topic Re: Commerce Bank credit limit decrease in Credit Cards

Commerce Bank credit limit decrease

frugal47374 — Fri, 24 Jan 2020 13:56:27 GMT

(Offered as a data point. Not looking for sympathy or advice.)

In 2015, Commerce Bank offered me a Special Connections Visa card with 0% interest and fees for balance transfer for a year. Accepted their offer and received $13000 with Equifax 708 score. Transferred $12500 balances.

I paid the minimum until the 0% ended when I paid in full (as I always do unless I have a 0% deal.)

I occasionally used the card after that if they had special rewards but my last charge was December 2018.

Recently received a letter of a decrease to $8000 based on inactivity and Transunion 655 score.

Overall utilization is 18% but I have 6 cards with 0% offers which I try to max out so all above 70% utilization and most are above 90%.

Re: Commerce Bank credit limit decrease

Anonymous — Fri, 24 Jan 2020 13:59:56 GMT

Appreciate you offering the "heads up" data point on Commerce Bank. Almost app'ed the same card but then didn't.

Re: Commerce Bank credit limit decrease

gdale6 — Fri, 24 Jan 2020 15:23:51 GMT

The Fico score is the elephant they are basing their decision on, I would pay off all to below 89% of their CLs, you get a big hit to fico over this percentage as they are deemed maxed.

Re: Commerce Bank credit limit decrease

Anonymous — Fri, 24 Jan 2020 15:56:32 GMT

"I paid the minimum until the 0% ended".

Dey it iz.

Re: Commerce Bank credit limit decrease

frugal47374 — Fri, 24 Jan 2020 16:03:38 GMT

@gdale6 wrote:
I would pay off all to below 89% of their CLs, you get a big hit to fico over this percentage as they are deemed maxed.

And I want to maximize my use of their free (0%) money so I accept that it will affect my FICO score. If that causes Commerce Bank to incorrectly believe I am a risk, so be it.

Re: Commerce Bank credit limit decrease

AverageJoesCredit — Fri, 24 Jan 2020 16:14:46 GMT

Good dp. Use your credit as you see fit, consequences be damned.

Re: Commerce Bank credit limit decrease

Anonymous — Fri, 24 Jan 2020 17:14:17 GMT

@frugal47374 wrote:
@gdale6 wrote:
I would pay off all to below 89% of their CLs, you get a big hit to fico over this percentage as they are deemed maxed.
And I want to maximize my use of their free (0%) money so I accept that it will affect my FICO score. If that causes Commerce Bank to incorrectly believe I am a risk, so be it.

I hear you. I do the same thing depending on how easy it is to get the money. I had $70-$90K use of free money at one time on multiple cards back in 2008, when banks were jittery. I was fortunate no AA occurred. That wasn't the time to do it. Now I'll only run up balances on new cards, which I have no plans for new ones. Never had AA. I can only guess what my scores were back then. I'd say 760-780. I took big hits on my score I'm sure, but earned a nice chunk of interest change since Internet banks were paying around 5% before dropping.

Re: Commerce Bank credit limit decrease

Anonymous — Fri, 24 Jan 2020 17:54:15 GMT

@frugal47374 wrote:
(Offered as a data point. Not looking for sympathy or advice.)

Happy to comply and grateful for your supplying of DPs.

Re: Commerce Bank credit limit decrease

Remedios — Fri, 24 Jan 2020 18:45:50 GMT

@Anonymous wrote:
"I paid the minimum until the 0% ended".

Dey it iz.

Wrong. OP paid it off three years prior to CLD

Dey iz nawt.

Re: Commerce Bank credit limit decrease

Anonymous — Fri, 24 Jan 2020 18:52:42 GMT

@Remedios wrote:
@Anonymous wrote:
"I paid the minimum until the 0% ended".

Dey it iz.
Wrong. OP paid it off three years prior to CLD

Dey iz nawt.

Plus, there's no evidence paying the minimum, especially on zeros, ensures a CLD.

Re: Commerce Bank credit limit decrease

Anonymous — Fri, 24 Jan 2020 20:25:15 GMT

@frugal47374 wrote:
...my last charge was December 2018...
Recently received a letter of a decrease to $8000 based on inactivity and Transunion 655 score.
Overall utilization is 18% but I have 6 cards with 0% offers which I try to max out so all above 70% utilization and most are above 90%.

Dere's de real reasons.

Re: Commerce Bank credit limit decrease

Anonymous — Fri, 24 Jan 2020 20:39:20 GMT

@Anonymous wrote:
@frugal47374 wrote:
...my last charge was December 2018...
Recently received a letter of a decrease to $8000 based on inactivity and Transunion 655 score.
Overall utilization is 18% but I have 6 cards with 0% offers which I try to max out so all above 70% utilization and most are above 90%.
Dere's de real reasons.

That could be it. If it is, it's due to a flaw in the scoring model. If those cards had zero balances, but total util was 18%, all on the card with the highest limit, credit scores would be higher and maybe no CLD.

I don't like models that penalize due to high util on one card, which is pretty much all of them. Why lose 40 pts because one card has a balance of $499 with a $500 limit, while the other card has a 0 balance and an $18K limit?

Re: Commerce Bank credit limit decrease

Remedios — Fri, 24 Jan 2020 21:23:31 GMT

@Anonymous wrote:
@Remedios wrote:
@Anonymous wrote:
"I paid the minimum until the 0% ended".

Dey it iz.
Wrong. OP paid it off three years prior to CLD

Dey iz nawt.
Plus, there's no evidence paying the minimum, especially on zeros, ensures a CLD.

I dont know if it does or doesn't. I'd imagine it's profile and lender specific

However, OP did not ask for forensic autopsy on their CLD.

In their case, it was an unused credit line, and they dont seem to lack awareness that prolonged periods of high utilization can lead to various forms of AA.

Re: Commerce Bank credit limit decrease

FinStar — Fri, 24 Jan 2020 22:24:04 GMT

@Remedios wrote:
@Anonymous wrote:
@Remedios wrote:
@Anonymous wrote:
"I paid the minimum until the 0% ended".

Dey it iz.
Wrong. OP paid it off three years prior to CLD

Dey iz nawt.
Plus, there's no evidence paying the minimum, especially on zeros, ensures a CLD.

I dont know if it does or doesn't. I'd imagine it's profile and lender specific
However, OP did not ask for forensic autopsy on their CLD.
In their case, it was an unused credit line, and they dont seem to lack awareness that prolonged periods of high utilization can lead to various forms of AA.

Right. Notably other lenders such as Huntington, 5/3, HSBC, Citi/DSNB (Macy's), Comenity, etc., have taken similar AA actions based on what other members have reported.

@frugal47374, thanks for sharing your DPs with the community btw.

Re: Commerce Bank credit limit decrease

Anonymous — Sat, 25 Jan 2020 01:09:50 GMT

@Remedios wrote:
@Anonymous wrote:
@Remedios wrote:
@Anonymous wrote:
"I paid the minimum until the 0% ended".

Dey it iz.
Wrong. OP paid it off three years prior to CLD

Dey iz nawt.
Plus, there's no evidence paying the minimum, especially on zeros, ensures a CLD.

I dont know if it does or doesn't. I'd imagine it's profile and lender specific
However, OP did not ask for forensic autopsy on their CLD.
In their case, it was an unused credit line, and they dont seem to lack awareness that prolonged periods of high utilization can lead to various forms of AA.

Happy Friday! I did an autopsy in just two sentences too. What a country!

OP just giving data points. I gave some of similar activity, although they're a little older.

I'm thinking the main driver is inactivity. OP has a history of using zeros to the max with success.