Have Credit Card Limits Dropped?

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arthurdawg
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Have Credit Card Limits Dropped?

Post by arthurdawg »

First time posting here in a while... nice to see the old boards active as ever since 2007!

This post is part question and part musing... I was divorced in 2019 and have since moved on in life. Prior to the divorce my former spouse had a Citibank CC and I had a Bank of American CC. The cards both had around a 30k credit limit and we were each listed as secondary cardholders. When I left I took the BOA account with me. I do have a pair of check cards with my bank accounts, but decided to go ahead and look for a back up credit card. I haven't had a mortgage in a while (2013?) and bought my 2015 F-150 with cash. During the divorce proceedings I bought a house with cash. So basically I don't have that many bills on my recent credit report, but I've never missed a payment, and my credit rating hovers in the 810-820 range.

I applied for a Capitol One card in January and was approved and the card came with a 1k credit limit. Frankly, I was limping along trying to put things together after the divorce and then COVID hit, so I didn't really pay much attention to it. I use it for small purchases, but it isn't really that useful as I often put around 12-20k on my other card per month. I do lots of business spending and some travel (reimbursed by my practice) and can spend > 1k on a single business dinner taking out good referral sources! I decided after about 9 months to apply for a rate increase... and it was increased to 1.1k! So today I called today to ask about why they don't seem interested in bumping it a bit higher. I'd really need it to ultimately be 5-10k to make it useful as a back up card. I'm a physician and take home 7 figures a year... I talked to them, explained my needs and my income, and that I would have to look elsewhere and the response was "we can put in a request for an increase, but don't expect much."

And this is Capitol One who must spend a bajillion dollars a year asking "What's in your wallet?!?" And they seem to have no interest in keeping me around at all? I've paid the card off each month... usually spending 7-800$ on it. I did spend more at first, but having to go in and pay it off weekly was a nuisance.

So... my BOA card was obtained when I was a resident with debt, minimal income, etc. It came with a 5k limit in 2000! Why is Capitol One being so stingy? Is this what others have seen with new credit cards lately? Since the 2008 crunch?

And... if the request today doesn't result in a useful limit... what is everyone else using or has anyone had luck in obtaining a better limit at the issuance of a new card or within a year or two? Thanks for any recommendations!
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Marseille07
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Re: Have Credit Card Limits Dropped?

Post by Marseille07 »

I got a SavorOne Rewards card this February, 10K limit. I'm not a big spender so I don't mind the limit. My mistake was I should've gotten the QuickSilver card first, now I have to wait 6 months to apply.
123
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Re: Have Credit Card Limits Dropped?

Post by 123 »

arthurdawg wrote: Fri Apr 30, 2021 11:45 pm ... I often put around 12-20k on my other card per month. I do lots of business spending and some travel (reimbursed by my practice) and can spend > 1k on a single business dinner taking out good referral sources!...
Perhaps you need to consider alternate credit card sources, like American Express, or some other card that is marketed/intended for travel and entertainment expenses. Some of these cards have fees but includes various "point" reward features. Some bank-offered cards are really geared for hum-drum household use and have constrained limits that may take a long time to rise to a reasonable level. You may need a card marketed to "high-rollers".
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Makefile
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Re: Have Credit Card Limits Dropped?

Post by Makefile »

I think you're right. I know some businessowners who recently opened a card at a new bank and are running into the same issue with a miniscule credit limit. The bank basically says they don't care if you're Warren Buffett, no increase will be even considered until at least six months after the card was opened.

Personally I've had great success even with some of my cards from teenage years with just accepting the miniscule limit at the beginning, and keep asking for increases. Once you get one, don't ask for another for at least six months. It was somewhat straightforward to get them into the five-figure level doing this over time.

You could also try a Visa Signature card (I have US Bank Cash+) where technically the limit is only a revolving limit (so it doesn't matter if you pay it off each month) and you're supposed to be able to go over it with additional purchases.
criticalmass
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Re: Have Credit Card Limits Dropped?

Post by criticalmass »

arthurdawg wrote: Fri Apr 30, 2021 11:45 pm
What is your FICO credit score?

Be sure the big 3 credit report agencies are unfrozen for you before applying for a credit card. Otherwise you may get approved, but with a
very small initial limit.

When the credit card issuers get concerned with non performing assets, they start lowering limits for new accounts and eventually for existing customers. I remember when BoA was slashing limits for a lot of folks (including me) in 2008-2009. But even then the new limit was well beyond my spending patterns and I never bothered asking for more.
Archimedes
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Re: Have Credit Card Limits Dropped?

Post by Archimedes »

I had this same issue with Citibank. Because of COVID, getting approved for credit has become much harder of late. For everyone.

I called Citibank and was initially declined for a credit limit increase. The decline was silly as I have stable high income and a long standing high credit score. And I have a perfect payment record with Citibank for so many years.

I requested to speak with a supervisor in the credit department. The supervisor looked at all of the factors in play and did a computer algorithm “override”, approving me for a very high credit limit increase. Perhaps this might work for you?
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mmmodem
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Re: Have Credit Card Limits Dropped?

