Card limit decreased because of 2 day missed payment

[leo222]

I recently missed a payment on my US Bank platinum card. As soon as I saw it, I made the payment (2 days later), and they happily removed the late fee. Long story short, I thought I had auto-pay enabled, and it wasn't. From what I've read online and here, I believe that late payments are only reported after 30 days past due.

Anyway, I got a letter that they reduced my credit limit to $1000 (from $2400). It was/is a balance transfer card, and I started off with $1200, and did a CLI about a month ago (to the aforementioned $2400). I would like my higher limit because this lower limit will affect my utilization (overall and especially card-specific). I also don't want to be too aggressive in paying this card down ahead of time, since I still have a pretty long 0% APR period left on it.

The person on the phone was pretty nice, and aknowledged that I did everything right, but still said all they could do is a standard CLI request, which I'm thinking may be denied because I already did one recently (even though I took care of the problem that originally decreased it). I'd like to apply for another card in 6-8 weeks, so I'm looking to maximize my credit score. Curious what you guys think I should do?

[FireMedic1]

Each bank acts differently. Some banks even if you pay on time and the check is returned for NSF. Like Cap1 has been known to restrict a card or worse.

When you posted this:

"I'd like to apply for another card in 6-8 weeks, so I'm looking to maximize my credit score." How many cards do you have now? More isnt always better unless you have 1 or 2 or a thin file. If its just for padding. Your scores and util and all the stats that make up your score will be taken into account.

[FinStar]

Right. Typically, if it's only a couple of days past due (as long as you make the payment right away), it should no report to the CRAs as a 30-day delinquency.

Unfortunately, their internal systems evaluated it as a non-payment instance so that's why the CLD occurred. The agent is simply following internal policy guidelines when it comes to rectifying the CLD.  So, since this was a change in your current limit, I'd recommend continuing to use your account for 6+ months then you can try and see about restoring the CL, if anything. Is there a current balance on the card?  Did you enable auto-pay to avoid the situation from occurring again?

[SoCalGardener]

So this is a relatively new card, is that correct? I was going to suggest something, but it really only applies with long-standing accounts that have perfect payment histories: contacting them and pointing out what a great, long history you have and ask if they can't reconsider their decision this one time. A kindness/goodwill gesture, in other words, based on your long, good history. But I don't think that applies in this case.

I guess you could still ask them to reconsider as a goodwill gesture, but that's hard to justify when it's not an established account.

If that fails (and I'm sure it will), I think waiting a few months before requesting a CLI would probably be a good idea. Since *they* just took action to lower your limit, I find it very hard to imagine getting approved for a CLI right now. But in a few months? Perhaps. I realize that doesn't help with your new utilization problem, and I get that you're in a 0% period and didn't want to needlessly accelerate payments, but under the circumstances you might want to revisit that idea. Ramp up your payments enough to get your utilization back down to its percentage prior to the CL decrease.

[CreditMagic7]

Sorry for the decrease even after catching it up 2 days later, but that is fiercely the nature of some lenders in this tech laden industry and they or their computer programs often are the final rule anymore. Especially with things being so tentative for the time being. 

As mentioned an only recourse is to wait it out for a possible CLI to make up the difference lost in credit line.

It's things exactly like this possibility that motivated me long ago to do ALL my online payments PUSH ONLY.

[kshurika]

And people wonder why I refuse to even consider a card from US Bank.

[Loquat]

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@CreditMagic7 wrote:

Sorry for the decrease even after catching it up 2 days later, but that is fiercely the nature of some lenders in this tech laden industry and they or their computer programs often are the final rule anymore. Especially with things being so tentative for the time being. 

As mentioned an only recourse is to wait it out for a possible CLI to make up the difference lost in credit line.

It's things exactly like this possibility that motivated me long ago to do ALL my online payments PUSH ONLY.

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Push only is great but if that isn't set to auto push a payment then you'll still end up in a bad spot if you forget or for some reason you're not in a position to do so.  I've mentioned it before that years ago I was in a bad car accident and auto pay saved me big time.  I was in intensive care for a couple of weeks and in the hospital for some time after.  My wife didn't know my passwords and even if she did, I'm certain she wouldn't have known which cards to check for balances.  To add to that, I was in bad shape and I'm sure the last thing on her mind would have been making sure a card payment was made.

I'm also a fan of pushing payments but I also keep auto pay for the minimum set just in case something happens where my wife or I aren't available to take care of such.  

[Loquat]

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@kshurika wrote:

And people wonder why I refuse to even consider a card from US Bank.

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This isn't a US Bank issue...this can (and will) happen with lots of banks.  Late payments just isn't something banks are willing to put up with...not even once.  Sure, you'll find some that will reinstate the limit as an exception but it certainly won't be the rule amongst most financial institutions. 

[CreditInspired]

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@SoCalGardener wrote:

So this is a relatively new card, is that correct? I was going to suggest something, but it really only applies with long-standing accounts that have perfect payment histories: contacting them and pointing out what a great, long history you have and ask if they can't reconsider their decision this one time. A kindness/goodwill gesture, in other words, based on your long, good history. But I don't think that applies in this case.

I guess you could still ask them to reconsider as a goodwill gesture, but that's hard to justify when it's not an established account.

If that fails (and I'm sure it will), I think waiting a few months before requesting a CLI would probably be a good idea. Since *they* just took action to lower your limit, I find it very hard to imagine getting approved for a CLI right now. But in a few months? Perhaps. I realize that doesn't help with your new utilization problem, and I get that you're in a 0% period and didn't want to needlessly accelerate payments, but under the circumstances you might want to revisit that idea. Ramp up your payments enough to get your utilization back down to its percentage prior to the CL decrease.

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I second this. Actually, I third & fourth it. And, now is not the time to ask for another CLI. Look at it from the bank's  POV. They saw you were doing a good job and bumped your credit limit. And then, BAM, like something out of left field, you threw them a curve ball--didn't make your minimum payment when due. So they probably thought, WHOA! he's not ready for a higher limit quite yet, and slashed it back to where they felt you were comfortable and to also thwart any risk from their end. 

I agree with SoCal. I thinking getting that balance down quickly will prove to them that you can handle a larger limit. JMHO. 

[CreditInspired]

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@Loquat wrote:

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@kshurika wrote:

And people wonder why I refuse to even consider a card from US Bank.

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This isn't a US Bank issue...this can (and will) happen with lots of banks.  Late payments just isn't something banks are willing to put up with...not even once.  Sure, you'll find some that will reinstate the limit as an exception but it certainly won't be the rule amongst most financial institutions. 

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Exactly!!!