topic Re: CLD Ripple Effect? in Credit Cards

CLD Ripple Effect?

Anonymous — Wed, 18 Apr 2018 21:24:17 GMT

Hi folks - long time reader, first-time poster.

I just got a rude awakening from Chase - I've run some high balances with them for a while ($28K/30K on CSP, $12K/15K on Hyatt, $8K/$10K on CSR), mostly because I have been focusing on slowly paying down other debt. (I went out of control with CC spending but am reining it in.) Utilization on other cards with other lenders is lower (0-50%), and CLs on other cards are generally lower (with one or two exceptions).

Chase called today to let me know that they were doing a CLD on all three of their cards to ~$500 above current usage. I asked for reconsideration and was told no (lending services rep sounded understanding at first but then was incredibly harsh/judgmental, which I deserve). Total CLD was around $6K - I paid down $3.5K from liquid accounts to blunt the blow to my utilization, which I'm sure will hurt regardless. Do I have to worry about other lenders doing the same to me?

I know, I know, I need to stop carrying the balances and pay off these cards. Part of the reason I've neglected these cards is because I've been focusing on paying down other cards (although other expenses have crept up too). I had a recent reality check (last 2-3 months) and am hoping to pay everything down to reasonable utilization ratios in the next 2-3 years (I have a high-paying job), but I'm worried about a cascading CLD effect and having everyone closing in on me. My largest CLs are with Chase (except for a $20K line with Amex that is nowhere near these utilization ratios - less than 50%) - is it just Chase that is now risk-averse, or will the other lenders close ranks? Amex did a soft pull on me recently, and I'm worried that they're planning the same.

Also, the Chase rep said they weren't planning on chasing the balance, but can I take them at their word?

Re: CLD Ripple Effect?

Anonymous — Wed, 18 Apr 2018 21:39:10 GMT

So you paid the balances down to 3.5k or you paid 3.5k towards the 40k?

Depends on who the other lenders are.

What is your total credit lines and what is your aggregate utilization?

Re: CLD Ripple Effect?

Anonymous — Wed, 18 Apr 2018 21:45:51 GMT

I paid $3.5K toward the 40K. Other lenders are Citi and Amex. $150K in total credit lines, 65% utilization ratio (I know, I know).

Re: CLD Ripple Effect?

Anonymous — Wed, 18 Apr 2018 21:48:28 GMT

@Anonymous wrote:
I paid $3.5K toward the 40K. Other lenders are Citi and Amex. $150K in total credit lines, 65% utilization ratio (I know, I know).

Hey it is what it is, I'm not gonna jump on you and give you a hard time. Nor should anyone else. Its hard to say what other creditors will do.

Re: CLD Ripple Effect?

Anonymous — Wed, 18 Apr 2018 21:53:15 GMT

This gave me enough of a scare that I decided to throw extra money at other CCs too. I travel for work all the time, so I do need at least one substantial CL open. I also have a job that pays big bonuses at the end of the year, so I go through this bad cycle of letting the debt pile up and clearing a good chunk of it in one go. I guess I didn't give Chase enough love this time, but I cleared off my Amex and a good chunk of my Citi debt, too. (Utilization on the Amex has since gone up, sigh...)

Re: CLD Ripple Effect?

FinStar — Wed, 18 Apr 2018 22:07:12 GMT

Yes, the potential CLD effect can definitely impact your other lenders. Again, as mentioned above, it depends on any periodic risk reviews of your profile and other factors, but only time will tell.

While the department you spoke to mentioned that it's likely no balance chasing may occur with your Chase cards, there's a remote possibility that it can still happen. It's not something that can be prevented or manually changed since it's internally and systematically driven by their risk assessment algorithms. On the upside, your accounts are still open vs. closed.

Re: CLD Ripple Effect?

Anonymous — Wed, 18 Apr 2018 22:08:22 GMT

It's normal for AMEX to soft pull your reports. Do you have more than one AMEX and Citi card. 97k is enough to spook creditors. Less than that can spook creditors.

Are your credit files clean?

Re: CLD Ripple Effect?

