the money it isn't unreasonable to think that OP doesn't have enough liquid cash sitting in an account to pay off the debt in its entirety should they need to. I agree that it generally isn't a good idea to use credit limit as investment funds.

Re: Automatic CLD with Chase?

go_FICO_self — Tue, 07 Jul 2015 21:43:19 GMT

@yfan wrote:
@go_FICO_self wrote:
@kdm31091 wrote:
You need to pay off debt before worrying about investing. Your gains are being washed away by the fact that youre paying credit card interest.

Honestly, can you really blame Chase? You barely use two cards you have with them. Then the third one youre maxing out and making minimum payments. As a whole, you dont look good.

Everyone wants a huge limit, and all the benefits, without actually giving the lender any business. That isn't how it works. Just like they determine if you deserve a CLI because youre using the card heavily (only one factor but still), if you barely use a card they may decide to CLD you.
OP stated it's 0%. you may now get off your soap box.
Despite kdm's oversight of this factoid, given that the OP mentions having invested the money it isn't unreasonable to think that OP doesn't have enough liquid cash sitting in an account to pay off the debt in its entirety should they need to. I agree that it generally isn't a good idea to use credit limit as investment funds.

yeah, just felt liek the topic is veering off from OP's point. it's obvious that OP isn't seeking investment advice, despite your insistence to talk about it. His main interest is to have CL reinstated, not how he/she should spend with 0% BT offer.

but then again not the first time it has happened in these forums.

Re: Automatic CLD with Chase?

kdm31091 — Tue, 07 Jul 2015 21:50:20 GMT

You cannot always just snap your fingers and get it reinstated. If they feel it was justified to take it away, they wont give it back just because you ask.

Nevertheless all OP can do is call and try. Really, everything we say is irrelevant as far as getting it reinstated because only Chase can answer that.

Re: Automatic CLD with Chase?

yfan — Tue, 07 Jul 2015 21:59:53 GMT

@go_FICO_self wrote:
yeah, just felt liek the topic is veering off from OP's point. it's obvious that OP isn't seeking investment advice, despite your insistence to talk about it. His main interest is to have CL reinstated, not how he/she should spend with 0% BT offer.

And I'm talking about the the best way to try to get some of that CL back, which would be to dramatically reduce the balance on the maxed out card. Which would mean making a large payment on it. And one way to do so would be to cash out those investments, something I have hinted at. Not only is criticizing an OP's action that gets them in a bind in keeping with the normal goings on of this forum, given that in all likelihood, OP's choice on what to do with the 0% offer is directly contributory to the AA they are being subject to, that choice is not merely a relevant topic of discussion in this thread, it is in my opinion central to it. You can't fix a problem if you don't know what went wrong.

Re: Automatic CLD with Chase?

kdm31091 — Tue, 07 Jul 2015 22:05:57 GMT

The investments absolutely have to be part of the discussion. If OP has to pull money out to pay the CSP so be it because if the concern is reinstatement, it IMO isnt gonna happen unless that balance is reduced significantly.

But OP still barely used the CLD cards so Chase may decide to maintain the limits. But with the CSP paid down at least OP wouldn't look as bad.

I know OP didnt want investment advice but its related here.

Re: Automatic CLD with Chase?

go_FICO_self — Tue, 07 Jul 2015 22:12:26 GMT

@yfan wrote:
@go_FICO_self wrote:
yeah, just felt liek the topic is veering off from OP's point. it's obvious that OP isn't seeking investment advice, despite your insistence to talk about it. His main interest is to have CL reinstated, not how he/she should spend with 0% BT offer.
And I'm talking about the the best way to try to get some of that CL back, which would be to dramatically reduce the balance on the maxed out card. Which would mean making a large payment on it. And one way to do so would be to cash out those investments, something I have hinted at. Not only is criticizing an OP's action that gets them in a bind in keeping with the normal goings on of this forum, given that in all likelihood, OP's choice on what to do with the 0% offer is directly contributory to the AA they are being subject to, that choice is not merely a relevant topic of discussion in this thread, it is in my opinion central to it. You can't fix a problem if you don't know what went wrong.

what they do with 0% has no relevance with the AA. the bank doesn't see it, you don't see it. one may take it to remodel their home, one may take it for investment. you're veering off topic again.

Re: Automatic CLD with Chase?

yfan — Tue, 07 Jul 2015 22:22:26 GMT

@go_FICO_self wrote:
@yfan wrote:
@go_FICO_self wrote:
yeah, just felt liek the topic is veering off from OP's point. it's obvious that OP isn't seeking investment advice, despite your insistence to talk about it. His main interest is to have CL reinstated, not how he/she should spend with 0% BT offer.
And I'm talking about the the best way to try to get some of that CL back, which would be to dramatically reduce the balance on the maxed out card. Which would mean making a large payment on it. And one way to do so would be to cash out those investments, something I have hinted at. Not only is criticizing an OP's action that gets them in a bind in keeping with the normal goings on of this forum, given that in all likelihood, OP's choice on what to do with the 0% offer is directly contributory to the AA they are being subject to, that choice is not merely a relevant topic of discussion in this thread, it is in my opinion central to it. You can't fix a problem if you don't know what went wrong.
what they do with 0% has no relevance with the AA. the bank doesn't see it, you don't see it. one may take it to remodel their home, one may take it for investment. you're veering off topic again.

THAT they ran up the balance is relevant to the AA. HOW they ran up the balance in this case is relevant how they can reduce said balance, especially if they are not sitting on sufficient liquid funds to pay off debt, which makes HOW they ran up the balance relevant to this thread. Not to mention OP threw that into the mix themselves. Just because Chase didn't say, "Hey how dare you invest the money" doesn't mean that the method of incurring the debt is irrelevant to solving the issue of mitigating the effects of the AA, and more importantly, avoiding similar AA in the future.

And oh, if I'm off-topic, I'm sure someone with authority to definitively say so - say, a moderator, for example - will chime in.

Re: Automatic CLD with Chase?

Anonymous — Tue, 07 Jul 2015 22:26:53 GMT

I don't think discussing how the money was spent is that far off topic, after all chase knows how it was spent. Perhaps to chase it is important...but we can never know.