CLD from Chase, BofA, Citi

[Y2kmaxse]

Hello everybody,

in January I was hit with multiple CLD on all my cards from Chase and BofA. my 15,000 limited chase aarp account was closed and 2 other chase cards were decreased significatly. I have a balance on some of these cards and they left me with a credit limit with just 200.00 above my balance. My question is what has changed in 2018 that big banks are now actively doing reviews? (i know they periodically do reviews) I am not the only one effected by these CLD. I work with about 35 people and about 3/4 of them have had their credit limit reduced. This came up as a conversation one morning among 3 people and before you know it almost the whole office was involved. It all started for us in 2018.

Any insight would be appreciated.

Thanks!

[Anonymous]

Wow I'm sorry.. were you by chance carrying a revolving balance? IE not paying in full?

[Anonymous]

I'm sorry to hear this, and it's a major bummer. Did you do some spending that spooked them or have a major change to your scores? 

[Anonymous]

I'm sorry to hear this. Are you carrying large balances? Did something negative appear on your credit report?

[broke_in_nyc]

That's weird, do you have anything negative that hit your reports?

I have BofA, Chase & Citi and have received CLI's from all of them recently.

[UpperNwGuy]

Did the banks give you reasons for the adverse actions?  When you talked to your work colleagues, were you able to identify any common aspects of your credit card situations?

[Anonymous]

In general, defaults are up and interest rates are rising. High revolving balances will spook them (my balances went up November & December, but I pif).

Years ago Citi jacked my rate to 29.99% because they could - no missed payments on any of my accounts. I paid it off and left the card open - until they closed it. Never will do business with Citi again.

Suggest Credit Unions - max is 17.99 for default. They may adjust that as rates rise. CUs will only penalize if you do something wrong (usually).

[FinStar]

While CLDs are nothing new, and as mentioned above, recent trends have led lenders to perform more frequent periodic reviews to manage risk, which depending on not only economic factors, but overall profile deterioration can lead them to clamp on the borrowing capacity to stave off rising delinquencies / charge offs.

[NRB525]

CLD can happen, but only if you have high balances compared to limits and credit history, or the cardholder is making charges that are not with regular merchants, or otherwise appearing to mess with the terms and conditions of the card. When multiple banks hit you, it’s got to be high balances. I know from personal experience. 

OP can you list out all your cards, the limits before and the limits after CLD. Show when you opened each card for an idea about your credit history. 

Any late payments of any kind ever?  

For the rest of your colleagues, are those CLD recent or in 2009 - 2012 ? That seems like a very high concentration of CLD experience. 

[happypill]

---

wrote:

Hello everybody,

in January I was hit with multiple CLD on all my cards from Chase and BofA. my 15,000 limited chase aarp account was closed and 2 other chase cards were decreased significatly. I have a balance on some of these cards and they left me with a credit limit with just 200.00 above my balance. My question is what has changed in 2018 that big banks are now actively doing reviews? (i know they periodically do reviews) I am not the only one effected by these CLD. I work with about 35 people and about 3/4 of them have had their credit limit reduced. This came up as a conversation one morning among 3 people and before you know it almost the whole office was involved. It all started for us in 2018.

Any insight would be appreciated.

Thanks!

---

If you had CLD across multiple lenders in a short period of time, the most likely conclusion is that you had something negative appear on your reports or your utilization hit some high threshold, or both.

If you haven't, you really need to check your reports for recent derogs.  You didn't mention your utilization in your original message, but that's the other most likely cause.