Post by mmmodem »

I haven't asked for any limit increases but I got a Penfed Rewards Card with a 5 digit limit back in May last year. I also signed up for a Southwest Rewards card which is a Chase card last September with a 5 digit limit. I read on here that the banks would be tightening credit limits. I have not experienced anything yet. So I would say shop for another card.
khram
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Re: Have Credit Card Limits Dropped?

Post by khram »

You're wealthy and high-income it sounds like. I would call them and tell them they can increase it to $10k or close the card and you'll take your business elsewhere.

FWIW Fidelity Visa and BoA Premium Rewards gave me high CLs. Citi gave a pretty decent CL, but I don't think I want to keep it. Not a big fan of Citi.
Pdg88
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Re: Have Credit Card Limits Dropped?

Post by Pdg88 »

Credit card issuers lowered credit limits when we went into a recession last year in order to lower their risk exposure. They are slowly starting to increase limits, but some issuers are doing so faster than others.

I have gotten the impression that Capital One prefers customers who carry a balance and who have lower credit scores so that they can charge higher interest. They also probably don’t like to compete with really big banks for prime customers. If you have a credit score in the 800s and pay your balance every month then you are probably not Capital One’s target customer. I agree with others that you should try opening a card with another issuer.
VictorStarr
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Re: Have Credit Card Limits Dropped?

Post by VictorStarr »

arthurdawg wrote: Fri Apr 30, 2021 11:45 pm And... if the request today doesn't result in a useful limit... what is everyone else using or has anyone had luck in obtaining a better limit at the issuance of a new card or within a year or two? Thanks for any recommendations!
I opened one new credit card in October 2020 - Chase Freedom Unlimited with credit limit of $16K. I was not happy with this relatively low limit so I moved $10K of credit limit from Chase Sapphire Reserve to this new card.

$1K is ridiculously low credit limit. Back in December my daughter applied for a credit card next day after her 18th birthday and was approved for $2K credit limit by BoA.

I would not deal with Capitol One. Can you get another card from BoA? Or may be from Chase.
chalet
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Re: Have Credit Card Limits Dropped?

Post by chalet »

can you load extra money onto the backup card before you travel? maybe load $5k onto the card before you travel. with interest rates so low, you would not lose much interest if you kept an extra $5k on it for a whole year.
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ResearchMed
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Re: Have Credit Card Limits Dropped?

Post by ResearchMed »

khram wrote: Sat May 01, 2021 12:56 am You're wealthy and high-income it sounds like. I would call them and tell them they can increase it to $10k or close the card and you'll take your business elsewhere.

FWIW Fidelity Visa and BoA Premium Rewards gave me high CLs. Citi gave a pretty decent CL, but I don't think I want to keep it. Not a big fan of Citi.
Given that this seems to be the only "back up card" (meaning only 2 charge cards total at this time), I'd suggest getting a 3rd card up and running before cancelling - or threatening to cancel and being read actually to do so - that 2nd card.

Just in case you lose that first card, or there is some possible fraud and it is not useable for some period of time, you should indeed have a backup.

Given your financial situation, why not get started with American Express? They don't tend to have a strict "limit", but seem to allow charged totals based upon past usage (and, of course, prompt payment).
And they tend to deal with card-holder with higher spending patterns, especially for their more "elite" (for lack of better word) cards such as Platinum card or even the invitation-only-ultra-high-fee Centurion card (which apparently has a true "value" for some cardholders).
I obviously don't know precisely how they determine credit "limits", temporary or otherwise. By "temporary", I mean something like making an unusually high purchase based upon recent usage, and perhaps in an out-of-character category or distant location.

Once you get another card, try to use it regularly, especially with some non-trivial purchases, to estable a pattern.

Our Amex cards have an annual fees (that are more than outweighed by perks and awards usage), but I think there are some with no fee...?
However, later, you could open yet another card, one with no fee, and then cancel Amex.

Do keep that first card open and used at least occasionally. That's the longest credit history you'll have for a charge card, and that factors into credit score.

And yeah, that $1k limit is nuts given your stated financial situation.
Upping it to all of $1.1k!? :annoyed

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Katietsu
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Re: Have Credit Card Limits Dropped?

Post by Katietsu »

Look at Doctor of Credit. No experience, but, if I were guessing on the best way to proceed.... Find a card offer with a good sign on bonus for spending $4000 or so in the first few months. You will get the sign on bonus. You will be in the tier of cards where higher spending and therefore higher credit limits are more the norm.
JackoC
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Re: Have Credit Card Limits Dropped?

Post by JackoC »

arthurdawg wrote: Fri Apr 30, 2021 11:45 pm Prior to the divorce my former spouse had a Citibank CC and I had a Bank of American CC. The cards both had around a 30k credit limit and we were each listed as secondary cardholders. When I left I took the BOA account with me. ... I haven't had a mortgage in a while (2013?) and bought my 2015 F-150 with cash. During the divorce proceedings I bought a house with cash. So basically I don't have that many bills on my recent credit report, but I've never missed a payment, and my credit rating hovers in the 810-820 range.

