Credit Cards that are closing accounts or decreasing limits for no reason

[Revelate]

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@Remedios wrote:

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@Revelate wrote:

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@Remedios wrote:

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@Anonymous wrote:

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@MASTERNC wrote:

No CLDs so far but now I am nervous putting big purchases for my work from home ordeal on my lightly used Hilton AMEX ($28k limit).  Had a promo for free "Plan It" plans so I have purchased about $1,500 on it (mainly a better office chair and some wine).  Hopefully this doesn't raise eyebrows.

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It can depend on the purchase. Putting a large property tax payment on it could raise eyebrows, or anything that screams distress. A vacation wouldn't. 

Tons of wine could lol. JK.

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Right, because it's unheard of paying with credit  in exchange for rewards 😐

I've asked you before, and I'm going to ask you again to show some evidence orproof behind that statement.

It's just something you think, and you"ve never really done it, so instead of discouraging those who are either trying to maximize their rewards or stretch it in a few payment, maybe adding some facts would work better. 

One person says something,  someone repeats in, myths and legends are born, without having any connection with reality whatsoever. 

I get the part where you're careful and cautious with your credit, that's commendable, but opinions should not be presented as facts. 

I've paid personal and property taxes with cards. I'm not in financial distress, in fact, the opposite is true.

How do lenders know that? 

I paid the bill.

The End. 

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Ah, but you probably also paid them in happy sunshine land, now might be a different story .

I haven't been paying attention for the last few years but we did have one or two threads IIRC circa 2012 where lenders were closing things down based on the transaction record... personally, I never put anything "iffy" on the Chase cards, though I absolutely pay my taxes with them to your point and will continue to do so.  Paying one's taxes is a good thing, hell I just blew $4800 on appliances on my CFU but I doubt they're going to do anything with that, just my being a good little consumer for once in my life getting stuff for the new place.

I honestly color inside the lines for the near entirety of my life, but I've paid with a Cap 1 card on things I didn't want someone at Chase making a value judgement on TBH based on some anecdotal reports here.

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Nope, two weeks ago, paid it off a week later after statement was ready.

I've banked with Chase for over 10 years, WaMu before that, couple of mortgages, plenty of cards, CPC for a while (ex had affinity such things), if they got it, had it.

Should Chase feel the need to scrutinize my transactions, they will see I lead a boring life (mostly).

If having a portion of my income fall into  24% bracket, and having to pay additional taxes because of it bothers them..well, let's just say it doesnt. 

2020 ain't my first rodeo. 

Oh, and I'm their point of contact for corporate account, which I insisted we open because I hated Heritage bank. I dont let Chase forget it, either. 

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Honestly, I'm willing to bet they already have done that for both of us .

[MASTERNC]

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@Anonymous wrote:

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@MASTERNC wrote:

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@ccpat wrote:

Masternc, Which part is the big purchase.....the chair or the wine? (heehee)

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The chair - by a lot. It's also from Amazon

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Is it Herman Miller?  Just copped one myself.  Nice chair but wasn't sure it was worth the price.  Lol

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Almost bought one of those. Ended up finding the same Allsteel chair I have at the office selling direct from Amazon (no 3rd party seller) for half of what the manufacturer's catalog quoted. Steelcase supposedly has a good chair as well that sells for just under $1,000.

[Anonymous]

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@Remedios wrote:

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@Anonymous wrote:

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@MASTERNC wrote:

No CLDs so far but now I am nervous putting big purchases for my work from home ordeal on my lightly used Hilton AMEX ($28k limit).  Had a promo for free "Plan It" plans so I have purchased about $1,500 on it (mainly a better office chair and some wine).  Hopefully this doesn't raise eyebrows.

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It can depend on the purchase. Putting a large property tax payment on it could raise eyebrows, or anything that screams distress. A vacation wouldn't. 

Tons of wine could lol. JK.

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Right, because it's unheard of paying with credit  in exchange for rewards 😐

I've asked you before, and I'm going to ask you again to show some evidence orproof behind that statement.

It's just something you think, and you"ve never really done it, so instead of discouraging those who are either trying to maximize their rewards or stretch it in a few payment, maybe adding some facts would work better. 

One person says something,  someone repeats in, myths and legends are born, without having any connection with reality whatsoever. 

I get the part where you're careful and cautious with your credit, that's commendable, but opinions should not be presented as facts. 

I've paid personal and property taxes with cards. I'm not in financial distress, in fact, the opposite is true.

How do lenders know that? 

I paid the bill.

The End. 

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And I'll say it again for the 20th time. Look above. I said could, not would. Nothing is for sure. It's not fact. If I said paying property taxes with a card during this time WILL get you AA, then you have a point.

And again, this isn't from me. I did my homework. CCCs DO look at transaction types, expecially when a cardholder could be in distress. That's old information, and the've been doing it for years.

If you are paying a 2.5% or whatever fee to get rewards, that wouldn't make much sense to put property taxes on a card. Unless there is another reason to do so other than rewards.

I just paid property taxes with my CFU card on April 10th. But that's because it will net me 2.6% or so, after I pay a fee of 2.35%, so its a net of 0.25% reward. But the bigger reason I did it was to bloat my balance. And I know you don't agree with that one either. That, and paying only the minimum payment, and I now have a balance of $3,600, which was $0 on 2/27. Looks like distress? Maybe.

There is risk doing that at this time. A Chase or another issuer can look at it and think there could be an issue. Especially paying the minimum and my balance is increasing. And now that WF hasn't reported and my balance which is paid off but still reports $3,787, my balances are rising quickly on my CRs. But I think 2 things are in my favor with Chase. Strong profile, and a history of running up a balance on a 0% promo.

