topic Re: CLDs on high limit cards w/not enough spend? in Credit Cards

CLDs on high limit cards w/not enough spend?

Anonymous — Thu, 07 Sep 2017 16:22:39 GMT

I've never received one, but am curious if anyone has. I'm not talking about CLDs due to lack of activity on the card. It could be a card that you use at least a few times per month, but perhaps the amount of the spend simply isn't much at all relative to the limit. For example, you have a $30k limit card but only put $150 through it a month for many months.

I'm also not talking about CLDs that could have resulted from any profile changes such as recently missing a payment, adverse changes in utilization, or anything else. My question is targeted specifically to a small spend on big limit. In fact, if someone did receive a CLD for this reason and called CS to inquire why and were told it was due to insufficient use of current credit limit that would validate the purpose of this thread.

Re: CLDs on high limit cards w/not enough spend?

Anonymous — Tue, 14 Nov 2017 13:56:39 GMT

@Anonymous wrote:
I've never received one, but am curious if anyone has. I'm not talking about CLDs due to lack of activity on the card. It could be a card that you use at least a few times per month, but perhaps the amount of the spend simply isn't much at all relative to the limit. For example, you have a $30k limit card but only put $150 through it a month for many months.

I'm also not talking about CLDs that could have resulted from any profile changes such as recently missing a payment, adverse changes in utilization, or anything else. My question is targeted specifically to a small spend on big limit. In fact, if someone did receive a CLD for this reason and called CS to inquire why and were told it was due to insufficient use of current credit limit that would validate the purpose of this thread.

I'm pretty sure that the CapitalOne CLDs that happened to @Anonymous and @CreditCuriosity were based quite a bit on the none or limited use of their limits.

Re: CLDs on high limit cards w/not enough spend?

iced — Thu, 07 Sep 2017 17:49:22 GMT

@Anonymous wrote:
I've never received one, but am curious if anyone has. I'm not talking about CLDs due to lack of activity on the card. It could be a card that you use at least a few times per month, but perhaps the amount of the spend simply isn't much at all relative to the limit. For example, you have a $30k limit card but only put $150 through it a month for many months.

I'm also not talking about CLDs that could have resulted from any profile changes such as recently missing a payment, adverse changes in utilization, or anything else. My question is targeted specifically to a small spend on big limit. In fact, if someone did receive a CLD for this reason and called CS to inquire why and were told it was due to insufficient use of current credit limit that would validate the purpose of this thread.

I can only speak to Chase, Barclays, and Citi on this, but I have found that no matter how little I put through them each month, or for how long (or even stop using them altogether), I have never received a CLD.

Not sure if they're considered big limits ($7,400/$15,600/$50,000/$50,000), but porportional to their limits. Neither Chase card has seen much more than 5%/$2500 usage on a given month this year, and in the case of Barclays and Citi, usage is $0.

Re: CLDs on high limit cards w/not enough spend?

Anonymous — Thu, 07 Sep 2017 18:14:17 GMT

My highest TL is barclay. I use it the least but I do purchase one or two things a month to show activity. Haven't been cut yet.

My mom had a high barclay TL and they cut her CL after one billing period of non-use.

YMMV

Re: CLDs on high limit cards w/not enough spend?

Anonymous — Thu, 07 Sep 2017 19:17:53 GMT

@Anonymous wrote:

I'm pretty sure that the CapitalOne CLDs that happened to @Anonymous and @CreditCuriosity were based quite a bit on the no to limited use of their limits.

LTL and CC, if you happen to see this thread and could comment on the above that would be great. If you guys did receive CLDs on your Capital One accounts I'd like to know what your limits were and what your low proportion to limit spend was per cycle (and how many cycles) before you saw the CLD. It would probably take me forever to find threads where you both discussed this topic. If you don't see this thread in a few days I'll shoot you PMs. Thanks guys.

Re: CLDs on high limit cards w/not enough spend?

Anonymous — Thu, 07 Sep 2017 20:22:25 GMT

@Anonymous wrote:
@Anonymous wrote:

I'm pretty sure that the CapitalOne CLDs that happened to @Anonymous and @CreditCuriosity were based quite a bit on the no to limited use of their limits.
LTL and CC, if you happen to see this thread and could comment on the above that would be great. If you guys did receive CLDs on your Capital One accounts I'd like to know what your limits were and what your low proportion to limit spend was per cycle (and how many cycles) before you saw the CLD. It would probably take me forever to find threads where you both discussed this topic. If you don't see this thread in a few days I'll shoot you PMs. Thanks guys.

Here's the thread CC started about his CLD. I don't think LTL had a thread but disucused his in this one (at least if I remember correctly)

Re: CLDs on high limit cards w/not enough spend?

Anonymous — Thu, 07 Sep 2017 20:59:22 GMT

I don't use most of my cards, and no CLD's yet - with the CapitalOne QS I'm making a charge every quarter to keep it alive. The $3k CLI's have stopped but they did give me another $750 recently. I have not used the card regularly for over a year.

Re: CLDs on high limit cards w/not enough spend?