I applied for a Capitol One card in January and was approved and the card came with a 1k credit limit.
That's strange. I play the credit card bonus game to some degree (not as avidly as some) so apply for cards fairly often, my credit score per the things they show you for free (Credit Karma or the score checkers most credit cards sites have now) is a little lower than yours, and one Pen Fed card with $7.5k line is by far the smallest I've been given right off the bat. My old Capital One Quicksilver (which I don't use, that's not a good cash back deal anymore) is $30k and they've never cut it. I have noticed some evidence of tightening of standards since COVID. For example my little LLC got turned down for business cards (I was chasing bonuses) by Chase and US Bank last year, that hadn't happened before. And when BOA has issued me personally more Cash Rewards cards (to get up to 5.25% cash back on special categories $2.5k spend/qtr/card) the last couple of times they wanted to keep total line among cards constant (at $81k), though were willing to apportion it among the cards as I wanted.

It makes sense that credit card companies don't want me as customer either: I never borrow and am often just opening cards for the bonuses. But that's never been manifested in them approving a card then giving a worthlessly small credit limit. Some have specific rules of course by which they turn you down if you've applied for 'too many' including elsewhere, Chase being notorious for that.
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arthurdawg
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Re: Have Credit Card Limits Dropped?

Post by arthurdawg »

criticalmass wrote: Sat May 01, 2021 12:10 am
arthurdawg wrote: Fri Apr 30, 2021 11:45 pm
What is your FICO credit score?

Be sure the big 3 credit report agencies are unfrozen for you before applying for a credit card. Otherwise you may get approved, but with a
very small initial limit.

When the credit card issuers get concerned with non performing assets, they start lowering limits for new accounts and eventually for existing customers. I remember when BoA was slashing limits for a lot of folks (including me) in 2008-2009. But even then the new limit was well beyond my spending patterns and I never bothered asking for more.
My FICO runs in the 810-820 range... I literally haven't missed a payment in probably the last 15-20 years?

I did check go to the annual credit check site and pulled all three reports - no problems on any of them that I could see.

Thanks for all the suggestions! I'm compiling a list and will investigate. And yes:

1) Will make sure I have the new card ready to roll before cancelling the old one.

2) AMEX seems a likely candidate. Ideally, I'd probably go back to what I did when we were married where one card basically had all of the automatic debits, payments, etc., and the other card was the "carrying around card" for everything else. I also put school tuition and things like that on them when I can do it without a service charge for the cash back part of the card. I never run a balance so percentages and all aren't an issue.

3) I'm not sure I'm really a high roller... but when you are in Europe or another card goes down, it is awfully nice to have a backup option to book those new plane tickets back and the like!

I'll also wait to see what CapOne does - they are supposed to send a letter detailing what they will expand in 10 business days. Honestly, unlike some of the other cards mentioned above, the lady said there was nobody else to talk to and they just didn't care if I cancelled. That's what I found most odd!
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Re: Have Credit Card Limits Dropped?

Post by bbqguru »

Agree with the above posts. Try for an Amex or higher-end Chase or Citi card.

Depending on your banking relationship, they may have a card offering that is more "relationship based".

YMMV and FWIW, my main everyday corporate card is at our local bank (large regional size) and they own an issuing bank. If I never need more credit, I call up my banker and the increase it over the phone for however much and long I need. For example, we're building a couple of new trucks this summer and our vendors have all decided to take credit as payment (COVID) and still offer prompt payment terms. About three days into the billing cycle I was already about $50,000 over our limit. A couple of phone calls and I've got a virtually unlimited amount until we're done buying parts this fall.
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Re: Have Credit Card Limits Dropped?

Post by JCH10400 »

I've had a Capital One no annual fee card for many years, but the rewards are no longer competitive so I just use it for one small recurring charge every month and don't carry a balance. Several months ago they sent me a notice that they were dropping the limit from $12K to $5K as I wasn't charging anywhere close to the limit. Since then they have been sending me a few emails a month saying that I'm qualified for an "upgrade" to their travel card with a $95 annual fee. I get the feeling they are looking for customers who don't mind low limits and keep a balance so they pay out small rewards while collecting many times that amount in interest.
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Re: Have Credit Card Limits Dropped?

Post by Rudy Tooty »

I've had an AMEX card forever. My FICO score is maxed out over 800. No annual fee. After I retired and my income fell they cut my credit limit in half. I complained to no avail. Apparently I wasn't charging enough. VISA kept my credit limit intact. So I switched 90% of my charges to the VISA card. Retired seniors - beware.
rich126
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Re: Have Credit Card Limits Dropped?

Post by rich126 »

I believe cap one is notorious for deny cards to people even with excellent credit. I have a ton of cards but I don't think I have ever applied for a cap one cc.

People here tend to be too conservative with ccs. As long as you pay on time the more you use them generally the higher the limits and it is often to get new ones.

Try to get one from chase and see what happens. The only thing I have seen during Covid-19 is that companies are more aggressive at closing cards you don't use.
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Re: Have Credit Card Limits Dropped?

Post by khram »

ResearchMed wrote: Sat May 01, 2021 9:06 am
khram wrote: Sat May 01, 2021 12:56 am You're wealthy and high-income it sounds like. I would call them and tell them they can increase it to $10k or close the card and you'll take your business elsewhere.

