Discover lowered credit limit

[OmarGB9]

Banks work in mysterious ways. Good thing is, though, it's Discover, so they should restore your limit in due time (and possibly give you more) with responsible use (not that you weren't responsible before, but just general rule of thumb with any lender) and PIF as much as possible.

[Remedios]

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@Anonymous wrote:

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?

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Hi and welcome 

It's because they want to make sure your financial issues are behind you. Basically they are leaving you with a limit they are comfortable with at this time.

It's unpleasant, but not the end of the world.

Use your card like you normally would, pay it off in full, and in time your limit will go up again. It's by no means some reflection on how much of terrible borrower you are. After all, you paid what you owed. 

A little patience and payments in full go a long way. 

Good luck! 

[Anonymous]

Stranger things have happened.  In the future, this card could be your favorite card and have a very generous credit line. 

[Anonymous]

for those who got their credit line lowered, were you carrying balances with the 0% apr promo?

[Anonymous]

Great question. I like to run up balances on zeros, and was contemplating on whether to do that with DISCOVER, provided they give me one if I request it. But my guess is they give CLDs to riskier accounts and I would be fine doing it.

[Remedios]

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@Anonymous wrote:

for those who got their credit line lowered, were you carrying balances with the 0% apr promo?

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It almost never just about one card. CLDs are often preceded by high utilization on multiple cards, with only minimum (or close to) payments for prolonged period of time. 

It's best to avoid having multiple maxed out cards, especially with young and/or thin profiles

Another thing, if you have multiple cards from the same lender,  paying in full on other cards while having higher utilization on one of them is advisable if one wants to avoid CLD on cards that dont have high utilization.  

Sometimes you'll see "but I was making 10X minimin payment" and that sounds really great until it's mentioned that balance is $10,000.00. 

Carrying  a balance during 0% promo is fine, that's what it's there for, but make it look like it will get paid off by the time promo is done. 

[sghosh5]

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@Anonymous wrote:
I recently got a consolidation loan and paid off all credit cards, total around $7k, not all have reported yet the zero balance. My utilization was pretty high, above 80%, but essentially is now 0, but since everyone hasn't reported the last payment, it is still around 36%. My credit score has gone from 597 to 660 just based on the reporting that has been done. I have late payments and paid collections from 2015 at the end of an unemployment stint.

Discover was nearly maxed out at about 1450 with a 1500 credit limit. I logged onto my account today and discover my credit limit went from 1500 to 500. So I pay off the account to a zero balance and they decrease my credit?

A month ago my utilization was higher and now its lower, I pay the card off, they lower the limit. I called customer support and she said they usually notify you and also reviewed my account and couldn't find a reason why. She gave me a different number to call during business hours during the week so I will call then.

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They did same with me, my credit limits with them was 4k and 8.5k. Just when i had few large purchases on my other cards they reduced my limits to a joke 500 dollars limit in each. I am actually thinking of closing them. Their Travel IT card is a joke. It should have never categorized as a travel card

[Anonymous]

Discover just screwed me over, too. $2285 balance with $3300 CL. No payments missed. double or triple payments made each month.

credit limit decreased to $2400, basically maxing out my card and further lowering my score.

It doesn't pay to make extra payments each month. In hindsight I should have just paid the min eahc month. I will NEVER give those mothereffers at Discover any extra money ever again! They will get min payments each month for the next few years just out of spite.

[Anonymous]

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@Anonymous wrote:

Discover just screwed me over, too. $2285 balance with $3300 CL. No payments missed. double or triple payments made each month.

credit limit decreased to $2400, basically maxing out my card and further lowering my score.

It doesn't pay to make extra payments each month. In hindsight I should have just paid the min eahc month. I will NEVER give those mothereffers at Discover any extra money ever again! They will get min payments each month for the next few years just out of spite.

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I understand that you're angry right now but if you retaliate by looking riskier, they may just balance chase you and keep you maxed. Computers make these decisions, they're rarely reviewed by a human. You would just be hurting yourself. 

[longtimelurker]

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@Anonymous wrote:

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@Anonymous wrote:

Discover just screwed me over, too. $2285 balance with $3300 CL. No payments missed. double or triple payments made each month.

credit limit decreased to $2400, basically maxing out my card and further lowering my score.

It doesn't pay to make extra payments each month. In hindsight I should have just paid the min eahc month. I will NEVER give those mothereffers at Discover any extra money ever again! They will get min payments each month for the next few years just out of spite.

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I understand that you're angry right now but if you retaliate by looking riskier, they may just balance chase you and keep you maxed. Computers make these decisions, they're rarely reviewed by a human. You would just be hurting yourself. 

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Yes, and in any case you are not hurting them by paying interest.   It's best for you to pay if off as soon as you can (taking care of higher rate interest first)