topic Re: Chase may be reducing Credit Limit? in Credit Cards

Chase may be reducing Credit Limit?

AzCreditGuy — Fri, 24 Feb 2023 16:27:25 GMT

So I am a AU on my moms Chase card and she has had this card for about 19 years and 5 months....The limit is only $11,300. Her credit scores on all 3 are around 815-820. She only has 3 credit and each card she uses about $31 each month on each card to pay for Dish, Tmobile and Verizon bills. Well I just saw the mobile up had a notice to read a letter online. The letter is as follows:

Anyone else receive this letter?

Re: Chase may be reducing Credit Limit?

K-in-Boston — Fri, 24 Feb 2023 16:29:16 GMT

According to the letter, looks like she should be able to just call and ask for it to remain.

Re: Chase may be reducing Credit Limit?

AzCreditGuy — Fri, 24 Feb 2023 16:36:32 GMT

@K-in-Boston wrote:
According to the letter, looks like she should be able to just call and ask for it to remain.

Yes did see that as well....But wondering if anyone else has received a letter like this?

Re: Chase may be reducing Credit Limit?

JoeRockhead — Fri, 24 Feb 2023 16:45:33 GMT

I'd imagine it's not that uncommon if an account has had long periods of low spend, it could have even been triggered and auto generated by in house thresholds, I agree you should just call and say hey Chase, leave me alone, thank you

Re: Chase may be reducing Credit Limit?

Anonymous — Fri, 24 Feb 2023 17:11:22 GMT

@JoeRockhead wrote:
I'd imagine it's not that uncommon if an account has had long periods of low spend, it could have even been triggered and auto generated by in house thresholds, I agree you should just call and say hey Chase, leave me alone, thank you

I am not reading that as saying the phone call will automatically prevent the CLD. Perhaps a chance to explain why they shouldn't ("Next month I am doing a big purchase" or whatever)? But let's see, perhaps the call really is enough

Re: Chase may be reducing Credit Limit?

Hex — Fri, 24 Feb 2023 17:19:08 GMT

If she doesn't want the decrease she should call and ask what can be done to avoid it.

Re: Chase may be reducing Credit Limit?

Remedios — Fri, 24 Feb 2023 18:35:22 GMT

Chase sends these letters periodically when no/low use persists.

It is very possible to just call and ask for limit to remain unchanged.

Re: Chase may be reducing Credit Limit?

SouthJamaica — Fri, 24 Feb 2023 18:55:06 GMT

@AzCreditGuy wrote:
So I am a AU on my moms Chase card and she has had this card for about 19 years and 5 months....The limit is only $11,300. Her credit scores on all 3 are around 815-820. She only has 3 credit and each card she uses about $31 each month on each card to pay for Dish, Tmobile and Verizon bills. Well I just saw the mobile up had a notice to read a letter online. The letter is as follows:

Anyone else receive this letter?

I haven't received it.... yet.

But if they're doing that across the board, then they're bound to send me some. I have 2 cards, 1 with a $30k limit, the other with a $29k limit.

The $29k card rarely sees $300 in spending, and the $30k card rarely sees more than $700.

That's upsetting because I really need the utilization padding just now.

Re: Chase may be reducing Credit Limit?

SouthJamaica — Fri, 24 Feb 2023 18:57:48 GMT

@Remedios wrote:
Chase sends these letters periodically when no/low use persists.
It is very possible to just call and ask for limit to remain unchanged.

I've had 2 Chase cards for around 6 years, never go over 2 or 3% of limit, and have never received such a letter.

Re: Chase may be reducing Credit Limit?

jojo79 — Fri, 24 Feb 2023 19:26:20 GMT

I was JUST about to post about this and saw your thread; I too received a notice today on my Freedom card; reducing my limit from $5900 down to $3000. To be honest this card sees minimum use; but so do many others I have. I'm not sure if I'll call or not.... yet. If they reduce it should not impact my overall CL amounts by much.

I have a CSP and Amazon VISA CC as well but only Freedom seems to be impacted.

Re: Chase may be reducing Credit Limit?

SouthJamaica — Fri, 24 Feb 2023 19:39:22 GMT

@jojo79 wrote:
I was JUST about to post about this and saw your thread; I too received a notice today on my Freedom card; reducing my limit from $5900 down to $3000. To be honest this card sees minimum use; but so do many others I have. I'm not sure if I'll call or not.... yet. If they reduce it should not impact my overall CL amounts by much.

I have a CSP and Amazon VISA CC as well but only Freedom seems to be impacted.

I'm hoping the cobranded cards don't get this treatment; both of mine are of the cobranded variety.