FWIW Fidelity Visa and BoA Premium Rewards gave me high CLs. Citi gave a pretty decent CL, but I don't think I want to keep it. Not a big fan of Citi.
Given that this seems to be the only "back up card" (meaning only 2 charge cards total at this time), I'd suggest getting a 3rd card up and running before cancelling - or threatening to cancel and being read actually to do so - that 2nd card.

Just in case you lose that first card, or there is some possible fraud and it is not useable for some period of time, you should indeed have a backup.
That may be, but this person is high-income enough to keep some cash and get by until the situation is resolved. I just don't have much patience for banks that like to play games. When you're in the top 1% (or even 10%), you should own your finances, not deal with a bunch of nonsense you don't want. If you have to pay cash for a while, not a big deal.
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Re: Have Credit Card Limits Dropped?

Post by shess »

arthurdawg wrote: Sat May 01, 2021 10:18 am I'll also wait to see what CapOne does - they are supposed to send a letter detailing what they will expand in 10 business days. Honestly, unlike some of the other cards mentioned above, the lady said there was nobody else to talk to and they just didn't care if I cancelled. That's what I found most odd!
I can't imagine this will be the last time you have a customer-service interaction with them and come away thinking "They don't seem to care to keep me as a customer". You should take them at face value and find a different issuer to form this relationship with. Most issuers aren't great, but at least they pretend to care.

Keep in mind that there's no way for you to see what they are making their decision on. Maybe they're looking at an entirely different set of records than you are because of some screw-up or identity confusion. If this happened with two or three independent issuers, I'd start to worry about it, but if it's just one, I'd apply for some other card and move on. Personally, I'd apply for a Citibank CC, given that you used to be an authorized account holder on such a card.
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ResearchMed
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Re: Have Credit Card Limits Dropped?

Post by ResearchMed »

khram wrote: Sat May 01, 2021 10:47 am
ResearchMed wrote: Sat May 01, 2021 9:06 am
khram wrote: Sat May 01, 2021 12:56 am You're wealthy and high-income it sounds like. I would call them and tell them they can increase it to $10k or close the card and you'll take your business elsewhere.

FWIW Fidelity Visa and BoA Premium Rewards gave me high CLs. Citi gave a pretty decent CL, but I don't think I want to keep it. Not a big fan of Citi.
Given that this seems to be the only "back up card" (meaning only 2 charge cards total at this time), I'd suggest getting a 3rd card up and running before cancelling - or threatening to cancel and being read actually to do so - that 2nd card.

Just in case you lose that first card, or there is some possible fraud and it is not useable for some period of time, you should indeed have a backup.
That may be, but this person is high-income enough to keep some cash and get by until the situation is resolved. I just don't have much patience for banks that like to play games. When you're in the top 1% (or even 10%), you should own your finances, not deal with a bunch of nonsense you don't want. If you have to pay cash for a while, not a big deal.
Of course this person shouldn't be putting up with nonsense like this!
(Few people should, actually... but that's a different issue.)

But they would stlll be well advised to keep that lousy card until they've got another backup card.
Not everything can be paid for with cash right then and there.
Whatever harm is there to keep that card for a bit longer? And then never deal with them again.

Alas, this does match up with other odd reports about Cap One.

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khram
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Re: Have Credit Card Limits Dropped?

Post by khram »

ResearchMed wrote: Sat May 01, 2021 11:17 am
khram wrote: Sat May 01, 2021 10:47 am
ResearchMed wrote: Sat May 01, 2021 9:06 am
khram wrote: Sat May 01, 2021 12:56 am You're wealthy and high-income it sounds like. I would call them and tell them they can increase it to $10k or close the card and you'll take your business elsewhere.

FWIW Fidelity Visa and BoA Premium Rewards gave me high CLs. Citi gave a pretty decent CL, but I don't think I want to keep it. Not a big fan of Citi.
Given that this seems to be the only "back up card" (meaning only 2 charge cards total at this time), I'd suggest getting a 3rd card up and running before cancelling - or threatening to cancel and being read actually to do so - that 2nd card.

Just in case you lose that first card, or there is some possible fraud and it is not useable for some period of time, you should indeed have a backup.
That may be, but this person is high-income enough to keep some cash and get by until the situation is resolved. I just don't have much patience for banks that like to play games. When you're in the top 1% (or even 10%), you should own your finances, not deal with a bunch of nonsense you don't want. If you have to pay cash for a while, not a big deal.
Of course this person shouldn't be putting up with nonsense like this!
(Few people should, actually... but that's a different issue.)

But they would stlll be well advised to keep that lousy card until they've got another backup card.
Not everything can be paid for with cash right then and there.
I'm not sure what can't be paid for in cash. You should have a card for Amazon/other online purchases, but you can use a debit card as well. In order to protect your money, you could open a 2nd checking account and only move money there as needed for spending, just in case it gets hacked. In my travels, other than things you'd pre-book (flights/hotels/cars), I've bought very little where cash wasn't an option. I spent 2 weeks in Europe last year and the only transactions I made while I was there on CC were some hotel snacks and some alcohol/chocolates at a souvenir shop. Both of those I could have easily lived without (and also easily paid cash for). The only thing I can think of is I once lived in an apartment where the communal laundry machines only took credit cards instead of coins. Debit was probably an option, or a pre-paid visa from a gas station, etc. But I'm guessing this sort of thing is not an issue for someone who presumably lives in a nicer place.

