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Credit card limit cut. How common?

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Credit card limit cut. How common?

Old 06-01-2020, 12:23 PM
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Default Credit card limit cut. How common?

I received a letter the other day that one of my credit cards was cutting my limit in half. 16k to 8k. I don't too much care as I generally only have somewhere between 0 and a few 100 on it every month and maybe a grand or two when I am traveling. I pay it in full each month, always have.

I did a bit of Google searching and say a bunch of articles about it. Apparently, the CC companies are smart enough to figure out that there are a lot of unemployed people out there with a lot of credit and they want to limit their exposure. I still have a job and don't have an issue paying my CC bill.

Curious if others are getting the same notice?
Old 06-01-2020, 12:25 PM
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I got a similar letter. No big deal, they can take their card and ..., you know.
Old 06-01-2020, 12:26 PM
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It happened to me and was a rolling effect which destroyed my credit and took me from 811 earlier this year down to about 520.
Old 06-01-2020, 12:46 PM
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Originally Posted by Lorne Greene View Post
It happened to me and was a rolling effect which destroyed my credit and took me from 811 earlier this year down to about 520.
just curious if you do not want to say that is OK. but are you saying your limit was cut and you did not know it and went over the new lower limit and the credit card company whacked you

or are you saying that a limit cut then made you have lower "available credit" and then other companies looked at your "lower available credit" and also lowered theirs and then because you were now using a higher % of your "available credit" your score was whacked

I just had my credit score cut by 4 points because I moved to using my credit card for all purchases instead of my debit card after my mom's debit card (that she has used 1 time in 6 months for a purchase) was skimmed in what must have been some type of inside job....so I assume I am either using a VERY SLIGHT more of my available credit or perhaps they think I am on the down and out now and using a credit card to make common purchases.....even though I pay the stupid thing 2 or 3 times a month in full each time
Old 06-01-2020, 12:50 PM
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Originally Posted by Insider View Post
just curious if you do not want to say that is OK. but are you saying your limit was cut and you did not know it and went over the new lower limit and the credit card company whacked you

or are you saying that a limit cut then made you have lower "available credit" and then other companies looked at your "lower available credit" and also lowered theirs and then because you were now using a higher % of your "available credit" your score was whacked

I just had my credit score cut by 4 points because I moved to using my credit card for all purchases instead of my debit card after my mom's debit card (that she has used 1 time in 6 months for a purchase) was skimmed in what must have been some type of inside job....so I assume I am either using a VERY SLIGHT more of my available credit or perhaps they think I am on the down and out now and using a credit card to make common purchases.....even though I pay the stupid thing 2 or 3 times a month in full each time
My credit score would drop around 50-65 points every time I'd travel 2 weeks in a month at work just due to expenses I used my personal card (to get points) on. Would always bounce back the next month. Now that I have higher limits, they don't move at all and my credit score is the highest it's been...even though I'm more at risk than before.

Credit is a complicated beast.
Old 06-01-2020, 12:54 PM
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I always get letters from my CC company asking if I want to increase my limit, Not much point in having it higher. When I bought my truck new in 2010 I wanted to charge the whole thing on my card but the dealer's policy was there was a limit of $5K on a credit card. We settled on $10K.
Old 06-01-2020, 01:03 PM
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Originally Posted by Insider View Post
just curious if you do not want to say that is OK. but are you saying your limit was cut and you did not know it and went over the new lower limit and the credit card company whacked you

or are you saying that a limit cut then made you have lower "available credit" and then other companies looked at your "lower available credit" and also lowered theirs and then because you were now using a higher % of your "available credit" your score was whacked

I just had my credit score cut by 4 points because I moved to using my credit card for all purchases instead of my debit card after my mom's debit card (that she has used 1 time in 6 months for a purchase) was skimmed in what must have been some type of inside job....so I assume I am either using a VERY SLIGHT more of my available credit or perhaps they think I am on the down and out now and using a credit card to make common purchases.....even though I pay the stupid thing 2 or 3 times a month in full each time
Credit card companies monitor your credit. One cut my limit by $20K then another one did the same thing, then cards that did not have a balance auto closed out causing some of the credit cards which had already cut my limit to cut my limit down to the current balance now making me maxed out on everything.

