Can/Will CC exercise lowering limits?

elixerin · ‎11-16-2019

heya friends, kind of a pondering question here but recently i got some pretty nice approvals putting me at 10K+ TCL, however i won’t really be using the cards to their full “potential” like i usually have in the past.

lemme run it down,

Apple Card - 5K (recent approval)
AMEX CM - 4K (recent approval)
Discover - 2K (nov 2018)

so apple card i won’t be spending more than 2-300 a month, with the new amex approval disco won’t be getting as much love so disco about 1-200 a month, Amex to churn my welcome bonus of 5% im gonna be running 5-6000 a month (only 5% up to 10k

, all three will be PIF and 20-30% uti always)

what im wondering is if i keep this up for months coming, say up till mid-2020 will the other two issuers be inclined to lower limits? esp if i 3x CLI amex on my 61+ day mark and use that as a daily driver, or am i just worried for nothing lol i want to avoid the lowering of CL’s at all costs while churning the rewards that most benefit me currently, thoughts?

thx thx

Aahz · ‎11-16-2019

Card issuers generally only lower limits when they see negative trends on your credit report in general.

So, no, you should have nothing to worry about as long as you continue to make payments on time and keep your overall utility reported each month under ~30%.

elixerin · ‎11-16-2019

done and done, thanks for the help.

i always thought that some issuers don’t like extending big limits when they see you only use a tiny percentage of it so they take that action, guess i won’t worry

Anonymous · ‎11-17-2019

Some will do it for very excessive limits being idle like when Capital One chopped cards down to $10K but it's not common without negative trends in your credit history.

Let's put it this way - I have four cards between $10K and $12.7K and I only get $1525 a month for income so I couldn't possibly use such high limits and my lenders know it. Hasn't been an issue other than for new card approvals being denied because I'm not profitable.

AverageJoesCredit · ‎11-17-2019

You should be fine. Remember Disco cli requests are sp so you can smash that every month if you want

Anonymous · ‎11-17-2019

Cap1 and Amex have both been known to cut limits if they are high enough and not used enough over time. But, they usually cut them to $8-10K and for Amex at least, they have been willing to restore the original limit when asked. Your limits are small enough that they won't get cut for that reason, and if you're running $5-6k a month, they certainly won't get cut, and you should do well with 3x CLIs down the road.

It's more those who have $30k limits and run $300/month through the card. They simply don't NEED those limits.

Anonymous · ‎11-17-2019

@Anonymous wrote:
Some will do it for very excessive limits being idle like when Capital One chopped cards down to $10K but it's not common without negative trends in your credit history.

Right. I was one of the CO "victims" but I haven't seen any more recent reports of this by them, so maybe it was a one-off clean-up by them?

So certainly very rare.

Anonymous · ‎11-17-2019

@Anonymous wrote:
@Anonymous wrote:
Some will do it for very excessive limits being idle like when Capital One chopped cards down to $10K but it's not common without negative trends in your credit history.

Right. I was one of the CO "victims" but I haven't seen any more recent reports of this by them, so maybe it was a one-off clean-up by them?
So certainly very rare.

Yeah I only know about it because whenever there is a thread about Capital One, it gets mentioned by people who got slashed lol.

AverageJoesCredit · ‎11-17-2019

Lol @Anonymous kinda hard to forget CLD or rejection

Anonymous · ‎11-17-2019

@AverageJoesCredit wrote:
Lol @Anonymous kinda hard to forget CLD or rejection

Oh I know. Just saying that's why I know lol.