Chase may be reducing Credit Limit?

[OmarGB9]

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@Strogen wrote:

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@OmarGB9 wrote:

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@Remedios wrote:

They aren't targeting "financially stable customers*, they are targeting customers who dont use their cards, or not enough use relative to the limits.

Without using their cards, one is just a honorable mention in their portfolio and no bank can and want to rely on "They might use it - some day" 

What exactly would be their motivation to keep certain amounts in reserves when card sees no use? 

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Agreed.

@Strogen, while you may be one of their "financially stable" customers, what good does that do the bank if you're never swiping their card and making them any money on swipe fees (since you obviously wouldn't be paying interest)? What good does it do the bank knowing you can pay your bills if there ARE no bills to be paid?

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I do use my Chase cards, its not like they're sock drawer cards. Though ill admit that charging like $50 of doordash to them once a month isnt much, its still some kind of use. That said I wont have my credit lines reduced, as this could look bad in the eyes of other creditors and start a chain reaction of credit line decreases, hence my calling in to stop it. Its irritating, and its not something that has ever happened to me in the past 12 years with Chase, so they are clearly feeling some kind of heat. 

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Yea, $50 of DD is like ~$1.50 in swipe fees for them, so definitely not going to move the needle. I think you're overthinking the CLD looking bad thing. It makes sense for someone who consistently carries balances because their utilization would spike upon receiving a CLD, but in your case if you have no balances, I don't think the cascade of AA you're worried about would happen. There would have to be other factors at play besides the CLD.

[Janneman]

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@AzCreditGuy wrote:

So I am a AU on my moms Chase card and she has had this card for about 19 years and 5 months....The limit is only $11,300. Her credit scores on all 3 are around 815-820. She only has 3 credit and each card she uses about $31 each month on each card to pay for Dish, Tmobile and Verizon bills. Well I just saw the mobile up had a notice to read a letter online. The letter is as follows:

Anyone else receive this letter?

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Following.... Did you (OP) do anything to have your CL unchanged?? Please update us. Thanks

[AzCreditGuy]

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@Janneman wrote:

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@AzCreditGuy wrote:

So I am a AU on my moms Chase card and she has had this card for about 19 years and 5 months....The limit is only $11,300. Her credit scores on all 3 are around 815-820. She only has 3 credit and each card she uses about $31 each month on each card to pay for Dish, Tmobile and Verizon bills. Well I just saw the mobile up had a notice to read a letter online. The letter is as follows:

Anyone else receive this letter?

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Following.... Did you (OP) do anything to have your CL unchanged?? Please update us. Thanks

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Sorry should have updated, simple message through Chase.com and stated no CL changes should be made and we want the same limit we have now. They stated since you are a valued customer, we will not change anything and you will keep your current CL. 

If you get this letter I suggest you call or email and tell them to keep AS IS

[Janneman]

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@AzCreditGuy wrote:

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@Janneman wrote:

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@AzCreditGuy wrote:

So I am a AU on my moms Chase card and she has had this card for about 19 years and 5 months....The limit is only $11,300. Her credit scores on all 3 are around 815-820. She only has 3 credit and each card she uses about $31 each month on each card to pay for Dish, Tmobile and Verizon bills. Well I just saw the mobile up had a notice to read a letter online. The letter is as follows:

Anyone else receive this letter?

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Following.... Did you (OP) do anything to have your CL unchanged?? Please update us. Thanks

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Sorry should have updated, simple message through Chase.com and stated no CL changes should be made and we want the same limit we have now. They stated since you are a valued customer, we will not change anything and you will keep your current CL. 

