topic Re: Late payments resulted in $10K to $100 CLD...close account? in Credit Cards

Late payments resulted in $10K to $100 CLD...close account?

urbex — Sun, 25 May 2025 17:41:42 GMT

750-760 scores across the board, 16 open credit cardss with several over $20K limits. A mortgage, 2 car loans, and a personal debt consolidation loan. 8% utilization on a total combined limit of $145K. Never 30 day late on any of them, and really started pushing hard to get 100% debt free last year.

Synchrony PayPal cashback MasterCard...no matter how many reminders I set myself, I routinely forgot to pay that one on time. Never got to a 30 day late, never had late payments hit my reports, but I paid several $40 late fees, so of course I wiped out any cash back I got with it.

Last month I noticed the limit went from $10K to $100. I completely understand why Synchrony dropped the CL as a result, and not arguing that. I immediately paid it off to $0. Frankly, given that I kept forgetting about it, I'm thinking of closing it anyways.

I've read that having low limit cards in a mix with high limit cards can have a negative impact to scores,but I can't think of the correct terms to use to search on that topic.

I'm not sure if at this point, if I'd be better just to shred the card, and let it run until Synchrony closes it for non use, or close it now as $100 limit will have zero effect on my total utilization, but I don't really want it to kick off a CLD domino effect on other cards either...

Re: Late payments resulted in $10K to $100 CLD...close account?

xenon3030 — Sun, 25 May 2025 18:42:59 GMT

It is fine to have CCs with both high and low CLs (assuming that you would have a high Fico score and a CLD would not result a Fico dip). Anyway, a CL of only $100 would make the card totally useless.

You may keep the card open and let it age (e.g. a $1 payment over each quarter) or close it.

Re: Late payments resulted in $10K to $100 CLD...close account?

urbex — Sun, 25 May 2025 19:09:58 GMT

Yep, it's either ignore it entirely, or close it at this point. Given that, for whatever reasons, I keep forgetting to pay this one on time, I'm not going to use it even for small quaterly charges. As much as it sucks to pay a $40 fee on a $1,000 charger, it would REALLY suck to pay that fee on a $5 charge, lol.

My only other real concern is if some fraud charge gets posted to it, and I don't catch it, it's really going to hurt when I finally realize it months later, and that's why I was leaning towards just closing it altogether.

Re: Late payments resulted in $10K to $100 CLD...close account?

GZG — Sun, 25 May 2025 19:14:42 GMT

@urbex wrote:
Synchrony PayPal cashback MasterCard...no matter how many reminders I set myself, I routinely forgot to pay that one on time. Autopay Never got to a 30 day late, never had late payments hit my reports, but I paid several $40 late fees, so of course I wiped out any cash back I got with it.

Last month I noticed the limit went from $10K to $100. I completely understand why Synchrony dropped the CL as a result, and not arguing that. I immediately paid it off to $0. Frankly, given that I kept forgetting about it, I'm thinking of closing it anyways.

I've read that having low limit cards in a mix with high limit cards can have a negative impact to scores,but I can't think of the correct terms to use to search on that topic. Having a low-limit card doesn’t negatively impact your credit scores in and of itself. There's no FICO score penalty that goes "has a low limit card -10 points".

creditors might see having a low limit credit card as not ideal, but that has nothing to do with FICO.

I'm not sure if at this point, if I'd be better just to shred the card, and let it run until Synchrony closes it for non use, or close it now as $100 limit will have zero effect on my total utilization, but I don't really want it to kick off a CLD domino effect on other cards either... the harm has already happened, all of your creditors are going to see the CLD, and if they choose to do anything because of it, that's going to be their choice. closing or not closing the card isn't going to matter much. but without any lates to go with it, hopefully you won't get any other AA (adverse actions).

you can build the card back up, but honestly, imo, just close it. come back to them later with your loan paid off and yourself in a better financial position.

Re: Late payments resulted in $10K to $100 CLD...close account?

Watchmann — Sun, 25 May 2025 21:48:33 GMT

autopay, Autopay, AUTOPAY!!!!! There just isn't any reason to not autopay your accounts. I know some are afraid that these companies are going to all of sudden drain your account by going wild, that just doesn't happen. I've been autopaying since 1973 when I first had a life insurance policy, and have had autopay since on credit cards, insurance, utilities and anything else that is on a recurring basis and have never had an issue with any account. Just my experience. Make your credit work for you, don't be a slave to your financial life.

Re: Late payments resulted in $10K to $100 CLD...close account?

xenon3030 — Sun, 25 May 2025 21:54:13 GMT

You may consider one checking account with excellent ebill pay services. Afterward, use it for external bill pay to all your credit cards from any bank using the minimum payment in each month.

One good example of such checking account can be Chase. I am also looking for other banks or CUs that provide such ebill services (electronic payment but not sending check by post).

Re: Late payments resulted in $10K to $100 CLD...close account?

UncleB — Sun, 25 May 2025 22:35:56 GMT

@urbex wrote:
750-760 scores across the board, 16 open credit cardss with several over $20K limits. A mortgage, 2 car loans, and a personal debt consolidation loan. 8% utilization on a total combined limit of $145K. Never 30 day late on any of them, and really started pushing hard to get 100% debt free last year.

