Synchrony Lowered Lowes Card Credit Limit?

[Anonymous]

New to the forums.

I have a Lowes credit card through Synchrony, it's been open for about two years, CL of $6,000. I've used it for small purchases I need from the store (I lived in a place that needed small repairs and improvements here and there, so I would try to tackle one a month/every other month) carried a small balance from month to month (>$500), and I pay $5-10 over the min. due early, I've never had a late payment with them or any other Synch. Bank card I hold (Old Navy and WalMart.)

In October I bought a house that is a fixer upper and needed all new appliances...  I put about $2500 worth of charges (mostly appliances, some lumber) on the Lowes card between end of October and mid January. Again, I made payments on time each of these months.

The last time I logged in to pay my bill (Jan 14th) my balance on the card was $2,900 and I still had $3,100 free. I went to Lowe's this morning to get a new chest freezer and microwave... and imagine my surprise when my card is declined for a $250 transaction. I called the Lowe's credit line immediately. I was told that my balance must have "increased too quickly" and also said it's noted that Synch. Bank pulled my credit report and my "score it must have decreased", she said a letter was sent out on January 31st informing me that my new credit limit is $3,000. The rep. apologized and said there was nothing she could do, that the bank does this from time to time.

My score has decreased ~40pts since October. But I worry because now my credit will drop even more because it will show that this card is almost maxed out when before it was >50% of the limit.

What is my best move here? I've read cases of Synch. Bank lowering limits when cards are not used, too... so is my best bet to pay off a chunk of the card ASAP (get it below 30%), but continue utilizing the card for small purchases so they do not think I'm not using it at all and lower the balance even more?? Will they ever increase the limit back to what it was??

Neither of my other Synch. Bank cards limits were lowered, by the way. None of my other cards in general were (Chase and Cap One)

[Gmood1]

If you can, it would be a good idea to pay it down below 30%.
Synchrony like many others look for patterns. That's why I have mine all set to autopay the full balances besides 0% BTs.
If they notice debt on the card increasing with minimum or not much more than minimum payments. They may assume escalating debt.
That is when they hit you with balance chasing or lowering your limits to protect themselves.

[Anonymous]

Thanks... next payment I will get it to that 30% mark.

What are the chances Synch. will increase my limit back to what it was? Do you think this will affect my other cards with them getting increases, too?

[Gmood1]

The utilization ding is temporary. After your payment reports, things should go back to normal.
I believe you can get it back, so long as you show a solid track record of paying each bill in full.
Yes it will affect all of their cards until they see a change in payment patterns.

[Anonymous]

Why did your score drop ~40 points leading up to the CLD?  If you scooped up a 30 day late payment for example (not on the Lowe's account, but a different one) it's very common for other creditors to take AA, especially if they see other warning signs like higher than normal utilization.

[AverageJoesCredit]

+1 Gmood. Work on beinging down the utilization, your score will bounce back up and then try and ask for a cli with Credit Solutions. Best of luck.

[Anonymous]

You mention a few times your stats,  specifically with regard to your Synch cards.  How is your UTI on your non-Synch cards?  Remember, when they soft-pull you, they're not just looking at their accts.  Also, when you made the $2500 purchase, did you start making much larger payments, or just the $10-$15 above min payment?  

I'm sure it's just a typo, but "<" = less-than & ">" = greater-than.  Important to get that cleared up in this thread as it looks a lot worse the other way around.  

[Anonymous]

I'm not sure actually... maybe the mixture of the pulls against my credit by the mortgage company and banks, as well as my limit increasing that much on my Lowes card and my Chase Slate card (unexpected safety issue/repair we had to do immediately upon buying the home). We had to be out of our other place a week after closing on the new home. We used our entire savings for a downpayment and inspections on the home, so unfortunately we were stuck to use the cards if we wanted to fix some of the issues and get new appliances, etc. If the repairs could have waited, I was issued a bonus through my employer that is going to be in my next paycheck and that is what I am going to use to pay the Lowes card down.

I've never had any late payments on any of my cards, mortgage, or my auto loans (I've had two, one I paid off in early 2017, the other I got around the same time I paid that one off).

[Anonymous]

Yes, my mistake, I was typing quickly this morning lol.

The only other card that had a balance increase was my Chase Slate. It increased by about $700. The bulk of the Lowes $2500 purchase was in late Dec/early Jan., so I've only had one payment made since then (Jan 14th) and I paid my min. balance + $50 at that time ($75 total). My intentions were to pay that down to make it under the 30% utilization mark this month when I received a lump sum from my employer.

I still intend to do that, just wondering if this is going to start a domino of all my credit limits decreasing, or if I will be able to build that Lowes limit back up.

[K-in-Boston]

Sounds like it's just an issue of high utilization reporting temporarily on multiple cards.  You likely also lost some points due to having a new account (the mortgage).  That's easily healed with time, and the utilization is fixed as soon as the next statements close on any cards with high balances that are paid down/off.  Once you get that under control (at least under 29% overall usage to credit limits), you should be good to call the overseas Credit Solutions line and ask for the moon ($25k or $35k are not unusual requests, and they will counter-offer).