Are There Tips to Avoid CL Reductions?

Repairman · ‎01-19-2021

I'm wondering if there are any tips, or things you can do to help improve your chances of not having credit cards reduce your cl on cards that you keep at a 0 balance. I intend to predominantly use 1 card at a time, which may change from time to time, and keep all others at zero, but I'm worried that cls could be slashed. 1 thing I am already doing, is having at least 1 recurring charge on each of my cards, so even if I'm not actively swiping it, SOMETHING still posts to it every month and gets PIF. Is there anything else I can do to maintain my cls?

Remedios · ‎01-19-2021

@Repairman that depends on a lender, and limit to certain extent.

A pack of gum every month will keep $200.00 intact, but it won't do the same for $20,000.00 card.

Some lenders are by far more likely to do CLD (or close cards) for non use than others.

The easiest way to keep this from happening is not adding cards you have minimal, or no use for at all.

In a nutshell, the trick for preventing CLDs is using cards (and avoiding maxed cards).

AverageJoesCredit · ‎01-19-2021

Yes, use it and pay😂

Anonymous · ‎01-19-2021

You've already got the important thing nailed down, which is regular usage of all of your cards via a recurring charge as you explained. That IMO will prevent CLDs the majority of the time. As stated in the previous reply, the next thing to look at is usage relative to limit(s). IMO that factor is far less impactful and really is profile dependent. On a weaker profile (especially a dirty file) it may matter more than on a solid profile. I have what I would consider a solid profile and have never received a CLD. Per cycle I use generally between <1% and 5% of my credit limits on each card, where my daily driver card may see more like 10%-15%, so still not significant. Even on the cards that routinely see <1% usage monthly against a high CL I have not experienced CLDs.

Repairman · ‎01-19-2021

@Remedios wrote:
@Repairman that depends on a lender, and limit to certain extent.
A pack of gum every month will keep $200.00 intact, but it won't do the same for $20,000.00 card.
Some lenders are by far more likely to do CLD (or close cards) for non use than others.
The easiest way to keep this from happening is not adding cards you have minimal, or no use for at all.
In a nutshell, the trick for preventing CLDs is using cards (and avoiding maxed cards).

Thanks. I guess I'm wondering how much use would theoretically help to maintain current cls. For example, with Capital One. If I have a $15,000 cl, would it be in jeopardy with only a $22 recurring charge every month? Would it help if I put a $300 charge on it also, every month, or every 6 months, or will much higher usage likely be needed to avoid reduction?

Repairman · ‎01-19-2021

@Anonymous wrote:
You've already got the important thing nailed down, which is regular usage of all of your cards via a recurring charge as you explained. That IMO will prevent CLDs the majority of the time. As stated in the previous reply, the next thing to look at is usage relative to limit(s). IMO that factor is far less impactful and really is profile dependent. On a weaker profile (especially a dirty file) it may matter more than on a solid profile. I have what I would consider a solid profile and have never received a CLD. Per cycle I use generally between <1% and 5% of my credit limits on each card, where my daily driver card may see more like 10%-15%, so still not significant. Even on the cards that routinely see <1% usage monthly against a high CL I have not experienced CLDs.

Great insight. Thank you.

AverageJoesCredit · ‎01-19-2021

@Repairman wrote:
@Remedios wrote:
@Repairman that depends on a lender, and limit to certain extent.
A pack of gum every month will keep $200.00 intact, but it won't do the same for $20,000.00 card.
Some lenders are by far more likely to do CLD (or close cards) for non use than others.
The easiest way to keep this from happening is not adding cards you have minimal, or no use for at all.
In a nutshell, the trick for preventing CLDs is using cards (and avoiding maxed cards).
Thanks. I guess I'm wondering how much use would theoretically help to maintain current cls. For example, with Capital One. If I have a $15,000 cl, would it be in jeopardy with only a $22 recurring charge every month? Would it help if I put a $300 charge on it also, every month, or every 6 months, or will much higher usage likely be needed to avoid reduction?

My opinion really doesnt matter since im on the lower spectrum of credit and $ but i dont really see a big distinction between a pack of gun and a $300 charge on a $15k credit line. Yes i understand there's a big difference in price of gum and $300 but realistically, if you are only using $300 out of $15k, thats not really using the credit card in relation to its limit. Ive come to understand if a lender is going to close my account for low usage, so be it , most importantly i understand that risk, but i wont go out of my eay just to ensure it wont get closed by spending more than i can. Ok, nuff coffee, im outzy

Anonymous · ‎01-19-2021

@Repairman wrote:
Thanks. I guess I'm wondering how much use would theoretically help to maintain current cls. For example, with Capital One. If I have a $15,000 cl, would it be in jeopardy with only a $22 recurring charge every month? Would it help if I put a $300 charge on it also, every month, or every 6 months, or will much higher usage likely be needed to avoid reduction?

It really depends on your profile and the lender in question. With Capital One, they are known to CLD low used credit lines that are > $10k to $10k rather often. With a $22/mo charge being the only thing the card is seeing, I would more or less expect a CLD from $15k to $10k at some point. But, is it really "worth" putting several hundred dollars or maybe up to $1k on the card every month in attempt to reduce the chances of that CLD? I would say not. I mean, if $22/mo is all you see the card fit for, taking a CLD on it really isn't a big deal.

Repairman · ‎01-19-2021

@Anonymous wrote:
@Repairman wrote:
Thanks. I guess I'm wondering how much use would theoretically help to maintain current cls. For example, with Capital One. If I have a $15,000 cl, would it be in jeopardy with only a $22 recurring charge every month? Would it help if I put a $300 charge on it also, every month, or every 6 months, or will much higher usage likely be needed to avoid reduction?
It really depends on your profile and the lender in question. With Capital One, they are known to CLD low used credit lines that are > $10k to $10k rather often. With a $22/mo charge being the only thing the card is seeing, I would more or less expect a CLD from $15k to $10k at some point. But, is it really "worth" putting several hundred dollars or maybe up to $1k on the card every month in attempt to reduce the chances of that CLD? I would say not. I mean, if $22/mo is all you see the card fit for, taking a CLD on it really isn't a big deal.

I would just like to have the credit available to me if I need it in the future. I actually only have 1 currently open cc who's cl has been reduced, and it is 1 of my 3 Cap One cards, but that is also my only cc where I've put absolutely NO usage on in over a year. I planned on closing it, so I didn't care about usage. My 2 other higher limit Cap Ones have seen major use every year, but I plan to dial it back now and sock drawer them. Right now, my only need for them are as Emergency cards.

HeavenOhio · ‎01-19-2021

@Anonymous wrote:
It really depends on your profile and the lender in question. With Capital One, they are known to CLD low used credit lines that are > $10k to $10k rather often. With a $22/mo charge being the only thing the card is seeing, I would more or less expect a CLD from $15k to $10k at some point.

Until the past few months, this was Capital One's predominant CLD. It was pretty easy to pin down that it could be avoided by spending $1,000 or so over the course of the previous 12 months. Recent CLDs have cut deeper, though, and I don't think we've nailed down any patterns.