topic Re: Chase DECREASED my limits in Credit Cards

Chase DECREASED my limits

tyler84098 — Wed, 03 Sep 2014 00:10:15 GMT

So I have an interesting story to report out here:

While I was out of the country on business July and August, Chase decided to lower my Marriot and Sapphire cards down to $3500 and $3600 from $5000 each. I was carrying a balance of just under the new limits and I had balances on my American and Blue Cash cards (~50%). I kept my cool and called them today when I had a free moment because it listed a number to call for them to "reevaluate this decision." Interesting enough, I didn't use the cards for about 2 months and obviously didn't use them after they lowered them. I happen to see the change when, ironically, I had just finished talking to a friend about Chase and recommending it to them because how good they've been to me. I had an "oh crap" moment when I had realized I needed to pay off the balances so I logged in and noticed immediately that I had less than $100 available credit on each card. I was worried at first becuase I though my info had been compromised and someone used all my remaining credit. I quickly learned that was not the case.

Fast forwarding to today, I called the number (1-800-219-0015, in case anyone else needs it) and spoke to a very nice lady whom I told her what I did for a living, that I had travelled and that I just got back and payed off the balances on the other cards becuase they reported on my report. She seemed undertsanding but I pretty much told her that if Chase doesn't reinstate my CL's that I would pay off the cards and close all my Chase accounts. What probably also helped was that she looked at my checking and savings balances as well as my payment history on both cards (each statement PIF).

So she put me on a brief hold and came back and asked one more question of whether I owned a house or rented (I rent) and she advised that they would reinstate the CL's immediately!

Re: Chase DECREASED my limits

myjourney — Wed, 03 Sep 2014 00:29:24 GMT

So glad it worked in your favor

Re: Chase DECREASED my limits

hawaii-girl — Wed, 03 Sep 2014 06:30:55 GMT

@tyler84098 wrote:
So I have an interesting story to report out here:
While I was out of the country on business July and August, Chase decided to lower my Marriot and Sapphire cards down to $3500 and $3600 from $5000 each. I was carrying a balance of just under the new limits and I had balances on my American and Blue Cash cards (~50%). I kept my cool and called them today when I had a free moment because it listed a number to call for them to "reevaluate this decision." Interesting enough, I didn't use the cards for about 2 months and obviously didn't use them after they lowered them. I happen to see the change when, ironically, I had just finished talking to a friend about Chase and recommending it to them because how good they've been to me. I had an "oh crap" moment when I had realized I needed to pay off the balances so I logged in and noticed immediately that I had less than $100 available credit on each card. I was worried at first becuase I though my info had been compromised and someone used all my remaining credit. I quickly learned that was not the case.

Fast forwarding to today, I called the number (1-800-219-0015, in case anyone else needs it) and spoke to a very nice lady whom I told her what I did for a living, that I had travelled and that I just got back and payed off the balances on the other cards becuase they reported on my report. She seemed undertsanding but I pretty much told her that if Chase doesn't reinstate my CL's that I would pay off the cards and close all my Chase accounts. What probably also helped was that she looked at my checking and savings balances as well as my payment history on both cards (each statement PIF).

So she put me on a brief hold and came back and asked one more question of whether I owned a house or rented (I rent) and she advised that they would reinstate the CL's immediately!

You lucked out that they reinstated. I had the same thing happen to me a few years ago. They apparently did an SP and didn't like what they saw. And they reduced 2 cards from $4K each to $1100 each. This despite a 2 year history of flawless auto-pay in full, plus deposits in their bank for over $97K!!! When I called, they wouldn't even consider reinstating the old CL. And when I asked to speak to a supervisor, after the same threats you made, they told me it won't make any difference. Foolishly, in my disgust with them I followed through with my threat instead of talking to someone else. Oh well...

Re: Chase DECREASED my limits

takeshi74 — Wed, 03 Sep 2014 12:32:54 GMT

@tyler84098 wrote:
I was carrying a balance of just under the new limits and I had balances on my American and Blue Cash cards (~50%)

That will do it. Keep utilization low to avoid adverse action.

Re: Chase DECREASED my limits

Anonymous — Wed, 03 Sep 2014 12:53:15 GMT

I don't get why credit card companies do this. What's the point of giving you a credit limit if they are gonna come after you as soon as you use anything close to the limit THEY gave you.