Re: Chase may be reducing Credit Limit?

AndySoCal — Fri, 24 Feb 2023 19:49:38 GMT

@AzCreditGuy @jojo79 All Chase is doing is bringing the credit limit in line to with the spending. The larger the limit the expectation spending that matches that limit. Based on those letters I will call Chase and close my Freedom card. I have no plans to use the card for the next month or so. For whatever its worth my current utilization is 2%. The closed account will not affect the percentage at all with the balances I have.

Re: Chase may be reducing Credit Limit?

calyx — Fri, 24 Feb 2023 20:58:49 GMT

@AndySoCal wrote:
@AzCreditGuy @jojo79 All Chase is doing is bringing the credit limit in line to with the spending. The larger the limit the expectation spending that matches that limit. Based on those letters I will call Chase and close my Freedom card. I have no plans to use the card for the next month or so. For whatever its worth my current utilization is 2%. The closed account will not affect the percentage at all with the balances I have.

It would be nice if they brought limits in line by raising them as well, but I think I won't hold my breath
(In my case, I occasionally max out my Freedom, but it has a very low limit - I could just move some limits around as I have high limits on 2 other Chase cards, but I'm too lazy to mind all that much)

Re: Chase may be reducing Credit Limit?

MarkintheHV — Fri, 24 Feb 2023 20:43:22 GMT

I think a lot of banks are going to be doing this soon. They are probably trying to reduce their exposure to possible losses.

Re: Chase may be reducing Credit Limit?

Remedios — Fri, 24 Feb 2023 20:57:47 GMT

@SouthJamaica wrote:
@Remedios wrote:
Chase sends these letters periodically when no/low use persists.
It is very possible to just call and ask for limit to remain unchanged.
I've had 2 Chase cards for around 6 years, never go over 2 or 3% of limit, and have never received such a letter.

I have no clue what you're trying to say here.

Any experience in life can be prefaced with "I never....untill I did"

I mean, isn't everyone alive until they aren't?

Lenders will frequently evaluate and right size their portfolio, not everyone gets a turn every time.

Didn't happen to you, didn't happen to me, none of that negates the fact it happened.

If you require additional proof, look up threads from mid to late 2021, both business and personal cards. If you don't like searching via forum tool, use Google.

Re: Chase may be reducing Credit Limit?

Gregory1776 — Fri, 24 Feb 2023 22:12:27 GMT

@MarkintheHV wrote:
I think a lot of banks are going to be doing this soon. They are probably trying to reduce their exposure to possible losses.

Precisely. Economy is going south all around and we should all expect limits to be reduced for the banks to reduce what they could be putting on the line. My Amazon card is at 22,000 and on Amazon I rarely spend more than 100-300 a month. Occasionally I'll get something big on Amazon (like a radar detector im waiting to check out on) other than that spending is minimum on my Amazon CC. Last year it was my 2% card so saw a lot more money going through it.

Re: Chase may be reducing Credit Limit?

Anonymous — Sat, 25 Feb 2023 00:41:16 GMT

@Gregory1776 wrote:
@MarkintheHV wrote:
I think a lot of banks are going to be doing this soon. They are probably trying to reduce their exposure to possible losses.
Precisely. Economy is going south all around and we should all expect limits to be reduced for the banks to reduce what they could be putting on the line. My Amazon card is at 22,000 and on Amazon I rarely spend more than 100-300 a month. Occasionally I'll get something big on Amazon (like a radar detector im waiting to check out on) other than that spending is minimum on my Amazon CC. Last year it was my 2% card so saw a lot more money going through it.

Hard to know. I have 4 Chase cards, two of which have largeish (> $30K) mainly unused CLs. Last week, seeing the article on DoctorOfCredit, I used the App to get a SP CLI, which I certainly didn't need... Now that's not to say that next week I won't see large CLDs on these cards, but so far, they are also going in the other direction

Re: Chase may be reducing Credit Limit?

Libra85 — Sat, 25 Feb 2023 01:06:56 GMT

I'm a AU on my company's Chase Business INK and a letter was sent back in 2022 stating they were reducing the credit limit from $16K to $8K.

We only run about $240 a month on that particular business card. When I reviewed the account the credit limit was still $16K

Re: Chase may be reducing Credit Limit?

NoMoreE46 — Sat, 25 Feb 2023 03:02:35 GMT

DW got a use it or lose it letter from Chase on her Disney card a while back. In fairness, it was not used for like two or more years. She decided to let the TL close.....

Re: Chase may be reducing Credit Limit?

acreditdummy123 — Sat, 25 Feb 2023 08:16:37 GMT

got a CLD from capital one from 20k down to 10k. i don't care lol