Anonymous — Wed, 18 Apr 2018 22:18:13 GMT

Yes - clean credit file. No BKs/defaults/missed payments/etc., just high utilization and high credit usage. I moved to a new apartment in the last year and both my new building and Verizon did a HP on me, but I can't imagine that's a huge ding.

I have three cards with Citi - one with 70%~ utilization, one with <50%, and one with 0%. Two cards with AmEx - SPG and Plat. Have a small balance on the Plat but most of the spend is on SPG.

I saw only one SP from Amex in the last couple of years on my Experian report, which is why I am now spooked about them being spooked.

Re: CLD Ripple Effect?

Anonymous — Wed, 18 Apr 2018 22:17:03 GMT

Sorry OP - This might not work, but have you thought about getting a loan to pay those CCs off? or maybe a loan for an amount enough to bring your UTL lower?

I personally have not heard any case of AMEX or Citi following on Chase's steps on CLD when UTL is high. Chase will for sure be watching closely (not to scare you) so try to pay them fast if you can.

Re: CLD Ripple Effect?

Anonymous — Wed, 18 Apr 2018 22:19:46 GMT

@Anonymous wrote:
Yes - clean credit file. No BKs/defaults/missed payments/etc., just high utilization and high credit usage. I moved to a new apartment in the last year and both my new building and Verizon did a HP on me, but I can't imagine that's a huge ding.

Don't worry about inquiries. Any idea what your FICO scores are? I'm thinking SOFI personal loans lend up to 100k to consolidate your debt. They soft pull Experian and will give you offers with APR's. Your files are clean which is great!

Re: CLD Ripple Effect?

Anonymous — Wed, 18 Apr 2018 22:21:33 GMT

@Anonymous wrote:
Sorry OP - This might not work, but have you thought about getting a loan to pay those CCs off? or maybe a loan for an amount enough to bring your UTL lower?

I personally have not heard any case of AMEX or Citi following on Chase's steps on CLD when UTL is high. Chase will for sure be watching closely (not to scare you) so try to pay them fast if you can.

Appreciate the advice. I had a consolidation loan but paid it off early because I realized it was just encouraging me to spend even more. I will be pretty aggressive paying down my CSR because it's my day-to-day card and it has the highest interest rate - it will take time to pay down the other two cards.

Re: CLD Ripple Effect?

Anonymous — Wed, 18 Apr 2018 22:27:02 GMT

@Anonymous wrote:
@Anonymous wrote:
Yes - clean credit file. No BKs/defaults/missed payments/etc., just high utilization and high credit usage. I moved to a new apartment in the last year and both my new building and Verizon did a HP on me, but I can't imagine that's a huge ding.
Don't worry about inquiries. Any idea what your FICO scores are? I'm thinking SOFI personal loans lend up to 100k to consolidate your debt. They soft pull Experian and will give you offers with APR's. Your files are clean which is great!

According to myFico, my FICO Score 8 is 695. I don't know what that means.

Re: CLD Ripple Effect?

Anonymous — Wed, 18 Apr 2018 22:29:15 GMT

@Anonymous wrote:
@Anonymous wrote:
Sorry OP - This might not work, but have you thought about getting a loan to pay those CCs off? or maybe a loan for an amount enough to bring your UTL lower?

I personally have not heard any case of AMEX or Citi following on Chase's steps on CLD when UTL is high. Chase will for sure be watching closely (not to scare you) so try to pay them fast if you can.
Appreciate the advice. I had a consolidation loan but paid it off early because I realized it was just encouraging me to spend even more. I will be pretty aggressive paying down my CSR because it's my day-to-day card and it has the highest interest rate - it will take time to pay down the other two cards.

That's good that you recognize you may end up charging up again and having the loan. Your giving yourself good advise on that!

Honestly, your just not going to know who and when and if anyone will follow Chase. You may be worrying for nothing.

Re: CLD Ripple Effect?

Anonymous — Wed, 18 Apr 2018 22:30:42 GMT

@Anonymous wrote:
@Anonymous wrote:
@Anonymous wrote:
Yes - clean credit file. No BKs/defaults/missed payments/etc., just high utilization and high credit usage. I moved to a new apartment in the last year and both my new building and Verizon did a HP on me, but I can't imagine that's a huge ding.
Don't worry about inquiries. Any idea what your FICO scores are? I'm thinking SOFI personal loans lend up to 100k to consolidate your debt. They soft pull Experian and will give you offers with APR's. Your files are clean which is great!
According to myFico, my FICO Score 8 is 695. I don't know what that means.

