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Has anyone ever experienced Target or navy cc decreasing limit or closing cc because of utilization hike or score drop? I'm just wondering because a friend of mine has that card and wanted to know if they are likely to close it or decrease her limit because her other cards will report maxed out at the end of the month.
@MeN5 wrote:Has anyone ever experienced Target or navy cc decreasing limit or closing cc because of utilization hike or score drop? I'm just wondering because a friend of mine has that card and wanted to know if they are likely to close it or decrease her limit because her other cards will report maxed out at the end of the month.
The last time i used over 50 pct of my redcard limit they gave me a 300 cli, just the opposite.
Maxed out cards could be a trigger for adverse actions by any lender. some lenders routinely check what you are doing credit wise including what you are doing on other cards.
Its generally a bad idea to be close to maxed out on any card, only bad things can happen.
I would not be overly concerned if a couple of cards reported at or near max utilization on a given month, but I'd want to make sure that I was prompt, consistent, and diligent in making substantial headway in paying them down/paying them off and getting those balances down month to month.
Happened to me with Target last year, but they only took my limit from $2200 to $2000. I've been stuck there for almost a year and a half now.
@MeN5 wrote:Has anyone ever experienced Target or navy cc decreasing limit or closing cc because of utilization hike or score drop? I'm just wondering because a friend of mine has that card and wanted to know if they are likely to close it or decrease her limit because her other cards will report maxed out at the end of the month.
One or two months is not a big deal! If it continues hitting 6 months then yes. Make sure she does not make only minimum payments on any of the high utilization accounts! That would also trigger alert for some banks.
@MeN5 wrote:Has anyone ever experienced Target or navy cc decreasing limit or closing cc because of utilization hike or score drop? I'm just wondering because a friend of mine has that card and wanted to know if they are likely to close it or decrease her limit because her other cards will report maxed out at the end of the month.
My take ...
I feel like lender's are skittish right now, as some people are racking up credit card debt in mass.
I would NOT let balances report as 100% maxed. Unless you feel like all the lender's in your profile are rock solid?.
I think that escalating debt, along with many new accounts, mixed with more credit seeking, ..
That a person is just asking for "AA" (not the Citi credit card) balance chasing / CLD's / Hard closure's. ..
Bank's are going to mitigate "RISK" ... the question is, which of the lender's in your profile will be first?
I believe we are entering a whole nother financial environment.
imagine target slashing your credit from $500 to $100 lol