CLDs on high limit cards w/not enough spend?

Anonymous · ‎09-07-2017

I've never received one, but am curious if anyone has. I'm not talking about CLDs due to lack of activity on the card. It could be a card that you use at least a few times per month, but perhaps the amount of the spend simply isn't much at all relative to the limit. For example, you have a $30k limit card but only put $150 through it a month for many months.

I'm also not talking about CLDs that could have resulted from any profile changes such as recently missing a payment, adverse changes in utilization, or anything else. My question is targeted specifically to a small spend on big limit. In fact, if someone did receive a CLD for this reason and called CS to inquire why and were told it was due to insufficient use of current credit limit that would validate the purpose of this thread.

Anonymous · ‎09-07-2017

@Anonymous wrote:
I've never received one, but am curious if anyone has. I'm not talking about CLDs due to lack of activity on the card. It could be a card that you use at least a few times per month, but perhaps the amount of the spend simply isn't much at all relative to the limit. For example, you have a $30k limit card but only put $150 through it a month for many months.

I'm also not talking about CLDs that could have resulted from any profile changes such as recently missing a payment, adverse changes in utilization, or anything else. My question is targeted specifically to a small spend on big limit. In fact, if someone did receive a CLD for this reason and called CS to inquire why and were told it was due to insufficient use of current credit limit that would validate the purpose of this thread.

I'm pretty sure that the CapitalOne CLDs that happened to @Anonymous and @CreditCuriosity were based quite a bit on the none or limited use of their limits.

iced · ‎09-07-2017

@Anonymous wrote:
I've never received one, but am curious if anyone has. I'm not talking about CLDs due to lack of activity on the card. It could be a card that you use at least a few times per month, but perhaps the amount of the spend simply isn't much at all relative to the limit. For example, you have a $30k limit card but only put $150 through it a month for many months.

I'm also not talking about CLDs that could have resulted from any profile changes such as recently missing a payment, adverse changes in utilization, or anything else. My question is targeted specifically to a small spend on big limit. In fact, if someone did receive a CLD for this reason and called CS to inquire why and were told it was due to insufficient use of current credit limit that would validate the purpose of this thread.

I can only speak to Chase, Barclays, and Citi on this, but I have found that no matter how little I put through them each month, or for how long (or even stop using them altogether), I have never received a CLD.

Not sure if they're considered big limits ($7,400/$15,600/$50,000/$50,000), but porportional to their limits. Neither Chase card has seen much more than 5%/$2500 usage on a given month this year, and in the case of Barclays and Citi, usage is $0.

Anonymous · ‎09-07-2017

My highest TL is barclay. I use it the least but I do purchase one or two things a month to show activity. Haven't been cut yet.

My mom had a high barclay TL and they cut her CL after one billing period of non-use.

YMMV

Anonymous · ‎09-07-2017

@Anonymous wrote:

I'm pretty sure that the CapitalOne CLDs that happened to @Anonymous and @CreditCuriosity were based quite a bit on the no to limited use of their limits.

LTL and CC, if you happen to see this thread and could comment on the above that would be great. If you guys did receive CLDs on your Capital One accounts I'd like to know what your limits were and what your low proportion to limit spend was per cycle (and how many cycles) before you saw the CLD. It would probably take me forever to find threads where you both discussed this topic. If you don't see this thread in a few days I'll shoot you PMs. Thanks guys.

Anonymous · ‎09-07-2017

@Anonymous wrote:
@Anonymous wrote:

I'm pretty sure that the CapitalOne CLDs that happened to @Anonymous and @CreditCuriosity were based quite a bit on the no to limited use of their limits.
LTL and CC, if you happen to see this thread and could comment on the above that would be great. If you guys did receive CLDs on your Capital One accounts I'd like to know what your limits were and what your low proportion to limit spend was per cycle (and how many cycles) before you saw the CLD. It would probably take me forever to find threads where you both discussed this topic. If you don't see this thread in a few days I'll shoot you PMs. Thanks guys.

Here's the thread CC started about his CLD. I don't think LTL had a thread but disucused his in this one (at least if I remember correctly)

Anonymous · ‎09-07-2017

I don't use most of my cards, and no CLD's yet - with the CapitalOne QS I'm making a charge every quarter to keep it alive. The $3k CLI's have stopped but they did give me another $750 recently. I have not used the card regularly for over a year.