CreditCuriosity — Thu, 07 Sep 2017 23:40:08 GMT

@Anonymous wrote:
@Anonymous wrote:
@Anonymous wrote:

I'm pretty sure that the CapitalOne CLDs that happened to @Anonymous and @CreditCuriosity were based quite a bit on the no to limited use of their limits.
LTL and CC, if you happen to see this thread and could comment on the above that would be great. If you guys did receive CLDs on your Capital One accounts I'd like to know what your limits were and what your low proportion to limit spend was per cycle (and how many cycles) before you saw the CLD. It would probably take me forever to find threads where you both discussed this topic. If you don't see this thread in a few days I'll shoot you PMs. Thanks guys.
Here's the thread CC started about his CLD. I don't think LTL had a thread but disucused his in this one (at least if I remember correctly)

+1 on Irish's link.. Any additinoal data you want just know.. Ran anywhere around 50-150 a month if I recall correctly on it otherwise the link should work and have those DP's.

Re: CLDs on high limit cards w/not enough spend?

manyquestions — Fri, 08 Sep 2017 01:12:24 GMT

@Anonymous wrote:
I don't use most of my cards, and no CLD's yet - with the CapitalOne QS I'm making a charge every quarter to keep it alive. The $3k CLI's have stopped but they did give me another $750 recently. I have not used the card regularly for over a year.

How spend was required to get the 3K CLI? Any idea on what the break point is on that with CapitalOne?

Re: CLDs on high limit cards w/not enough spend?

iheartwings — Fri, 08 Sep 2017 05:54:18 GMT

@CreditCuriousity wrote:
@Anonymous wrote:
@Anonymous wrote:
@Anonymous wrote:

I'm pretty sure that the CapitalOne CLDs that happened to @Anonymous and @CreditCuriosity were based quite a bit on the no to limited use of their limits.
LTL and CC, if you happen to see this thread and could comment on the above that would be great. If you guys did receive CLDs on your Capital One accounts I'd like to know what your limits were and what your low proportion to limit spend was per cycle (and how many cycles) before you saw the CLD. It would probably take me forever to find threads where you both discussed this topic. If you don't see this thread in a few days I'll shoot you PMs. Thanks guys.
Here's the thread CC started about his CLD. I don't think LTL had a thread but disucused his in this one (at least if I remember correctly)
+1 on Irish's link.. Any additinoal data you want just know.. Ran anywhere around 50-150 a month if I recall correctly on it otherwise the link should work and have those DP's.

Here's a thread that is more recent (last month) regarding Cap One CLD.

My experience starts at post 53. I had a Capital One QS VS that was opened with a $30k CL in 6/2016. I somehow was able to get a CLI to $30,750 after the 3rd statement cut. I used it a bunch, then not so much for a couple months, but over the several months prior to the CLD, I had all but 2 my utilities and subscriptions run through it (the other two were actually on my other older QS card). Though I didn't let it report a balance, it totaled $450/month. My older QS had a limit of $17,750 and was used less than the VS.

They gave me a CLD to $10k at the beginning of August 2017. They sent me no fewer than 3 electronic copies, as well as 2 paper copies, of the CLD letter, which said:

We noticed that you have not been using a significant portion of the credit line on your account

ending in XXXX. To better fit your usage, we have changed your credit limit from $30,750 to $10,000.

You can find the specific reasons for this change below:

- Current account(s) not used enough for assigned credit limit(s)

- Balance(s) on non-Capital One revolving trade(s) are too low

We have taken care to keep your credit limit significantly above your highest balance at any point in

the last year. Hopefully this will ensure you can continue to use your card as you have been. We value

your business as our customer. And don't worry - none of your other card features have changed.

If you have questions about how this change might affect your credit score, we would encourage you

to consult CreditWise, our free credit monitoring service at creditwise.capitalone.com.

In essence, they weren't happy that I wasn't spending enough for their cards, and they weren't happy that I wasn't spending on other bankcards either.

While I was angry, I realized that their move gave me the impetus to re-evaluate my portfolio, and I ended up closing both accounts (my older QS was the first card I got after my BK7, so that was a hit; but, I was able to take advantage of AmEx backdating in 2014, so not as bad as one might think). I have to say that it was liberating to get rid of a couple lines.

Re: CLDs on high limit cards w/not enough spend?

Anonymous — Fri, 08 Sep 2017 08:53:26 GMT

iheartwings, thanks for your post above and pasting the exact reasoning letter. That's exactly what I was looking for with this thread. So, it seems the 2-3 examples we have so far of this happening has been with Capital One. Has anyone experienced the same thing with any other creditors?

Re: CLDs on high limit cards w/not enough spend?

Anonymous — Fri, 08 Sep 2017 12:26:53 GMT

@Anonymous wrote:
@Anonymous wrote:
@Anonymous wrote:

I'm pretty sure that the CapitalOne CLDs that happened to @Anonymous and @CreditCuriosity were based quite a bit on the no to limited use of their limits.
LTL and CC, if you happen to see this thread and could comment on the above that would be great. If you guys did receive CLDs on your Capital One accounts I'd like to know what your limits were and what your low proportion to limit spend was per cycle (and how many cycles) before you saw the CLD. It would probably take me forever to find threads where you both discussed this topic. If you don't see this thread in a few days I'll shoot you PMs. Thanks guys.
Here's the thread CC started about his CLD. I don't think LTL had a thread but disucused his in this one (at least if I remember correctly)

My CLD was $35k to $10K. I used it but very little compared to the limit, a few hundred per year and not regularly.

