WHY would Chase slash my credit limit??

[sekada]

So with my bonus and tax return in early March, I paid off the entire almost $4k balance on my Chase card, plus another smaller card.  I've always paid more (sometimes just slightly more) than the minimums, I think I was late once by a few days a couple of years ago, but my account has always been in good standing.  My credit score has gone UP 82 points since the beginning of the year!!  (Thanks in great part to paying off those debts).  I do have a collection for $100 that went on there at some point (I just discovered it recently) for a medical bill, and I'm in the process of working that out now.

Anyway, as of March 26, Chase sent my statement with the usual credit limit of $4k.  This morning I put a $400 charge on that card for a car repair -- just for convenience --, and this afternoon I logged onto Chase to pay off that amount.  BEHOLD!! My credit limit has been slashed to $2200.   What gives?? I don't recall they gave me any notice, either, and I'm good about reading that stuff.

[score_building]

If it is chamu, that's the reason, they're purging those accts.

[Anonymous]

It is happening to many throughout industry, many with no infractions and you have a few minor ones.   Join the group.

[Lel]

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@sekada wrote:

So with my bonus and tax return in early March, I paid off the entire almost $4k balance on my Chase card, plus another smaller card.  I've always paid more (sometimes just slightly more) than the minimums, I think I was late once by a few days a couple of years ago, but my account has always been in good standing.  My credit score has gone UP 82 points since the beginning of the year!!  (Thanks in great part to paying off those debts).  I do have a collection for $100 that went on there at some point (I just discovered it recently) for a medical bill, and I'm in the process of working that out now.

Anyway, as of March 26, Chase sent my statement with the usual credit limit of $4k.  This morning I put a $400 charge on that card for a car repair -- just for convenience --, and this afternoon I logged onto Chase to pay off that amount.  BEHOLD!! My credit limit has been slashed to $2200.   What gives?? I don't recall they gave me any notice, either, and I'm good about reading that stuff.

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CC companies are not required by the new law to inform people in advance of credit line decreases, from what I understand.

[Anonymous]

Sorry to read about your CLD ...

After reading these couple threads on Chase hacking CL's I checked mine and they hacked mine also,, from 17,460 to 2,500 ... 

I'll readilly admit, I rarely use that Providian to WaMu to Chase card (I only use it for my PayPal purchases) ,,, It is my oldset CC going back to '97 so as long as they don't charge an AF, I'll keep it open just to aggrevate them,.,

Too bad Chase doesn't see the need to lower my rate from an unhealthy 28.24% IR the same percentage of the CL cut ... I might actually use the card if they would ...

[smallfry]

Normally Chase has what they think are legit reasons for CLD. Lately I have been reading of people with low 800 FICO no negative history anywhere anytime getting slashed. And they have used the cards. Who knows?

[Anonymous]

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@smallfry wrote:

Normally Chase has what they think are legit reasons for CLD. Lately I have been reading of people with low 800 FICO no negative history anywhere anytime getting slashed. And they have used the cards. Who knows?

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Is that right ?    Whoever has been slashed, what is your FICO score?   Any negative history?

So, is it better to be lower than 800 or higher in 800's  for less chance to getting slashed?

So far my CL are safe.  

P.S.    It was my B.D. today ...  I'm twenty some years old !!            l     I wish ....   

[Lel]

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@Anonymous wrote:

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@smallfry wrote:

Normally Chase has what they think are legit reasons for CLD. Lately I have been reading of people with low 800 FICO no negative history anywhere anytime getting slashed. And they have used the cards. Who knows?

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Is that right ?    Whoever has been slashed, what is your FICO score?   Any negative history?

So, is it better to be lower than 800 or higher in 800's  for less chance to getting slashed?

So far my CL are safe.  

P.S.    It was my B.D. today ...  I'm twenty some years old !!            l     I wish ....   

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What smallfry is saying is that Chase has been cutting CLs for a lot of people, regardless of credit history, FICO score, or pattern of card use.  Basically, Chase is slashing CLs across the board for no specific reason.  There's no magic FICO score that protects anyone from a CLD.  Even those with stellar credit scores are getting hit.

[Anonymous]

This article covers it pretty much. They took a bit hit last year.

http://finance.yahoo.com/news/Chase-expects-credit-card-law-apf-2269016685.html?x=0&.v=3

[Anonymous]

Thanks Lel        Now I got it