Is a CLD Viewed Negatively on a Credit Report?

[Anonymous]

Let's say someone is looking at my credit report and they see that my limit on a card used to be $5000 and it is now $1000. Without knowing the specifics of if I requested it to be decreased, moved credit limits around to other cards, or if the bank decreased it, would the person looking at it view it negatively?

[FinStar]

It depends. Does that particular tradeline have high utilization?

Also, keep in mind that the majority of lending decisions are performed via algorithms and not always under manual review. And, by the same token, some individuals may chose to lower their exposure by voluntarily lowering some credit limits.

[Anonymous]

Let's say utilization is at 0 and it's under manual review with the reviewer unable to know why it was decreased. Would it be viewed negatively or just something unusual but not negative.

[Anonymous]

They have no way of telling what your limit used to be by looking at your current report, in the same way they can't tell what your previous balance or UTI were.

[Anonymous]

So a hard pull doesn't provide the information I circled in red in the picture below?

https://drive.google.com/file/d/1c3l3YQLnBjxg6r2nW9k4z-uwKgI16cY0/view?usp=drivesdk

[Anonymous]

haha so embarrassing, I don't have google login.

[Anonymous]

Unfortunately for some reason this forum still doesn't have a way to upload pictures to here from a mobile device so that is all I could do right now.

[DollyLama]

Does it have any comments such as Closed by Consumer, or Closed by Credit Grantor?

[RobertEG]

Yes, most creditors will view a credit limit decrease as negative, implying that it was done by the creditor based on their assessment of increased consumer risk. 

They obviously dont know the actual factors assessed or whether the consumer requested it, but they dont do a thorough investigation, they make normal, reasonable assumptions.  Consumers rarely request reduction of their own credit limit.

[HeavenOhio]

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@Anonymous wrote:
They have no way of telling what your limit used to be by looking at your current report, in the same way they can't tell what your previous balance or UTI were.

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Without looking at my reports, I believe EQ and EX show your credit history for the past 24 months, and TU shows it for the past 30 months.