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I got busy and allowed only minimum payments on all credit cards. Then I was hit with a big CLD from a credit card with a $0 bal. Since they look at your credit reports what you do on other cards affect all.
So paying minimum payments 3 times in a row can trigger CLDs. CLDs can be contagious too when other banks see what is going on. Try to avoid.
Of course missing payments, very high debt can cause clds too.
Please post of you know other reasons for CLDs.
I tend to disagree that making minimum payments three times in a row would trigger a credit line decrease.
As long as you are complying with the Terms & Agreement, this in itself would not cause adverse action.
Credit Issuers review your overall all debt and if you are not making any progress in lower this debt, this "may" cause a credit line decrease along with other adverse action. What they consider progress in lowering debt is anyone's guess.
I have several cards that I just pay the minimum every month for over a year and have not had any credit limit decreases. Of course my overall monthly debt being reported is lowered each month.
@Cleanmachine wrote:.....and if you are not making any progress in lower this debt, this "may" cause a credit line decrease along with other adverse action.
Exactly what happened. I continued to use my credit card increasing the debt monthly while allowing auto pay to debit the minimum. I knew I wouldn't be late on bills with auto pay but didn't expect this simple action to trigger a CLD. The amounts growing may be 100% more debt each month but the over all $$ amounts were minimal.
I see what you are saying, my debt while small was growing not shrinking.
@Anonymous wrote:I got busy and allowed only minimum payments on all credit cards. Then I was hit with a big CLD from a credit card with a $0 bal. Since they look at your credit reports what you do on other cards affect all.
So paying minimum payments 3 times in a row can trigger CLDs. CLDs can be contagious too when other banks see what is going on. Try to avoid.
There is no way for one creditor to determine whether you made minimum payments on other accounts.
You could have a $3000 balance report on Bank A, pay it off, then charge $2900 in new purchases which reports the following month. Bank B cannot determine if the $2900 new balance is from new charges or carried from the previous month's balance after a minimum payment.
These days, as mentioned above, several banks (especially BOA) are doing large waves of CLDs to reduce "exposure". Customers with low Fico scores, high Fico scores, balances, no balances, are all affected. It is essentially a waste of time to try to compile a list of "triggers". BOA is doing 4 million CLDs in their latest wave. They are not individually analyzing 4 million accounts for payment behavior or patterns. They are most likely running a computer algorithm, designed to reach a goal of X dollars of total CLD. About the only thing that is predictable is that someone with a $20K CL will be reduced to a $10K CL sooner than someone with a $2K CL will be reduced to a $1K CL ...
Maybe... They told me it was my activity when I tried to fight the CLD.
CR does show last payment.
ie...
Month 1 bal $500 payment $10
Month 2 bal $1000 payment $15
Month 3 bal $1500 payment $20
Now month 4 $0 bal paymnet $1520. I stopped the trend.
This was just an example not actual figures.
That's what my CR looked like. Of course each month the bal is replaced with most current payment, so they would need to be monitoring every month to see a trend.
@Anonymous wrote:There is no way for one creditor to determine whether you made minimum payments on other accounts.
You could have a $3000 balance report on Bank A, pay it off, then charge $2900 in new purchases which reports the following month. Bank B cannot determine if the $2900 new balance is from new charges or carried from the previous month's balance after a minimum payment.
Yes, they can. Your report will show that your most recent payment was $3000.
ilovepizza wrote:
Maybe... They told me it was my activity when I tried to fight the CLD.
CR does show last payment.
ie...
Month 1 bal $500 payment $10
Month 2 bal $1000 payment $15
Month 3 bal $1500 payment $20
Now month 4 $0 bal paymnet $1520. I stopped the trend.
This was just an example not actual figures.
That's what my CR looked like. Of course each month the bal is replaced with most current payment, so they would need to be monitoring every month to see a trend.