topic SoFi CLD in Credit Cards

SoFi CLD

Anonymous — Fri, 09 Feb 2024 00:31:50 GMT

Surprised to get a large CLD from SoFI just now, from $30K to $1,100 (which is near this month's outstanding charges)

30K was certainly not needed, but $1,100 is way too low!

They gave the following reasons.

Score is 836 (out of 850) with the following reasons:

YOUR LARGEST CREDIT LIMIT ON OPEN BANKCARD OR REVOLVING ACCOUNTS IS TOO LOW
TOTAL OF ALL BALANCES ON BANK CARD OR REVOLVING ACCOUNTS IS TOO HIGH
YOU HAVE TOO MANY INQUIRIES ON YOUR CREDIT REPORT

I have several $30K+ CLs, and balances (which are just monthly charges) are less than 1% of total CL. I have 2 inquiries on EXP.

So I will close the card as they clearly don't want me as a customer. Time to update the few automatic charges!

Re: SoFi CLD

Kforce — Fri, 09 Feb 2024 00:54:20 GMT

Even when it's a card you don't really need or put a lot of spend on.

It hurts when something like this happens.

Have been expecting something similar for a few of my cards.

Three of mine have just keep alive spend.

Maybe all issuers want more than just a few dollars every now & then.

Re: SoFi CLD

Anonymous — Fri, 09 Feb 2024 01:14:03 GMT

@Kforce wrote:
Even when it's a card you don't really need or put a lot of spend on.
It hurts when something like this happens.

Have been expecting something similar for a few of my cards.
Three of mine have just keep alive spend.
Maybe all issuers want more than just a few dollars every now & then.

What is surprising is that I have been putting a fair amount of spend on the card (just not $30K a month!) Between a few hundred and a few thousands each month.

I just saw on my Feb statement: "Congratulations your excellent payment history has qualified you for a temporary interest rate
reduction of 1% off of yourpurchase interest rate."

I called and asked if anything could be reviewed. As a FinTech, the CSRs don't have that ability, so once the payment posts (there are no more pending charges) I will close. Presumably this will tank my credit score for a little while, 85.1% utilization on the card

Re: SoFi CLD

Anonymous — Fri, 09 Feb 2024 01:57:07 GMT

Oh, the things I listed earlier were experian score reasons. At the top of the email they give theirs.

Length of time this account has been established
Payment as a percentage of amount due
Historical payments on the account

Certainly 1 is valid, it's about 18 months. Since I have always PIF not sure about the others, except that recently there was a largish credit, wonder if that spooked them

ETA: Reddit reports several of these starting Jan 30th or so

Re: SoFi CLD

markbeiser — Fri, 09 Feb 2024 02:11:09 GMT

I've been backing away from having any exposure to FinTechs, either via investments or actually doing business with them.
Got down to zero exposure a couple of months ago.

Re: SoFi CLD

CorpCrMgr1 — Fri, 09 Feb 2024 02:15:18 GMT

Maybe sock draw the card and let it die a natural death?

Re: SoFi CLD

Anonymous — Fri, 09 Feb 2024 02:52:06 GMT

@CorpCrMgr1 wrote:
Maybe sock draw the card and let it die a natural death?

Too risky, don't want a transaction coming in at some point, going near the limit. Unless I thought one day it would go up significantly again, there seems no advantage in keeping it open

Re: SoFi CLD

Jeffster1 — Fri, 09 Feb 2024 07:48:28 GMT

I dipped my toe in the water with Jasper and Upgrade.

Jasper was bought out, and got out of the business suddenly.

My experience with Upgrade was meh. I closed it after a year.

No more fintechs for me. This post helps confirm my decision. Sure...any credit issuer can CLD, but fintechs seem unusually arcane in their practices at times.

Re: SoFi CLD

Curious_George2 — Fri, 09 Feb 2024 06:50:20 GMT

@Anonymous wrote:
Oh, the things I listed earlier were experian score reasons. At the top of the email they give theirs.

Length of time this account has been established
Payment as a percentage of amount due
Historical payments on the account

Certainly 1 is valid, it's about 18 months. Since I have always PIF not sure about the others, except that recently there was a largish credit, wonder if that spooked them

ETA: Reddit reports several of these starting Jan 30th or so

That sucks.

Since you did nothing improper or risky, this seems to suggest there's financial distress on their end. If they need to rapidly improve their balance sheet, one way to do it is to slash some large limits. That's what Syncrony did a year or two back, right?

Re: SoFi CLD

Curious_George2 — Fri, 09 Feb 2024 07:01:42 GMT

@Anonymous: I assume you saw this comment in one of the threads from a similar CLD victim...

Maybe it's worth calling?

Re: SoFi CLD

cws-21 — Fri, 09 Feb 2024 12:51:51 GMT

Thanks for this post, @Anonymous. I have gone back and forth about the SoFi Credit Card being my AOD Visa Signature replacement if the latter is nerfed for existing customers. You just helped me make my decision. I will be looking elsewhere, though, hopefully, I will not need a new card for non-category spending!

