As we have been reading from MyFicoer's referencing information from the market place, consumer debt has risen to a large staggering amount. We also are hearing about lenders starting to become more risk adverse to new credit and existing customers. Such risk actions seem to be coming home to roost here on MyFico. As to bank ratings, Fifth Third is rated well at the FDIC and Bauer Financial level and several others that have been cited in this forum have achieved high ratings. Unlike the 2008-2009 era when this was not true. While some of our best profiles are taking a hit and we say it is only business ... it is hard not to wonder when we ourselves have maintained stellar credit resources too. Anyway, because a lender hits us by denying CLIs, denying new credit or lowering our CLs does not translate into they are at risk based on their current ratings. It could become that if they don't rein in there more open credit habits if they don't reduce their risk. Keep this in mind. It is also hard for me to take the attitude it is business even when it really is ... I worked hard to get where I am at and it becomes personal (I know it is business). 
Sure enough-Yep. We just got to roll with the results of the levels that come our way, be they whatever form or manner they take.
The cardholder is ultimately on the hook on the receiving end even when their standing might be long term exceptional, while that lender is recouping some funds from those defaulters, straight from our limits.
Bet no one can count the number of folks who include in their posts, yep i burned AMEX, CITI etc for x amount of dollars and they just approved me again for x amount on a new card after CH7.
@CreditMagic7 wrote:Bet no one can count the number of folks who include in their posts, yep i burned AMEX, CITI etc for x amount of dollars and they just approved me again for x amount on a new card after CH7.
And it's a badge of honor.
@CreditMagic7 wrote:Sure enough-Yep. We just got to roll with the results of the levels that come our way, be they whatever form or manner they take.
The cardholder is ultimately on the hook on the receiving end even when their standing might be long term exceptional, while that lender is recouping some funds from those defaulters, straight from our limits.
Bet no one can count the number of folks who include in their posts, yep i burned AMEX, CITI etc for x amount of dollars and they just approved me again for x amount on a new card after CH7.
You make it sound as if limits are actually a real asset or something, it's not as if you are having stuff stolen to pay for the sins of the great unwashed. Generally, when you get a CLI, it is rarely because of something meritorious that you have done (basically the bank hoping that you will spend a bit more with them) so when it goes away it shouldn't be that painful. IMO, you obviously feel differently!
In addition to some credit tightening, banks are under a lot of pressure to increase profits. The prevailing credit card model for the banks is to finance via bonds. The bonds are sold to make the credit limits available. When the credit isn't used, interest isn't paid. Therefore the bonds under perform. The banks are trying to place the capital recieved through bond offerings with customers that will use that money and pay high interest rates on it.
Credit cards are not a charitable enterprise.
@longtimelurker wrote:
@CreditMagic7 wrote:Sure enough-Yep. We just got to roll with the results of the levels that come our way, be they whatever form or manner they take.
The cardholder is ultimately on the hook on the receiving end even when their standing might be long term exceptional, while that lender is recouping some funds from those defaulters, straight from our limits.
Bet no one can count the number of folks who include in their posts, yep i burned AMEX, CITI etc for x amount of dollars and they just approved me again for x amount on a new card after CH7.
You make it sound as if limits are actually a real asset or something, it's not as if you are having stuff stolen to pay for the sins of the great unwashed. Generally, when you get a CLI, it is rarely because of something meritorious that you have done (basically the bank hoping that you will spend a bit more with them) so when it goes away it shouldn't be that painful. IMO, you obviously feel differently!
Put that way, it sort of is an asset toward the overall health of your credit profile and potential favorable view from other lenders that may or may not help support your chances when you do make requests somewhere down the line for PC's or as you say CLI's.
With this lender though, i never once made any requests for any increase over the years and simply settled with the approved limits provided after approval.
Since there are actually too many factors to speculate with any accuracy, it's anyone's guess what led up to this particular reduction but it sure carries all the earmarks (to me anyway) like a Barclays type of change in how they are now moving in on items that trigger them to CLD.
It could be something as simple as the 3 new approvals recently obtained after a whole year of going dark from apping and their new formula/algorithms went into action. I have no idea but at this stage is of no consequence any longer. Just the snap surprise of them doing a big pull back on (2) of the 3 cards i have with them. Soon to be NONE. 