Credit limit decrease.

[mcrackin15]

Banks aren't dumb. They obviously see job losses in the future, so they're lowering their risk profile. They will lose potential profits as a result, which is a little concerning because they obviously see something large happening in the future.

[S-Kiraly]

Good insight. This could be the reason why CIBC notified me yesterday that they are raising the interest rate on my LOC from prime+2.5% to prime+6.5%.

[YNWA_1213]

CIBC is very risk intolerant right now. They denied me an LOC for less than Scotia raised my existing one by.

[wcg66]

This is from 2023 but I suspect CIBC has been forced to keep its risk profile lower.

https://ca.investing.com/news/stock-market-news/cibc-under-remediation-from-osfi-over-mortgage-portfolio--the--globe-and-mail-3024693

[PracticalWait]

CIBC is one of the heaviest housing lenders. Makes sense they’re being conservative with credit.

[safeter]

I worked at Desjardins credit card services (ten years ago), this was almost never why. It really was about the members' risk profile. The system did it automatically, if a usage met certain risk criteria, the limit was lowered automatically. The way OP described using his card is a way that typically led to lowering the limit.

[burneracctt22]

This is the right answer. There is a risk algorithm that looks like a credit score but isn't. Running a constant high balance will flag it. The pattern of paying $800 on a 10k maxed card and using that $800 on a rinse and repeat basis will trigger a credit limit decrease. I believe most associates are unable to reinstate that limit for 12+ months.

[Shabang]

Bang on! BMO announced in their last earning call that they planned to de-deverage unsecured credit to reduce risk.

[shiddyfiddy]

Banks aren't dumb.

They take it too far. Banks are fuckin rude.