topic Re: Help My Limits Are Dropping in Credit Cards

Help My Limits Are Dropping

Jolo0801 — Sun, 31 Oct 2021 15:45:26 GMT

Help, I need advice.

For several months I have been carrying high credit usage on several cc's.

However, I always pay on time and more recently I have paid a few of them completely down. I no derogs at all.

Recently,

Macy's dropped my card from $8,000 to $3,200 and Discovery dropped me from $5,800 to $500. Both after I paid them completely to a 0 balance.

This is damaging my UTL futher and not helping my score.

How can I get them to raise my limits again.

Re: Help My Limits Are Dropping

Red1Blue — Sun, 31 Oct 2021 15:47:00 GMT

@Jolo0801 wrote:
Help, I need advice.
For several months I have been carrying high credit usage on several cc's.
However, I always pay on time and more recently I have paid a few of them completely down. I no derogs at all.

Recently,
Macy's dropped my card from $8,000 to $3,200 and Discovery dropped me from $5,800 to $500. Both after I paid them completely to a 0 balance.

This is damaging my UTL futher and not helping my score.
How can I get them to raise my limits again.

You can call them and ask them to restore your credit limits. Just explain your situation. They might do it.

Re: Help My Limits Are Dropping

Remedios — Sun, 31 Oct 2021 16:11:43 GMT

@Jolo0801 wrote:
Help, I need advice.
For several months I have been carrying high credit usage on several cc's.
However, I always pay on time and more recently I have paid a few of them completely down. I no derogs at all.

Recently,
Macy's dropped my card from $8,000 to $3,200 and Discovery dropped me from $5,800 to $500. Both after I paid them completely to a 0 balance.

This is damaging my UTL futher and not helping my score.
How can I get them to raise my limits again.

You cannot, or at least not right now.

You're being balance chased, so your best bet is to keep paying other cards as fast as you can before your other lenders jump on that bandwagon and start CLDs or closing cards.

Once your cards are paid down and you aren't struggling with utilization, you can ask for increases, but you will need to allow a few months for situation to normalize where they don't "feel" you're paying them off only to run them up again.

Please, skip the "call and explain" because that's not how it works.

"I didn't have the money before but now I do" isn't something lender wants to hear, it's obvious that's already their understanding of your situation based on CLDs.

It will be okay, just keep paying your debt, that's the only thing you control right now.

Re: Help My Limits Are Dropping

SouthJamaica — Sun, 31 Oct 2021 16:17:42 GMT

@Red1Blue wrote:
@Jolo0801 wrote:
Help, I need advice.
For several months I have been carrying high credit usage on several cc's.
However, I always pay on time and more recently I have paid a few of them completely down. I no derogs at all.

Recently,
Macy's dropped my card from $8,000 to $3,200 and Discovery dropped me from $5,800 to $500. Both after I paid them completely to a 0 balance.

This is damaging my UTL futher and not helping my score.
How can I get them to raise my limits again.
You can call them and ask them to restore your credit limits. Just explain your situation. They might do it.

+1 Agreed. OP has nothing to lose.

Re: Help My Limits Are Dropping

Jolo0801 — Sun, 31 Oct 2021 16:17:44 GMT

@Red1Blue wrote:
@Jolo0801 wrote:
Help, I need advice.
For several months I have been carrying high credit usage on several cc's.
However, I always pay on time and more recently I have paid a few of them completely down. I no derogs at all.

Recently,
Macy's dropped my card from $8,000 to $3,200 and Discovery dropped me from $5,800 to $500. Both after I paid them completely to a 0 balance.

This is damaging my UTL futher and not helping my score.
How can I get them to raise my limits again.
You can call them and ask them to restore your credit limits. Just explain your situation. They might do it.

Do you know of this situation every being reversed after a call?

Re: Help My Limits Are Dropping

SouthJamaica — Sun, 31 Oct 2021 16:19:18 GMT

@Jolo0801 wrote:
@Red1Blue wrote:
@Jolo0801 wrote:
Help, I need advice.
For several months I have been carrying high credit usage on several cc's.
However, I always pay on time and more recently I have paid a few of them completely down. I no derogs at all.

Recently,
Macy's dropped my card from $8,000 to $3,200 and Discovery dropped me from $5,800 to $500. Both after I paid them completely to a 0 balance.

This is damaging my UTL futher and not helping my score.
How can I get them to raise my limits again.
You can call them and ask them to restore your credit limits. Just explain your situation. They might do it.
Do you know of this situation every being reversed after a call?

I don't recall hearing of it with that specific lender but I have heard of many instances of CLD's being reversed after a phone call.

Re: Help My Limits Are Dropping

Jolo0801 — Sun, 31 Oct 2021 16:20:55 GMT

@SouthJamaica wrote:
@Jolo0801 wrote:
@Red1Blue wrote:
@Jolo0801 wrote:
Help, I need advice.
For several months I have been carrying high credit usage on several cc's.
However, I always pay on time and more recently I have paid a few of them completely down. I no derogs at all.