Which bureau is that? Equifax, Experian or Transunion?

Re: CLD Ripple Effect?

Anonymous — Wed, 18 Apr 2018 22:32:24 GMT

I guess trying to get another CC with a BT offer is out of the options.

You got this OP!! time to cut down on some expenses and put that towards the debt.

Re: CLD Ripple Effect?

Anonymous — Wed, 18 Apr 2018 22:35:23 GMT

@Anonymous wrote:
@Anonymous wrote:
@Anonymous wrote:
Sorry OP - This might not work, but have you thought about getting a loan to pay those CCs off? or maybe a loan for an amount enough to bring your UTL lower?

I personally have not heard any case of AMEX or Citi following on Chase's steps on CLD when UTL is high. Chase will for sure be watching closely (not to scare you) so try to pay them fast if you can.
Appreciate the advice. I had a consolidation loan but paid it off early because I realized it was just encouraging me to spend even more. I will be pretty aggressive paying down my CSR because it's my day-to-day card and it has the highest interest rate - it will take time to pay down the other two cards.
That's good that you recognize you may end up charging up again and having the loan. Your giving yourself good advise on that!

Honestly, your just not going to know who and when and if anyone will follow Chase. You may be worrying for nothing.

I appreciate the encouragement. What got me into this mess in the first place is (1) rewards chasing - never doing that again and (2) the fact that I get a lump sum at the end of the year (to the tune of $40-50K after taxes). I've rationalized my spending by saying "Oh, that big chunk of change is coming in at the end of the year" and try to keep payments to higher-than-minimum-but-not-enough-to-put-a-huge-dent levels, but then I end up spending part of the chunk on something else, which means a creep in credit spending, etc.

This year, I resolved to try to pay down at least one or two cards and use the end-of-the-year payday for CC paydowns. I paid a good chunk of one of my Citi cards but other expenses came up, which slowed down my ability to pay off.

Re: CLD Ripple Effect?

Anonymous — Wed, 18 Apr 2018 22:36:56 GMT

@Anonymous wrote:
I guess trying to get another CC with a BT offer is out of the options.

You got this OP!! time to cut down on some expenses and put that towards the debt.

Yeah, if anything, today has been a stern kick in the butt about my spending habits. Thanks!

Re: CLD Ripple Effect?

Anonymous — Wed, 18 Apr 2018 22:37:32 GMT

wrote:
@Anonymous wrote:
@Anonymous wrote:
@Anonymous wrote:
Yes - clean credit file. No BKs/defaults/missed payments/etc., just high utilization and high credit usage. I moved to a new apartment in the last year and both my new building and Verizon did a HP on me, but I can't imagine that's a huge ding.
Don't worry about inquiries. Any idea what your FICO scores are? I'm thinking SOFI personal loans lend up to 100k to consolidate your debt. They soft pull Experian and will give you offers with APR's. Your files are clean which is great!
According to myFico, my FICO Score 8 is 695. I don't know what that means.
Which bureau is that? Equifax, Experian or Transunion?

Equifax.

Re: CLD Ripple Effect?

Anonymous — Wed, 18 Apr 2018 22:38:35 GMT

Yeah, those unexpected expenses.

Maybe also start building an emergency fund that you can easily access.

I think anyone could fall for that "rewards chasing" and start spending like crazy (manufacture spending) to meet the spending. Well, lesson learn and move on. It only gets better from here.

Re: CLD Ripple Effect?

Anonymous — Wed, 18 Apr 2018 22:40:38 GMT

@Anonymous wrote:
Yeah, those unexpected expenses.

Maybe also start building an emergency fund that you can easily access.

I think anyone could fall for that "rewards chasing" and start spending like crazy (manufacture spending) to meet the spending. Well, lesson learn and move on. It only gets better from here.

I thankfully do have an emergency fund - it's where I drew some quick cash to ease up the burden on my Chase CLs. But I'm just so accustomed to paying with my credit card that even unexpected expenses will be paid from the card, without a second thought.