Synchrony PayPal cashback MasterCard...no matter how many reminders I set myself, I routinely forgot to pay that one on time. Never got to a 30 day late, never had late payments hit my reports, but I paid several $40 late fees, so of course I wiped out any cash back I got with it.

Last month I noticed the limit went from $10K to $100. I completely understand why Synchrony dropped the CL as a result, and not arguing that. I immediately paid it off to $0. Frankly, given that I kept forgetting about it, I'm thinking of closing it anyways.

I've read that having low limit cards in a mix with high limit cards can have a negative impact to scores,but I can't think of the correct terms to use to search on that topic.

I'm not sure if at this point, if I'd be better just to shred the card, and let it run until Synchrony closes it for non use, or close it now as $100 limit will have zero effect on my total utilization, but I don't really want it to kick off a CLD domino effect on other cards either...

I very (very) seldom recommend that someone get rid of a no-AF card, but this is one of the few cases where I will.

The issue causing the late payments is going to remain regardless of the credit line. So far you've dodged getting a 30 day late (which would impact more than just this one account) but based on what you've shared eventually it's likely to happen. Something about this card is different from your others and it's 'cramping your style', so to speak, and rather than struggle to adjust to it IMO it might be better to just cut it loose.

Note that the $100 credit line isn't the kiss of death... back in the day my Lowe's card was balance chased down to just a few hundred dollars and it's now at $20k, so if you want the card IMO it's definitely salvageable with time. However summarily closing it would seem to solve the issue you're having as well as you wouldn't have to continue to monitor it for fraud.

I'm assuming you have other comparable cards and getting rid of this one won't leave any holes or gaps in your lineup.

Re: Late payments resulted in $10K to $100 CLD...close account?

Thomas_Thumb — Sun, 25 May 2025 22:53:07 GMT

Don't use the card ever again. i'd close it. However, no harm in sock drawering the card and waiting for it to close for non use (probably in2 years). Really, not much fraud exposure potential on a $100 CL card.

Re: Late payments resulted in $10K to $100 CLD...close account?

ptatohed — Mon, 26 May 2025 07:20:41 GMT

As my friends above have said, why would you not set up autopay? At least the minimum or, like me, the full payment?

Re: Late payments resulted in $10K to $100 CLD...close account?

creditrizz — Mon, 26 May 2025 07:57:35 GMT

Unless it's one of your older cards I would just close it and keep life simple. I've never followed the rule about leaving no-AF cards open if you don't use them, and I fairly often close the ones I don't use. My scores have never had a noticeable change from doing so. I mostly have a mix of my old cards and new cards, but not much in between. The middle-aged cards tend to be the ones I get rid of.

I also don't like small limit cards being on my profile, since new card issuers can use any algorithm they want and I don't need those small limits factoring in to any future limit or approval decisions.

Re: Late payments resulted in $10K to $100 CLD...close account?

crystal626 — Tue, 27 May 2025 19:45:33 GMT

Autopay minimum. All cards. It's just a matter of time before you have a 30 day late if even calendar reminders on your phone don't get you to pay your card.

Re: Late payments resulted in $10K to $100 CLD...close account?

CreditMagic7 — Thu, 29 May 2025 03:25:39 GMT

Suggestions that say having a low line with high line others don't matter are CLEARLY MISSING THE POINT and /or never been CLD'd before. In and of itself its USUALLY no issue, HOWEVER, your other high line creditors CAN SEE WHEN the drop happened on a routine SP Credit Review AND if they happen are of the type to act on such matters, they can always single that issue out and use it to scale back their limits with you too,

Personally if it was me i would call Synchrony and request a limit increase or return to or near limit before the slash. I do read IN THIS FORUM that they do sometimes raise it on request. Otherwise no way i would drag my profile down with that risky number but thats just me.

Re: Late payments resulted in $10K to $100 CLD...close account?

MrsCHX — Thu, 29 May 2025 12:56:22 GMT

Not to pile on but, you have to set up autopay for at least the monthly minimum on all cards.

And you have to have some sort of routine with finances. How do you do your budget? Weekly? Each payday? Monthly? That's the time to review card and bank statements and make sure there's nothing wonky. And still gives plenty of time to dispute any issues that may have come up.

at $100 I'd either wait a few months and ask for a CLI or close it. Depends on how much the card means to you. Though at a $100 limit, it's almost unusable.

Re: Late payments resulted in $10K to $100 CLD...close account?

THEPROFITGURU — Thu, 29 May 2025 13:40:24 GMT

As this is a financial product, the economy is always a factor and if a line is unused the company can reduce it's risk by doing this, it quite literally is not always about you.

Potatoes... We don't pay late fees, you call and get them courtesy waived, then you set up autopay.
&
Meat... Following, you need to reach out to the Finance/Underwriting department and advise them of your thanks for the product, the situation of your misstep with not having it on autopay, it's correction, the reasoning for the CLD, and upon their reply, your annual income with a request for it's reversal.

Without doing this, you can't answer.... This,

Let us know how it goes .