Re: SoFi CLD

coldfusion — Fri, 09 Feb 2024 14:01:02 GMT

@Curious_George2 wrote:

The issue with Synchrony was that due to the increasing amount of overdue balances owed them by cardholders the govt. updated the formula used to establish the sizing of their loss reserves. One of the metrics used in that formula is the total aggregate credit limit across all cardholders so instead of boosting their loss reserves Synchrony reduced the amount of overall credit granted by more aggressively slashing limits on larger accounts especially if they had underutilized cards. AFAIK Synchrony itself wasn't at the point themselves of being under financial distress so this was just a move made to help keep them out of financial distress.

Re: SoFi CLD

Anonymous — Fri, 09 Feb 2024 14:09:52 GMT

@Curious_George2 wrote:
@Anonymous: I assume you saw this comment in one of the threads from a similar CLD victim...

Maybe it's worth calling?

That is their usual credit card help line, which I called yesterday and was told that they don't have a way to change things! Guess they want to look good on Reddit..

Re: SoFi CLD

youngandcreditwrthy — Fri, 09 Feb 2024 17:26:24 GMT

this is such garbage bro/sis.. upgrade and SOFI. good lawd they are dicey.

I could see something liek "too much avail credit" or "not enough use to justify credit limit" but comeon... those reaons don't even make sense.

I dont have experience with SOFI but their owner/ceo whatever said they were really focusing on service and financnial products.

have you asked about getting it reinstated in any capacity? @Anonymous

Re: SoFi CLD

youngandcreditwrthy — Fri, 09 Feb 2024 17:28:40 GMT

upgrades 5.07% savings is ultra amazing and reliable esp combined with the 2% debit back on gas/some food.... but their cards are deceptive and most folks repor thtat they dont even operate like credit cards.

GL!

Re: SoFi CLD

Curious_George2 — Fri, 09 Feb 2024 17:34:44 GMT

@coldfusion wrote:
The issue with Synchrony was that due to the increasing amount of overdue balances owed them by cardholders the govt. updated the formula used to establish the sizing of their loss reserves. One of the metrics used in that formula is the total aggregate credit limit across all cardholders so instead of boosting their loss reserves Synchrony reduced the amount of overall credit granted by more aggressively slashing limits on larger accounts especially if they had underutilized cards. AFAIK Synchrony itself wasn't at the point themselves of being under financial distress so this was just a move made to help keep them out of financial distress.

Makes sense. Seems plausible a similar thing could be happening at SoFi now. I'm just speculating, but their historic focus on student loan borrowers would seem to be an increased risk factor at the moment.

Re: SoFi CLD

Anonymous — Fri, 09 Feb 2024 17:35:14 GMT

@youngandcreditwrthy wrote:

have you asked about getting it reinstated in any capacity? @Anonymous

When I called I was told the CSRs don't have any way of asking for a review, but eventually it will be, maybe. That's nice, but I plan on closing it very soon.

The CSR was nice enough, but is either a) really constrained in what they can do, like Cap One in the old days, or b) my account is marked "close it down!" As usual, I was asked if there is anything else they can help me with.... Nah!

Re: SoFi CLD

SouthJamaica — Fri, 09 Feb 2024 21:30:55 GMT

@Anonymous wrote:
Surprised to get a large CLD from SoFI just now, from $30K to $1,100 (which is near this month's outstanding charges)
30K was certainly not needed, but $1,100 is way too low!

They gave the following reasons.

Score is 836 (out of 850) with the following reasons:

YOUR LARGEST CREDIT LIMIT ON OPEN BANKCARD OR REVOLVING ACCOUNTS IS TOO LOW
TOTAL OF ALL BALANCES ON BANK CARD OR REVOLVING ACCOUNTS IS TOO HIGH
YOU HAVE TOO MANY INQUIRIES ON YOUR CREDIT REPORT

I have several $30K+ CLs, and balances (which are just monthly charges) are less than 1% of total CL. I have 2 inquiries on EXP.

So I will close the card as they clearly don't want me as a customer. Time to update the few automatic charges!

They did the same thing to me, cut my limit from 7k to 1k out of the blue.

Re: SoFi CLD

SouthJamaica — Fri, 09 Feb 2024 21:32:07 GMT

@Anonymous wrote:
@Kforce wrote:
Even when it's a card you don't really need or put a lot of spend on.
It hurts when something like this happens.

Have been expecting something similar for a few of my cards.
Three of mine have just keep alive spend.
Maybe all issuers want more than just a few dollars every now & then.
What is surprising is that I have been putting a fair amount of spend on the card (just not $30K a month!) Between a few hundred and a few thousands each month.

I just saw on my Feb statement: "Congratulations your excellent payment history has qualified you for a temporary interest rate
reduction of 1% off of yourpurchase interest rate."

I called and asked if anything could be reviewed. As a FinTech, the CSRs don't have that ability, so once the payment posts (there are no more pending charges) I will close. Presumably this will tank my credit score for a little while, 85.1% utilization on the card

I wouldn't close it until the balance gets down to zero.

Re: SoFi CLD

xenon3030 — Fri, 09 Feb 2024 23:49:20 GMT

Several users had complains on the ways that SoFi handled CC products like CLD or dispute transactions. So, I decided to use their checking/saving products only. Such products look to be good for the moment. They provide checks for free and also they provide DD from employers two days early.