CreditCuriosity · ‎09-07-2017

@Anonymous wrote:
@Anonymous wrote:
@Anonymous wrote:

I'm pretty sure that the CapitalOne CLDs that happened to @Anonymous and @CreditCuriosity were based quite a bit on the no to limited use of their limits.
LTL and CC, if you happen to see this thread and could comment on the above that would be great. If you guys did receive CLDs on your Capital One accounts I'd like to know what your limits were and what your low proportion to limit spend was per cycle (and how many cycles) before you saw the CLD. It would probably take me forever to find threads where you both discussed this topic. If you don't see this thread in a few days I'll shoot you PMs. Thanks guys.
Here's the thread CC started about his CLD. I don't think LTL had a thread but disucused his in this one (at least if I remember correctly)

+1 on Irish's link.. Any additinoal data you want just know.. Ran anywhere around 50-150 a month if I recall correctly on it otherwise the link should work and have those DP's.

manyquestions · ‎09-07-2017

@Anonymous wrote:
I don't use most of my cards, and no CLD's yet - with the CapitalOne QS I'm making a charge every quarter to keep it alive. The $3k CLI's have stopped but they did give me another $750 recently. I have not used the card regularly for over a year.

How spend was required to get the 3K CLI? Any idea on what the break point is on that with CapitalOne?

iheartwings · ‎09-07-2017

@CreditCuriousity wrote:
@Anonymous wrote:
@Anonymous wrote:
@Anonymous wrote:

I'm pretty sure that the CapitalOne CLDs that happened to @Anonymous and @CreditCuriosity were based quite a bit on the no to limited use of their limits.
LTL and CC, if you happen to see this thread and could comment on the above that would be great. If you guys did receive CLDs on your Capital One accounts I'd like to know what your limits were and what your low proportion to limit spend was per cycle (and how many cycles) before you saw the CLD. It would probably take me forever to find threads where you both discussed this topic. If you don't see this thread in a few days I'll shoot you PMs. Thanks guys.
Here's the thread CC started about his CLD. I don't think LTL had a thread but disucused his in this one (at least if I remember correctly)
+1 on Irish's link.. Any additinoal data you want just know.. Ran anywhere around 50-150 a month if I recall correctly on it otherwise the link should work and have those DP's.

Here's a thread that is more recent (last month) regarding Cap One CLD.

My experience starts at post 53. I had a Capital One QS VS that was opened with a $30k CL in 6/2016. I somehow was able to get a CLI to $30,750 after the 3rd statement cut. I used it a bunch, then not so much for a couple months, but over the several months prior to the CLD, I had all but 2 my utilities and subscriptions run through it (the other two were actually on my other older QS card). Though I didn't let it report a balance, it totaled $450/month. My older QS had a limit of $17,750 and was used less than the VS.

They gave me a CLD to $10k at the beginning of August 2017. They sent me no fewer than 3 electronic copies, as well as 2 paper copies, of the CLD letter, which said:

We noticed that you have not been using a significant portion of the credit line on your account

ending in XXXX. To better fit your usage, we have changed your credit limit from $30,750 to $10,000.

You can find the specific reasons for this change below:

- Current account(s) not used enough for assigned credit limit(s)

- Balance(s) on non-Capital One revolving trade(s) are too low

We have taken care to keep your credit limit significantly above your highest balance at any point in

the last year. Hopefully this will ensure you can continue to use your card as you have been. We value

your business as our customer. And don't worry - none of your other card features have changed.

If you have questions about how this change might affect your credit score, we would encourage you

to consult CreditWise, our free credit monitoring service at creditwise.capitalone.com.

In essence, they weren't happy that I wasn't spending enough for their cards, and they weren't happy that I wasn't spending on other bankcards either.

While I was angry, I realized that their move gave me the impetus to re-evaluate my portfolio, and I ended up closing both accounts (my older QS was the first card I got after my BK7, so that was a hit; but, I was able to take advantage of AmEx backdating in 2014, so not as bad as one might think). I have to say that it was liberating to get rid of a couple lines.