Lower CL for not using it enough?

NikoD · ‎03-02-2014

Do CCC lower CL just because a person doesn't use the card much? What I mean is if there are no risk factors associated with your CR at all (not opening new accounts, going over limits, paying late, etc) do they ever lower the CL? I know they could if they wanted to but has anyone ever heard of this happening? I know they close accounts if you don't use them at all but I'm talking about very low spending on a high CL card like less than $100 a month on a card with a $20,000 limit.

Anonymous · ‎03-02-2014

This can certainly happen, but typically it doesn't just for low spending.

Your CL may be lowered if a lender sees bad stuff happening with other accounts on your report.

It's also good to diversify, for example via CU cards, which tend to have low AA risk.

gdale6 · ‎03-02-2014

@NikoD wrote:
Do CCC lower CL just because a person doesn't use the card much? What I mean is if there are no risk factors associated with your CR at all (not opening new accounts, going over limits, paying late, etc) do they ever lower the CL? I know they could if they wanted to but has anyone ever heard of this happening? I know they close accounts if you don't use them at all but I'm talking about very low spending on a high CL card like less than $100 a month on a card with a $20,000 limit.

Unlikely unless there are sudden factors appearing in your CR file, no use to little use of CL equals low risk, banks dont lower CL for low risk. Some banks may lower the limit if you dont use the card in awhile, this would be a precursor to closing the account for non use, GECRB is known for it, if you go use the card the limit is raised back up.

NikoD · ‎03-02-2014

Thanks guys. I was asking because I have a card with a $17,000+ limit but only use it (just to keep it from being closed) on average every other month on a single $50-$100 purchase. Since I have no risk factors I guess I should't worry about it as long as I keep doing what I'm doing.