If the bank doesn't care for your business, I'd just cut to the chase and close my relationship with them. I am a fan of keeping finances simple, and of not rewarding businesses that are going to annoy me.

If your lifestyle is such that it is dependent upon the existence of credit cards (even though you have plenty of assets/income), there is a larger problem worth solving. Ignoring that problem by putting it off until you get a nicer credit card is not ideal.

On a practical note, you could just make a few queries at various banks. One at BoA, Chase, Citi, Fidelity visa, etc., and see if someone approves you for decent limits. I think the Apple card does a soft pull to tell you your offer and only does hard pull when you accept the offer, though I haven't used it myself. Not the best card if you're not an iPhone user, but it could provide a useful data point.
criticalmass
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Re: Have Credit Card Limits Dropped?

Post by criticalmass »

Rudy Tooty wrote: Sat May 01, 2021 10:39 am I've had an AMEX card forever. My FICO score is maxed out over 800. No annual fee. After I retired and my income fell they cut my credit limit in half. I complained to no avail. Apparently I wasn't charging enough. VISA kept my credit limit intact. So I switched 90% of my charges to the VISA card. Retired seniors - beware.
Amex issues some Amex cards, but Visa is a payment network and does not issue any credit cards. Decisions about credit limits and other account features are made by the card’s issuer, not the payment network.

Some issuers don’t like leaving large unused revolving credit limits lying around if they have concerns with ability to pay.
Wricha
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Re: Have Credit Card Limits Dropped?

Post by Wricha »

USAA gave me $75k limit 20+ years ago and it hasn’t change since. Average around $12k/month
Rudy Tooty
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Re: Have Credit Card Limits Dropped?

Post by Rudy Tooty »

criticalmass wrote: Sat May 01, 2021 12:41 pm
Rudy Tooty wrote: Sat May 01, 2021 10:39 am I've had an AMEX card forever. My FICO score is maxed out over 800. No annual fee. After I retired and my income fell they cut my credit limit in half. I complained to no avail. Apparently I wasn't charging enough. VISA kept my credit limit intact. So I switched 90% of my charges to the VISA card. Retired seniors - beware.
Amex issues some Amex cards, but Visa is a payment network and does not issue any credit cards. Decisions about credit limits and other account features are made by the card’s issuer, not the payment network.

Some issuers don’t like leaving large unused revolving credit limits lying around if they have concerns with ability to pay.
I've never missed a credit card payment in my life. And I pay off the balances at the end of the month. As I mentioned, my FICO exceeds 800. There is no reason for AMEX to believe I don't have the ability to pay. Yet they cut my credit limit in half. As a result, I charge practically everything on my VISA cards now. For every action there's a reaction. VISA offers better deals anyway. Costco won't even accept AMEX anymore.
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ResearchMed
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Re: Have Credit Card Limits Dropped?

Post by ResearchMed »

Rudy Tooty wrote: Sat May 01, 2021 4:11 pm
criticalmass wrote: Sat May 01, 2021 12:41 pm
Rudy Tooty wrote: Sat May 01, 2021 10:39 am I've had an AMEX card forever. My FICO score is maxed out over 800. No annual fee. After I retired and my income fell they cut my credit limit in half. I complained to no avail. Apparently I wasn't charging enough. VISA kept my credit limit intact. So I switched 90% of my charges to the VISA card. Retired seniors - beware.
Amex issues some Amex cards, but Visa is a payment network and does not issue any credit cards. Decisions about credit limits and other account features are made by the card’s issuer, not the payment network.

Some issuers don’t like leaving large unused revolving credit limits lying around if they have concerns with ability to pay.
I've never missed a credit card payment in my life. And I pay off the balances at the end of the month. As I mentioned, my FICO exceeds 800. There is no reason for AMEX to believe I don't have the ability to pay. Yet they cut my credit limit in half. As a result, I charge practically everything on my VISA cards now. For every action there's a reaction. VISA offers better deals anyway. Costco won't even accept AMEX anymore.
Amex has a strict "limit" such that it could be cut "in half"?
I thought it was basically open ended, based upon some proprietary combo of background and usage patterns.
And aren't regular Amex charges due in full each month, absent some other arrangement?

Is this a regular Amex card or one branded with some other vendor?
And doesn't Costco typically choose one card vendor "brand"?

Rm
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averagelonghorn
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Re: Have Credit Card Limits Dropped?

Post by averagelonghorn »

DW and I are doing some renovations on our house, so we applied for several new to us CCs early this year.
We wanted to get 0% interest for a year or more, plus cash back, plus a sign up bonus, plus no fee..... Just to spread out some payments and get whatever we could in bonuses and cash back.

Probably applied to too many all at once, but by far CAP One was the silliest credit limit: 1k each just like OP.... We did get 200 cash back on 500 spend and 15 months 0%interest, so we did use those two cards to buy a few things and grab that sign up bonus, not a bad return, just not the exact use case we envisioned.

When I was analyzing the various cards we could apply for I thought the Cap One card might be a keeper as a backup card (Fidelity 2% is our day to day card), since it had no foreign transaction fee and a perfectly reasonable 1.5% cash back.... I suppose we might still use it for an occasional meal overseas (post Covid-19 and all) but over all it was kind of a bust to even apply for that one.

