Discover lowered my limit——UPDATE

[icyhot]

And I'd actually put my debt at $50K.....that's including the 60% UTL an $10K closed card

[Anonymous]

The 60% util is already a risk level but the util on a closed account is danger territory. You're going to walk to buckle down and itemize your income and spending asap and get the closed account to $0 and all the other accounts under 30%.

Liquidate unneeded assets, part time job, roommates even.

[K-in-Boston]

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@icyhot wrote:
And I'd actually put my debt at $50K.....that's including the 60% UTL an $10K closed card

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While FICO's calculation of a balance on a closed card depends on how the limit is being reported to the CBs by the lender (worst case scenario is $0 limit as that's infinite utilization on a card), it stands to reason that the internal scoring at most lenders is going to calculate a balance on a closed revolving account poorly, whether the limit reported is N/A or blank, $0 or $50,000.  I would agree with previous posters that getting a closed account with a balance paid should be a priority.  Going back to your original post, I wouldn't close the account with Discover regardless of any balance chasing.  That will only exacerbate the utilization issue.  I'd strongly encourage you to wait until you're down below 30% overall utilization before closing any revolving trade lines.

[icyhot]

I'm way ahead of you 😫 I have 3 part time jobs but unfortunately a roommate isn't an option as I have a brand new baby in the house 🙁 Which is another reason my finances aren't where they should be. Once the new school year starts I can hopefully get a full time job and keep one of my part times and then I'll have way more available cash, these next few months will just be very difficult and unfortunately my credit score isn't the highest on my priority list

[jamesdwi]

that would do it,  50% of your cards above 60% is a flag for lenders.  

I know that some here frown on keeping keep lots of store cards around. But they do put a buffer from things like this, computers don't think  they calculate.  if you had 5 more accounts, you probably wouldn't of been flagged, honestly a few months ago I had 3 cards over 60%, including Discover that give me a CLI in that time frame and had no CLD's but I also have more than 30 cards, so only  10% of my cards were over 60%.  Also my total UTL back then was only 19%.  I have since worked on paying them down now those 3 cards are all under 50%  and total UTL is about 15% probably less once everything reports.

Now if you really want to be scared think about the person with 3 cards unless they have some fairly substancial limits and/or savings to back them up, a bad month could totally tank their scores,  2 cards  over 60% is  2/3rds of there cards over limit that can get you flagged. So others think twice before closing low limit cards with zero AF's they pad you against computer programs that just do the math and ignore the card type of limits.  

[Anonymous]

Op. Yes, it sucks when CLDs happen. That being said. This is Discover-not Comenity or Synchrony. Don't close. They are a great lender, great CS, and a credit product. You scared them. You even admit your Utilization is high. Extremely high IM0.
Start working on paying down. Don't use your cards. Cut them up or freeze them if you have to. Make a plan-and get your Utilization down below 30%.
If one of your 3 scores is good to excellent-maybe.... MAYBE try for a card, with the help of the board for which one, to get a 0% Bt card. This will only work if you have one good score-and even then, depending on the lender.

Once you get things better you will want Discover in your portfolio.

This has happened to most of us-getting into trouble with debt. Breathe, relax, and make a plan. Call them up and ask if they can help. Look at your current cards for BT options. Maybe you can BT balances around to free up available credit to make room for a 0% offer.

If you have CapOne-the only reason I keep that card is they always have a no fee BT offer on it.

There are options to get yourself fixed. Tell us all the details and maybe we can help with a plan if you want.

GL

[JustcallmeTM]

Do you have a CU that has a option to open a line of credit. At one point I had that issue the way I went around the issue was using my LOC to dump the high UTI CC's on there instead and group all the card debt to 1 source. Most FICO bankscores don't count the Line of Credit as a revolving line but other loan type and will help balance your FICO 8 bankcard score and some others. Iv'e gone around this mess from my 2014/2015 messing around reading and playing with alot of different things to see what worked and didn't.

It's the reason why I even have a LOC its an emergency loan option or B. to toss all the cards I have with high APR and balances onto 1 and pay accordingly. I was able to open a citi card with a BT option to deposit cash to my checking  and then move the loc balance into a 0% apr BT. There are ways around this it just depends if you want to go through the extra steps. 

