topic Re: Target lowered limit in Credit Cards

Target lowered limit

Anonymous — Fri, 07 Aug 2020 14:56:44 GMT

Updated my income with Target (from 40k to 50k), made a $307 purchase, then when statement generated my credit limit was decreased from $800 to $400

was opened 11/2018

Is this common now? Wonder if they are going to close my account? Kinda sucks it's my oldest account since my bk

Re: Target lowered limit

Red1Blue — Fri, 07 Aug 2020 15:05:39 GMT

Looks like they are doing a balance chase on your account. Call the support and see if they can restore your previous limit.

Re: Target lowered limit

blindambition — Fri, 07 Aug 2020 15:45:04 GMT

Sorry OP Are you carrying high balances on other cards? Any recent score drops? Any AA from another lender? When was card last used?

Re: Target lowered limit

Anonymous — Fri, 07 Aug 2020 17:36:08 GMT

@Anonymous wrote:
Updated my income with Target (from 40k to 50k), made a $307 purchase, then when statement generated my credit limit was decreased from $800 to $400

was opened 11/2018

Is this common now? Wonder if they are going to close my account? Kinda sucks it's my oldest account since my bk

If there are no other "alarms" on your credit file - and the $307 purchase is noteworthy in this environment - then I would consider the decrease in limit as part of the industry phenomenon to manage risk during the pandemic. A lot of issuers are doing this because of what is happening with layoffs etc. Some are flatout suspending increases, not offering pre-approvals etc.

Without knowing anything else outstanding, putting $307 on a $800 card puts you at 38% utilization and now, with a $400 limit you're at about 77% (almost considered maxed out!). As the one responder noted, give them a call and see if they will reconsider. Nowadays, algorithms do mostly everything. I am concerned - and you alluded to this - that now at 77% util there could be more risk of lower limits and possibly closure unless you pay it down to below 10%. (always pay before statement close as you know).

Keep us posted and good luck!

Re: Target lowered limit

Anonymous — Mon, 10 Aug 2020 15:19:50 GMT

I'm sorry to hear that. Same thing happened to me over the weekend. I worked hard to pay down $1000, but they lowered my credit limit to about $100 more than my actual balance.

Re: Target lowered limit

Anonymous — Mon, 10 Aug 2020 15:29:15 GMT

I know that is a bummer. The same happened to me with my New York and Company credit card through Comenity. I've never been late and have other cards through them. My score went up but my limit was still lowered. I called to have it reviewed and was provided with a very generic answer. Hopefully you have better luck when you call about your Target account.

Re: Target lowered limit

Anonymous — Tue, 25 Aug 2020 17:18:54 GMT

Target just lowered my limit after paying my balance in full. My limit went from $700 to $300. I have never been late with a payment.

Re: Target lowered limit

Anonymous — Tue, 25 Aug 2020 17:27:55 GMT

Same thing happened to me - I had a $750 limit and paid my bill down to $0 and they lowered it to $300. I called and talked to a supervisor who said there was nothing they could do. Funny thing is, my FICO credit score increased over 50 points this month. From 633 to 690. This has to be a covid thing - Comenity did it to my overstock card in July. I asked for a CLI yesterday and they raised it back to where it was. There's still hope!

Re: Target lowered limit

Anonymous — Wed, 26 Aug 2020 00:40:19 GMT

Wow, this is kinda nutty. Looks like TD Bank is jumping in the CLD bandwagon. My statement cuts tomorrow. Wonder what'll happen. Card was paid to zero for the month and overall usage is 4.68%. Guess I'll know in a few hours...

Re: Target lowered limit

GApeachy — Wed, 26 Aug 2020 00:55:06 GMT

@Anonymous wrote:
Wow, this is kinda nutty. Looks like TD Bank is jumping in the CLD bandwagon. My statement cuts tomorrow. Wonder what'll happen. Card was paid to zero for the month and overall usage is 4.68%. Guess I'll know in a few hours...

I'll check too, hollar back. Sorry Op and others....sux but maybe TD will restore once all this mess blows over. Hang in there y'all.

Re: Target lowered limit

Anonymous — Wed, 26 Aug 2020 02:10:56 GMT

If they CLD me for responsible behavior I'll probably just close the card. I have the debit card too so the 5% off is available anyway and if I ever did carry a balance, the interest rate on that card sucks. There are better options.

