Cap One cutting credit lines

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PlatinumAMEX94
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Cap One cutting credit lines

Postby PlatinumAMEX94 » Thu Aug 22, 2013 3:12 pm

A good friend of mine sold her house and was able to pay down $15k on her Capital One card. Instead of a "Hey, great job for being responsible and paying back your debt", they cut her credit line to $500 and gave her some cookie cutter response to reducing their liability exposure.

We didn't even discuss what it did to her credit score losing that much available credit.

Has anyone else noticed a decrease in your Capital One credit line?
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takeshi
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Postby takeshi » Thu Aug 22, 2013 4:30 pm

What else was going on with her credit? What was her utilization like and for how long? It's not just a matter of the payment but it's never just a single factor at play.

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Postby SClay » Fri Aug 23, 2013 1:54 am

That's absolutely INSANE! ~15k+ all the way down to $500?! Wow. I could imagine maybe a bump down to 10k or even 8k. But I've never heard of that. Anyways, Capital one isn't very generous with their Credit lines.
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Postby flan » Fri Aug 23, 2013 8:29 am

SClay wrote:That's absolutely INSANE! ~15k+ all the way down to $500?! Wow. I could imagine maybe a bump down to 10k or even 8k. But I've never heard of that. Anyways, Capital one isn't very generous with their Credit lines.


Oh, it's pretty common. It's called 'balance chasing'. The creditor decides the customer is a risk, and cuts their credit limit to what the balance is. If they pay down the balance, they reduce the limit to the new balance.

How long were they running a 15K balance? And what was the original limit? I'm betting the answers are "a long time" and "pretty close to 15K".

If you need to borrow money for more than a month, there are much better ways to do it than a credit card.

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PlatinumAMEX94
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Postby PlatinumAMEX94 » Thu Aug 29, 2013 7:10 pm

takeshi wrote:What else was going on with her credit? What was her utilization like and for how long? It's not just a matter of the payment but it's never just a single factor at play.


Never late on a payment, credit score over 700. Capital One said they are reducing their liability on credit lines.
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Postby Solo » Fri Aug 30, 2013 1:49 pm

Hi guys, new to the forum. I actually just PC'd my Cash Rewards card to the QuickSilver card after I paid off my balance in full. After I paid off the card and PC'd they actually lowered my limit by $2000. Go figure lol.
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Postby flan » Fri Aug 30, 2013 3:47 pm

PlatinumAMEX94 wrote:Never late on a payment, credit score over 700. Capital One said they are reducing their liability on credit lines.


Which doesn't answer the question: what was the orginal limit, how long did they run a 15K balance, what kind of payments were they making? Balance chasing happens to people they've decided are a risk. It's shocking when what's happened is a big balance got paid off, but it's more usual to see take place over the course of several months.

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Postby Kripler68 » Sat Aug 31, 2013 12:25 am

Capital one is seeing something with her spending habits and possibly high utilization to be doing this.



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