@yfan wrote:
@red259 wrote:I think people are again getting away from what happened here. This isn't a case where someone maxed their card and then PIF by the due date. This is a case where someone used up most of their credit line and then carried the balance and had charges showing on other cards. The CCC does not care if you use up your whole credit line just as long as you PIF when the bill is due. Its when people carry large balances a CCC starts to think there are financial problems and they get nervous. Of course, its really obnoxious when CCCs do this on cards that have 0% APR. To me that is just absurd of a CCC, because a 0% apr is a perfectly legitimate reason to want to carry a balance.
I don't think we are getting away from it at all. The flexibility to carry a balance is WHY it's called a credit card and not a charge card. Using that flexibility shouldn't cost one to lose credit. Banks also make their money from the interest, i.e. they make more money from people who carry a large balance than those who don't. Yes, I understand the point about the risk, but that risk is the reason banks charge interest. They shouldn't be able to have it both ways - charge high interest AND limit your ability to borrow when you have not been actually late.
My point is simply that people in this thread have been misunderstanding OP's fact pattern and its causing a discussion on a totally different scenario that did not even occur in this case.
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@IWOL wrote:I think the problem is that in many cases when people post about CLD we are only getting half of the story so it distorts the entire "case"
Im not saying that is the case here but I beleive that is often the case. So someone posts...."i got CLD from carrying a balance" but they eliminate the fact that they were maxed out at 90%, paying minimum for months, while charging up and reporting large balances on other cards. It could also be a sudden change in spending and payment habits too that are strong indicators of financial trouble.
It dosent help others to read these stories if we dont have all or most of the facts which we rarely will get.
OP's scenario seems very plausible with the facts provided, so while I understand your general point I don't necessarily agree that its relevant to this thread,.
@keithB wrote:
@IWOL wrote:I think the problem is that in many cases when people post about CLD we are only getting half of the story so it distorts the entire "case"
Agreed. If one is carrying balances one high utilization and chases more credit to carry even more utilization, banks get nervous and try to cut losses or prevent potential future losses. Not saying that is going on here but maybe it is.
Based on what? I can see this happening to OP even without applying for new credit. Carrying nearly maxed out balances month to month on multiple cards and having 50% on other cards is sure to raise eyebrows all on its own. I wouldn't want someone who reads this thread in the future to get mislead into thinking they can do this and there won't be any AA as long as they do not open new credit lines.
@IrishPM wrote:I moved about 10 months ago and ended up putting my moving expenses on my credit cards and my utilization went over 30% for the month...during that month, Chase lowered my CL on all three credit cards...Chase United Exporer, Chase Amazon and Chase Southwest Rapid Rewards...I called and asked why my credit lines have been slashed and the CR told me I was over 30% utilization and their policy is to lower a customer's CL when that happens...I paid off the cards and threw them in the drawer and will let them collect dust...After all, a Chase United Explorer card with a $1,600 CL is useless to me for booking airfare...I'll use my American Express card instead...
Interesting data point. I take it you carried the balance forward past the due date? 30% is awfully low and I suspect that if it was a 0% apr card they make exceptions for such things.
