Credit Limit Decrease - USBank FlexPerks Select Rewards

[Erusidhion]

    Just logged into my account today to see a credit limit decrease from $5,000.00 down to $1,600.00 and I think I may know the reason but I am not sure. I've found a lot of other threads on these forums with similar things happening to those with a USBank credit card. I purchased a new PC 2 months ago, from $0 balance to $1500 balance. I paid the minimum after the statement cut. Maybe that was the reason? I planned on paying the entire balance off this weekend too.

    It really sucks because I am not sure if they see me as a credit risk or not. I plan on moving back to Missouri and purchasing a home within 2-3 years and I was going to use USBank as my main bank when I do and for the mortgage. I also live in Florida currently;  a state they really do not service at all. Perhaps that's reason number two.

    Now my utilization has spiked up which I'm not concerned about. I plan on having all of my credit card balances paid down minus my loan I'm using to build a relationship with my local credit union. But up to this day; clean reports, no missed payments. Nothing negative at all on my reports except for my inquiries.

    After all the stuff I hear about Barclays; I am more scared of USBank right now. I'm going to attempt to reach out and get the Executive Office number or atleast someone's e-mail and see if I can get this reversed. I really want a relationship with them before I get back to the Midwest. Thanks for listening and I'll update thread with any information I receive; apparently they mail a letter out within 7-10 days of a CLD with the reasons. I'll post them and any correspondence from them here for search pusposes if anyone else has any problems with them.

[Anonymous]

Sorry to hear.. $1,500 spent on a $5,000 card isn't bad.  What is your overall utilization?

[traveler2005]

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@Erusidhion wrote:

    Just logged into my account today to see a credit limit decrease from $5,000.00 down to $1,600.00 and I think I may know the reason but I am not sure. I've found a lot of other threads on these forums with similar things happening to those with a USBank credit card. I purchased a new PC 2 months ago, from $0 balance to $1500 balance. I paid the minimum after the statement cut. Maybe that was the reason? I planned on paying the entire balance off this weekend too.

    It really sucks because I am not sure if they see me as a credit risk or not. I plan on moving back to Missouri and purchasing a home within 2-3 years and I was going to use USBank as my main bank when I do and for the mortgage. I also live in Florida currently;  a state they really do not service at all. Perhaps that's reason number two.

    Now my utilization has spiked up which I'm not concerned about. I plan on having all of my credit card balances paid down minus my loan I'm using to build a relationship with my local credit union. But up to this day; clean reports, no missed payments. Nothing negative at all on my reports except for my inquiries.

    After all the stuff I hear about Barclays; I am more scared of USBank right now. I'm going to attempt to reach out and get the Executive Office number or atleast someone's e-mail and see if I can get this reversed. I really want a relationship with them before I get back to the Midwest. Thanks for listening and I'll update thread with any information I receive; apparently they mail a letter out within 7-10 days of a CLD with the reasons. I'll post them and any correspondence from them here for search pusposes if anyone else has any problems with them.

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Did you ever find out why they decreased your credit line?  

[racer-x]

Well, well, well....let me tell ya a little story about US Bank.....nah, nevermind.

When they recently CLD'd me by about $7k on my PLOC, it left me at 97.1 % utilization on that acct.  I called, took another HP (coerced by the CSR) to reinstate my CL, but no dice.

What got me was, they said it was a computer generated CLD because of a TU score of 619?  Really?, I have 1 paid $165 collection on 1 report from 5 yrs ago, clean everywhere else., $150k+ available credit, etc...

And then, 7 days later, I got the letter explaining the HP I took to reinstate my CL and they said my TU was 686.  I miraculously gained 67 pts in 7 days. WT F!  I'm above 700 now across the board.

Pre CLD, I have 4  accts with US totalling $30,750...now it's $24k - ish., I direct deposit with them for past 8 yrs, $100k income, etc....

I'm moving all my dealings away from them and to my CU that I have a CC with and 2 auto loans with (I've had 2 paid auto loans with the CU too)

I paid the CLD'd acct down to 83% 2 wks ago, we'll see what happens as far as balance chasing goes.

Good luck. 

P.S. - S crew the big banks.  Stick with your CU.

[Erusidhion]

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@Anonymous wrote:

Sorry to hear.. $1,500 spent on a $5,000 card isn't bad.  What is your overall utilization?

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    Well, before the credit limit decrease my overall utilization was 38.27%. A little of that was the $1500 I charged on the US Bank Card. But now that they cut my limit down to $1600 my overall utilization is 50.10% I have the money to pay all these balances down but they're 0% apr. It is just better spent elsewhere at the moment in a few personal investments. I will actually have all my utilization paid down in about 60 days.

    I am sure there's a lot of factors that contributed to this though. I will find out what the letter says in 7-10 days and I found a higher ups e-mail just a second ago and e-mailed them. I went from 530 score in February 2014 to 660+ now with like 8-10 credit cards where before I never had a credit history up until this point. Maybe that's the biggest thing; too new to credit with many other new accounts.

