Unfortunately when you keep a card at a high balance for awhile, once you pay it off the lender sometimes will cut the limit to what they deem more acceptable risk.
In the case of Discover, the good news is that they don't tend to keep you in the naughty corner for very long. With regular usage and payment in full for a few months, they will likely restore that limit and beyond. You can ask for a credit limit increase any time you wish online. It's just a soft pull so no hit to your credit.
I would be on the lookout for more lenders to do the same if they have been maxed out for awhile or they don't like your new DTI when saddled with the new loan. Just know that doing what's best for your wallet will always trump some loss of credit.
So were they just waiting for me to pay off some to lower the limit? I'm glad they didn't lower when my utilization was high.
My plan us to do what you said, use it for small things and pay in full each month.
Yeah Discover tends to do one big cut after they have been paid where a lot of banks will cut your limit every time you make a payment, keeping you maxed until you have paid in full.
If you use the card and pay in full, you'll be well past that initial limit in no time.
Discover did something similar to me once. I was at 88% utl. They didn’t drop it in one whack, but did balance chase me a little as I was paying it off. Cut my $2400 CL down to $1600. Maybe six months later, with heavy usage and big payments every time, they bumped it back to $2400. Now up to $6200 not even a year later than that. Try to not be discouraged OP, it happens but it’s recoverable most of the time. Standard YMMV.
Interesting. Disco isn't usually thought of as one who balance chases I thought.
They are certainly good about restoring the limits though.
I guess "balance chase" wasn't the appropriate phrase. Disco lowered my CL while I was paying down a high utilization.
At least they did not close your account altogether.... and like others have said your CL will likely see a recovery over time.
I had an account opened in 1990. I carried a high balance for years through all my financial struggles which started in 2014. I hovered at 80-90% utilization at 29.99% interest and paid them religiously every month along with one other USAA CC account I was intentional to maintain while I had to let others go to charge off.
My financial recovery came full circle in 2018 and was finally able to get both accounts to 0 balance and keep them there.
After all that, Discover comes along in May 2019 and closes my account altogether after 19 years. FICO scores were low 600s at the time as I was still rebuilding.
Upon our most recent annual review we have decided we no longer want you as a customer.
Just before my credit troubles, I had several almost maxed out cards alwasy paying just oier the minimum. Back then though it didin't seem like they were as cautious as they are now. At least the banks i had, because they kept increasing my limits. Now if my troubles hadn't happned this would have been a good thing, unfortunately it simply enabled me in my time of hardship.
Fast forward to now, and I'm very proactive about keeping utilization low as possible if a balance is needed. Otherwise most of my cards are at zero.
It seems that so mannay people are genuinely surprised/upset at CLD's or closures over being maxed out for a long time and only paying the minimums. I'm honestly surprised their surprised. How is it a shocker?
Would you continue to loan your friend Money while never being repaid, or very small amounts whenever it suited them?
I paid more than the minimum, not a lot more, but it was and slowly paying it down, but then I just paid it all off and had a zero balance. I'm surprised they waited until I paid it off, why not just lower it as I was lowering my balance?