topic Re: CL decrease in Credit Cards

CL decrease

emily15 — Mon, 01 May 2017 02:33:05 GMT

Does a CL decrease look bad?
One of my retail CCs drastically decreased my limit, just wondering if this looks bad in the long run? I am also considering closing this card anyway, not sure if that will make matters worse?

Re: CL decrease

Dalmus — Mon, 01 May 2017 02:51:30 GMT

The only thing that factors in your credit score is your CURRENT credit limit to balance ratio. Assuming that you aren't carrying a large balance relative to the new credit limit, it won't really have an effect on your score or any automated reviews.

If somebody does a manual review of your report, they can see your credit limit history, but as long as you aren't carrying a high balance, I don't really see an analyst really caring.

Re: CL decrease

AverageJoesCredit — Mon, 01 May 2017 03:43:34 GMT

May i ask what card and how much was the decrease. Has anything happened in your profile to cause the cld?

Re: CL decrease

emily15 — Mon, 01 May 2017 03:59:44 GMT

I totally spaced on my payment for my Old Navy card by like a week (my fault). So i'm guessing they got spooked, did a SP. Reduced my limit by about 3k.

Re: CL decrease

CreditInspired — Mon, 01 May 2017 12:41:34 GMT

@emily15 wrote:
I totally spaced on my payment for my Old Navy card by like a week (my fault). So i'm guessing they got spooked, did a SP. Reduced my limit by about 3k.

Accidents do happen. So, I hope you now have all your CCs on autopay for atleast the minimum payment due so this doesn't happen again. The late pay combined with drop in CL, especially if it's your only card, will have an impact on your credit score due to a higher utilization.

Re: CL decrease

HeavenOhio — Mon, 01 May 2017 12:45:10 GMT

If the payment was only a week late, it won't be reported to the bureaus.

Re: CL decrease

Revelate — Mon, 01 May 2017 12:48:34 GMT

CLD's are a non-issue if there weren't other problems reported to the bureau (prolonged high utilization, late payments of the 30D+ variety). Lenders know what's up and can read patterns easily enough, if they don't see the pattern, they won't get spooked.

Anecdotal experience, but I've done a number of CLD's by request and nobody said boo, and they'll look nearly identical to what happened to you from what you describe.