PayPal credit limit decrease

[Loquat]

If you're not using the account anyway and it had a long history, did it really matter what the limit was?

[firefox100]

Yes the credit limit does matters, when the limit is reduce then the available credit goes down and the credit utilazation goes up. utilization is 30 percent of the Fico score.

[firefox100]

When the credit account is closed then the total available credit goes down, I think the best move would have been to keep the account open and rebuild the credit limit over time.

[SunriseEarth]

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@Iusedtolurk wrote:

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It does seem like age and good behavior would elicit some type of loyalty from the creditor but bottomline they 99% act on risk assessment and they are only here to make money off you.  I see an increase in accounts receiving a CLD and closures due to non-usage being a common factor.

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I'm guessing they would consider "use" to be an example of good behavior.   The last CLD I had from Synch was for my Marvel MC, which hasn't been used in a long time.   I went from $25K to some odd amount around $1300. However, I was able to get the CL back up immediately to $10K.    Still haven't used it.

Anyway, moral of the story is use it or lose it.  If you want to ensure you keep a CL active, I'd recommend some sort of activity at least every 6-12 months (YMMV with lender).  

[Mike360]

It was more of me having the final say. I felt that it was a slap in the face for them to do that. Looking back on it they probably did me a favor because it was a terrible product to begin with. I have over 150K in available credit and 3/4 of them I haven't used in some time and they were the only ones to reduce my credit limit. I was able to get Amex to give me a $6K increase and I'm sure i'll get another increase in one of my other lines of credit to make up for the loss.

[lakerfan2011]

I don't understand there logic of hurting there best paying customers I dont think they even know what they are doing 

[NRB525]

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@lakerfan2011 wrote:

I don't understand there logic of hurting there best paying customers I dont think they even know what they are doing 

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OP was not using the card. The bank has to hold open the credit line, and that rolls up to the calculations of the bank overall potential credit exposure. Cutting lines of non-used limits is a step to reduce banking risk.  

They didn't close the account, so were willing to keep up the monthly processing of electronic statements and reporting to the bureaus, with no income from swipes.

[minski]

I just checked my own Paypal Credit. Looks like they reduced my limit from $5000 to $1500 as well. Unlike you, I have been waiting for them to close it. I have not used it once since I got it almoat 4 years ago. Guess I need to wait longer. 😅

[Mike360]

I checked on Credit Karma and the last time I made a purchase was in October 2016. I originally opened it to take advantage of the nice 0% APR offers they had but now I have just as good of offers with Chase Amazon and Best Buy so really no need for the accounts. I've had the line of credit for 8 years.