So basically saying, yea, Cap 1 seems to give you a ridiculously low credit limit, (Or at least they did for us and for OP) so they aren't the best backup card.... There are better options out there, so keep looking and you'll probably find another card that meets your needs better. (DO stick to no fee with some sort of cash back as a baseline, unless you want to get deep in the weeds of comparing benefits to annual fees.... for some it's a serious sport!)

Good luck!
jackbeagle
Posts: 66
Joined: Sat Mar 06, 2021 5:22 pm

Re: Have Credit Card Limits Dropped?

Post by jackbeagle »

It is very possible for the same lender to be cutting the limits of existing users, while extending generous SL's to new customers in the same week.

I have heard through the grapevine (well, perused MyFICOforums) and seen that some banks are closing accounts altogether (Synchony) and some banks are using other tactics such as AmEx limiting the total number of cards per user from a maximum of 5, to a smaller limit, 4.

The responses in the thread range from "we don't have any concrete evidence" to outright denial and refusal to accept that as a possibility. But isn't it strange that, all of a sudden, a surge of users are reporting they are being denied for a fifth card, when historically, the uproar occurred when applying for a sixth?

Banks ARE, in fact, changing things right now. The moves that were made initially in response to the pandemic (reacting to the market contraction) are now continuing to selectively limit their exposure to some customers. These decisions are likely manual ones, made by humans, not automation.
srt7
Posts: 613
Joined: Mon Sep 29, 2014 12:19 pm

Re: Have Credit Card Limits Dropped?

Post by srt7 »

Because they are Capital One and mostly cater to low credit rated/high risk customers (newbies, bankruptcy etc.) You should be playing with the big boys Chase, BofA, Citi, US Bank and of course, AMEX.

To your original question, yes limits have been reduced (Chase) and new accounts aren't given generous limits like in pre-pandemic days.
Marseille07
Posts: 3439
Joined: Fri Nov 06, 2020 1:41 pm

Re: Have Credit Card Limits Dropped?

Post by Marseille07 »

srt7 wrote: Sat May 01, 2021 10:47 pm Because they are Capital One and mostly cater to low credit rated/high risk customers (newbies, bankruptcy etc.) You should be playing with the big boys Chase, BofA, Citi, US Bank and of course, AMEX.
I'm not aware this is true. Chase must be catering all kinds of people because they're the biggest bank.

My credit score is pretty good but I like Capital One because they don't charge foreign tx.
khram
Posts: 176
Joined: Sat Dec 16, 2017 1:36 am

Re: Have Credit Card Limits Dropped?

Post by khram »

CapitalOne may not charge a FTF at a bank level, but plenty of other banks don't at a card level. Off the top of my head, BoA Premium Rewards and Amazon Visa (Chase). If you don't like CapOne for other reasons, FTF is not necessarily a good reason to stick with them as a bank.

And of course Schwab checking with cash. Very little of my foreign spending has been on cards.
bob60014
Posts: 1903
Joined: Mon Jul 31, 2017 8:59 pm
Location: The Land Beyond ORD

Re: Have Credit Card Limits Dropped?

Post by bob60014 »

I opened a AMEX card at the beginning of this year, $25k limit without asking. I also opened a Cap One card late last year and it came with a $20k limit. Definitely not rich, 820 Fico, pay off CC each month, no other debt.

There seems to be no rhyme or reason in how they determine limits. So, the bottom line is, it depends. ;)
Marseille07
Posts: 3439
Joined: Fri Nov 06, 2020 1:41 pm

Re: Have Credit Card Limits Dropped?

Post by Marseille07 »

khram wrote: Sun May 02, 2021 12:00 pm CapitalOne may not charge a FTF at a bank level, but plenty of other banks don't at a card level. Off the top of my head, BoA Premium Rewards and Amazon Visa (Chase). If you don't like CapOne for other reasons, FTF is not necessarily a good reason to stick with them as a bank.

And of course Schwab checking with cash. Very little of my foreign spending has been on cards.
I should have clarified that I like cashback cards without FTF, and I don't like the points system. I'm actually a new customer with CapitalOne, I haven't formed an opinion one way or another. So far, no issues with them though.
khram
Posts: 176
Joined: Sat Dec 16, 2017 1:36 am

Re: Have Credit Card Limits Dropped?

Post by khram »

My view when traveling internationally is not to worry about credit card rewards at all. Make an effort not to pay FTFs, but if you get 1% back or 1.5% or 2% back, doesn't really matter. Like I said, I mostly use cash anyway. Any rewards will be pretty meaningless next to constant dining out, tips, expensive hotels, baggage fees, etc. I know, if you convince yourself you're spending on that anyway, why not get a couple extra dollars in rewards? It's just not worth stressing out about it too much while on vacation. In many places they only accept cash anyway.

The Amazon Visa points are as good as cash if you shop at Amazon. The BoA points also pretty similar to cash, except you have to accumulate a bunch of points before you can use them.
Marseille07
Posts: 3439
Joined: Fri Nov 06, 2020 1:41 pm

Re: Have Credit Card Limits Dropped?

