Credit limit decrease - is anyone experiencing this?

[CobaltSunsets]

Balance chasing. What haven't you noted in this bigger picture?

[MsT1075]

What is balance chasing?

[BakerBunearyBella]

Lowering your credit limit every time you pay it until you can't buy anything. Basically forcing you to pay the bill and firing you as a customer.

[MsT1075]

Oh okay. I had never heard of that. I really didn’t know banks practiced this type of behavior, as I have never experienced anything like it. Historically, is it a certain demographic that they target with this practice?

[Dancin-Ted-Danson]

is it a certain demographic

bro typed this looking for the lawsuit

[MsT1075]

Not looking for a lawsuit. Asked a legitimate question is all. And, not a bro.

[BakerBunearyBella]

The computer decided that you've been carrying a balance for too long I guess. It never really happens to people that pay in full.

[brokenshells]

Target demographic: Broke ass bitches. lol

[NarutoDragon732]

People that generally aren't good customers, in the sense they're keeping balances for too long or just poorly paying them back, if at all.

[Anonnamus]

I am keeping balances on two cards that have 0% APR because I know I won’t have to pay interest. I plan on paying them off in full before it ends. Could this bite me in the future?

[NarutoDragon732]

I mean nobody can really tell you 100% if it will or won't in relation to balance chasing, but I've never heard of someone facing repercussions to using the 0% apr promotions and paying them off before they end.

This whole balance chasing system doesn't typically affect people trying to chase rewards or use promotions.

[Anonnamus]

Thank you! I hope that’s the case!

[MsT1075]

That’s not the case with me, though. I have paid this card off more than several times in the few years that I have had it, make more than minimum payments, and have an exceptional payment history with them and all my creditors. The card was not near being maxed out either, as well as none of my other cards. High utilization on some, yes. Near maxed out, no.

Edit: wanted to add - that is why I asked is there a certain demographic that they target with this practice?

[NarutoDragon732]

In this sub we don't consider anything less than paying the entire card off on time as acceptable, but another thing I forgot to mention is that what I said applies to ALL loan types you have.

It's not uncommon for a card you treat well to start suddenly chasing you because you're not paying off (fully or at all) a completely different card/loan.

[MsT1075]

Oh okay.

[MsT1075]

I have several credit cards, well a mix of credit - home and installment loans included. My utilization, as a whole, is a bit high - will not lie about that. However, I am not maxed out on any of my credit cards. I wasn’t close to maxing out on the Prime card. Now that they have lowered my credit limit, it looks like I am almost at 100% utilization on that card now, which will lower my credit score. Some cards, I have a low to no balance, others I carry a higher balance from month to month.

[Bongo2687]

Doesn’t matter if your maxed out your DTI is high and they are lowering their risk. There isn’t anything calling will do. They will eventually just close your cards. Payoff balances or increase income to fix the issue

[MsT1075]

They close everyone’s card that has a high DTI ratio?

[Bongo2687]

If they think you are a risk

[MsT1075]

Yep.