After reading several posts about people getting their CL decreased by their CCC, I was thinking it might be a good idea to create a post about what sort of actions/behaviors trigger a CL decrease.
I myself have never had my limits decreased since getting my first CC in 2005. I have a total of 4 CCs now, I have never been late on them, PIF every month, and pay multiple times per month. I'm only assuming, but I feel like the biggest reason I've never had a CL decrease is because of my frequency of payments (usually 3-4 per month for the full statement balance at that time). So what about everyone else? What did you do that caused your CL to be decreased, or what have you been doing such that it hasn't been decreased?
Starting Scores (lender pull 3/27/10): 759 (EQ), 752 (TU), 749 (EX)
@RobertEG wrote:..... and continuing to make only min. payment on a significant debt over a period of time..... triggering concern over ability to handle that level of debt.
When you say a significant amount of debt, do you mean in terms of absolute numbers (say $12,000) or in terms of util (say 80% util on a $2,500 limit CC). Perhaps it's a little bit of both?
I only had one, several years ago.. It was a card I rarely used anyways, had a $500 limit, one of those store cards. Used it for a $99 purchase. They lowered my limit to $100 the day before putting on the interest for the month. Hit me with a $50 over limit fee, raised my interest to 35%.
Of course that was 10 years ago, hopefully that's illegal now. I'm still really leary of any of those store cards. Well, I don't trust any of them really. Paypal Smart Connect did they same to my husband about 5 years ago. He'd had a limit about $500, usually had the balance around $250. He paid the balance down to $70 and when he went to use the card a couple days later for gas it was declined, limit down to $100. He only had one other card at that point with probably about 15% utilization.
I'm not sure what gets your CL reduced now. Back then it almost seemed predatory, just a way to collect overlimit fees. That store card that lowered my limit responded favorably to a credit limit increase request a couple months later. Never used it again though. It's one of my oldest cards, inactive but not really cancelled. I'm afraid to use the thing or reactivate it.
@tpatterson2k9 wrote:After reading several posts about people getting their CL decreased by their CCC, I was thinking it might be a good idea to create a post about what sort of actions/behaviors trigger a CL decrease.
I myself have never had my limits decreased since getting my first CC in 2005. I have a total of 4 CCs now, I have never been late on them, PIF every month, and pay multiple times per month. I'm only assuming, but I feel like the biggest reason I've never had a CL decrease is because of my frequency of payments (usually 3-4 per month for the full statement balance at that time). So what about everyone else? What did you do that caused your CL to be decreased, or what have you been doing such that it hasn't been decreased?
I make it a point to send a small box of chocolates in with my payment check each month and a small note to the dear CSR's about how much I value their service and their companies trust. And I have never had a CL decrease. Of course I still can't get Capital 1 to give me a CLI. $700 after 12+ years of faith and loyalty (and chocolates). Come to think of it, next month they'e getting the cheaper box.
Any negative activity really. If you max your cards out they can balance chase you down as you pay them. Make a late payment. Have collections hit, etc.
Have CCCs been known to decrease CLs simply from nonuse of the card? What about if you are using the card, but have an extremely high CL for your income (say $20k limit on a $30k/year salary)?
Sometimes all it takes is moving your lips when you talk. BofA surprised me with a 50% CLD. I had been paying them in full, on time, for 34 years, no inqs or derogs on my CR. This happened in the "credit freeze" panic of Spring 2009 when they thought everyone was going to default on everything. I was lucky to have a personal connection in the bank that helped me get the old CL restored. In addition to my CC, I had three deposit accounts with them, and this made me realize I wasn't well enough diversified in my banking relationships.