topic Re: Will requesting a CLD spook issuers? in Credit Cards

Will requesting a CLD spook issuers?

expatCanuck — Tue, 02 Jan 2018 02:31:54 GMT

Leaving rationale aside, assuming that:

absent a lottery win which changes my spending habits, I have more than sufficient credit to use responsibly without exceeding 8.89% utilization
I'm not concerned if I get dropped by an issuer or two for non-use
a FICO of 750 is good enough (tho' 800 is always nice)

will an issuer get spooked if I call up and request a lower spending limit?

[If an institution requests a reason, my reply will be that I'm concerned about fraud and want to limit my exposure.]

Knowledge, insight, intelligent hypotheses and outlandish theories invited.

Re: Will requesting a CLD spook issuers?

AverageJoesCredit — Tue, 02 Jan 2018 02:38:28 GMT

Before the big wigs latch on to this, lol, ill just say you can do it and if something ,ie a credit limit, makes you uncomfortable,, do whats right for you.

Some will say a manual review or even sp from other lenders might have affects on other accounts , but hey, if reducing exposure is in your best interest, im sure with good scores and credit, its an option worth exploring.

Ps, im not actively clding myself by calling for lower limits, but in a way, by reducing my card collection i am clding my overall credit exposure

Re: Will requesting a CLD spook issuers?

Anonymous — Tue, 02 Jan 2018 02:50:09 GMT

Which lender is this?

Re: Will requesting a CLD spook issuers?

expatCanuck — Tue, 02 Jan 2018 02:58:09 GMT

@Anonymous wrote:
Which lender is this?

For now, BoA, Chase & Discover.

I'd include Barclaycard as well, but I've read that just about anything can set this institution off, and I'd like to keep my Ring card.

Re: Will requesting a CLD spook issuers?

Anonymous — Tue, 02 Jan 2018 03:33:04 GMT

What are your current cards/limits and what do you want to reduce to? More importantly, why do you want the reduction? Are you actually worried about fraud, (most major cards have a $0 fraud liability) are you trying to free availabe credit for a new card/cli, or are you trying to head off AA from under-use or other credit event?

Re: Will requesting a CLD spook issuers?

expatCanuck — Tue, 02 Jan 2018 04:20:24 GMT

@Anonymous wrote:
What are your current cards/limits and what do you want to reduce to? More importantly, why do you want the reduction?

I recently applied for a few cards to access lower APRs, improve rewards, have BT availability, reduce utilization and not be tied to one issuer. I overdid it, and don't feel comfortable with quite so much credit. But I'd rather not close my existing lines, as there'd be a significant AAoA impact ~10 years down the road.

That said, I'd prefer not have lines greater than 10-12K, and would like to reduce from 14 -> 10, 15 -> 10 & 19 -> 12.

Re: Will requesting a CLD spook issuers?

arkane — Tue, 02 Jan 2018 06:36:12 GMT

You should be fine with BoA. I called in and asked for a CLD from 6000 to 5000 before my card even mailed out and they happily obliged.

Actually if you told them you wanted to limit exposure in case of fraud, I think they'd be none too happy to comply. In 5 years they've sent me 4 replacement cards, each after a retailer had some kind of data breach.

Re: Will requesting a CLD spook issuers?

Anonymous — Tue, 02 Jan 2018 06:39:05 GMT

`It's very unlikely to spook the particular issuer ("I just don't need or want that much credit") Other hypersensitive issuers might note the CLD, but unless this raises utilization to an unacceptable level, they won't care.

Re: Will requesting a CLD spook issuers?

Kree — Tue, 02 Jan 2018 15:29:17 GMT

If the lender is smart, they would offer to sign up for a new card and split your limit between them. So you have less exposure on each card, the same overall limit, plus they get a new sign up credit. Everyone wins.

Re: Will requesting a CLD spook issuers?

Kforce — Tue, 02 Jan 2018 16:56:55 GMT

I have lowered Cl many times and never had any issues.

Never asked by creditor why I wanted it lowered.

Re: Will requesting a CLD spook issuers?

Gollum — Tue, 02 Jan 2018 17:08:31 GMT

It seems to me that a credit card issuer should not see anything wrong with a self-request to decrease a credit limit. In my case, Capital One and American Express seem to have not been "spooked" by my requests to not increase my credit limit.

Re: Will requesting a CLD spook issuers?

SkyCommander — Tue, 02 Jan 2018 18:08:47 GMT

I asked for a CLD on two Amex cards to lower my exposure before applying for my SPG card. I did it over the phone and the rep told me those cards won't be eligble for auto increases for 999 days. Or something that was a ridiculously long time. SPG card was a MUST for me so I wanted an all of the above approach to getting it. Nothing spooked Amex and it's been almost a year.

Re: Will requesting a CLD spook issuers?

Noctilum — Tue, 02 Jan 2018 22:29:12 GMT

I asked for a CLD from Chase because I knew my exposure was maxed with them and wanted room for a new card. I haven't had any problems yet. This was done about a year ago.