Post by Marseille07 »

khram wrote: Sun May 02, 2021 2:49 pm My view when traveling internationally is not to worry about credit card rewards at all. Make an effort not to pay FTFs, but if you get 1% back or 1.5% or 2% back, doesn't really matter. Like I said, I mostly use cash anyway. Any rewards will be pretty meaningless next to constant dining out, tips, expensive hotels, baggage fees, etc. I know, if you convince yourself you're spending on that anyway, why not get a couple extra dollars in rewards? It's just not worth stressing out about it too much while on vacation. In many places they only accept cash anyway.

The Amazon Visa points are as good as cash if you shop at Amazon. The BoA points also pretty similar to cash, except you have to accumulate a bunch of points before you can use them.
Right. I didn't mean to say I want cashback on international expenses. I want cashback for US purchases, no FTF on international travels. CapitalOne cards happen to provide both, which I like.
MikeG62
Posts: 3691
Joined: Tue Nov 15, 2016 3:20 pm
Location: New Jersey

Re: Have Credit Card Limits Dropped?

Post by MikeG62 »

arthurdawg wrote: Fri Apr 30, 2021 11:45 pm
...And... if the request today doesn't result in a useful limit... what is everyone else using or has anyone had luck in obtaining a better limit at the issuance of a new card or within a year or two? Thanks for any recommendations!
Well you did better with Cap One than I did. Applied twice for their travel rewards card - once in 2019 and once in 2020. Was declined both times. Makes zero sense. Never been turned down for a card before. Very high FICO. Lots of other cards. I moved on.

I don’t think you are going to have success with them giving you a sensible credit limit. For whatever (dumb) reason they aren’t interested in your kind of business. Perhaps they are after folks who carry balances from month to month?

I opened a BofA Premium Rewards CC in Feb of 2020. They opened with what I felt was a low credit limit of $20,000. Planned on using it to replace our general purpose CC (which at the time was our Fidelity VISA with a $45,000 credit limit). Our average monthly spend on our general purpose card is between $6,000 and $8,000. So little risk of reaching the limit, but did not like the fact that near the end of the month (but before the payment processed) we’d be using a large % of the credit limit as we’d have almost two full months of charges outstanding.

So, after several months I called and asked for an increase. The rep asked what credit limit I wanted. Did not want to be a pig so I asked for $35,000. It was approved instantly. Several months later I figured let me take another crack at it. I made the request online to increase to $47,500. It was was approved immediately. I’m good there so no need to ask for more. It’s a nice card too as it’s 2.625% cash back on all charges.

Long way of saying look elsewhere. Cap One doesn’t seem to want the kind of business you and I are bringing for some reason.
Real Knowledge Comes Only From Experience
egrets
Posts: 510
Joined: Sun Jul 05, 2020 2:56 pm

Re: Have Credit Card Limits Dropped?

Post by egrets »

Pdg88 wrote: Sat May 01, 2021 2:13 am If you have a credit score in the 800s and pay your balance every month then you are probably not Capital One’s target customer.
I fit that profile and I've had a Capital One card for several years. I think the original credit limit was maybe $3000 and after awhile I asked for an increase and they bumped it up to five figures.

I have two credit cards and then I applied for an AmEx card since I thought maybe I needed a third one and there was a nice opening bonus. It was refused and when I wrote the CEO some double digit IQ idiot called and said no card, they suspected fraud. I was not able to get any clue as to what would make them think that.
ballons
Posts: 686
Joined: Sun Aug 18, 2019 3:05 pm

Re: Have Credit Card Limits Dropped?

Post by ballons »

You got a divorce, bought a house, and it appears you run most charges through business cards which doesn't report. You look risky to them. Cap1 also sees you spending near your limit increasing utilization. Cap1 also sucks and you should avoid them at all costs unless building your credit.

Banks are in a "use it or lose it" mode for credit. Even those with absolutely perfect credit are getting their high limits slashed for low usage.
pindevil
Posts: 112
Joined: Thu Apr 03, 2014 11:04 am

Re: Have Credit Card Limits Dropped?

Post by pindevil »

There are a lot of other banks out there. Find another and move on. In fact try a couple new banks and see which you like the most.
Cruise
Posts: 1420
Joined: Mon Nov 21, 2016 7:17 pm

Re: Have Credit Card Limits Dropped?

Post by Cruise »

OP: If you wine, dine, and travel, Chase Sapphire Reserve is for you. Put all your restaurant and travel spend on it, save for FHR hotel spend you can put on an AMEX Plat.
vested1
Posts: 2470
Joined: Wed Jan 04, 2012 4:20 pm

Re: Have Credit Card Limits Dropped?

Post by vested1 »

I wonder how long it will be before consumers realize that credit rating bureaus have too much control over our lives, and begin to urge lawmakers to do something about it?

My credit score dropped almost 200 points in a month due to a move from the west coast to the east coast when I had the audacity to temporarily utilize 48% of my credit limit on a Chase card for two weeks during a billing cycle, and paid it off completely before the due date, as usual. I also had two hard credit checks 6 months earlier while shopping for a new car, which apparently was the kiss of death when the high utilization was added.