Recently,
Macy's dropped my card from $8,000 to $3,200 and Discovery dropped me from $5,800 to $500. Both after I paid them completely to a 0 balance.

This is damaging my UTL futher and not helping my score.
How can I get them to raise my limits again.
You can call them and ask them to restore your credit limits. Just explain your situation. They might do it.
Do you know of this situation every being reversed after a call?
I don't recall hearing of it with that specific lender but I have heard of many instances of CLD's being reversed after a phone call.

Thank You!!

Re: Help My Limits Are Dropping

simplynoir — Sun, 31 Oct 2021 16:23:45 GMT

@SouthJamaica wrote:
@Jolo0801 wrote:
@Red1Blue wrote:
You can call them and ask them to restore your credit limits. Just explain your situation. They might do it.
Do you know of this situation every being reversed after a call?
I don't recall hearing of it with that specific lender but I have heard of many instances of CLD's being reversed after a phone call.

I haven't heard of many CLD reversals due to balance chasing, more to do with non-use. As @Remedios pointed out this seems more to do with performing preventive measures to make sure a customer doesn't charge so much again. I do wonder how many cards have balances that are high with OP stating it's only been a few months, though since they stated they already paid a few of them down. My guess is the high utilization both with individual accounts and overall that scared the banks

Re: Help My Limits Are Dropping

Remedios — Sun, 31 Oct 2021 16:28:28 GMT

Reversals happens due to CLD for "Lack Of Use", which is the opposite from what's happening here

That's when we call and lie that we're going to use the card.

Good luck with that call if you make it, I hope drawing more attention to yourself doesn't end up becoming a closure.

They just completed step one in risk mitigation, I hope you don't experience step two.

Re: Help My Limits Are Dropping

lgtwriter — Sun, 31 Oct 2021 17:05:06 GMT

@Jolo0801 If the cards and credit limits in your myfico profile signature are mostly up to date, I notice that you have several cards with large(ish) credit limits (20k, 15k, etc) If those cards are close to being maxed out and your smaller limit cards are the ones you paid off, that might be why you are being balance chased. If your overall debt on the cards is more than the algorithms think is manageable for your income, that could trigger AA as well.

I think a call will draw attention that will not be positive attention and make you sound like you really need the limits. (which is not in your favor) Of course as with anything YMMV.

Re: Help My Limits Are Dropping

Jolo0801 — Sun, 31 Oct 2021 16:49:45 GMT

@lgtwriter wrote:
@Jolo0801 If your signature cards and credit limits are mostly up to date, I notice that you have several cards with large(ish) credit limits (20k, 15k, etc) If those cards are close to being maxed out and your smaller limit cards are the ones you paid off, that might be why you are being balanced chased. If your overall debt on the cards is more than the algorithms think is manageable for your income, that could trigger AA as well.

I think a call will draw attention that will not be positive attention and make you sound like you really need the limits. (which is not in your favor) Of course as with anything YMMV.

I think i'm going to make the calls... My concern is that it damages my overall UTL and I'm trying manage my score and pay stuff down. But when I pay them down and they drop my limits in makes the work invain.

Re: Help My Limits Are Dropping

Anonymous — Sun, 31 Oct 2021 16:51:16 GMT

@Remedios wrote:
Reversals happens due to CLD for "Lack Of Use", which is the opposite from what's happening here
That's when we call and lie that we're going to use the card.

Good luck with that call if you make it, I hope drawing more attention to yourself doesn't end up becoming a closure.
They just completed step one in risk mitigation, I hope you don't experience step two.

This. The problem is that there is really nothing good to say. "I haven't been paying much off in the past but I am able to do now." From the issuer's viewpoint "That's nice dear" but they don't know that you won't soon revert to high balance behavior again, so why should they take the risk. And the reason that it is hurting you, increasing utilization decreasing your score, that is no concern of theirs.

I don't think it's all that likely that a call will make it worse, but IMO that's slightly more likely than there being a positive outcome, so to my mind the risk/reward is clearly in the camp of "not worth the effort"

Re: Help My Limits Are Dropping

Anonymous — Sun, 31 Oct 2021 16:52:53 GMT

@Jolo0801 wrote:
I think i'm going to make the calls... My concern is that it damages my overall UTL and I'm trying manage my score and pay stuff down. But when I pay them down and they drop my limits in makes the work invain.

As I said, that is not the issuer's concern. Risk management is.

Re: Help My Limits Are Dropping

Jazzcat — Sun, 31 Oct 2021 16:57:56 GMT

IMHO, this thread reinforces the theory/practice of keeping/using trade lines as "padding"....

Re: Help My Limits Are Dropping

Remedios — Sun, 31 Oct 2021 17:11:15 GMT

@Jazzcat wrote:
IMHO, this thread reinforces the theory/practice of keeping/using trade lines as "padding"....

Nope. This thread reinforces fact that credit lines aren't long term crutch but instead short term loan on plastic.

Lenders tolerate "manageable" debt, and when it no longer looks "manageable", they will start to protect their interest.

It's not CLD that's hurting OPs score, it's utilization that remained high for extended period of time. You cannot take a consequence and call it a cause, it's not.

