topic Re: PayPal credit limit decrease in Credit Cards

PayPal credit limit decrease

Mike360 — Tue, 21 Jul 2020 14:56:19 GMT

Hello,

Received a notice today from Experian that one of my accounts the limit had been decreased. Logged in to find out PayPal Credit decreased my limit from $10,000 to $1,500 without any notification. When calling them the only thing they would do was submit a soft inquiry to increase the limit again. It was approved this time for only $2,300. Went ahead and told them to cancel the account since I'm not using the account anyways. Just sucks losing a $10K line of credit that I've had for over a decade. I have no collections on my credit and I PIF my accounts monthly.

Re: PayPal credit limit decrease

FeeBear — Tue, 21 Jul 2020 15:08:23 GMT

Hey Mike,

Sorry to hear that. I am beginning to think we are on a death watch seeing credit limit die a little everyday.

Fee

Re: PayPal credit limit decrease

SouthJamaica — Tue, 21 Jul 2020 17:08:52 GMT

@Mike360 wrote:
Hello,

Received a notice today from Experian that one of my accounts the limit had been decreased. Logged in to find out PayPal Credit decreased my limit from $10,000 to $1,500 without any notification. When calling them the only thing they would do was submit a soft inquiry to increase the limit again. It was approved this time for only $2,300. Went ahead and told them to cancel the account since I'm not using the account anyways. Just sucks losing a $10K line of credit that I've had for over a decade. I have no collections on my credit and I PIF my accounts monthly.

Synchrony seems to be hurting.

Re: PayPal credit limit decrease

chuckwood — Tue, 21 Jul 2020 17:39:18 GMT

It sucks they decreased you limit but consider it a blessing that they left it open and just lowered the limit. It gave you the option to get it increased or cancel the card becuase alot they are just closing without valid reasoning.

Re: PayPal credit limit decrease

GApeachy — Tue, 21 Jul 2020 18:00:02 GMT

@Mike360 Sorry to see this. Past few months of posts about cld's and closures, I was wrestling with keeping open an acct. (care credit 15k) that I didn't need or just going ahead and closing it. I closed it due to the fact I was spending needlessly to keep it alive, didn't need the extra padding. I closed it; had a few regrets tbh.

Now when I read these "kick rocks" posts I'm like "good riddance"...not worth the worry and/or potential hassle of trying to use it and find out the hard way it's doa.

At least you got the limit back up a little before closing it...it'll look better I suppose (maybe?) to have a little extra $ tacked on it.

Is this your only Synchrony product? If not, what was your overall exposure?

Rip Synch

Re: PayPal credit limit decrease

Anonymous — Wed, 22 Jul 2020 01:21:46 GMT

@Mike360 wrote:
Hello,

Received a notice today from Experian that one of my accounts the limit had been decreased. Logged in to find out PayPal Credit decreased my limit from $10,000 to $1,500 without any notification. When calling them the only thing they would do was submit a soft inquiry to increase the limit again. It was approved this time for only $2,300. Went ahead and told them to cancel the account since I'm not using the account anyways. Just sucks losing a $10K line of credit that I've had for over a decade. I have no collections on my credit and I PIF my accounts monthly.

If you are not using the account, when was the last time that it was used?

Re: PayPal credit limit decrease

Iusedtolurk — Wed, 22 Jul 2020 05:41:45 GMT

@Mike360 wrote:
Hello,

Received a notice today from Experian that one of my accounts the limit had been decreased. Logged in to find out PayPal Credit decreased my limit from $10,000 to $1,500 without any notification. When calling them the only thing they would do was submit a soft inquiry to increase the limit again. It was approved this time for only $2,300. Went ahead and told them to cancel the account since I'm not using the account anyways. Just sucks losing a $10K line of credit that I've had for over a decade. I have no collections on my credit and I PIF my accounts monthly.

It does seem like age and good behavior would elicit some type of loyalty from the creditor but bottomline they 99% act on risk assessment and they are only here to make money off you. I see an increase in accounts receiving a CLD and closures due to non-usage being a common factor.

Re: PayPal credit limit decrease

M_Smart007 — Wed, 22 Jul 2020 10:15:09 GMT

@Mike360 wrote:
Hello,

Received a notice today from Experian that one of my accounts the limit had been decreased. Logged in to find out PayPal Credit decreased my limit from $10,000 to $1,500 without any notification. When calling them the only thing they would do was submit a soft inquiry to increase the limit again. It was approved this time for only $2,300. Went ahead and told them to cancel the account since I'm not using the account anyways. Just sucks losing a $10K line of credit that I've had for over a decade. I have no collections on my credit and I PIF my accounts monthly.

