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Lowering my credit line

BrownieNpadre
New Member

Lowering my credit line

I am self employed and went through a slow period and ran the balances up on CC really high. I have no negative payment history, however my balance % is high and has lowered me from 700 to mid to low 600s. 

The problems is when I attempt to pay down my balances the CC companys are lower my credit line so it is not helping my score because my balance % is staying the same or getting worst.

 

Any suggestion on how to keep the CC company's from lower my credit line as I pay them off?

Message 1 of 14
13 REPLIES 13
CreditSweeper
Established Contributor

Re: Lowering my credit line

It's called balance chasing. Your lenders are not comfortable with the risk you present currently. Unfortunately, there isn't much you can do at this point. Carrying high balances has spooked them. Don't be surprised if some of them close the cards eventually as well. 

Who are the lender(s)?

Personal Credit -
AMEX: Platinum, Gold, Green, Blue Cash Preferred
PNC: Cash Rewards, Points
BOA: Cash Rewards
NFCU: Flagship Rewards, Cash Rewards, CLOC
PSECU: Founders
BB&T: Spectrum Cash Rewards
CapOne: Quicksilver
Discover: IT Chrome, IT
Synchrony: PayPal 2%, PayPal Credit
Barclays: Uber
PenFed: Power Cash Rewards, Platinum Rewards
Alliant: Visa Signature
Goldman Sachs: Apple Card
BBVA: Clear Points
FNBO: Rewards
Store Cards: Target, Macy’s



Business Credit-
AMEX: Delta Gold, Amazon Prime, Simply Cash Plus
PNC: Visa Business
Synchrony: Lowes
Message 2 of 14
OmarGB9
Community Leader
Super Contributor

Re: Lowering my credit line

Unfortunately there's nothing you can do to stop it. As mentioned above, that is known as balance chasing, and the only thing you can really do is hurry and try to pay it off completely. They'll stop lowering your limit once they get it down to something they're comfortable with. They could also close down the account altogether, unfortunately. Let's hope not, but it is a possibility.


Last App: 04/05/2021
Penfed Signature Loan

Currently rebuilding as of 04/11/2019.

Starting FICO 8 Scores:




Current FICO 8 scores:


Message 3 of 14
jnbowmar
Valued Member

Re: Lowering my credit line

Its called balance chasing, so only pay the miniumum and take years to pay it off, Credit Unions don't really do this so in the future have most of your credit cards from credit unions.

 

The monkeys that they pay as "analysts" can't fathom seasonal revenue or even have all the information required to deem your credit behavior a true risk, so I would only pay the minimum, because if you try to pay it off and then use the credit line it won't be there.  So wait untill buissness picks back up and you have substainial cash on hand before you even consider paying them off in full. 

 

And don't close them yourself either, they have to pay someone to report every month, so your getting your monies worth even if you can't access the credit. 

Message 4 of 14
gdale6
Moderator

Re: Lowering my credit line


@jnbowmar wrote:

 

And don't close them yourself either, they have to pay someone to report every month, so your getting your monies worth even if you can't access the credit. 


They are automatically reported and whether or not the account is open or closed has no bearing on monthly reporting as long as there is a balance being carried as the FCRA requires all creditors to report accurate information if they report anything at all. Monthly payments lowering the balance therefore would require an update on a closed account with a balance.

Message 5 of 14
OmarGB9
Community Leader
Super Contributor

Re: Lowering my credit line


@jnbowmar wrote:

Its called balance chasing, so only pay the miniumum and take years to pay it off, Credit Unions don't really do this so in the future have most of your credit cards from credit unions.

 

The monkeys that they pay as "analysts" can't fathom seasonal revenue or even have all the information required to deem your credit behavior a true risk, so I would only pay the minimum, because if you try to pay it off and then use the credit line it won't be there.  So wait untill buissness picks back up and you have substainial cash on hand before you even consider paying them off in full. 

 

And don't close them yourself either, they have to pay someone to report every month, so your getting your monies worth even if you can't access the credit. 


I don't agree at all with only paying the minimum and taking years to pay it off. Prolonged high utilization can lead to a domino effect of other creditors following suit and begin balance chasing,  leading to more maxed out accounts and possible account closures. Paying off the credit line to be able to use it again should be the last thing on OP's mind.

 

Not only that, but you're basically telling OP to pay as much interest as possible just because.


Last App: 04/05/2021
Penfed Signature Loan

Currently rebuilding as of 04/11/2019.