Re: CLDs on high limit cards w/not enough spend?

Anonymous — Fri, 08 Sep 2017 15:56:02 GMT

My experience was a cut by Chase to my personal and business cards basically for lack of use where I decided to call them and have an account review which lead to a re-in-statement of the previous limits. Barclays cut my Juniper MC from $1,200 to $500 due to the fact I was not utilizing the full credit limit. US Bank FR'd me when I asked for a credit re-allocation and reduced me by $10K (maybe this is outside your research) and I see their point as I had more credit than my annual income. Men's Warehouse flat out canceled my CL of $1,500 due to lack of activity (they were right as I relocated 100s of miles from any of their stores).

Re: CLDs on high limit cards w/not enough spend?

iheartwings — Fri, 08 Sep 2017 16:37:40 GMT

@Anonymous wrote:
iheartwings, thanks for your post above and pasting the exact reasoning letter. That's exactly what I was looking for with this thread. So, it seems the 2-3 examples we have so far of this happening has been with Capital One. Has anyone experienced the same thing with any other creditors?

De nada. I let very little report on my cards for utilization purposes to optimize my FICO score - found it interesting that CapOne didn't like that, as if they were saying, "We know you're spending, and we know it's not with us, but we can't tell with whom, so we're going to punish you."

Re: CLDs on high limit cards w/not enough spend?

Anonymous — Fri, 08 Sep 2017 17:00:11 GMT

I appreciate the replies everyone.

So it seems Capital One is the only creditor that's slashed a big limit due to insufficient spend relative to that limit. Good to know for CO card holders, for sure.

Re: CLDs on high limit cards w/not enough spend?

HeavenOhio — Fri, 08 Sep 2017 17:17:16 GMT

From what I can tell, limits that have been cut are at $30,000 or more, spending is well under $1,000 per month, and Cap One looks at a year or so of use before making a decision to CLD. Does that seem about right?

Re: CLDs on high limit cards w/not enough spend?

Anonymous — Fri, 08 Sep 2017 18:54:54 GMT

That sounds like a reasonable assessment.

It's sort of ironic when you think about it that someone with a smaller CO CL could end up with a larger one because of this. You have one guy with a $15k limit and another with a $30k limit. Both spend say $500/mo on average. CO decides to slash the $30k limit down to $10k. Now this person has a smaller limit than the other guy exhibiting the same exact spend pattern when originally his limit was twice that of the other guy.

Until I hear about other banks doing this outside of Capital One to me it isn't a huge concern.

Re: CLDs on high limit cards w/not enough spend?

CreditCuriosity — Fri, 08 Sep 2017 21:02:34 GMT

There are others that have 50kish CL's with very little use that haven't been touched "YET".. They have had two rounds of CLD's thus far that we can tell and it is quite possible more are to come as they could be doing them in batches. Time will tell. As stated I don't disagree with the CLD's, but at same time why approve someone for a 20k initial CL and another 10k CL and then when combined reduce to 10k when one approval was beyond that 10k being 20k alone. Guess they want people to use their credit which I understand funny thing is they are viewing other banks as well usage. They have no clue how much I charge with chase each month, maybe this is why you let statement cuts before PIF each time as I charge 3k+ per my chase cards a month.. Anyways the facts are on the table as the three of us mentioned in this post all piped in.

Re: CLDs on high limit cards w/not enough spend?

12njoy — Sat, 09 Sep 2017 01:18:31 GMT

I have a 50k limit with Captial one that I rarely used. When I heard all this chatter about cld's I quickly did a BT of 6k. Now Capital One continues to send me BT checks left and right. Recently applied for a cli with BofA and they told me that my limits with them were sufficient (76.5k) on two cards and that my deposits with them and their affiliates are insufficient. I have zero deposits with them or their affiliates so I suspect I could get a cld from them. I do have a BT with them now though. I've had CLD's from both Chase and Barclays but not because I didn't use them. Their issue was too much available credit out there.

Re: CLDs on high limit cards w/not enough spend?

Anonymous — Sat, 09 Sep 2017 02:59:56 GMT

@Anonymous wrote:
That sounds like a reasonable assessment.

It's sort of ironic when you think about it that someone with a smaller CO CL could end up with a larger one because of this. You have one guy with a $15k limit and another with a $30k limit. Both spend say $500/mo on average. CO decides to slash the $30k limit down to $10k. Now this person has a smaller limit than the other guy exhibiting the same exact spend pattern when originally his limit was twice that of the other guy.

Until I hear about other banks doing this outside of Capital One to me it isn't a huge concern.

Or even the same person! I have two cards from Cap One, a $20K one which I NEVER use, and th other one that went from $35K to $10K. $20K hasn't changed, and this sort of thing has led to the suggestion that Cap One has a minimum CL threshold before they worry about underuse of CL