Multiple readers reached out today that Chase sent them notice that their credit limit has been slashed.
It’s been in the news for a while now that all banks, generally, are slashing credit limits as they seek to limit their debt exposure with the whole COVID-19 crisis. Seems a round of cuts from Chase was just sent out, and I imagine many of you got hit with this. It could hurt your credit, slightly, by having a lower credit line – this will depend on your credit profile; for some, the affect will be miniscule.
Haven’t yet heard anyone who was able to get this repealed upon request. Let us know if you try, but I’d guess it’s a futile endeavor.
Randomly got a letter last week saying when they opened P2’s CFF back in January 2021 they erroneously assigned a lower limit than they intended. Bumped it from 21k to 50k and apologized for the inconvenience…anybody ever experience something like that before?? Getting ready to pay off the balance since the 0% expires in May, wonder if that had something to do with it…
I have been a customer with Chase for over ten years and have never not paid my cards, I called to get it reversed and they said no. I was told they could only look at my credit again (hard hit) and maybe it would change. I am going to pay off the cards and get a new bank account with someone else.
I recently made the decision to pay off all my credit cards and loans, roughly $30k in total. A few days later Chase reduced the credit limit on both of my cards. One down from $10,500 to only $500 and the other from $3600 to $500. I called in today but they said the office that handles the requests for reconsideration was closed and to call back on Monday. Date of occurrence 8/29/20
Exact same thing happened to me. Paid debt off, never late 832 FICO, Chase lowered my limit. Weirdos
The article above still says “Haven’t yet heard anyone who was able to get this repealed upon request. Let us know if you try, but I’d guess it’s a futile endeavor.” I think that could be changed now. Due to me reading here in the comments from others, how the credit limit decrease was reversed after they called Chase, I called Chase as well, due to the limit on my Hyatt card being cut from 12K to 6K. Upon calling, the rep was very friendly and reinstated the 12K credit limit, no questions asked. The most difficult part was simply getting through to a live human being on the Chase Hyatt customer service number, they repeatedly try to make you contact them online instead, but just keep saying “Representative” or dialing the number you have to, and then finally you’ll speak to a live agent. 🙂 Couldn’t be happier that I was able to keep my previous credit limit, no questions asked. Thank you to Naranja and others below in the comments!
I got the letter over the weekend. But I Just called and was able to move half the credit line from one Chase card to another. About 20k moved. No questions asked, no mention of credit pull or the lettter. Hope it stays this way and I dont get another letter.
Just checked CK and in the latest update both TU&EQ report the only change being one card (not Chase FWIW) with CLI $12k->$20k, whereas the scores stayed exactly the same — the point being that a big jump in CL (up or down) can have little or no effect on scores. (It’s only a big effect in specific scenarios.)
CL doesn’t directly affect the score. Its the utilization that counts.
DP
Letter Dated 6/4
Halving $24,500 credit line
our ancient IHG card was chopped from 10k to 5k. I don’t really care. never see any chase offers on it. only keep it for ‘status’ and the old uncapped free night. i had actually cut the liimit at my request previously.
Is this your only Chase card? Thanks.
Clearly cutting g credit limits at a time like this on accounts that are not delinquent, have never been delinquent and are not abusing credit limits is an attempt by financial institutions to recoup money elsewhere. Interests rates are at an all time low and present a unique opportunity for some people to become homeowners and for some homeowners to refinance themselves out of being house poor. Cutting a credit limit by 50% can dramatically affect credit scores and can mean thousands of dollars over the course of a loan. So if you have maintained an above average score this move by your credit card company can be the negative factor that affects the interest rate you are offered. Its like if they can’t get the credit card interest because you are practicing financial responsibility, they are going propel you into a higher interest rate elsewhere, by indirectly manipulating your credit score. Knowing this, we need to push for change. Does it make sense that the very institutions that we borrow from, have the ability to adversely affect our financial standing which they then use to make decisions about our credit worthiness. Just another one of the many things in this country that clearly needs a reset. On a more positive note, if a credit card provider isn’t working with you and doesn’t provide benefits and perks and does things like this without notice, don’t close your account (unless it has an annual fee or some over ridiculous fees), take your business elsewhere. Do your homework, put that card in the drawer with its reduced limit and find another card to use. The best approach is to take your business where it benefits YOU most. And do write a letter of concern to your credit card provider and explain your reasons for no longer using the card. We have to exercise our financial and spending power, so as not to enable a system that was meant to keep us in debt in the first place.
Crybaby BS. Your post screams entitlement.
Chase (and other creditors) are reducing credit lines for little or no usage. It happened in 2008-9 and we should not be surprised that it would happen again. They do this so they can reallocate those limits to other accounts and new accounts without additional exposure.
It’s not their responsibility if it could potentially affect someone’s utilization and score, its the individuals. Its time that we examine how we manage credit.
I am shopping for a mortgage right now. Pre-approval going on now. Concerned that if they take a hatchet to my limits, my scores will drop and rates will jump before closing. This doesn’t sound right. I am spending the same amount as always (if not less). How does someone’s decision about some magical credit limit figure they want to apply to me in any way reflect increased risk on my part? Especially when it’s a systemic decision rather than a personal one?
People on MyFico forum are stating that they were able to call Chase and have the decision reversed. And if even if they do cut your limit, it won’t be for 30 days which may allow you to close before the CLD reports.
Unfortunately they did that to me, supposedly letter was sent. I haven’t received one. They reduced mine by 90%, I’m trying to buy a house, mind you my balance has been paid off. I was on the phone with them today and the won’t reconsider unless they do a hard pull on my credit. They won’t reconsider, so how are people getting them to reconsider? They cut my limit before I got a letter, I just noticed when I went to pay off the balance of my card and I saw something odd and called them. I refuse to use the card now….
This is what happened to me as well.
This is still happening to me on Chase, when I paid down my debt they continually reduce my credit amount, thus my Chase credit limit utilization remains high. When I finally paid them off. I think I’ll just ask for $500 limit. Reduce that.