topic Re: Question about credit line decreases in Credit Cards

Question about credit line decreases

Anonymous — Fri, 30 Jan 2009 23:17:05 GMT

I recently had to almost max out a WaMu credit card due to an emergency (about 2 months ago). It had a zero balance with a $2500.00 limit. After I spent what I needed, roughly $2300.00 of it, they called and confirmed that it was me spending the money. Shortly after, I received a letter stating that they lowered my limited to $2300, effectively maxxing out the card.

Since then, I've made more then minimum payments and the balance is now approximately $2000.00. I can now pay the credit card off but I'm afraid that they'll lower the limit to something in the $500.00 range. What are the chances that this will happen and is there anything I could do to prevent it?

Re: Question about credit line decreases

Anonymous — Fri, 30 Jan 2009 23:21:45 GMT

There is indeed a chance they will keep balance chasing you, unfortunately not much you can do about, just pay it off and pray! If they do drop you to $500, show it a little activity, pay it in full, call and ask for your limit back.

Re: Question about credit line decreases

oracles — Sat, 31 Jan 2009 02:29:04 GMT

H Dax and welcome to the forum

Yes fender is correct in the fact that they will probably decrease your limit to $500 dollars. I really don't see anything you can do about it.

I will say, why pay interest on that balance of $2000 dollars just because you don't want them to decrease your limit. You only have at your disposal 300 dollars to use. Your limit is 2300 and you have 2k as a balance. If you pay it off, you will not pay any interest, saving you money and if they reduce it to 500, you will now have an additional 200 dollars at your disposal.

Also one more thing, your util at the moment is 87% which is killing your score. Pay it off and your util is now 0.

It does more harm then good to keep the balance on the card.

Hope this helps and keep us updated

Re: Question about credit line decreases

Anonymous — Sat, 31 Jan 2009 16:44:25 GMT

When I read this post, I thought I had written it and didn't remember.

I have a WaMu card that had a $4K limit. I had spent about $2.5K of that. I went to the dentist a month ago and was happy to have the room available to pay for an emergency repair and took it up to about $3,650. A few days later the statement closed and I got a letter telling me that they lowered my limit by $212. (I have no idea how they got that amount - they left over $100 worth of room for me - maybe so I would not get wiped out by interest or something.)

So my $4K card now has a limit of $3,788 or something odd like that. I also suspect that as I pay it down, they may "balance chase" me. This is the ONLY of my many cards that has given me a CLD.

Message Edited by ChesterPDexter on 01-31-2009 08:44 AM

Re: Question about credit line decreases

Anonymous — Sun, 01 Feb 2009 06:19:37 GMT

Its hard to say, but remember that they now go by Chase standards and guidelines, which means a credit limit reduction or worse total closure on the acct. Call them and ask to speak to the dept who made the drop in your credit limit, they should be able to explain why and what you can do to help avoid it in the future.

Re: Question about credit line decreases

Anonymous — Mon, 02 Feb 2009 17:10:29 GMT

@Anonymous wrote:
When I read this post, I thought I had written it and didn't remember.

I have a WaMu card that had a $4K limit. I had spent about $2.5K of that. I went to the dentist a month ago and was happy to have the room available to pay for an emergency repair and took it up to about $3,650. A few days later the statement closed and I got a letter telling me that they lowered my limit by $212. (I have no idea how they got that amount - they left over $100 worth of room for me - maybe so I would not get wiped out by interest or something.)

So my $4K card now has a limit of $3,788 or something odd like that. I also suspect that as I pay it down, they may "balance chase" me. This is the ONLY of my many cards that has given me a CLD.
Message Edited by ChesterPDexter on 01-31-2009 08:44 AM

Exact same thing for me, they lowered it by $219 leaving me little room.