But who knows this time. I did similar things in 2008 and 2009. No AA.

Everybody's profile is different. I don't recommend anyone else doing what I do in bad economic times. I don't think you would recommend it either.

You have a history of paying property taxes. I don't. Or if you don't use a card, and all of a sudden you put large purchases on it, it COULD draw attention to your account. 

[Remedios]

@Revelate  I would be shocked if they weren't sweeping in regular intervals.

[Anonymous]

I currently don't have any derogs on my credit report but I might have did some things that might raised flags(based on what I read people say in other threads). For this month: I acquired 3 new credit cards,  product changed one, closed one and lowered 2 credit cards(Amex 25- 10, discover-22.5-11). I am hoping AA doesn't happen to me. If it does I'm hoping for cld oppose to closure. I didn't realize these were flags because this is my typical behavior. Maybe because of what covid-19 has done to the economy, it might be sketchy. And far as my 11 cards-9 out 11 are zero balances. My newly PenFed I spent 1070 out 5000 this month. And my other newly Wells Fargo I spent 100 out of 10000. My limits are average(below average on this forum) so I'm hoping nothing happens. I am checking every card more than usual now. Should I at least have some balance on the other 9 cards? I last used every card March this year. Man I am really nervous about closure. I am gardening for a year.

[Revelate]

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@Anonymous wrote:

I currently don't have any derogs on my credit report but I might have did some things that might raised flags(based on what I read people say in other threads). For this month: I acquired 3 new credit cards,  product changed one, closed one and lowered 2 credit cards(Amex 25- 10, discover-22.5-11). I am hoping AA doesn't happen to me. If it does I'm hoping for cld oppose to closure. I didn't realize these were flags because this is my typical behavior. Maybe because of what covid-19 has done to the economy, it might be sketchy. And far as my 11 cards-9 out 11 are zero balances. My newly PenFed I spent 1070 out 5000 this month. And my other newly Wells Fargo I spent 100 out of 10000. My limits are average(below average on this forum) so I'm hoping nothing happens. I am checking every card more than usual now. Should I at least have some balance on the other 9 cards? I last used every card March this year. Man I am really nervous about closure. I am gardening for a year.

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It doesn't hurt to swipe them if it will make you feel less antsy but compared to most people here you are flying under the radar.

I will almost assuredly get AA for inactivity before you do on the majority of my tradelines as it has been much longer than 2 months since I swiped them .

[ccpat]

Carmy03.....mind me asking why you requested that your limits be lowered?  Exposure?

[Anonymous]

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@Anonymous wrote:

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@Anonymous wrote:

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@MASTERNC wrote:

No CLDs so far but now I am nervous putting big purchases for my work from home ordeal on my lightly used Hilton AMEX ($28k limit).  Had a promo for free "Plan It" plans so I have purchased about $1,500 on it (mainly a better office chair and some wine).  Hopefully this doesn't raise eyebrows.

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It can depend on the purchase. Putting a large property tax payment on it could raise eyebrows, or anything that screams distress. A vacation wouldn't. 

Tons of wine could lol. JK.

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I will test your theory to the extreme soon. 

Will have to pay $24000 fed tax (partly a larger than expected bonus partly my own fault for withholding too little) by 7/15 and I just copped 4 cards so not to waste the previous natural spend. 

Will see how much Amex, Chase, US Bank and BoA really love me. Lmaooooo

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That will be interesting, but if your income is very high and you've paid by CC before, it might be less interesting, especially if the economy is doing well by then. 

[Anonymous]

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@ccpat wrote:

Carmy03.....mind me asking why you requested that your limits be lowered?  Exposure?

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I am just not into high credit card limits(I don't use it) with the exception of my chase fredom(I'm applying for amazon prime next year and if they offer me something low I can move some of my limit) and navy federal is for balance transfer so I'm keeping the limit. Decreasing my limits arent my concerns regarding covid-19. I was doing it anyway. Discover got replaced by navy federal for my balance transfer card.

[sarge12]

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@Anonymous wrote:

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@ccpat wrote:

Carmy03.....mind me asking why you requested that your limits be lowered?  Exposure?

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I am just not into high credit card limits(I don't use it) with the exception of my chase fredom(I'm applying for amazon prime next year and if they offer me something low I can move some of my limit) and navy federal is for balance transfer so I'm keeping the limit. Decreasing my limits arent my concerns regarding covid-19. I was doing it anyway. Discover got replaced by navy federal for my balance transfer card.

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I too once would actually request that a card issuer lower my credit limits. The very high limits just somehow made me nervous, but I finally realized that doing that was keeping myself down  in many ways. If creditors see that you maintained low use even with high limits they are likely to issue you another high limit on their card as well. Low utilization is much easier to maintain with high limits and will prevent spikes from a single large purchase such as a refrigerator. I certainly am not suggesting that you must go for very high limits, because that in large part should be decided by how much you trust you. For myself, I trust myself a lot to handle extremely high limits. If I were trusted by a lender with a million dollar limit, I would still only use what I need and can pay in full every month. Having lower limits would only increase utilization and lower my scores. The way I handled my credit led lenders to issue me high starting limits, so I will use that fact to benefit my scores. My previous fear of very high credit limits was irrational and self defeating, because I trust myself to not let high limits modify my behavior now. That is the only danger for high limits is if I do not trust myself to resist any urges to increase spending based on higher credit limits.