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Fifth Third decreased my credit limit.

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Established Contributor

Re: Fifth Third decreased my credit limit.


@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.


Due respect, but that is only true if the balance is carried through the statement reporting date.

 

I know that I'm more or less the lone voice in the wind on this, but folks should really consider rethinking the practice of masking CC usage by countering it with enormous and unused lines of credit.

 

Right now, relatively small numbers of people here reporting losing large and mostly unused lines, but that trend could swell and wallop a great many people...particularly in the months to follow.

I'm Spartacus!

hr>Starting Score: EQ 546, EX 547, TU 580
Current Scores (lender): EQ 747 , EX FICO 760, TU 758 FICO scores>
Goal Score: ?
Take the FICO Fitness Challenge
Message 11 of 55
Highlighted
Frequent Contributor

Re: Fifth Third decreased my credit limit.


@CreditCrusader wrote:

@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.


Due respect, but that is only true if the balance is carried through the statement reporting date.

 

I know that I'm more or less the lone voice in the wind on this, but folks should really consider rethinking the practice of masking CC usage by countering it with enormous and unused lines of credit.

 

Right now, relatively small numbers of people here reporting losing large and mostly unused lines, but that trend could swell and wallop a great many people...particularly in the months to follow.


But.... I thought the point of a credit card limit was to limit you. Don't credit card companies dislike users paying mutiple times per month to give them essentially an unlimited credit limit (credit cycling)? Please correct me if I am wrong.


Message 12 of 55
Highlighted
Moderator

Re: Fifth Third decreased my credit limit.


@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? 

I read that banging your head against a wall for one hour burns 150 calories.
If that was the case my scale would have negative numbers.
Message 13 of 55
Highlighted
Moderator

Re: Fifth Third decreased my credit limit.


@CreditCrusader wrote:

@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.


Due respect, but that is only true if the balance is carried through the statement reporting date.

 

I know that I'm more or less the lone voice in the wind on this, but folks should really consider rethinking the practice of masking CC usage by countering it with enormous and unused lines of credit.

 

Right now, relatively small numbers of people here reporting losing large and mostly unused lines, but that trend could swell and wallop a great many people...particularly in the months to follow.


That is all but the very smallest minority of consumers.  Normal and expected consumer credit behavior is: charge on card, wait for statement, make a payment of at least the minimum amount due prior to due date.  Normal and expected consumer behavior is also to have a card or two they keep and really only use for emergencies.

 

There is no reason OP or anyone else should feel obligated to make multiple payments throughout the month to keep their balances low.  If my income and credit score show that I have almost zero risk of becoming 90+ days late or defaulting, it really doesn't matter what my balances are as long as the limits support them.  Credit cards give grace periods for ease of payment and convenience; there's no reason anyone needs to forego their grace periods unless they are trying to optimize their credit scores.

 

I have no worries about losing my limits.

Message 14 of 55
Highlighted
Established Contributor

Re: Fifth Third decreased my credit limit.

OP very sorry to hear about your CLD on your 5/3 account. I too was a victim of the CLD club. Mine happened about a year ago with no true understanding of such. Also don't recall what was on said letter from them. Those cards are in the sock drawer RIP 5/3. I'll never use their cards again, I have since acquired much better cards and become a member of some of the best CU in the US. Good luck with your journey going forward. 

NFCU Flagship 23,900 Penfed PowerCash 8,750 NFCU AMEX Rewards 33,500 NFCU GoRewards 3,000
Capital One Quicksilver 6,300
Lowe’s 6,000
5/3 Truly Simple closed
5/3 Trio 3,200
Barclay Apple1k
Citi Rewards+ 9,100
Citi Double Cash 13,300
Citi Simplicity 4,100
PNC Core VISA 12,500
Home Depot 1,000
Discover 10,500
BB&T Rewards 4,500 BB&T Bright Card 4,500 GS Apple 5,500 Chevron 900 Fico 8 Scores EQ=760EX=755 TU=750Scores and CL current as of 05/16/20 AAoA=2years6minths AoOA=17yrs
Message 15 of 55
Highlighted
Established Contributor

Re: Fifth Third decreased my credit limit.


@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

I'm Spartacus!

hr>Starting Score: EQ 546, EX 547, TU 580
Current Scores (lender): EQ 747 , EX FICO 760, TU 758 FICO scores>
Goal Score: ?
Take the FICO Fitness Challenge
Message 16 of 55
Highlighted
Moderator

Re: Fifth Third decreased my credit limit.


@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 read that banging your head against a wall for one hour burns 150 calories.
If that was the case my scale would have negative numbers.
Message 17 of 55
Highlighted
Valued Contributor

Re: Fifth Third decreased my credit limit.


@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.


I have found that lenders don't  mine you using 10% of your limits, and 30% on ocausion, maxing out cards can make lenders worry.  Really $100 spend on a card should be enough to give him a $1000 credit limit minimum, after 25 years history with the lender, his previos limit is fully deserved.  

sounds like the lender over extended on its morgage loans and credit cards  now they are cutting limits on all the larger limits, and OP just got caught up in the reduction, and doesn't reflect on him. 

Cards: Chase Southwest 20k & CSR 17k & CSP 10k & FNBO 30k Oregon Duck 5k, & AMEX BCP 32.5k & Amex Magnet 15k&amg; Hilton Surpass 7.5k & Delta Gold 12k & Zync NPSL, Fidelity AMEX 17k Commerce5.9k & Cash Forward 7.5k & Sams Club MC 20k, Paypal Extras MC 10k, Paypal Credit 7.25k CapOne Venture 15k, QS 2.5k, QS 750, Amazon 10k, Walmart 10k, Citi Simplicity 18k, Discover IT 23k and a nice stack of store cards.
Landmarkcu Personal Loan 10k
Message 18 of 55
Highlighted
Established Contributor

Re: Fifth Third decreased my credit limit.


@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.

I'm Spartacus!

hr>Starting Score: EQ 546, EX 547, TU 580
Current Scores (lender): EQ 747 , EX FICO 760, TU 758 FICO scores>
Goal Score: ?
Take the FICO Fitness Challenge
Message 19 of 55
Highlighted
Frequent Contributor

Re: Fifth Third decreased my credit limit.


@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.


☝️ Sounds accurate to me. 

Amex Blue Cash $28k
Chase FU $11.2k
BOA Cash Rewards $20k
Comenity BJ's Perks Plus M/C $10k
Cap1 QS $750 (AU), BOA Auto
March. 2020 TU 781, EX 775, EQ 776
INQ 1/6, 1/12, 2/24.......TU-0, EX-2 EQ-2
Message 20 of 55
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