topic Re: Chase CLD's $59k --> $5400 in Credit Cards

Chase CLD's $59k --> $5400

SouthJamaica — Tue, 21 May 2024 17:04:01 GMT

Well I guess they're starting to pile on. Discover did it to me a couple of weeks ago, and Chase has done it today, lowering the credit limit on my Amazon Prime card from $30k to $3400, and my World of Hyatt card from $29k to $2000.

Re: Chase CLD's $59k --> $5400

CreditCuriosity — Tue, 21 May 2024 17:08:57 GMT

Ouch! I am sorry it appears the dominos are falling for you and the risk mitigation has started beyond Discover. Hopefully you can stop the bleeding and sorry to hear this. Thanks for sharing honestly with the forum.

Re: Chase CLD's $59k --> $5400

OrangeRange — Tue, 21 May 2024 17:17:01 GMT

Oh no! Sorry to hear that. Did Discover start this cascade? You haven't had anything abruptly change with your profile have you?

Discover has been sending me mailers for the better part of a year now like every 2-4 weeks. With Capital One now trying to acquire them and hearing yet another DP on them taking adverse action on otherwise good accounts makes me want to continue chucking those mailers in the trash.

Re: Chase CLD's $59k --> $5400

FlaDude — Tue, 21 May 2024 17:19:56 GMT

Wow! Sorry to hear that. Your previous post about the Discover CLDs mentioned gradually decreasing scores due to UTI, is that the only thing going on? About 7 years ago I had scores around 700, a ton of CC debt (75k), and many maxed out cards and even then I didn't get balance chased or CLD'ed when I worked it down. Maybe lenders are getting more skittish, although the total CL from your siggie could also be triggering some bustout fraud alarms or otherwise scaring them.

Re: Chase CLD's $59k --> $5400

SouthJamaica — Tue, 21 May 2024 20:13:36 GMT

Yes Discover seems to have started it

Most likely the reason is high utilization.

Another possible factor contributing to Chase's decision is that I just started carrying balances on these 2 cards, something I'd never done in the past, since their interest rates are the least obnoxious of my rewards card interest rates.

Re: Chase CLD's $59k --> $5400

TrapLine — Tue, 21 May 2024 18:16:22 GMT

On another posting today on MF, the information was provided from the JP Morgan's CEO about the US Debt and it's effects on the economy and inflation (a foreshadow of sorts?). Also, makes me wonder if Chase is startring to look at DTI, along with possibly utilization or lack therein (note I have NOT read this anywhere just speculation). Note, another poster offered up concerns about not having a budget for the US.

It may be the time to start righting the ship economically.

Re: Chase CLD's $59k --> $5400

Jnbmom — Tue, 21 May 2024 18:22:11 GMT

@SouthJamaica

Ouch so sorry about that .

Re: Chase CLD's $59k --> $5400

CreditPoor — Tue, 21 May 2024 18:28:25 GMT

Sorry to hear that. Unfortunately this is the banking environment we are in. Balances being carried month over month will definitely raise red flags to banks

Re: Chase CLD's $59k --> $5400

FlaDude — Tue, 21 May 2024 18:30:37 GMT

I've mentioned this on past threads but it baffles me that lenders in general give, maintain, and even CLI limits that are 10s of thousands of $$ on accounts with minimal to no usage. It just seems like a huge exposure for little benefit for them. I know Synch has been agressive about "right sizing" limits, they CLD'ed (and eventually closed) my wife's JCP card from 20k to 500 due to lack of use. OTOH, they CLI'ed my Lowes card from 20k to 30k recently when I requested and I only use that card minimally. I did it mainly out of curiosity, but if I were a lender I think I'd be looking pretty closely at these situations. Now it seems that Discover and Chase are joining Synch in reining in their exposure.

Re: Chase CLD's $59k --> $5400

JoeRockhead — Tue, 21 May 2024 18:37:08 GMT

Takes courage to be open and honest about stuff like this, hats off to you for that. Truly sorry you're faced with it all, and hope it gets turned the other way soon!

Re: Chase CLD's $59k --> $5400

CreditPoor — Tue, 21 May 2024 19:01:59 GMT

@FlaDude Banks are moving away from people who have high utilization and carry balances month over month. Card holders who use credit but utilize small amounts and PIF monthly are considered low risk and more desirable in this current economic environment. Delinquencies and defaults are a big problem and while banks still need to lend, they see the borrowers who don't depend on credit the better option at least in today's economy

Re: Chase CLD's $59k --> $5400

Rdbeetle — Tue, 21 May 2024 20:08:40 GMT

That sucks! Sorry to hear that.

