CLDs on high limit cards w/not enough spend?

[Anonymous]

iheartwings, thanks for your post above and pasting the exact reasoning letter.  That's exactly what I was looking for with this thread.  So, it seems the 2-3 examples we have so far of this happening has been with Capital One.  Has anyone experienced the same thing with any other creditors?

[Anonymous]

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@Anonymous wrote:

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@Anonymous wrote:

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@Anonymous wrote:

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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.

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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.

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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)

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My CLD was $35k to $10K.  I used it but very little compared to the limit, a few hundred per year and not regularly.

[Anonymous]

My experience was a cut by Chase to my personal and business cards basically for lack of use where I decided to call them and have an account review which lead to a re-in-statement of the previous limits. Barclays cut my Juniper MC from $1,200 to $500 due to the fact I was not utilizing the full credit limit. US Bank FR'd me when I asked for a credit re-allocation and reduced me by $10K (maybe this is outside your research) and I see their point as I had more credit than my annual income. Men's Warehouse flat out canceled my CL of $1,500 due to lack of activity (they were right as I relocated 100s of miles from any of their stores).

[iheartwings]

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@Anonymous wrote:

iheartwings, thanks for your post above and pasting the exact reasoning letter.  That's exactly what I was looking for with this thread.  So, it seems the 2-3 examples we have so far of this happening has been with Capital One.  Has anyone experienced the same thing with any other creditors?

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De nada. I let very little report on my cards for utilization purposes to optimize my FICO score - found it interesting that CapOne didn't like that, as if they were saying, "We know you're spending, and we know it's not with us, but we can't tell with whom, so we're going to punish you." 

[Anonymous]

I appreciate the replies everyone.

So it seems Capital One is the only creditor that's slashed a big limit due to insufficient spend relative to that limit.  Good to know for CO card holders, for sure.

[HeavenOhio]

From what I can tell, limits that have been cut are at $30,000 or more, spending is well under $1,000 per month, and Cap One looks at a year or so of use before making a decision to CLD. Does that seem about right?

[Anonymous]

That sounds like a reasonable assessment.

It's sort of ironic when you think about it that someone with a smaller CO CL could end up with a larger one because of this.  You have one guy with a $15k limit and another with a $30k limit.  Both spend say $500/mo on average.  CO decides to slash the $30k limit down to $10k.  Now this person has a smaller limit than the other guy exhibiting the same exact spend pattern when originally his limit was twice that of the other guy.

Until I hear about other banks doing this outside of Capital One to me it isn't a huge concern.

[CreditCuriosity]

There are others that have 50kish CL's with very little use that haven't been touched "YET"..  They have had two rounds of CLD's thus far that we can tell and it is quite possible more are to come as they could be doing them in batches.  Time will tell.  As stated I don't disagree with the CLD's, but at same time why approve someone for a 20k initial CL and another 10k CL and then when combined reduce to 10k when one approval was beyond that 10k being 20k alone.  Guess they want people to use their credit which I understand funny thing is they are viewing other banks as well usage.  They have no clue how much I charge with chase each month, maybe this is why you let statement cuts before PIF each time as I charge 3k+ per my chase cards a month.. Anyways the facts are on the table as the three of us mentioned in this post all piped in.

[12njoy]

I have a 50k limit with Captial one that I rarely used.  When I heard all this chatter about cld's I quickly did a BT of 6k.  Now Capital One continues to send me BT checks left and right.  Recently applied for a cli with BofA and they told me that my limits with them were sufficient (76.5k) on two cards and that my deposits with them and their affiliates are insufficient.  I have zero deposits with them or their affiliates so I suspect I could get a cld from them.  I do have a BT with them now though.  I've had CLD's from both Chase and Barclays but not because I didn't use them.  Their issue was too much available credit out there.

[Anonymous]

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@Anonymous wrote:

That sounds like a reasonable assessment.

It's sort of ironic when you think about it that someone with a smaller CO CL could end up with a larger one because of this.  You have one guy with a $15k limit and another with a $30k limit.  Both spend say $500/mo on average.  CO decides to slash the $30k limit down to $10k.  Now this person has a smaller limit than the other guy exhibiting the same exact spend pattern when originally his limit was twice that of the other guy.

Until I hear about other banks doing this outside of Capital One to me it isn't a huge concern.

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Or even the same person!  I have two cards from Cap One, a $20K one which I NEVER use, and th other one that went from $35K to $10K.   $20K hasn't changed, and this sort of thing has led to the suggestion that Cap One has a minimum CL threshold before they worry about underuse of CL