SoFi CLD

[Anonymous]

Surprised to get a large CLD from SoFI just now, from $30K to $1,100 (which is near this month's outstanding charges)

30K was certainly not needed, but $1,100 is way too low!

They gave the following reasons.

Score is 836 (out of 850) with the following reasons:

• YOUR LARGEST CREDIT LIMIT ON OPEN BANKCARD OR REVOLVING ACCOUNTS IS TOO LOW
• TOTAL OF ALL BALANCES ON BANK CARD OR REVOLVING ACCOUNTS IS TOO HIGH
• YOU HAVE TOO MANY INQUIRIES ON YOUR CREDIT REPORT

I have several $30K+ CLs, and balances (which are just monthly charges) are less than 1% of total CL.  I have 2 inquiries on EXP.

So I will close the card as they clearly don't want me as a customer.  Time to update the few automatic charges!

[Kforce]

Even when it's a card you don't really need or put a lot of spend on.

It hurts when something like this happens.

Have been expecting something similar for a few of my cards.

Three of mine have just keep alive spend. 

Maybe all issuers want more than just a few dollars every now & then.

[Anonymous]

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@Kforce wrote:

Even when it's a card you don't really need or put a lot of spend on.

It hurts when something like this happens.

Have been expecting something similar for a few of my cards.

Three of mine have just keep alive spend. 

Maybe all issuers want more than just a few dollars every now & then.

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What is surprising is that I have been putting a fair amount of spend on the card (just not $30K a month!)  Between a few hundred and a few thousands each month.

I just saw on my Feb statement:  "Congratulations your excellent payment history has qualified you for a temporary interest rate
reduction of 1% off of yourpurchase interest rate."    

I called and asked if anything could be reviewed.  As a FinTech, the CSRs don't have that ability, so once the payment posts (there are no more pending charges) I will close.   Presumably this will tank my credit score for a little while, 85.1% utilization on the card

[Anonymous]

Oh, the things I listed earlier were experian score reasons.  At the top of the email they give theirs.

• Length of time this account has been established
• Payment as a percentage of amount due
• Historical payments on the account

Certainly 1 is valid, it's about 18 months.  Since I have always PIF not sure about the others, except that recently there was a largish credit, wonder if that spooked them

ETA: Reddit reports several of these starting Jan 30th or so

[markbeiser]

I've been backing away from having any exposure to FinTechs, either via investments or actually doing business with them.
Got down to zero exposure a couple of months ago.

[CorpCrMgr1]

Maybe sock draw the card and let it die a natural death?

[Anonymous]

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@CorpCrMgr1 wrote:

Maybe sock draw the card and let it die a natural death?

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Too risky, don't want a transaction coming in at some point, going near the limit.  Unless I thought one day it would go up significantly again, there seems no advantage in keeping it open

[Jeffster1]

I dipped my toe in the water with Jasper and Upgrade.

Jasper was bought out, and got out of the business suddenly. 

My experience with Upgrade was meh. I closed it after a year.

No more fintechs for me. This post helps confirm my decision. Sure...any credit issuer can CLD, but fintechs seem unusually arcane in their practices at times.

[Curious_George2]

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@Anonymous wrote:

Oh, the things I listed earlier were experian score reasons.  At the top of the email they give theirs.

• Length of time this account has been established
• Payment as a percentage of amount due
• Historical payments on the account

Certainly 1 is valid, it's about 18 months.  Since I have always PIF not sure about the others, except that recently there was a largish credit, wonder if that spooked them

ETA: Reddit reports several of these starting Jan 30th or so

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That sucks. 

Since you did nothing improper or risky, this seems to suggest there's financial distress on their end. If they need to rapidly improve their balance sheet, one way to do it is to  slash some large limits. That's what Syncrony did a year or two back, right? 

[Curious_George2]

@Anonymous: I assume you saw this comment in one of the threads from a similar CLD victim...

Maybe it's worth calling?