@Anonymous wrote:I'm sure more than carrying a balance is at play here. Perhaps carrying a balance while actively seeking other credit, the fact he was out of country so long using possibly running up the limit, or whatever. Lenders get spooked for different reasons. In the age of modern technology and instant reporting, it is bound to get worse before better.
Well its balances not balance. Two cards near the limits and two other cards around 50%. Over a prolonged period of time I can see that spooking lenders on its own.
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@sjt wrote:Congrats that it all worked out.
I think one of triggers for the CLD is you started to activily use these cards after they been inactive.
I don't think this is what happened. Maybe I misread but I thought OP said they were just carrying a balance and had not used the card in two months.
@Anonymous wrote:I don't get why credit card companies do this. What's the point of giving you a credit limit if they are gonna come after you as soon as you use anything close to the limit THEY gave you.
Agreed, but if you look at it from the issuer's point of view, it's like this: the reason they give you a higher limit is so that you will use their cards more often and thus generate more swipe fees for them. But when they see you begin to stretch that limit, they become afraid that you are doing this because you are nearing a financial point where you may have to choose which bills to pay. A lot of the times this happens through automatic software, which can be in and of themselves buggy.
Dumb, I know. But there you have it.
@yfan wrote:
@Anonymous wrote:I don't get why credit card companies do this. What's the point of giving you a credit limit if they are gonna come after you as soon as you use anything close to the limit THEY gave you.
Agreed, but if you look at it from the issuer's point of view, it's like this: the reason they give you a higher limit is so that you will use their cards more often and thus generate more swipe fees for them. But when they see you begin to stretch that limit, they become afraid that you are doing this because you are nearing a financial point where you may have to choose which bills to pay. A lot of the times this happens through automatic software, which can be in and of themselves buggy.
Dumb, I know. But there you have it.
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 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.
