Cap One CLD

[sarge12]

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@CreditCuriousity wrote:

The FICO model is flawed IMO... Or at least if lenders say gives you 10k CL then a person should be allowed to use 10k CL without the risk of AA.  As the creditor was willing to give this to Joe consumer.   We wouldn't need 30-50k or whatever credit lines if the FICO model or lenders models actually allowed one to use a decent percentage of ones credit line and actually carry a balance with risk of AA or whatever.  If a lender only want a person to use or trust with a 5k CL give them that let them max that out and they can make interest, etc...  People have become smarter since the cool thing called the internet and know how to maximize their scores as most people aren't stupid thus IMO the FICO model or lender models have to adapt so they aren't one up on the consumer that can figure out why banks are so profitable in their CC divisions aka carrying and paying interest.  /rant over.

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I could not agree more...if I owe 20000 dollars and have 250k in credit limits, the 20k is still just as hard to repay and just as likely to default as if my CL's were 22k, but the score impact if I only had 22k would be severe. We have all learned to play the game and ask for CLI after CLI to keep utilization <9%...it's their game though, we just learned the rules.

[Aduke1122]

Wow second one I have seen today , I'm so sorry this happened to you along with CC today. Wth is going on to vet at Cap One . This is crazy , first is was tns of denials for CLI for lots of us , even some denials for new app for the infamous "too many inquiries " and now CLD 😢😲

[Anonymous]

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@Anonymous wrote:

Dang, looks like a possible new trend. Sorry to hear this, LTL.

Kind of makes me wonder, what are they getting ready for. Do they know something about the economy that we don't? We are due for a recession.....

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More like thermal Nuclear War.

[pizza1]

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@pizza1 wrote:
If I got hit by this, personally myself, I won't close the card. I only have the kind of limit I have now because of the account combination they allowed last year.

If they never allowed it, my limits would have been $10k-$20k respectfully. I will still keep my Venture if I do get hit. Its still a great card regardless.

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First, yes I'm quoting myself lol... I was curious as to how much I put on my card last year, and though $16k isn't anything to sneeze at, I'm sure there are others on here who have put a considerable more spend on theirs.  This may be why I'm still intact , as of now, and I've put roughly $10k on it this year already. 

[Anonymous]

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@Anonymous wrote:

Its probably because they have denied my CLI's for the last 1.5 years and are taking yours to give to me on my next request 

J/K that sucks, I quit using mine, just paid off my wifes 0% ended and we have other cards currently with 0 promo offers so hers will probably get slashed too I'm assuming. 

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Lol... 

[Anonymous]

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@CreditCuriousity wrote:

The FICO model is flawed IMO... Or at least if lenders say gives you 10k CL then a person should be allowed to use 10k CL without the risk of AA.  As the creditor was willing to give this to Joe consumer.   We wouldn't need 30-50k or whatever credit lines if the FICO model or lenders models actually allowed one to use a decent percentage of ones credit line and actually carry a balance with risk of AA or whatever.  If a lender only want a person to use or trust with a 5k CL give them that let them max that out and they can make interest, etc...  People have become smarter since the cool thing called the internet and know how to maximize their scores as most people aren't stupid thus IMO the FICO model or lender models have to adapt so they aren't one up on the consumer that can figure out why banks are so profitable in their CC divisions aka carrying and paying interest.  /rant over.

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I think parts of it are certainly flawed (being able to game by simply paying before statement cut indicates to me the system is simplistic) but I disagree with the above.

CLs have real implications to the lender, part of that is now unavailable for lending to others, and if you are not using it much, maybe someone else could use it more to my profit.

And when I give you a CL, I don't really know how you are going to use it (a lot, SD it, or something inbetween) so it makes sense to me that a lender should be able to adjust based on its experience with you. 

As I have said several times, I think myfico is a little to fixated on "utilization padding"    If you don't have to carry a balance, with a little work you can reduce the reporting util to whatever you like, doing this only when you need to.    High CLs may help in true emergencies, but even that is limited to sort of one off events.   In the case of prolonged financial hardship, they are going to AA you anyway, just when you need them most....

[sarge12]

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@pizza1 wrote:

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@pizza1 wrote:
If I got hit by this, personally myself, I won't close the card. I only have the kind of limit I have now because of the account combination they allowed last year.

If they never allowed it, my limits would have been $10k-$20k respectfully. I will still keep my Venture if I do get hit. Its still a great card regardless.

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First, yes I'm quoting myself lol... I was curious as to how much I put on my card last year, and though $16k isn't anything to sneeze at, I'm sure there are others on here who have put a considerable more spend on theirs.  This may be why I'm still intact , as of now, and I've put roughly $10k on it this year already. 

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I would say with an average of over 1000 dollars put on the card, a CLD is unlikely for you Pizza. It is more than likely the people recieving CLD in order to free up funds to be used by people like you. I, however with 16 cards, am likely to have issues, because I am not sure I run 16000 through all my cards combined. Also since I am a strict transactor and never pay a penny in interest on any card, the issuers have not got any huge incentive to show me love. I do have one card that interest is paid on, but it is a card my sister is AU on and all charges on it are hers, and paid by her. The interest on it is 6.99% with some annual promos in the Xmas season at 5.99%. It is also the only card that is ever over 9% utilization...currently 31%.

[gdale6]

Looks like a lot of issuers are getting ahead of the recession this time and not waiting to take losses when it hits, ironically when a recession hits is when one needs the credit the most. Wont say anymore as it might be seen as political.

[AverageJoesCredit]

Lol Pizza,