    I am sorry to hear about all the USBank creidt decreases on here though. You know, I'm kind of opposite of a lot of opinions here. I actually don't mind paying a little interest here and there when I have to. I wonder if that is considered risky behaviour lol? Cost of a business relationship really which I intend to have with USBank. Ah well. I am not worried about this; it's like a light slap in the face. I'll get over it. 

[Anonymous]

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@Erusidhion wrote:

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@Anonymous wrote:

Sorry to hear.. $1,500 spent on a $5,000 card isn't bad.  What is your overall utilization?

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    Well, before the credit limit decrease my overall utilization was 38.27%. A little of that was the $1500 I charged on the US Bank Card. But now that they cut my limit down to $1600 my overall utilization is 50.10% I have the money to pay all these balances down but they're 0% apr. It is just better spent elsewhere at the moment in a few personal investments. I will actually have all my utilization paid down in about 60 days.

    I am sure there's a lot of factors that contributed to this though. I will find out what the letter says in 7-10 days and I found a higher ups e-mail just a second ago and e-mailed them. I went from 530 score in February 2014 to 660+ now with like 8-10 credit cards where before I never had a credit history up until this point. Maybe that's the biggest thing; too new to credit with many other new accounts.

    I am sorry to hear about all the USBank creidt decreases on here though. You know, I'm kind of opposite of a lot of opinions here. I actually don't mind paying a little interest here and there when I have to. I wonder if that is considered risky behaviour lol? Cost of a business relationship really which I intend to have with USBank. Ah well. I am not worried about this; it's like a light slap in the face. I'll get over it. 

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Thanks for answering.. That sucks.  I thought you were going to say utilization was like 90%.  Since the limit has been decreased, it will impact your score and if you are not planning to buy anything major or not planning to go on an app. spree then take your time to pay. Nothing bits having physical cash at hand. After all, it is 0% APR.  Let us know what the letter says..

[racer-x]

You need to come to the realization of the fact that the banks, especially the TBTFB's, don't care about you and/or your loyalty to them.

You are a small drop in the bucket.  If you try to appease them, you will only get your feelings hurt.

It is a well proven myth from what I've seen, read, researched, studied.

CU's on the other hand are much more personable...there you are members, not customers.

What you have to keep in mind and be aware of is, your other creditors may follow suit.  I wasn't only CLD'd by US Bank...Discover lst, then Chase, then US Bank after I had dropped $14k to PIF the 3 Chase accts and Discover acct.  My PIF payments and reports couldn't update quick enough to slow the slaughter.

I'd pay your stuff down quick.  Your CL's could be CLD'd at any time thus hurting your file even more and making it more difficult for you to get bigger starting CL's or CLI's in the future.

Lucky for me, I had $175k in CL's, so losing $32k wasn't such a big deal and all has calmed down, for now anyway.

[Anonymous]

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@racer-x wrote:

You need to come to the realization of the fact that the banks, especially the TBTFB's, don't care about you and/or your loyalty to them.

You are a small drop in the bucket.  If you try to appease them, you will only get your feelings hurt.

It is a well proven myth from what I've seen, read, researched, studied.

CU's on the other hand are much more personable...there you are members, not customers.

What you have to keep in mind and be aware of is, your other creditors may follow suit.  I wasn't only CLD'd by US Bank...Discover lst, then Chase, then US Bank after I had dropped $14k to PIF the 3 Chase accts and Discover acct.  My PIF payments and reports couldn't update quick enough to slow the slaughter.

I'd pay your stuff down quick.  Your CL's could be CLD'd at any time thus hurting your file even more and making it more difficult for you to get bigger starting CL's or CLI's in the future.

Lucky for me, I had $175k in CL's, so losing $32k wasn't such a big deal and all has calmed down, for now anyway.

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@Anonymous -x,

Everyone situation is different as there are different reasons for a CLD.  OP may just be CLD by US Bank and not any other bank.  It happens and has happen to a few people here with 1 bank closing and CLD'ing and thats it.  Other banks live them alone.

[racer-x]

yes- its you - But if OP has the funds to pay down his utilization to 1% as he said, shouldn't he be proactive and do so? 

Even if he pays everything down tomorrow  it will take time for that to be shown on his reports. 

OP's file is  thin with 6 mos AAoA, and 630 scores, 8-10 new accts, nearly 50% utilization across the board.......not to be an alarmist, but that's a pretty good recipe for AA.

IMHO of course.

[Anonymous]

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@racer-x wrote:

yes- its you - But if OP has the funds to pay down his utilization to 1% as he said, shouldn't he be proactive and do so? 

Even if he pays everything down tomorrow  it will take time for that to be shown on his reports. 

OP's file is  thin with 6 mos AAoA, and 630 scores, 8-10 new accts, nearly 50% utilization across the board.......not to be an alarmist, but that's a pretty good recipe for AA.

IMHO of course.

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Oh, it Me alright He has 0% APR.  Why hurry to pay.  He needs to open accounts to grow his credit portfolio.  If a CC is going to be alarmed by $1,500 charge on a credit they extended then they shouldn't have approved him for the card in the 1st place.  Personally I won't jump to conclusion yet until OP receives a letter/calls as to the real reason for CLD.

Racer-x, I read all your threads and your situation is different from his..