topic Target REDcard credit limit reduced in Credit Cards

Target REDcard credit limit reduced

DaveSignal — Tue, 13 Aug 2013 16:28:29 GMT

I guess I was asking for this, since I haven't used my REDcard in over 1 year, but I noticed that my credit limit has been slashed down to $200. I can only assume that they are about to close the account. So I am now debating whether I want to let this get closed automatically, close it myself, or start shopping for Target stuff online in order to keep this account open. I am leaning toward option 1: let the credit grantor close the account.

Re: Target REDcard credit limit reduced

Anonymous — Tue, 13 Aug 2013 16:36:45 GMT

Have you been inactive with card or is there a credit issue that is causing this decrease?

Re: Target REDcard credit limit reduced

manwoot — Tue, 13 Aug 2013 16:38:20 GMT

@Anonymous wrote:
Have you been inactive with card or is there a credit issue that is causing this decrease?

@DaveSignal wrote:
I guess I was asking for this, since I haven't used my REDcard in over 1 year, but I noticed that my credit limit has been slashed down to $200. I can only assume that they are about to close the account. So I am now debating whether I want to let this get closed automatically, close it myself, or start shopping for Target stuff online in order to keep this account open. I am leaning toward option 1: let the credit grantor close the account.

Sounds like you don't really need the REDcard

Re: Target REDcard credit limit reduced

Anonymous — Tue, 13 Aug 2013 16:42:04 GMT

@manwoot wrote:
@Anonymous wrote:
Have you been inactive with card or is there a credit issue that is causing this decrease?
@DaveSignal wrote:
I guess I was asking for this, since I haven't used my REDcard in over 1 year, but I noticed that my credit limit has been slashed down to $200. I can only assume that they are about to close the account. So I am now debating whether I want to let this get closed automatically, close it myself, or start shopping for Target stuff online in order to keep this account open. I am leaning toward option 1: let the credit grantor close the account.
Sounds like you don't really need the REDcard

Slow today. Missed that. I would still double check my credit reports to make sure. A lot of card issuers don't really reduce CLs for inactivity but they may close after a really long time. Although I seem to remember target being one of them.

Re: Target REDcard credit limit reduced

DaveSignal — Tue, 13 Aug 2013 16:46:12 GMT

yes, it's because I haven't used it... mostly because I don't currently live in a place where there are Target stores. I certainly don't need the card right now. I move around a lot though, so that doesn't mean that I won't be near a Target in the future and the 5% off is better than any of my CC rewards. I guess I can reapply again in the future if I am in such a circumstance.

ETA: The reduced limit is on my credit reports... that is how I noticed it.

Re: Target REDcard credit limit reduced

kevinjjc — Tue, 13 Aug 2013 16:48:18 GMT

What was the credit limit before? How old is the account?

Re: Target REDcard credit limit reduced

CS800 — Tue, 13 Aug 2013 16:50:51 GMT

I always keep $5 on it to report; although I shop at the Red Ball store (that's what my daughter calls it) very often

Re: Target REDcard credit limit reduced

jlfce1 — Tue, 13 Aug 2013 16:51:48 GMT

@DaveSignal wrote:
yes, it's because I haven't used it... mostly because I don't currently live in a place where there are Target stores. I certainly don't need the card right now. I move around a lot though, so that doesn't mean that I won't be near a Target in the future and the 5% off is better than any of my CC rewards. I guess I can reapply again in the future if I am in such a circumstance.

ETA: The reduced limit is on my credit reports... that is how I noticed it.

Just an fyi....they offer a Target Debit now that links to your checking that offers the same exact benefits as their credit card. I never use my target card anymore because I can get the same rewards, not to mention mine only has a $500 CL. Also - with the redcard (CC & Debit) you get free shipping when you use it at Target.com.

After reading this, I may as well close it.

Re: Target REDcard credit limit reduced

Anonymous — Tue, 13 Aug 2013 16:54:48 GMT

@DaveSignal wrote:
I guess I was asking for this, since I haven't used my REDcard in over 1 year, but I noticed that my credit limit has been slashed down to $200. I can only assume that they are about to close the account. So I am now debating whether I want to let this get closed automatically, close it myself, or start shopping for Target stuff online in order to keep this account open. I am leaning toward option 1: let the credit grantor close the account.

Oh gosh...same thing happened to me. I had a $500 limit, they lowered it to $200, and then closed it. Bah. All due to inactivity. They never even told me they were closing it; I found out via my credit report. I just use the Target Debit Card for the 5% discount now.

Re: Target REDcard credit limit reduced

DaveSignal — Tue, 13 Aug 2013 17:06:55 GMT

@kevinjjc wrote:
What was the credit limit before? How old is the account?

Was at $700. Not a huge amount, but enough to buy things at Target. A drop to $200 is definitely noticeable though. The account was opened sometime in 2011, about 2 years ago. I haven't used it since July or August of 2012. I might just let them close it if they want. Or I will just call and close this card, plus a few others that I don't use. They aren't really doing anything for me right now, don't have any significant effect on my utilization, and just take up space in my sock-drawer wallet.

Re: Target REDcard credit limit reduced

parakleet — Tue, 13 Aug 2013 17:13:25 GMT

I wonder if something is going on with the Target CC. It seems there are numerous posts with people with excellent scores and prime cards getting CLD or getting approved with ultra toy limits. It's puzzling because it seems like Target does promote their store card inside the store. If a CSR at Target tried to get me to sign up for their card for the additional discount, I think I would laugh. I'm not going to waste an inq for no stinking $200 cl!

Re: Target REDcard credit limit reduced

FinStar — Tue, 13 Aug 2013 17:18:13 GMT

My Target Visa's CL remains intact. However, I keep it active quite frequently. It seems this points more to inactivity than anything else.

Re: Target REDcard credit limit reduced

jlfce1 — Tue, 13 Aug 2013 17:31:50 GMT

@DaveSignal wrote:
@kevinjjc wrote:
What was the credit limit before? How old is the account?
Was at $700. Not a huge amount, but enough to buy things at Target. A drop to $200 is definitely noticeable though. The account was opened sometime in 2011, about 2 years ago. I haven't used it since July or August of 2012. I might just let them close it if they want. Or I will just call and close this card, plus a few others that I don't use. They aren't really doing anything for me right now, don't have any significant effect on my utilization, and just take up space in my sock-drawer wallet.

No matter what, it's always a bummer to receive a CLD.

Have you tried calling? I just called and tried to cancel my card. The woman I spoke to referenced my history from 2008, never late, never missed a payment, etc., etc.

She stated for the past few years with the economy, they weren't reviewing accounts and now they are doing automated reviews for CLI. I also informed her that I don't use this card and I didn't want them to close it for inactivity and she advised that they will not (Clearly, this doesn't mean this is 100% accurate, but I found it interesting). She asked me to give it some time to let them review and determine a CLI. So I told her I'd give it another month. It doesn't hurt me to keep it, but it's also nice to close account that aren't use because it's one less to have to keep tabs on.

Anyway, I'd call to find their reasoning behind it to see if you can't get your CL back. Worst thing that happens if you're in the same spot that you're in now.

Re: Target REDcard credit limit reduced

DaveSignal — Tue, 13 Aug 2013 21:05:28 GMT

I decided to call and close it. I don't use the card. If I am ever living near Target again and the 5% is still more appealing than my CC rewards, I will reapply. I don't need the account for utilization.

Re: Target REDcard credit limit reduced

djc1puno — Wed, 14 Aug 2013 00:10:43 GMT

Great move...one less card to worry about