Starting FICO 8 Scores:




Current FICO 8 scores:


Message 6 of 14
CreditSweeper
Established Contributor

Re: Lowering my credit line



@jnbowmar wrote:

Its called balance chasing, so only pay the miniumum and take years to pay it off, Credit Unions don't really do this so in the future have most of your credit cards from credit unions.

 

The monkeys that they pay as "analysts" can't fathom seasonal revenue or even have all the information required to deem your credit behavior a true risk, so I would only pay the minimum, because if you try to pay it off and then use the credit line it won't be there.  So wait untill buissness picks back up and you have substainial cash on hand before you even consider paying them off in full. 

 

And don't close them yourself either, they have to pay someone to report every month, so your getting your monies worth even if you can't access the credit. 


@jnbowmar wrote:

Its called balance chasing, so only pay the miniumum and take years to pay it off, Credit Unions don't really do this so in the future have most of your credit cards from credit unions.

 

The monkeys that they pay as "analysts" can't fathom seasonal revenue or even have all the information required to deem your credit behavior a true risk, so I would only pay the minimum, because if you try to pay it off and then use the credit line it won't be there.  So wait untill buissness picks back up and you have substainial cash on hand before you even consider paying them off in full. 

 


Whew!  Bad Advice. To most, it makes little (especially financial) sense to pay a bunch of unnecessary interest just to "stick it to them". In reality, this is only hurting the consumer. 

I'm sure lenders understand seasonal business just fine. I'm also sure they understand that many, many small businesses are on the brink of bankruptcy due to the pandemic and the resulting restrictions imposed on businesses. 

The lenders are making risk based business decisions. Keep the emotion out of it. 

Personal Credit -
AMEX: Platinum, Gold, Green, Blue Cash Preferred
PNC: Cash Rewards, Points
BOA: Cash Rewards
NFCU: Flagship Rewards, Cash Rewards, CLOC
PSECU: Founders
BB&T: Spectrum Cash Rewards
CapOne: Quicksilver
Discover: IT Chrome, IT
Synchrony: PayPal 2%, PayPal Credit
Barclays: Uber
PenFed: Power Cash Rewards, Platinum Rewards
Alliant: Visa Signature
Goldman Sachs: Apple Card
BBVA: Clear Points
FNBO: Rewards
Store Cards: Target, Macy’s



Business Credit-
AMEX: Delta Gold, Amazon Prime, Simply Cash Plus
PNC: Visa Business
Synchrony: Lowes
Message 7 of 14
Remedios
Moderator

Re: Lowering my credit line


@jnbowmar wrote:

Its called balance chasing, so only pay the miniumum and take years to pay it off, Credit Unions don't really do this so in the future have most of your credit cards from credit unions.

 

The monkeys that they pay as "analysts" can't fathom seasonal revenue or even have all the information required to deem your credit behavior a true risk, so I would only pay the minimum, because if you try to pay it off and then use the credit line it won't be there.  So wait untill buissness picks back up and you have substainial cash on hand before you even consider paying them off in full. 

 

And don't close them yourself either, they have to pay someone to report every month, so your getting your monies worth even if you can't access the credit. 


A couple of things.

 

There are many CUs that will CLD or balance chase. They might wait a bit longer, but ultimately it will happen. 

 

Please do not call anyone monkeys. Most people working in UW department are incredibly competent at what they do, hence being entrusted with gate keeper role. 

Save name calling for different place. 

 

Advising someone who might be already struggling to pay maximum interest (based on minimum payment) is poor advice, and a costly one, too. That's without mentioning accounts might end up closed for that very reason. 

When someone asks you *What's wrong*, and you're not sure if you want to start listing it in alphabetical or in order of importance.
Message 8 of 14
BrownieNpadre
New Member

Re: Lowering my credit line

So far is has just been Chase and Citi that has hit me. I guess I will see what happens if I start paying off capital one and Wells Fargo card first. That way I may be able to get my score up high enough to keep the other two from balance chasing me when I pay them down.

Message 9 of 14
OmarGB9
Community Leader
Super Contributor

Re: Lowering my credit line


@BrownieNpadre wrote:

So far is has just been Chase and Citi that has hit me. I guess I will see what happens if I start paying off capital one and Wells Fargo card first. That way I may be able to get my score up high enough to keep the other two from balance chasing me when I pay them down.


I wouldn't worry so much about score as much as balances. Pay down your high balances as quickly and comfortably as you can, without overextending yourself,  and as balances go down, utilization ratio will follow suit, and the score increases will follow.


Last App: 04/05/2021
Penfed Signature Loan

Currently rebuilding as of 04/11/2019.

Starting FICO 8 Scores:




Current FICO 8 scores:


Message 10 of 14
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