Re: Chase DECREASED my limits

pizzadude — Wed, 03 Sep 2014 17:20:47 GMT

Moving to Credit Cards

Re: Chase DECREASED my limits

red259 — Wed, 03 Sep 2014 17:28:17 GMT

@takeshi74 wrote:
@tyler84098 wrote:
I was carrying a balance of just under the new limits and I had balances on my American and Blue Cash cards (~50%)
That will do it. Keep utilization low to avoid adverse action.

+1 Its just a bad idea to be carrying balances most of the time. Its annoying with your payment history that they took this action without notifying you.

Re: Chase DECREASED my limits

IWOL — Wed, 03 Sep 2014 17:42:10 GMT

OP.....how long were you carrying the balances on your Chase cards?

What was your total util accross all credit limits?

Im just asking becuase i think its important that people know all possible info for these type of posts or it becomes misinormation. I have had some large balances report because I dont generally micromanage my "reported" utilization unless im planning to app, so I often pay my statement balance after its cut but before the grace period ends and I have never had any CLDs or FR's.

I dont think CC companies typically do CLDs just for carrying a balance for a couple months. There are usually several other factors involved like paying just the minimum for several months, large blances reporting on other cards, large increase in DTI ratios etc.

Re: Chase DECREASED my limits

red259 — Wed, 03 Sep 2014 17:47:35 GMT

@IWOL wrote:
OP.....how long were you carrying the balances on your Chase cards?

What was your total util accross all credit limits?

Im just asking becuase i think its important that people know all possible info for these type of posts or it becomes misinormation. I have had some large balances report because I dont generally micromanage my "reported" utilization unless im planning to app, so I often pay my statement balance after its cut but before the grace period ends and I have never had any CLDs or FR's.

I dont think CC companies typically do CLDs just for carrying a balance for a couple months. There are usually several other factors involved like paying just the minimum for several months, large blances reporting on other cards, large increase in DTI ratios etc.

+1 yes more information would be appreciated. However, OP is not doing what your doing. OP is carrying a balance. Letting a balance report then PIF is not carrying a balance. I have not really heard of anyone getting AA just from letting a balance report (with the exception of large purchases on a brand new card).

Re: Chase DECREASED my limits

Anonymous — Wed, 03 Sep 2014 17:56:40 GMT

I'm sure more than carrying a balance is at play here. Perhaps carrying a balance while actively seeking other credit, the fact he was out of country so long using possibly running up the limit, or whatever. Lenders get spooked for different reasons. In the age of modern technology and instant reporting, it is bound to get worse before better.

Re: Chase DECREASED my limits

red259 — Wed, 03 Sep 2014 17:59:26 GMT

@Anonymous wrote:
I'm sure more than carrying a balance is at play here. Perhaps carrying a balance while actively seeking other credit, the fact he was out of country so long using possibly running up the limit, or whatever. Lenders get spooked for different reasons. In the age of modern technology and instant reporting, it is bound to get worse before better.

Well its balances not balance. Two cards near the limits and two other cards around 50%. Over a prolonged period of time I can see that spooking lenders on its own.

Re: Chase DECREASED my limits

sjt — Wed, 03 Sep 2014 19:06:33 GMT

Congrats that it all worked out.

I think one of triggers for the CLD is you started to activily use these cards after they been inactive.

Re: Chase DECREASED my limits

red259 — Wed, 03 Sep 2014 22:32:19 GMT

@sjt wrote:
Congrats that it all worked out.

I think one of triggers for the CLD is you started to activily use these cards after they been inactive.

I don't think this is what happened. Maybe I misread but I thought OP said they were just carrying a balance and had not used the card in two months.

Re: Chase DECREASED my limits

yfan — Wed, 03 Sep 2014 23:02:08 GMT

@Anonymous wrote:
I don't get why credit card companies do this. What's the point of giving you a credit limit if they are gonna come after you as soon as you use anything close to the limit THEY gave you.

Agreed, but if you look at it from the issuer's point of view, it's like this: the reason they give you a higher limit is so that you will use their cards more often and thus generate more swipe fees for them. But when they see you begin to stretch that limit, they become afraid that you are doing this because you are nearing a financial point where you may have to choose which bills to pay. A lot of the times this happens through automatic software, which can be in and of themselves buggy.

Dumb, I know. But there you have it.