For the theory on keeping CLs solely for utilization padding, see any Synchrony thread.

Plenty of people recovered from CLDs and balance chasing by paying down, I cannot think of a single one who bypassed algorithm meant to protect the lender by making a call.

Re: Help My Limits Are Dropping

lgtwriter — Sun, 31 Oct 2021 17:11:33 GMT

@Jolo0801 if you have high overall utilization, especially on high limit cards, and you call asking for higher limits, you may trigger adverse action and they may see your call as risky behavior and close the cards.

YMMV of course. Good luck and let us know how it goes.

Re: Help My Limits Are Dropping

Rebuild2019 — Sun, 31 Oct 2021 17:22:41 GMT

I agree with @Remedios on not calling. Calling just lets the creditor know they are on the right track. Use the skills you have learned in this forum. Pay the bill down and after it’s paid off for maybe 6-8 months try for a CLI. We all can make a misstep. It’s how we handle that misstep that the creditor is watching. Handle your business and pay it off.

Re: Help My Limits Are Dropping

disdreamin — Sun, 31 Oct 2021 18:58:22 GMT

@Jolo0801 wrote:
I think i'm going to make the calls... My concern is that it damages my overall UTL and I'm trying manage my score and pay stuff down. But when I pay them down and they drop my limits in makes the work invain.

Your reply quoted above almost sounds like you're more focused on your scores than paying down/off your credit cards debt. The work you are doing is towards the goal of paying off credit card debt, isn't it?

As far as calling, it's certainly something you could do but I'm another who doubts it will make a difference. The algorithms that precipitated the lower CL and/or balance chasing were designed to avoid risk/liability on the part of the banks. If an institution has left you with any credit line at all, I'd use it responsibly while paying down the remaining debt on your other cards. Only after everything is zeroed would I attempt to contact them about reinstatement of credit lines.

Re: Help My Limits Are Dropping

Red1Blue — Sun, 31 Oct 2021 19:18:17 GMT

Hi OP @jologan79

I understand your situation. I was in your shoes before. I have been a member of this forum since 2006. I went through tough times in 2006 and bounced back. Due to my stupidity ( I went back to school and studied MD/PhD) I got into bad shape again in 2018 and bouncing back. Any one on this forum can only make suggestions. You have to do what ever you think is best for you. We can not guarantee what future brings to any one of us.

1. People forget that went thorough pandameic and millions of people suffered and struggling and banks are all over asking and offering to extend help. In your case you should be very proud. From what I understand, you kept your side of the bargain and paid all the min dues on time and never late. Finally you paid off your debt. That is very noble of you. I am sure CLD is triggered by computer. Calling and talking to a human and explaining is not going to hurt. They already did CLD what other damage can they do. Worst case they might close your accounts. So what thank them and move on. Any Bank would love to have you as a customer. I would not be afraid of calling. But keep your expectations low.

2. You have not indicated information on your other accounts. If you give some stats on your other accounts experts can give you suggestions on how to come out of the rut.

3. I would not be too much worried about other lenders following the suit. Considering we all went through bad times. In my personal case I have a BOA MasterCard. I have been a customer of BOA for last 20 years and I have this card for last 15+ years. As I went into hard times. I was making more than min payments and BOA kept reducing my limit to $100 over the balance. I decided okay. I kept paying the min due for 6 months. After that I decided to pay it off in full. I was prepared for CLD and possibly reduce my limit to $500 or some thing. To my surprise BOA did not touch my limit and I was able to keep it in tact. Since then I requested CLIs but they keep declining and keep thanking me for a valued customer for last 20 years. They never touched my limit again. It is what what it is. We can not change.

4. We all make mistakes in life. But in my book you have done every thing right. Despite going through bad pandemic and suffer financnai losses you kept your side of the bargain. Always paid on time and in the end you paid in full. I think you are a Hero and any Banker would love to have you as a customer.

Do what ever you think is best for you. Making a call is not going to hurt you. Explain about the COVID and how you have been a good customer to them. Damage is already done. Dont expect too much out of the call. But what you got to loose. If you want to share the rest of your financial picture experts on this forum can help you.

Re: Help My Limits Are Dropping

Anonymous — Sun, 31 Oct 2021 20:16:28 GMT

@Red1Blue wrote:
I am sure CLD is triggered by computer. Calling and talking to a human and explaining is not going to hurt. They already did CLD what other damage can they do. Worst case they might close your accounts. So what thank them and move on. Any Bank would love to have you as a customer. I would not be afraid of calling.

You sort of answer your own question there, closing is worse than CLD, and balance chasing can end with the card still intact. And while I assume it is well meant, it's clearly not the case that "Any Bank would love to have you as a customer" The current relationship isn't one of love. Banks like customers who pose very little risk, and the behavior to date apparently doesn't meet that criteria.

Paying on time, every time, is just their basic expecation, no good marks for that (but of course many bad marks if you don't). OP has met their committments, as has the issuer. Part of the conditions is that either side can close at any time, and credit limits can change.