Sorry for your CLD, ...The way they do business is beyond sad!

Re: PayPal credit limit decrease

Anonymous — Wed, 22 Jul 2020 14:41:42 GMT

@Mike360 wrote:
Hello,

Received a notice today from Experian that one of my accounts the limit had been decreased. Logged in to find out PayPal Credit decreased my limit from $10,000 to $1,500 without any notification. When calling them the only thing they would do was submit a soft inquiry to increase the limit again. It was approved this time for only $2,300. Went ahead and told them to cancel the account since I'm not using the account anyways. Just sucks losing a $10K line of credit that I've had for over a decade. I have no collections on my credit and I PIF my accounts monthly.

I understand the annoyance, but by closing you have lost all of it rather than the $2.3K you could have kept.

Re: PayPal credit limit decrease

firefox100 — Thu, 23 Jul 2020 20:44:04 GMT

By closing your account with Synchrony you cut your nose off to spite your self. First they gave you some increase when you ask for it, you could have some spend each month on the credit card each month then every three months ask for credit line increase over year or so you most likely would have got back to your original credit limit of 10K.

Re: PayPal credit limit decrease

Loquat — Thu, 23 Jul 2020 22:12:30 GMT

If you're not using the account anyway and it had a long history, did it really matter what the limit was?

Re: PayPal credit limit decrease

firefox100 — Thu, 23 Jul 2020 22:37:13 GMT

Yes the credit limit does matters, when the limit is reduce then the available credit goes down and the credit utilazation goes up. utilization is 30 percent of the Fico score.

Re: PayPal credit limit decrease

firefox100 — Thu, 23 Jul 2020 22:46:38 GMT

When the credit account is closed then the total available credit goes down, I think the best move would have been to keep the account open and rebuild the credit limit over time.

Re: PayPal credit limit decrease

SunriseEarth — Thu, 23 Jul 2020 23:55:46 GMT

@Iusedtolurk wrote:
It does seem like age and good behavior would elicit some type of loyalty from the creditor but bottomline they 99% act on risk assessment and they are only here to make money off you. I see an increase in accounts receiving a CLD and closures due to non-usage being a common factor.

I'm guessing they would consider "use" to be an example of good behavior. The last CLD I had from Synch was for my Marvel MC, which hasn't been used in a long time. I went from $25K to some odd amount around $1300. However, I was able to get the CL back up immediately to $10K. Still haven't used it.

Anyway, moral of the story is use it or lose it. If you want to ensure you keep a CL active, I'd recommend some sort of activity at least every 6-12 months (YMMV with lender).

Re: PayPal credit limit decrease

Mike360 — Sat, 25 Jul 2020 04:20:38 GMT

It was more of me having the final say. I felt that it was a slap in the face for them to do that. Looking back on it they probably did me a favor because it was a terrible product to begin with. I have over 150K in available credit and 3/4 of them I haven't used in some time and they were the only ones to reduce my credit limit. I was able to get Amex to give me a $6K increase and I'm sure i'll get another increase in one of my other lines of credit to make up for the loss.

Re: PayPal credit limit decrease

lakerfan2011 — Sat, 25 Jul 2020 05:04:05 GMT

I don't understand there logic of hurting there best paying customers I dont think they even know what they are doing

Re: PayPal credit limit decrease

NRB525 — Sat, 25 Jul 2020 09:42:51 GMT

@lakerfan2011 wrote:
I don't understand there logic of hurting there best paying customers I dont think they even know what they are doing

OP was not using the card. The bank has to hold open the credit line, and that rolls up to the calculations of the bank overall potential credit exposure. Cutting lines of non-used limits is a step to reduce banking risk.

They didn't close the account, so were willing to keep up the monthly processing of electronic statements and reporting to the bureaus, with no income from swipes.

Re: PayPal credit limit decrease

minski — Sat, 25 Jul 2020 11:10:12 GMT

I just checked my own Paypal Credit. Looks like they reduced my limit from $5000 to $1500 as well. Unlike you, I have been waiting for them to close it. I have not used it once since I got it almoat 4 years ago. Guess I need to wait longer. 😅

Re: PayPal credit limit decrease

Mike360 — Sun, 26 Jul 2020 02:24:37 GMT

I checked on Credit Karma and the last time I made a purchase was in October 2016. I originally opened it to take advantage of the nice 0% APR offers they had but now I have just as good of offers with Chase Amazon and Best Buy so really no need for the accounts. I've had the line of credit for 8 years.