If you get this letter I suggest you call or email and tell them to keep AS IS

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Did you email (secure mesg) them or call them? If you call them then what was the telephone number, plz? Tnx

[jojo79]

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@Janneman wrote:

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Did you email (secure mesg) them or call them? If you call them then what was the telephone number, plz? Tnx

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@Janneman- It should be the same number as back on the card. Chase Freedom is 800-524-3880 

[AzCreditGuy]

secure message through your CC account online or call them at the number on your card

[RSX]

i feel like if they send 1000 letters, they might get 10 phone calls - most people wont read the email or letter

then Chase can lower 990 CL's and say - we provided good customer service and notified you

i have no issue at all with them doing this  - if people aren't using their cards, then at least you were notified and addressed it (if you cared) and if you didnt care, then they still get to lower their overall credit exposure and focus on the spenders in their portfolio

makes sense to me

[Luxeedee]

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@Absolution16 wrote:

So far in this thread, the cards mentioned that have had this CLD letter are:

1. Freedom

2. Amazon

3. Ink Business

4. Marriott Bonvoy

Are all of these No-AF cards?  Freedom and Amazon are No-AF cards, whereas the Ink and Marriott have both the AF kind and the No-AF kind.  I am wondering if these CLDs are more common or maybe even restricted to the No-AF cards.

Chase didn't CLD my Freedom a few years ago... they CLOSED it due to, in their words, "not enough spend/activity."  But they were more than willing to Auto-CLI my Sapphire Preferred twice.  I started at 16K limit in 2016, and now it is sitting at 24.5K.  And I am not even putting that much into that card.

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I think you are correct. I get a CLD from Amex. At first, I thought I did something wrong, and they just caught it. Now I think they're full of crap.  I got a CLI less than one year ago.  Over the past 9 months, as I increased my balance on other cards, they offered two AF cards every month.  How am I a good candidate for your two annual fee cards that are supposedly more prestigious? Since I did not bite I'm now super toxic?? It's very suspect.

They tried to blame too many inquiries. I got an increase in June and have only applied once for a student loan in that time. Meanwhile, older inquiries have fallen off.  It would be more honest to just say 'we're closing this card and switching you.'  But if they did that people would be turned off their products.

[Absolution16]

@Luxeedee 

Until a couple of weeks ago, I had the $95-AF Everyday Preferred (EDP) at 20.5K CL and the No-AF Bluecash Everyday (BCE) at 9K CL.  Seeing as I felt I no longer needed to collect Membership Rewards Points (MR) for the foreseeable future, I decided to downgrade the EDP to the No-AF Everyday (ED) and transfer out all but 2K CL to the BCE, planning to make the ED a sockdrawered (SD) card.  At the time, I asked around the community here before doing that, because I was afraid of this very thing.

Now my No-AF BCE is looking all pretty at 27.5K CL, but I am still nervous about the possibility of CLD, as considering the times that we are in, they could come up with any kind of excuse to CLD that account.  For my level of spending for purely on just gas, groceries, and online purchase, that CL is grossly high.  Everyone likes high CL and some even go out of their way to get as much CL as possible for all kinds of reasons, but I admit this does put me at unease.

Other than the fact that you had incurred increased balances on your other cards, I don't see any other reasons that may have ticked AMEX off.  Did you change your spending pattern, as in frequency or dollar amount spent on your AMEX cards?  How much of an increase in balances was it across your other cards?

I went as far as adding an authorized user (AU) to my BCE just so I can please AMEX with a slight boost in regular spending, so I will keep a close eye on it.

In the meantime, I am sorry about the CLD you incurred.  I hope it wasn't too significant enough to cause problems in getting important loans with decent terms.  I have seen some reports of a single CLD resulting in a chain effect that led to other lenders following suit with CLDs as well.  Hopefully, none of us get into that situation.

[Luxeedee]

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@Absolution16 wrote:

@Luxeedee 

In the meantime, I am sorry about the CLD you incurred.  I hope it wasn't too significant enough to cause problems in getting important loans with decent terms.  I have seen some reports of a single CLD resulting in a chain effect that led to other lenders following suit with CLDs as well.  Hopefully, none of us get into that situation.

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This is my worse nightmare. I hated that they punitively slapped my credit limit by 80%, but worse, they represented 25-30% of my total credit limit.  All I can think of is my total credit usage flying up because of them.  Before this, I was using 24K of 50K.  It's one thing to get dinged because I made the wrong choice to charge up my whole card. It's another for their action to bring me up above 50% of total credit usage. 

Now I am concerned that I am not using the cards often enough and/or paradoxically using them too much.  It's crazy.