@Anonymous wrote:
I had a auto loan. I had it paid to 10%. I had no inquires.
I bought a new vehicle with one inquiry from my credit union. I was at 70% LTV on the vehicle.
Total loan is $20,000
I got a personal inquiry from the PPP loan from .GOV for my business. all within a month
So two inquiries.
History on me is My credit is 788 no late payments.
I have a high income this year and last year. Gross will be very large
I made 80k 2018. 2019 I made more. Made a gross of $230k for the first six months of this year
I had a balance on my AMEX of $3,800. My limit was $25,700
I got a email from them and check my account and they dropped the limit to $3820
I paid the account in full to zero balance.
I called them and they said they would review it. I get a call back from them and they will fix it possibly but I need to provide all these income documents for all my income, assets, and business income (would cost me money to get my accountant to do it for me).Plus I really think everything they asked for is invasive for the small amount they are willing to lend me ($25,700 credit limit). So I tell them forget
I get a warning from myfico about getting balanced chased because my limit dropped.
Now I get a notice for Chase. I check my account and balance chased again. I paid in full.
I assume now discover is going to see I am getting balance chased and drop my limit (owe $2999 limit is $23,000)
What can I do to save my discover account?
Only thing that changed was the two inquires and the new auto loan.
#1 - breathe - it'll be ok.
#2 - Remember correlation does not imply causation
LOTS of folks with high incomes and potentially artifically high credit lines are having AA taken against them, usually in the form of CLD. They *likely* aren't intentionally balance chasing you. They are reducing their risk in a time when they think they're about to get skinned alive by people defaulting.
If you haven't been *USING* the credit line and just paying down a balance, or if you have been using it, but not nearly up to its credit line, I suspect the issuers decided - independently - to review lines, as they are reviewing *EVERYONE'S* lines.
Just call chase - they have been reversing CLDs for some folks. Discover likely will as well, if they CLD you.
It is a sign of the times, not one issuer following the other BECAUSE of action taken by the other. Again - your profile probably looks risky to them. Remember - LAST time they took a massive haircut (think 08) it was folks in your profile that caused a lot of losses for them. High credit limits, high incomes, all of a sudden losing those incomes, running up their debt, and deciding to default on obligations.
Provide the income verification they ask for, and as long as your income relatively matches what you *told* them your income was, you'll be fine.
(this happened to me last year... someone had to talk me down from the ledge, too... [ahem - she was quite a bit less gentle than this... @Remedios ] because surely, one did it because the other did it... was Amex and Chase - just like here... after MUCH discussion, I finally realized it was more likely they both responded to the same stimuli - in my case, new accounts in my credit file - in other words, my own doing. In your case, they're looking at market conditions, income, and the type of profile that screwed them last time they took a bath).
