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What affect will income decrease have on credit card limits

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Anonymous
Not applicable

What affect will income decrease have on credit card limits

My sisters' husband recently passes away and she has lost his income which was about $20,000.  Her household income is now only about $16,000 per year.  She has 2 Quicksilver cards from Capital One that she has had for about 5 years.   Once she reports her lower income will Capital One lower her credit card limits? Her limits are currently $5,000 and $7,500.  She has a small balance of $200 on one of the cards.  In good standing; never late.

 

 

Message 1 of 19
18 REPLIES 18
Dahlia77
Regular Contributor

Re: What affect will income decrease have on credit card limits


@Anonymous wrote:

My sisters' husband recently passes away and she has lost his income which was about $20,000.  Her household income is now only about $16,000 per year.  She has 2 Quicksilver cards from Capital One that she has had for about 5 years.   Once she reports her lower income will Capital One lower her credit card limits? Her limits are currently $5,000 and $7,500.  She has a small balance of $200 on one of the cards.  In good standing; never late.

 

 


Sorry to hear of her loss.

 

I'm not sure if they would decrease her limits unless for some reason she came under financial review.  If she's in good standing and low balances it seems unlikely that they'd scrutinize her enough to find out that her income has declined.  That would take a financial review.  At least that's my take although you'll probably find others that can answer better.

 

Was her husband on the cards or just her?  Because joint may make a difference that single wouldn't.

Message 2 of 19
Chris679
Established Contributor

Re: What affect will income decrease have on credit card limits

Highly unlikely that they will lower the limits in my opinion. 

Message 3 of 19
Anonymous
Not applicable

Re: What affect will income decrease have on credit card limits

Thank you for your condolence.  Only her on those cards.  I think he had cards thru another bank.

Message 4 of 19
takeshi74
Senior Contributor

Re: What affect will income decrease have on credit card limits

We don't know how any creditor would handle it.  We don't know the specifics of an creditor's underwriting critieria.  Income is a consideration but we can't say that a reduction of $X income would lead to a CLD of $Y.

Message 5 of 19
CH-7-Mission-Accomplished
Valued Contributor

Re: What affect will income decrease have on credit card limits


@takeshi74 wrote:

We don't know how any creditor would handle it.  We don't know the specifics of an creditor's underwriting critieria.  Income is a consideration but we can't say that a reduction of $X income would lead to a CLD of $Y.


The lender is highly unlikely to know about the drop in income unless she applies for a CLI and reports the new income.  Actually, if her cards were individual accounts. she should have only been reporting her own income, so husband's loss of income should not matter.

 

If she can live with these limits, tell her not to apply for any CLI's and just wait for the automatic ones that come every once in a while.  Also, pay off the cards every month except $5 on one card.

Message 6 of 19
Anonymous
Not applicable

Re: What affect will income decrease have on credit card limits


@takeshi74 wrote:

We don't know how any creditor would handle it.  We don't know the specifics of an creditor's underwriting critieria.  Income is a consideration but we can't say that a reduction of $X income would lead to a CLD of $Y.


every post you go to you're just a negative nancy. obviously no one "KNOWS" but people could have had a similar experience. that's what this place is about so just enjoy it and quit going around with "only you can determine" "no one knows at all" "there's no way anyone can help with that"

 

it's okay to be a realist, but take the pessims elsewhere 

Message 7 of 19
Anonymous
Not applicable

Re: What affect will income decrease have on credit card limits

How the cards are used and overall credit profile is more important then income.  I have been rebuilding for over a year and have 120k in income and low DTI but struggled until recently to get decent limits.  My 24 year old daughter on the other hand has done a good job of keeping her credit clean, she goes to school and makes 14k a year working and has several cards with 5k or more limits and gets preapprovals all the time.  

Message 8 of 19
Burned2manybridgesB4
Valued Contributor

Re: What affect will income decrease have on credit card limits

No joint accounts. I'd keep my mouth shut about income.

Message 9 of 19
Anonymous
Not applicable

Re: What affect will income decrease have on credit card limits

i wouldn't keep my mouth shut about it. if you used household income to apply then tell them the new household income.
Message 10 of 19
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