Beware: 5/3rd Bank Slashing Limits CLD

[Green456]

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I think this is a point missed a lot in here. We are in business as much as the lenders. If someone is giving me too much headache I move on to someone else. 

[CreditMagic7]

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@Anonymous wrote:

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Right, this is where IMO sometimes the FSR thing can go too far.    For example, it is also absolutely my decision to pay 180 days late on all my cards (those I bother to pay) after carrying huge balances at penalty APR rates.    Still, I would hope for some feedback from the forum that this might not be the best possible idea.

So it's sometimes OK to suggest that however OP feels, it's possible it wasn't a great decision.  It's also possible it was, but it can be discussed!

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Perhaps in retrospect it may not be the best decision (for some) to close an account(s) after a deep CLD no matter the particular lender or trend of the same. On the other hand if a long term card customer had wanted a small line of credit it's sure they could have made that request at the start.

Which in turn gives rise to just where the customer's credit card profile currently is at. In this case it's a no-brainer. Cards still count for 10 years or thereabouts in the closed column as concerns the history category remaining on your reports.

Now for all the massive AMEX loyals which there seems to be many, it could be as simple as calling in for restoration of some of their line which i've read is a normal practice. Who knows, the same might hold true for some other's as well. But some folks may have already prepped their credit to bulk in the event that one or other's of their lenders begin to drop out of the mix due to a policy change or negative review decision.

Which is exactly the case here and which is for this member the best possible choice at this time given the pull back. Mind you there was no balances whatsover on the lines chopped so yes, this regional in particular drawed in what they seen as some recovery possibly of excess. But that was their decision in the first place to alot the amount per card and in no way was requested as per CLI Request. Which raises eyebrows on this end.

[redpat]

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@CreditMagic7 wrote:

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@Anonymous wrote:

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Right, this is where IMO sometimes the FSR thing can go too far.    For example, it is also absolutely my decision to pay 180 days late on all my cards (those I bother to pay) after carrying huge balances at penalty APR rates.    Still, I would hope for some feedback from the forum that this might not be the best possible idea.

So it's sometimes OK to suggest that however OP feels, it's possible it wasn't a great decision.  It's also possible it was, but it can be discussed!

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Perhaps in retrospect it may not be the best decision (for some) to close an account(s) after a deep CLD no matter the particular lender or trend of the same. On the other hand if a long term card customer had wanted a small line of credit it's sure they could have made that request at the start.

Which in turn gives rise to just where the customer's credit card profile currently is at. In this case it's a no-brainer. Cards still count for 10 years or thereabouts in the closed column as concerns the history category remaining on your reports.

Now for all the massive AMEX loyals which there seems to be many, it could be as simple as calling in for restoration of some of their line which i've read is a normal practice. Who knows, the same might hold true for some other's as well. But some folks may have already prepped their credit to bulk in the event that one or other's of their lenders begin to drop out of the mix due to a policy change or negative review decision.

Which is exactly the case here and which is for this member the best possible choice at this time given the pull back. Mind you there was no balances whatsover on the lines chopped so yes, this regional in particular drawed in what they seen as some recovery possibly of excess. But that was their decision in the first place to alot the amount per card and in no way was requested as per CLI Request. Which raises eyebrows on this end.

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I’m only a Amex loyalist for their MR reward program right now and that can change tomorrow if they devalue or cut their reward categories.  I went from more of a UR to MR since I can earn more bang for my buck from Amex.  My CL has nothing to do with being loyal.

 I’m just waiting for chase and citi to cut my CSR and AA Exec limits for none use and if they do that’s okay with me, I deserve that.

[Anonymous]

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@CreditMagic7 wrote:

Anyone with Fifth Third cards it might be worth your while to keep a sharp eye on your credit limits in case this is another one of those mass reductions from these regionals. I just want to heads up for you guys and not be caught off guard by the Hatchet Man.

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Back in April I ran across a few articles about consumer credit defaults/charge-offs. Here's a quote from one:

"Hochschild [CEO at Discover] said his company has been closing inactive accounts and slowing down the number and size of credit-line increases for both new and existing customers."

I posted the links in a topic under 'Credit in the News' here on the forums:

Bad Credit Card Debt Is on the Rise

[gdale6]

I would suspect it has something to do with this:

https://seekingalpha.com/news/3468375-fifth-third-applies-national-bank-charter

[UH_HUH]

Sorry for your troubles @CreditMagic7,I'm sure there are many days

of sunshine ahead,just a little rainy atm ;-)Tough times don't last but

tough people do!

Cheers

[CreditMagic7]

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@UH_HUH wrote:

Sorry for your troubles @CreditMagic7,I'm sure there are many days

of sunshine ahead,just a little rainy atm ;-)Tough times don't last but

tough people do!

Cheers

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Thanks UH_HUH.

Guess it was finally my turn after mega years of smooth sailing with lenders. It's a shame though since there's 5/3 Banks galore all around my locale and nearby travels. Although the rewards were never all that great, and the fact that they made a little scratch now and then from BT's was routine as well, but having them dump the lines after a good run with the cards came as a shock.

Had i known or suspected it my process is to go proactive and close cards while they still sport reasonably high limits which can be a little benefit factor sometimes on a manual review from other lenders.

No matter though. It will just require to reset the profile without them and chalk it up as a Lender NOT to return back to again.

[UH_HUH]

I have no doubt you will figure out an even better

set of cards that works for you :-) Change can be good!

Makes the days more interesting!

Cheers

[CreditMagic7]

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@UH_HUH wrote:

I have no doubt you will figure out an even better

set of cards that works for you :-) Change can be good!

Makes the days more interesting!

Cheers

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No choice-But the current layout is been doing just fine as-is without adding any new cards the rest of this year.

I  was startled looking at my Discover today showing only (1), yes that's right, a single only HP on there.

It took all of a whole year to dump those INQ's down to 0 and the only waste was for a 3rd NFCU card-then they turn around and make a 5K SP CLI

Now that's the sign of a solid quality lender especially after you had no INQ's at all-which also leads me to think 5/3 is the risky lender here not the cardholder.

[FinStar]

Since we're not privvy to your overall profile and what triggered the AA, it would be trivial to determine what caused Huntington to CLD and 5/3 to follow suit in such a short timeframe.

I have 3 CCs with Huntington and 3 with 5/3. None of them have been impacted. If anything my profile should stand out almost like a sore thumb given recent inquiries + new accounts (not much of a gardener here) and the amount of unsecured exposure across all lenders.

So, while no profile may be immune to AA (myself included), I don't think this is a "regional bank" situation since a variety of lenders have complex algorithms that constantly evaluate risk. The AA you experienced wasn't because they're unstable or not solid lenders, but rather an attempt to limit exposure and risk across their portfolios, a business decision nonetheless.