@Anonymous wrote:
@CreditCrusader wrote:
@Remedios wrote:
@CreditCrusader wrote:
@Remedios wrote:
@CreditCrusader wrote:
@K-in-Boston wrote:Since your reports are clean, that's bizarre if you are using it every month and there haven't been any major changes like escalating utilization elsewhere. Hope you'll keep us updated when the letter arrives.
It's not bizarre to me at all.
Unless I misread the particulars, OP uses the card to the tune of a couple hundred dollars.
In recognition of this, the bank lowered the credit limit to...a couple hundred dollars.
Not only does that not sound bizarre, but it sounds like smart business. I get that it sucks for the OP, but it's just business.
Do you use entire limit on all your cards every month?
Easily
And you pay before statement cuts?
Because if you're easily maxing all three of your cards every month, your scores are not in 700s. With three maxed out cards, 100% of cards reporting balances, 620 is a stretch.
Or maybe you only listed three cards in your profile, but have others that you dont use, which would be rather strange given that you just advocated against that.
I pay many times a month and almost never carry a balance.
Forgive me, but is there something odd about my particular use of limited cards and limits?
I once had tons of cards in my sock drawer, but thinned them out and stopped with the CLI stuff. I now primarily use a couple of cards only and PIF weekly.
You are giving up your purchase float which is one of the best reasons to use credit cards. Also some creditors really don't appreciate multiple payments.
27 years in the credit game, no complaints yet 😉
They just AA my account as well.
from 4000 to 500.
$0 balance.
last used 3 months ago.
I closed the account.
Only AA in years.
730s fico8
12% util
@Anonymous wrote:I was just talking to a neighbor of mine yesterday who is a loan officer at one of the large banks. She told me that they now can see who has filed for unemployment. There is a program that they bought so they can reduce or close accounts for people who they see filed a claim as their main source of income is now gone so limits are lowered or accounts closed.
She also told me that if your job is in an field that they now consider risky they will do the same. They are just trying to see into the future LOL
Very interesting...
It does not apply to me, but the info is interesting.
Our privacy is just going to continue to errode as time and technology advance.
@Shooting-For-800 wrote:
@Anonymous wrote:I was just talking to a neighbor of mine yesterday who is a loan officer at one of the large banks. She told me that they now can see who has filed for unemployment. There is a program that they bought so they can reduce or close accounts for people who they see filed a claim as their main source of income is now gone so limits are lowered or accounts closed.
She also told me that if your job is in an field that they now consider risky they will do the same. They are just trying to see into the future LOL
Very interesting...
It does not apply to me, but the info is interesting.
Our privacy is just going to continue to errode as time and technology advance.
If OP does their banking with them they can see where deposits are coming from and any decline occurring. Most have direct deposits for paychecks.
Personal Cards: Amex Plat | Amex Delta Res | CSR | Citi AA Exec Business Cards: Ink+ | Amex BGR
@K-in-Boston wrote:
@CreditCrusader wrote:
@K-in-Boston wrote:Since your reports are clean, that's bizarre if you are using it every month and there haven't been any major changes like escalating utilization elsewhere. Hope you'll keep us updated when the letter arrives.
It's not bizarre to me at all.
Unless I misread the particulars, OP uses the card to the tune of a couple hundred dollars.
In recognition of this, the bank lowered the credit limit to...a couple hundred dollars.
Not only does that not sound bizarre, but it sounds like smart business. I get that it sucks for the OP, but it's just business.
It's very unusual in the credit world. OP is responsibly using their credit line, using about 5% of their line each month ($400 of $8500) - this is exactly what most lenders want to see. There is no justification for reducing a credit line that close to average spend since that would keep the card at 80% utilization, a major red flag and potential scoring disaster. If lenders based all credit lines on 125% of your average monthly spend, everyone would be near maxed out and 700 would be the new 830 FICO 8 score.
+1!
The banks know how the credit card game is played. They give you a limit, but only expect you to use maybe ~20-30% of it. Go over that for any meaningful amount of time and they can and do get skittish. (Some more than others.) Even though their own underwriters have given you the supposed "go ahead" to do so.
I'm curious as to what this letter is going to state. $8500 isn't a huge CL, and dropping a card down to $500 that's getting regular use while not having any derogs or jump in utilization is kind of a slap in the face, especially if you've had this card since the 90's. I know I've read about 5/3 doing similar AA around here, but those were cards that hadn't been used in a while IIRC.
As said above though... In the end, it's just business. You have the right to take your swipes to a lender that will treat you better as well
@redpat wrote:
@Shooting-For-800 wrote:
@Anonymous wrote:I was just talking to a neighbor of mine yesterday who is a loan officer at one of the large banks. She told me that they now can see who has filed for unemployment. There is a program that they bought so they can reduce or close accounts for people who they see filed a claim as their main source of income is now gone so limits are lowered or accounts closed.
She also told me that if your job is in an field that they now consider risky they will do the same. They are just trying to see into the future LOL
Very interesting...
It does not apply to me, but the info is interesting.
Our privacy is just going to continue to errode as time and technology advance.
If OP does their banking with them they can see where deposits are coming from and any decline occurring. Most have direct deposits for paychecks.
I'm somewhat curious about this. I was on EDD for seven weeks from the pandemic, but I don't have any credit cards or loans through the CU that I bank through. I did hold about ~$12K in my checking throughout everything, which makes me wonder if they could see that as well somehow. Thankfully I'm back to work if you're reading this Chase and Amex.