Re: Target lowered limit

sxa001 — Wed, 26 Aug 2020 04:03:59 GMT

Wow that is frustrating! What is the point of having these credit lines if you can't use them. Hopefully they can restore it for you!

Re: Target lowered limit

Anonymous — Wed, 26 Aug 2020 12:53:01 GMT

Survived it, limit intact. OP and others, I feel bad that they whacked your limits. Hopefully they will be reinstated in the future.

Re: Target lowered limit

blindambition — Wed, 26 Aug 2020 13:49:27 GMT

@Anonymous wrote:
Survived it, limit intact. OP and others, I feel bad that they whacked your limits. Hopefully they will be reinstated in the future.

I think there's other factors. My statement closed on the 22nd, I was upgraded in March. My 9k is still intact with average $150 spend. I'm also low income.

Re: Target lowered limit

Anonymous — Wed, 26 Aug 2020 13:53:04 GMT

@blindambition I agree, there usually are. With the banking climate now though I'm willing to believe that in some cases it's simply the bank's risk assessment policy changing. Sadly it could also be a knee-jerk reaction to actions of other lenders. Not sure I'm even ready to stomach the chances of preemptive AA from having Wayfair show up as Closed by Creditor. I may close it myself before they do, just in case.

Re: Target lowered limit

NoMoreE46 — Thu, 27 Aug 2020 00:56:58 GMT

@Anonymous wrote:
Updated my income with Target (from 40k to 50k), made a $307 purchase, then when statement generated my credit limit was decreased from $800 to $400

was opened 11/2018

Is this common now? Wonder if they are going to close my account? Kinda sucks it's my oldest account since my bk

That Sucks.

Think you are the first to post a CLD from TD on the RedCard so not common per se for this issuer but CLD are very common across the board now.

Wondering if the CLDs from TD are going to be on the Storecard as well as the MC version???

Re: Target lowered limit

MeN5 — Thu, 27 Aug 2020 03:19:23 GMT

Survived another month but I'm disappointed that I haven't had any increase in over a year! Guess I'll use it less no since in putting spend on a card thats refusing to grow any more same with Discover which is on the chopping block. Sorry op for your loss hope it's gained elsewhere

Re: Target lowered limit

pizza1 — Sat, 29 Aug 2020 23:09:59 GMT

@Anonymous wrote:
@Anonymous wrote:
Updated my income with Target (from 40k to 50k), made a $307 purchase, then when statement generated my credit limit was decreased from $800 to $400

was opened 11/2018

Is this common now? Wonder if they are going to close my account? Kinda sucks it's my oldest account since my bk
If there are no other "alarms" on your credit file - and the $307 purchase is noteworthy in this environment - then I would consider the decrease in limit as part of the industry phenomenon to manage risk during the pandemic. A lot of issuers are doing this because of what is happening with layoffs etc. Some are flatout suspending increases, not offering pre-approvals etc.

Without knowing anything else outstanding, putting $307 on a $800 card puts you at 38% utilization and now, with a $400 limit you're at about 77% (almost considered maxed out!). As the one responder noted, give them a call and see if they will reconsider. Nowadays, algorithms do mostly everything. I am concerned - and you alluded to this - that now at 77% util there could be more risk of lower limits and possibly closure unless you pay it down to below 10%. (always pay before statement close as you know).

Keep us posted and good luck!

@Anonymous ...can you please change your color font back to black like the rest of us? The blue is very hard on the eyes to several people on computers, plus there's no need to make your posts "stand out", they do get read. Thanks

Re: Target lowered limit

Anonymous — Mon, 31 Aug 2020 20:24:16 GMT

They dropped my limit from $3400 to $2200 today. Customer service said they didn't know why since I show frequent spending and no missed payments.

Re: Target lowered limit

GApeachy — Mon, 31 Aug 2020 23:37:30 GMT

@Anonymous wrote:
They dropped my limit from $3400 to $2200 today. Customer service said they didn't know why since I show frequent spending and no missed payments.

Did CS say whether or not you'd get some kind of letter or anything explaining the cld? Or is that just how it goes....drop limit (nothing said)?