At the end of the day my LOC is pretty much my fall back options for all things emergency and to dump everything to 1 spot and worrying about paying 1 CU/bank off. Some don't know how to use it or won't use it. I abuse this thing it has its purpose, but only due to having all my funds going through NFCU they see and know everything I do so in the end I am not worried, but then again I don't worry much if I lose credit lines either or cards close and stuff I treat most bank cards as expendable.

[Anonymous]

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@JustcallmeTM wrote:

I abuse this thing it has its purpose, but only due to having all my funds going through NFCU they see and know everything I do so in the end I am not worried, but then again I don't worry much if I lose credit lines either or cards close and stuff I treat most bank cards as expendable.

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A CU's CLOC is a great idea but only if the OP won't run the CCs back up to high util again but this time with a maxed out CLOC and maxed out CCs.

The first thing OP needs to do is itemize all income and all expenses and sit down and really chop if possible.  A new child is an expense but shopping at Goodwill and warehouse stores in bulk can help a ton.

Without knowing OP's income and monthly expenses, there's no way to know what OP can cut in order to reduce debt.  $50,000 in debt with minimum payments is $500 a month -- not so bad.  But to make a dent (with high interest rates) they'd have to be paying $2500 a month -- that's definitely a problem for most.

[JustcallmeTM]

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@Anonymous wrote:

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@JustcallmeTM wrote:

I abuse this thing it has its purpose, but only due to having all my funds going through NFCU they see and know everything I do so in the end I am not worried, but then again I don't worry much if I lose credit lines either or cards close and stuff I treat most bank cards as expendable.

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A CU's CLOC is a great idea but only if the OP won't run the CCs back up to high util again but this time with a maxed out CLOC and maxed out CCs.

The first thing OP needs to do is itemize all income and all expenses and sit down and really chop if possible.  A new child is an expense but shopping at Goodwill and warehouse stores in bulk can help a ton.

Without knowing OP's income and monthly expenses, there's no way to know what OP can cut in order to reduce debt.  $50,000 in debt with minimum payments is $500 a month -- not so bad.  But to make a dent (with high interest rates) they'd have to be paying $2500 a month -- that's definitely a problem for most.

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Yes this is assuming one has a total debt under 15k total if not this is not a option. Your better off getting a personal loan to be honest. If one has more than 30k total CC debt and more than half isnt on a BT your pretty much looking up S*** creek. 

Now if the person's total debt it under 15k then moving everything to the LOC is possible and if you dont want to keep it there BOA and some others are good for letting you depsoit cash into the account as a BT and then you can have all the debt rolled into 1 card as a BT without paying interest.

I have 4 kids so I know how difficult it is to avoid spending.

But yes details are key also to be giving a proper response.

[icyhot]

My income is very unsteady at the moment and I couldn't possibly give an exact number, the problem is for the past few months I haven't been able to bring enough cash in to make my bills, I charge most of them an just pay the minimums.
My recurring expenses:
Rent: $849
Car note: $430
Car insurance: $93
Phone: $170
Wifi: $45

Balances are as follows
BofA: $10,535/0- minimum payment $163....the promo BT rates are expiring and the interest is skyrocketing
Quiksilver: $18,130/21500 minimum payment $181, same with BofA, BT rates will expire soon
Spark: $5,390/6,000 minimum payment $50, 0% until next year
Disco: $2685/$2900 minimum $54, 0% until next year
Citi AA: $2837/6400 miminum $25, standard APR
Citi forward $1534/2900, minimum $25, standard APR
Citi double cash $5330/6000, minimum $80, standard APR
Chase Marriott $873/7000 minimum $25, standard APR
Chase Freedom $1121/5000, minimum $25, standard APR
CU: $4423/$5000, minimum $135, 8.25% APR
PayPal credit: $400 balance, minimum $25

As you can see, my minimum payments take up a large chunk of cash every month and if I can make those along with my car note, it's a good month. Everything else gets charged, including rent