Re: Chase DECREASED my limits

red259 — Wed, 03 Sep 2014 23:41:15 GMT

@yfan wrote:
@Anonymous wrote:
I don't get why credit card companies do this. What's the point of giving you a credit limit if they are gonna come after you as soon as you use anything close to the limit THEY gave you.
Agreed, but if you look at it from the issuer's point of view, it's like this: the reason they give you a higher limit is so that you will use their cards more often and thus generate more swipe fees for them. But when they see you begin to stretch that limit, they become afraid that you are doing this because you are nearing a financial point where you may have to choose which bills to pay. A lot of the times this happens through automatic software, which can be in and of themselves buggy.

Dumb, I know. But there you have it.

I think people are again getting away from what happened here. This isn't a case where someone maxed their card and then PIF by the due date. This is a case where someone used up most of their credit line and then carried the balance and had charges showing on other cards. The CCC does not care if you use up your whole credit line just as long as you PIF when the bill is due. Its when people carry large balances a CCC starts to think there are financial problems and they get nervous. Of course, its really obnoxious when CCCs do this on cards that have 0% APR. To me that is just absurd of a CCC, because a 0% apr is a perfectly legitimate reason to want to carry a balance.

Re: Chase DECREASED my limits

yfan — Wed, 03 Sep 2014 23:47:05 GMT

@red259 wrote:

I think people are again getting away from what happened here. This isn't a case where someone maxed their card and then PIF by the due date. This is a case where someone used up most of their credit line and then carried the balance and had charges showing on other cards. The CCC does not care if you use up your whole credit line just as long as you PIF when the bill is due. Its when people carry large balances a CCC starts to think there are financial problems and they get nervous. Of course, its really obnoxious when CCCs do this on cards that have 0% APR. To me that is just absurd of a CCC, because a 0% apr is a perfectly legitimate reason to want to carry a balance.

I don't think we are getting away from it at all. The flexibility to carry a balance is WHY it's called a credit card and not a charge card. Using that flexibility shouldn't cost one to lose credit. Banks also make their money from the interest, i.e. they make more money from people who carry a large balance than those who don't. Yes, I understand the point about the risk, but that risk is the reason banks charge interest. They shouldn't be able to have it both ways - charge high interest AND limit your ability to borrow when you have not been actually late.

Re: Chase DECREASED my limits

IWOL — Thu, 04 Sep 2014 00:00:23 GMT

I think the problem is that in many cases when people post about CLD we are only getting half of the story so it distorts the entire "case"

Im not saying that is the case here but I beleive that is often the case. So someone posts...."i got CLD from carrying a balance" but they eliminate the fact that they were maxed out at 90%, paying minimum for months, while charging up and reporting large balances on other cards. It could also be a sudden change in spending and payment habits too that are strong indicators of financial trouble.

It dosent help others to read these stories if we dont have all or most of the facts which we rarely will get.

Re: Chase DECREASED my limits

sjt — Thu, 04 Sep 2014 00:31:00 GMT

@red259 wrote:
@sjt wrote:
Congrats that it all worked out.

I think one of triggers for the CLD is you started to activily use these cards after they been inactive.
I don't think this is what happened. Maybe I misread but I thought OP said they were just carrying a balance and had not used the card in two months.

It could have been me that misread it. When OP said they had not used the card in two months I assumed they did not use it for two months prior to their usage.

Re: Chase DECREASED my limits

tcbofade — Thu, 04 Sep 2014 00:31:59 GMT

DW and I went through something similar with Chase earlier this year...after she got CLD'd, she called them and explained exactly how and why we were carrying more debt (and would be for all of 2014). She explained that we've got equity we cant touch until 2015 and are absolutely floating debt on zero percent for x months offers until the first of the year.

Chase understood, agreed, and reinstated her CL immediately.

Re: Chase DECREASED my limits

sjt — Thu, 04 Sep 2014 00:34:52 GMT

@IWOL wrote:
I think the problem is that in many cases when people post about CLD we are only getting half of the story so it distorts the entire "case"

Im not saying that is the case here but I beleive that is often the case. So someone posts...."i got CLD from carrying a balance" but they eliminate the fact that they were maxed out at 90%, paying minimum for months, while charging up and reporting large balances on other cards. It could also be a sudden change in spending and payment habits too that are strong indicators of financial trouble.

It dosent help others to read these stories if we dont have all or most of the facts which we rarely will get.

I agree!

However many times when people post about their CLD or closure, I think they really believe they are stating all the facts. I also think that more and more banks are to quick to take action on customer's accounts so its a good idea to always recon.