The system is total BS and I am done borrowing money and giving it to banks. I should have everything paid off by the end of the year and I swear I will never pay a dollar of interest to one of these a-hole banks again. I mostly blame Synchrony Bank.
Old 06-01-2020, 01:06 PM
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On the Amex Platinum forum there's a LOT of griping that Amex is cutting limits
Old 06-01-2020, 01:09 PM
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Originally Posted by jj1987 View Post
On the Amex Platinum forum there's a LOT of griping that Amex is cutting limits
Thats great news. Thousands of people will have a reduction in credit score and will now have to pay the banks who borrow money from the fed at 0% or consumers at 1-2% more in interest. The banks will be stimulating the economy with all of that extra income by paying out more in bonuses to the top brass, build bigger buildings and buy nicer furniture.
Old 06-01-2020, 01:20 PM
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Nope no change on my VISA or AMEX. Both get paid of monthly and most of what I spend in on the AMEX.
Old 06-01-2020, 01:24 PM
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Odd that some are getting cut and others aren't. Our primary cards are Paypal MC (2% cashback) and Capital One, what card company has been cutting limits?

Old 06-01-2020, 01:28 PM
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Originally Posted by bamaboy473 View Post
Odd that some are getting cut and others aren't. Our primary cards are Paypal MC (2% cashback) and Capital One, what card company has been cutting limits?
Amex and Chase seem to be doing it. I don't know if they're the only ones or just the only ones I'm hearing about. Probably just getting the most publicity since they're the most common travel/rewards cards used on the forums I visit.
Old 06-01-2020, 01:36 PM
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Originally Posted by Lorne Greene View Post
I mostly blame Synchrony Bank.
Synchrony are the wankers who issue Lowes cards. 12 years ago I forgot to make the very first payment (min due $19) My bad and they cut my limit to $300. So I paid it off 3, 4 sometimes 5 times every month. The manager knew me, as I was in there all the time, so for big purchases he would give me the same 5% off.

Every year I would ask for more credit - no go. One fine day he told me he couldn't do the 5% anymore. I told him I buy anywhere from $15K - $20K between Lowes and Home Depot, and does he really want to lose to the outfit across the street. He cared, but not enough to do anything. Synchrony didn't give a rats ass. I still go in when I have to (very seldom) and make sure to wave nicely at him.
Old 06-01-2020, 01:41 PM
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I have high limit cards from citi and a local bank. Both fall between 20k - 30k limits. Never carry a balance on either. Go back and forth between which one I used based on which rewards program is best. Currently that’s citi. They haven’t done anything. Local bank sent out an income verification request, and has for now left things alone.

my guess is they are primarily targeting large credit lines that rarely get used, and for the most part leaving ones that to get used alone, to keep the processing fees rolling in.
Old 06-01-2020, 01:43 PM
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Originally Posted by Lorne Greene View Post

The system is total BS and I am done borrowing money and giving it to banks. I should have everything paid off by the end of the year and I swear I will never pay a dollar of interest to one of these a-hole banks again. I mostly blame Synchrony Bank.
I did that years ago and have never looked back..
Old 06-01-2020, 01:47 PM
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Originally Posted by jj1987 View Post
On the Amex Platinum forum there's a LOT of griping that Amex is cutting limits
I am an AMEX Platinum Card holder, no change here. I do pay it off entirely at billing time though.
Old 06-01-2020, 01:55 PM
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Thanks for the heads up, I was about to close some accounts I don't use often, but may hang on to them a little longer.

It makes sense for them to limit their exposure if they think the economy is going south. The impact of it on an individual's credit score is an interesting twist.

I don't recall my card limits ever going DOWN but I can tell you in 2009 or so I had a HELOC suddenly and unexpectedly reduced dramatically as the banks were chasing real estate values down. If I'm remembering it right, they immediately cut it from $50-80k to whatever my balance was, probably 20-25k. It was a reasonable thing for them to do but at the time was quite a kick in the teeth since I had been pouring money into the house and looked at the HELOC as a bit of a safety net if I needed it.

Last edited by Flot; 06-01-2020 at 02:17 PM.
Old 06-01-2020, 02:07 PM
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Back in 2007 I had a Visa that got cut from 25,000 to 12,500 "for my protection." I stopped using the card.
Old 06-01-2020, 02:31 PM
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Originally Posted by Flot View Post
, I was about to close some accounts I don't use often, but may hang on to them a little longer.
.
DO NOT simply close accounts if they are over 9 years old. Your average age of accounts will drop, and if it's lower than 9 years, you'll lose some points on the score.
Old 06-01-2020, 02:49 PM
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Got emails from both Chase and Amex if I don't use the cards in the next 30 days they would close the accounts. Both had zero balances.

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