It took almost 2 years to get my credit rating back to normal, which is the same as the OP's. Never been late on a payment on any bill, always pay the entire credit card amount off every month for over fifteen years. My score just went down 3 points because my utilization went from 4% to 6% due to a current remodel.

Who are these people and why do they have so much power? Is their arrogance when you call really all that necessary?

As for Cap One, I swore never to use them over twenty years ago after they transferred my balance from another card to theirs without my permission. They reversed that immediately after I informed them that my lawyer told me I could now consider it their debt, not mine. They then apologized and cancelled the card.
Grasshopper
Posts: 1092
Joined: Sat Oct 09, 2010 3:52 pm

Re: Have Credit Card Limits Dropped?

Post by Grasshopper »

Ha ha, I have a CapOne World card $30K+ credit limit. In June last year we were going to WalMart so often that I applied for the WM CapOne CC, with 5% cashback the first 12 months. Chuckle, chuckle I was approved for $1500 credit limit. My credit score is over 830. :sharebeer
criticalmass
Posts: 1908
Joined: Wed Feb 12, 2014 10:58 pm

Re: Have Credit Card Limits Dropped?

Post by criticalmass »

Rudy Tooty wrote: Sat May 01, 2021 4:11 pm
criticalmass wrote: Sat May 01, 2021 12:41 pm
Rudy Tooty wrote: Sat May 01, 2021 10:39 am I've had an AMEX card forever. My FICO score is maxed out over 800. No annual fee. After I retired and my income fell they cut my credit limit in half. I complained to no avail. Apparently I wasn't charging enough. VISA kept my credit limit intact. So I switched 90% of my charges to the VISA card. Retired seniors - beware.
Amex issues some Amex cards, but Visa is a payment network and does not issue any credit cards. Decisions about credit limits and other account features are made by the card’s issuer, not the payment network.

Some issuers don’t like leaving large unused revolving credit limits lying around if they have concerns with ability to pay.
I've never missed a credit card payment in my life. And I pay off the balances at the end of the month. As I mentioned, my FICO exceeds 800. There is no reason for AMEX to believe I don't have the ability to pay. Yet they cut my credit limit in half. As a result, I charge practically everything on my VISA cards now. For every action there's a reaction. VISA offers better deals anyway. Costco won't even accept AMEX anymore.
Costco doesn’t accept Amex at the moment because Visa network provided the lowest bid. When the Visa contract is up, a new winner will be announced. Costco gets some extra revenue by bidding such exclusive contracts. But you can still make purchases with Amex on Costco’s website, including buying Cash Cards for in store Costco purchases.

And Visa does NOT set your credit limits, nor do they offer “deals.” Your card issuer (bank or financial institution) does. If you do not know who your Visa card’s issuer is, then look at the bill carefully.

Many issuers will cut large unused /idle credit limits due to economic forecast models. Don’t take it personally.
Rudy Tooty
Posts: 72
Joined: Fri Oct 09, 2020 11:39 pm

Re: Have Credit Card Limits Dropped?

Post by Rudy Tooty »

criticalmass wrote: Mon May 03, 2021 9:46 am
Rudy Tooty wrote: Sat May 01, 2021 4:11 pm
criticalmass wrote: Sat May 01, 2021 12:41 pm
Rudy Tooty wrote: Sat May 01, 2021 10:39 am I've had an AMEX card forever. My FICO score is maxed out over 800. No annual fee. After I retired and my income fell they cut my credit limit in half. I complained to no avail. Apparently I wasn't charging enough. VISA kept my credit limit intact. So I switched 90% of my charges to the VISA card. Retired seniors - beware.
Amex issues some Amex cards, but Visa is a payment network and does not issue any credit cards. Decisions about credit limits and other account features are made by the card’s issuer, not the payment network.

Some issuers don’t like leaving large unused revolving credit limits lying around if they have concerns with ability to pay.
I've never missed a credit card payment in my life. And I pay off the balances at the end of the month. As I mentioned, my FICO exceeds 800. There is no reason for AMEX to believe I don't have the ability to pay. Yet they cut my credit limit in half. As a result, I charge practically everything on my VISA cards now. For every action there's a reaction. VISA offers better deals anyway. Costco won't even accept AMEX anymore.
Costco doesn’t accept Amex at the moment because Visa network provided the lowest bid. When the Visa contract is up, a new winner will be announced. Costco gets some extra revenue by bidding such exclusive contracts. But you can still make purchases with Amex on Costco’s website, including buying Cash Cards for in store Costco purchases.

And Visa does NOT set your credit limits, nor do they offer “deals.” Your card issuer (bank or financial institution) does. If you do not know who your Visa card’s issuer is, then look at the bill carefully.

Many issuers will cut large unused /idle credit limits due to economic forecast models. Don’t take it personally.
Oh, I don't take it personally. I have other cards and lots of other choices. I hope AMEX didn't take it personally when I stopped charging on their card. Again, for every action there's a reaction.
skis4hire
Posts: 28
Joined: Thu Oct 11, 2018 12:54 am

Re: Have Credit Card Limits Dropped?

Post by skis4hire »

Capital One did the same thing to me, must be 6 or 8 years ago now - $1k limit.
I never even activated the card, waste of my time.
They clearly either don't want my business or are undisciplined in their operations.
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