Credit Limit Decrease - USBank FlexPerks Select Rewards

[racer-x]

hey-over-here - My situation is not different in that US Bank CLD'd because of a computer generated action  which was a score of 619. (ahem, ahem B S)  That's what the original UW told me on the phone.

"The computer pulled a 619 on you, and IT cut you off at the knees."  

My CLD's started when I carried 30% balances for 3 months with 2 creditors on 4 accts when I otherwise PIF'd 21/24 of those months.  That doesn't seem all that AA worthy?  I've seen worser. lol.

And what happens when OP's score drops 30-40 pts to sub 600, showing 34 INQ's and other creditors SP him and see that?  You have to agree that additional AA is a REAL possibility.

I feel I'm just being really, really, realistic here.

[CH-7-Mission-Accomplished]

You are 100000000000% correct about the difference between banks and credit unions.  Banks are fine for getting mileage points or cash back but if you have to actually use a credit line and carry a balance for a while, a CU is the only way to go.  Lower rates, they want to lend you money, and I have never heard of a CU balance chase.  It may have happened, but the big banks have these computers monitoring everything (including the economy in general) and will set all kinds of things in motion when something spooks them -- which causes all he other banks to do the same.  I would never get a loan from a bank again.  I would use their rewards programs and if I had to carry a balance I would use a no fee balance transfer and move the debt to a CU.  I would also try to get the CU to make it a personal installment loan so as not to hurt utilization for FICO.

[Anonymous]

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@racer-x wrote:

hey-over-here - My situation is not different in that US Bank CLD'd because of a computer generated action  which was a score of 619. (ahem, ahem B S)  That's what the original UW told me on the phone.

"The computer pulled a 619 on you, and IT cut you off at the knees."  

My CLD's started when I carried 30% balances for 3 months with 2 creditors on 4 accts when I otherwise PIF'd 21/24 of those months.  That doesn't seem all that AA worthy?  I've seen worser. lol.

And what happens when OP's score drops 30-40 pts to sub 600, showing 34 INQ's and other creditors SP him and see that?  You have to agree that additional AA is a REAL possibility.

I feel I'm just being really, really, realistic here.

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@Recer-X,

The inquiries are spread out.  Everyone's opinion is important here and it is for OP to decide.  We are not going to battle as to who is right or wrong.  Every ones situation is different.  And I get US Bank isn't your favorite right now.... There are people here with same AAoA and have more accounts and more inquiries than OP.  Lets just wait and see what the letter says.

Some peopel have 80 inquiries and are still getting approved for cards and no AA taken on thier accounts.  Every profile is different.

[SunriseEarth]

I think with the lowish scores, the overall UTIL of 40%, the short history, and the credit seeking behavior, the US Bank computers assumed you to be risky and decided to balance chase you.   Perhaps they will reinstate you, but I think you may need to take more action to improve your UTIL before they do so.   

[NRB525]

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@Anonymous wrote:

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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..

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OP if you are planning on building a relationship with US Bank, this is the perfect opportunity. If I understand correctly, this card is on a 0% APR purchases time period? Just time your payments to be paying more than the minimum, and get it to zero about the time the APR expires. You might want to start with a few hundred initially, but then pace it so it's just well over the minimums, and time the finish.

Banks do get jumpy if you have high balances (defined by them) and then CLD happen. I've had CLD from higher CL on many of my legacy cards, but now that my history of payments is clear to them, and they have CLD to amounts they are more comfortable with, all is well. This is just such an opportunity for you.

A CL is just your agreement with the bank about how much you can borrow. Pay this back consistently and you'll have built up some history. You'll be able to ask for CLI later, and show your payment history as proof you can handle balances. And it will probably work well if you apply for a mortgage from US Bank later.

And I would not worry too much about the utilization hit right now. Yeah, utilization is up there, but if you are paying it down over a few months, it will recover. With the overall utilization, you should not be apping anyway, just paying down balances and charging items very selectively for a while.

[Anonymous]

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@NRB525 wrote:

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@Anonymous wrote:

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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..

---

OP if you are planning on building a relationship with US Bank, this is the perfect opportunity. If I understand correctly, this card is on a 0% APR purchases time period? Just time your payments to be paying more than the minimum, and get it to zero about the time the APR expires. You might want to start with a few hundred initially, but then pace it so it's just well over the minimums, and time the finish.

Banks do get jumpy if you have high balances (defined by them) and then CLD happen. I've had CLD from higher CL on many of my legacy cards, but now that my history of payments is clear to them, and they have CLD to amounts they are more comfortable with, all is well. This is just such an opportunity for you.

A CL is just your agreement with the bank about how much you can borrow. Pay this back consistently and you'll have built up some history. You'll be able to ask for CLI later, and show your payment history as proof you can handle balances. And it will probably work well if you apply for a mortgage from US Bank later.

And I would not worry too much about the utilization hit right now. Yeah, utilization is up there, but if you are paying it down over a few months, it will recover. With the overall utilization, you should not be apping anyway, just paying down balances and charging items very selectively for a while.

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+100000..

[Erusidhion]

    Well, I do pay just the minimum on all my 0% apr cards to keep liquid cash on hand. Maybe they see it as a struggle to make my payments. It doesn't help I only truly have 12 months counting this month recorded on the credit bureaus and only 6 months AAoA. 50% utilization now that I got the CLD paints me as a huge risk. I will take everyone's advice and just try to stay off the radar with purchases while paying down utilization.

    They gave me these huge credit limits and then expected me not to use them and always keep them PIF. Credit Cards are amazing but I think when I get some more credit history under my belt I'm just going to rely on a PLOC from my local credit union. Might be better for me because of a lower interest rate and the fact I don't mind paying interest here and there to support a financial institution that cares about me as a customer aka beneficial business relationship.

    But the reason why I love these forums.... is all the research on each bank, everyone's credit history at time of applicaton; there is so much information in these forums and it is absolutely amazing and addicting to read. I promise I'll add the letter and the e-mail response here. Thanks again for the support/insight from everyone.

[Anonymous]

LOL if it makes you feel any better, my rebuilder Blaze Mastercard lowered my limit when I was approved the other day for NFCU credit card and USAA Classic Amex with 2 % UTIL overall.  The reason was two new accounts.  I think it was two new accounts plus I haven't used the card since October.  LOL  

It just happens.  My Wells Fargo has raised my limit, then lowered it, then raised it again.  I never contacted them for the raise, when it was lowered or when they raised it again. 

[AndySoCal]

With the spike in utilization and did you open any new accounts as well during that time? If so that is what caused the CLD. US Bank is a conservative lender

[Erusidhion]

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@AndySoCal wrote:

With the spike in utilization and did you open any new accounts as well during that time? If so that is what caused the CLD. US Bank is a conservative lender

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        Nope. No new account since September of 2014. That's just another reason I thought it was weird but it seems credit limit decreases happen here and there to people on these forums. Perhaps it's just a normal occurence. I think I'll probably just pay off my 0% apr first and then save the US Bank balance for last while I pay a little bit of interest. If this turns out to be a balance chase and not a credit limit decrease; they can close the account and I"ll pay all the money or they can help build my credit for 4 years with interest while paying the minimum. Is that a wrong way to look at it? I've got the money to pay everything but it's a matter of pride for me I suppose; that's going to cost interest.

        Again thanks for the support and information. I'll revisit this thread when I receive my letter and/or an e-mail back from corporate. Also I'm not out to paint US Bank in a bad light. They have their reasons for what they did I am sure. My future Mortgage will have their name on it more than likely. They're definitely very conservative just like Wells Fargo.