US Bank Available Credit Not Resetting

[Doubleimonster]

Good morning,

I have a US Bank Secured Go card and I noticed i made two payments, one the 7th and 8th, both in the app says "posted" but the availabile credit isn't going back up. Its literally $9 away from maxed on the 300 limit, even though I have made 2 $100 payments. Im confused.

I called and she says its a hold on the payments until Friday the 16th? Is that normal? Never paid a credit card and they hold payments that long. Again in app it says payment posed now instead of previously it stated pending. 

Im trying to use the card and pay it off. But if its going to take over a week for payments to post what is the point lol.

[Patient957]

They might be trying to prevent you from credit cycling.  Credit cycling is when you charge up and pay off your credit card mid cycle for the purpose of charging more than your credit limit in one cycle.  Banks do NOT like this, especially on low limit cards and extra especially on secured low limit cards.  We've seen some banks unceremoniously close accounts without warning for credit cycling.  So it's advisable to not do it.

Even if your credit becomes available again, be careful not to credit cycle.

[Kforce]

^^^^ Agree with @Patient957 .

Would use it until  ~$200-$250, stop use, pay off, wait for next monthly cycle and repeat.

It takes patience, time, and some use but not to much.

My daughter had an account closed most likely due to credit cycling,

and has been rewarded from institutions where she just keeps a card alive.

You could charge a tank of gas once a  month and be just fine. 

[ptatohed]

I've only credit cycled a few times and that was with my AOD when the limit was only $5000 and we had some big purchases.  I had no idea it was a bad thing.  I thought, if anything, it's justifying to the lender that you need more limit.  Is it only bad to do with a secured card?  Or unsecured as well?

[Doubleimonster]

Geez didnt know that was a thing. Me and my wife eat out quite often when especially this time of year, birthdays, anniversaries, valentines, holidays, etc. In my mind, if im going to spend money, I want the points associated with it haha.

Its like why use my debit card when I can simply use the credit card, get the points pay it off. Problem is with a 300 limit you can understand how that is difficult because after a few resturants here and there boom limit reached. Sigh

I guess ill stop spending and getting points and just use the debit card since I dont really have any other rewards cards. Maybe ill use my quick silver 1.5% or whatever 

[Kforce]

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@ptatohed wrote:

I've only credit cycled a few times and that was with my AOD when the limit was only $5000 and we had some big purchases.  I had no idea it was a bad thing.  I thought, if anything, it's justifying to the lender that you need more limit.  Is it only bad to do with a secured card?  Or unsecured as well?

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Like all credit things depends a lot on your profile, credit age, history, income, etc.

Once a year for some larger than normal spend is not very likely to be an issue.

If you were to spend 9k a month on a 5k card for 3-4 months,  maybe.

It is not limited to  secured cards, however pretty sure those with lower scores,

secured cards, lower income, and small limits are more likely to cycle and have issues.

Something issuers keep an eye on, and all cards are in the mix.

[Patient957]

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@Kforce wrote:

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@ptatohed wrote:

I've only credit cycled a few times and that was with my AOD when the limit was only $5000 and we had some big purchases.  I had no idea it was a bad thing.  I thought, if anything, it's justifying to the lender that you need more limit.  Is it only bad to do with a secured card?  Or unsecured as well?

---

Like all credit things depends a lot on your profile, credit age, history, income, etc.

Once a year for some larger than normal spend is not very likely to be an issue.

If you were to spend 9k a month on a 5k card for 3-4 months,  maybe.

It is not limited to  secured cards, however pretty sure those with lower scores,

secured cards, lower income, and small limits are more likely to cycle and have issues.

Something issuers keep an eye on, and all cards are in the mix.

---

And since they often don't warn before closing accounts, it's risky to push the limits.  One you find out where the limit is, it's too late.  So the safest bet is just to avoid the practice altogether.

[Patient957]

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@Doubleimonster wrote:

Geez didnt know that was a thing.  

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That's what everyone says after their account gets closed.  It's a weird thing, because no one realizes it's a problem until it's too late. 

[Vinjints]

It's also been provided, on here, as a tool to expedite CLIs. I can see why that might be a useful bargaining chip, but also why the banks would look down on it.

[Doubleimonster]

Right. In my eyes it shows you "hey, I need a higher limit and im clearly capable of paying" but I guess in the banks eyes it means otherwise.