topic Re: Can/Will CC exercise lowering limits? in Credit Cards

Can/Will CC exercise lowering limits?

elixerin — Sun, 17 Nov 2019 19:58:17 GMT

heya friends, kind of a pondering question here but recently i got some pretty nice approvals putting me at 10K+ TCL, however i won’t really be using the cards to their full “potential” like i usually have in the past.

lemme run it down,

Apple Card - 5K (recent approval)
AMEX CM - 4K (recent approval)
Discover - 2K (nov 2018)

so apple card i won’t be spending more than 2-300 a month, with the new amex approval disco won’t be getting as much love so disco about 1-200 a month, Amex to churn my welcome bonus of 5% im gonna be running 5-6000 a month (only 5% up to 10k , all three will be PIF and 20-30% uti always)

what im wondering is if i keep this up for months coming, say up till mid-2020 will the other two issuers be inclined to lower limits? esp if i 3x CLI amex on my 61+ day mark and use that as a daily driver, or am i just worried for nothing lol i want to avoid the lowering of CL’s at all costs while churning the rewards that most benefit me currently, thoughts?

thx thx

Re: Can/Will CC exercise lowering limits?

Aahz — Sun, 17 Nov 2019 06:20:46 GMT

Card issuers generally only lower limits when they see negative trends on your credit report in general.

So, no, you should have nothing to worry about as long as you continue to make payments on time and keep your overall utility reported each month under ~30%.

Re: Can/Will CC exercise lowering limits?

elixerin — Sun, 17 Nov 2019 06:35:53 GMT

done and done, thanks for the help.

i always thought that some issuers don’t like extending big limits when they see you only use a tiny percentage of it so they take that action, guess i won’t worry

Re: Can/Will CC exercise lowering limits?

Anonymous — Sun, 17 Nov 2019 11:03:52 GMT

Some will do it for very excessive limits being idle like when Capital One chopped cards down to $10K but it's not common without negative trends in your credit history.

Let's put it this way - I have four cards between $10K and $12.7K and I only get $1525 a month for income so I couldn't possibly use such high limits and my lenders know it. Hasn't been an issue other than for new card approvals being denied because I'm not profitable.

Re: Can/Will CC exercise lowering limits?

AverageJoesCredit — Sun, 17 Nov 2019 14:02:27 GMT

You should be fine. Remember Disco cli requests are sp so you can smash that every month if you want

Re: Can/Will CC exercise lowering limits?

Anonymous — Sun, 17 Nov 2019 14:04:27 GMT

Cap1 and Amex have both been known to cut limits if they are high enough and not used enough over time. But, they usually cut them to $8-10K and for Amex at least, they have been willing to restore the original limit when asked. Your limits are small enough that they won't get cut for that reason, and if you're running $5-6k a month, they certainly won't get cut, and you should do well with 3x CLIs down the road.

It's more those who have $30k limits and run $300/month through the card. They simply don't NEED those limits.

Re: Can/Will CC exercise lowering limits?

Anonymous — Sun, 17 Nov 2019 14:06:01 GMT

@Anonymous wrote:
Some will do it for very excessive limits being idle like when Capital One chopped cards down to $10K but it's not common without negative trends in your credit history.

Right. I was one of the CO "victims" but I haven't seen any more recent reports of this by them, so maybe it was a one-off clean-up by them?

So certainly very rare.

Re: Can/Will CC exercise lowering limits?

Anonymous — Sun, 17 Nov 2019 14:19:00 GMT

@Anonymous wrote:
@Anonymous wrote:
Some will do it for very excessive limits being idle like when Capital One chopped cards down to $10K but it's not common without negative trends in your credit history.

Right. I was one of the CO "victims" but I haven't seen any more recent reports of this by them, so maybe it was a one-off clean-up by them?
So certainly very rare.

Yeah I only know about it because whenever there is a thread about Capital One, it gets mentioned by people who got slashed lol.

Re: Can/Will CC exercise lowering limits?

AverageJoesCredit — Sun, 17 Nov 2019 14:23:15 GMT

Lol @Anonymous kinda hard to forget CLD or rejection

Re: Can/Will CC exercise lowering limits?

Anonymous — Sun, 17 Nov 2019 14:36:25 GMT

@AverageJoesCredit wrote:
Lol @Anonymous kinda hard to forget CLD or rejection

Oh I know. Just saying that's why I know lol.

Re: Can/Will CC exercise lowering limits?

pinkandgrey — Sun, 17 Nov 2019 15:50:04 GMT

GENERALLY, lenders will lower limits only when the cardholder starts with risky behavior. There have been instances where some lenders have chopped limits due to having way too much available credit, but that's somewhat rare as long as you use the card at least a little bit.

Plus, look at the bright side: If you WERE to have your limits cut due to being unused, then obviously you're doing something right and not carrying a ton of debt lol.

I wouldn't worry; it most likely won't happen. I have an Amex with an 18k limit that hasn't seen a balance of more than 200 bucks in a LOOONG time.

Re: Can/Will CC exercise lowering limits?

elixerin — Sun, 17 Nov 2019 20:00:42 GMT

thanks for the all the input guys, awesome insight

Re: Can/Will CC exercise lowering limits?

kdm31091 — Sun, 17 Nov 2019 20:07:46 GMT

Can it happen? Of course. All lenders occasionally CLD people for a variety of reasons. But to me there's not much point in worrying about these things because if it happens, it happens. There's not much you can really do to prevent it. If an algorithim decides you are worthy of a CLD than a CLD occurs.

I would just use the cards where/when they benefit you and try not to worry about it.