Re: Chase CLD's $59k --> $5400

Thomas_Thumb — Tue, 21 May 2024 21:03:46 GMT

@SouthJamaica wrote:
Well I guess they're starting to pile on. Discover did it to me a couple of weeks ago, and Chase has done it today, lowering the credit limit on my Amazon Prime card from $30k to $3400, and my World of Hyatt card from $29k to $2000.

That's rather disconcerting. The CLDs raise aggregate UT which then may trigger additional AA.

I recall NRB525 going through some major CLDs many years back. I'm sure he would be open to a PM for insight - he survived the purge.

Re: Chase CLD's $59k --> $5400

SouthJamaica — Wed, 22 May 2024 14:13:36 GMT

@Thomas_Thumb wrote:
@SouthJamaica wrote:
Well I guess they're starting to pile on. Discover did it to me a couple of weeks ago, and Chase has done it today, lowering the credit limit on my Amazon Prime card from $30k to $3400, and my World of Hyatt card from $29k to $2000.

That's rather disconcerting. The CLDs raise aggregate UT which then may trigger additional AA.

I know NRB525 went through this many years back. I'm sure he would be open to a PM for insight - if myFICO has not axed him (it been quite awhile since I've seen him post).

I'm not going to complain about it. I know what I have to do. Make more money, cut expenses, and pay things down.

Re: Chase CLD's $59k --> $54

Jeffster1 — Tue, 21 May 2024 22:34:08 GMT

@JoeRockhead wrote:
Takes courage to be open and honest about stuff like this, hats off to you for that. Truly sorry you're faced with it all, and hope it gets turned the other way soon!

Amen.

@SouthJamaica has been so helpful to, literally, thousands of us. The banks' darn risk algorithms make them trigger happy and results in them ignoring the totality of one's history going back over years. I realize that the risk models are based on history across millions of people, but they often also get it wrong. Cutting someone off at the knees at the first sign of an imagined issue should make us all feel unsettled.

Re: Chase CLD's $59k --> $54

CreditPoor — Tue, 21 May 2024 23:26:28 GMT

It's literally not personal and to the banks 1.3 Trillion in credit card debt and almost a 60% default and delinquency rate is not an imagined issue. We all sit here day after day discussing how banks are tightening up lending and are scrutinizing certain behavior and then are shocked

Banks are not messing around. If you often carry debt then it's not a matter of if, but when it happens to you

Re: Chase CLD's $59k --> $54

Anonymous — Tue, 21 May 2024 23:49:17 GMT

@Jeffster1 wrote:
Cutting someone off at the knees at the first sign of an imagined issue should make us all feel unsettled.

Steeply rising utilization can certainly be a sign of trouble (whether it is or not in SJ's case we don't know). And I guess whereas in the past the banks would close the card, the algorithms now allow them to CLD to a "safe" (for them) level, even if the resulting CL is actually not usable.

Re: Chase CLD's $59k --> $5400

Guyatthebeach — Wed, 22 May 2024 00:01:55 GMT

@SouthJamaica,

Ouch! I'm sorry to see this happen with another lender. That's a deep haircut to take with any amount of debt. I've been there before and I know that's like. You will bounce back!

Two suggestions:

1. Talk to a financial advisor or counselor. Let someone professionally take a look at your finances and you may get a few suggestions to tackle your debt that you have not have considered.
2. Do you have any business credit cards that aren't attached to your social security number or don't report to your CR's? If so, maybe do a balance transfer to those cards to lower your reported debt.

You will conquer this challenge ahead of you and rise above this!

Guyatthebeach

Re: Chase CLD's $59k --> $5400

AndySoCal — Wed, 22 May 2024 01:00:50 GMT

@SouthJamaica I would agree that it may be the reason for the CLD. It is a change in how you make payments on the account in the sense that it now monthly payments rather than balance in full. I recently bought a new laptop and some software for around $1100 on my US Bank Cash+ card. I logged into my account they wanted me to update my income and my profile information. I think may have been in response to the sepnd on the card change. The Cash+ card has not seen much use since I got my Redwood FCU card. Also, I do not remember putting that much spend on it ever. So far no adverse action the balance will be paid off in full in a couple of weeks.

Re: Chase CLD's $59k --> $5400

bluenote-lp — Wed, 22 May 2024 05:28:10 GMT

Sorry to hear about the Cld,that's a very signifant cut, but then again you have over 1/2 a million in credit available, i am assuming they feel you don't need that much credit or either you are not using it enough,to justify such a limit,...You could always call them and talk to a senior analyst and ask the reason and see if you could get some of the limit reinstated, but with your cards i doubt very seriously your credit will take some kind of hit.Again sorry about the CLD, Chase can be funny like that.