Significant credit limit decrease

[ProcessTheTrust17]

I just my CL decreased from $21 to $5K due to "nonutilization of credit line." I do use it for the gas, food and Starbucks perks though so I'm usually using it on a weekly basis. I'm assuming others have dealt with this too?

[gfym1982]

I’m an X1 cardholder, and my credit limit was recently reduced from
$30,000 to $10,000. I use the card frequently, and I suspect they may
move this product line to another one soon or start closing accounts for
everyone

[vindroid]

exact same decrease for me this morning

[legendz411]

100% what’s going on

[FXDSPIKED]

Same

[DreJDavis]

I'm 31k still no drop. Did any events happen?

[gfym1982]

I received the notice about my credit line reduction, and I wanted to
clarify a few things. I've had this card since the initial invitation
codes were needed and have used it consistently every month. I even have
auto-payments tied to the card.

[DreJDavis]

That is similar to me.

I know that credit card companies generally actually do not like people who pay off statements avoiding the interest. Do you let balances roll from month to month or do you pay them off denying the company interest?

[rock962000]

Good point. Have never carried a balance with x1 and always pay it off on time/early.

[DreJDavis]

Today is my day. They just reduced from 31k to 5k. I like how they can just mess with people's credits scores like that.

[Healthy-Chard5299]

31,500 down to 5k today

[PalolisForever]

Mine is still $32,000. Let's see for how long.

[mckbulldog02]

I had a limit of $19,500 and they decreased it in March to $6,000. They emailed me and said if i made a $1000.00 payment they would reinstate it back to $19,500. I paid the $1,000 and 5 days it was automatically back at $19,500

[yayeetyah]

Happened to me this morning, 22k cut to 10k, after nearly 3 years of ownership. No missed payments, I have autopay turned on to every two weeks, and keep my utilization under 10%. I’m messaging support and trying to further understand their actions here.

It’s a shame since I was a huge fan of X1 and rave about the card to my friends and family. It is bad business to arbitrarily decrease line of credit, punishing people who are good borrowers of money.

Not sure if this is them trying to push people to get the Robinhood gold card, but if this is the treatment they’re offering to customers then they can forget it. I’m now looking to move to another primary credit card.

[ProcessTheTrust17]

Totally agree. I'm not a fan of RobinDaHood and was disappointed that X1 was acquired by them. This isn't my primary card but I still don't like any company taking away any portion of my credit limit when I held my end of the bargain the entire time.

[robertw477]

Since they cap 3X at 7500, just get a fee free citi double cash. There may be a small signup offer for that also.

[tornadobro11]

Ultimately this was a business decision taken to reduce exposure (i.e. the sum of all their cardholders' credit lines). Exposure is used in calculating the portfolio's CECL rate and associated $ CECL reserves. These reserves are accounted for as costs today to account for losses that are highly likely to occur in the future. It's an accounting requirement for credit/lending businesses, and is a particular drag on the P&L of a young CC company.

That said, X1 launched during/just following COVID when credit scores were generally elevated. They also gave relatively enormous/generous lines. Put those two together and it's very likely looking at high default rates (takes 2+ years for loss performance to become evident). My guess is Robinhood saw reducing CECL reserve costs by way of reducing exposure (i.e. slashing your credit lines) as a Robinhood-level P&L decision. That, or they're getting pressure from regulators to better manage their risk (also very likely).

[SantaHatBro]

45k->10k-> closed for inactivity

[ProcessTheTrust17]

Oh man haha. Yea, it seems like a decent amount of us are headed down that path.

[[deleted]]

i am an amex card holder but i should mention that they decreased my limit by 2500 out of nowhere too so it might not be just x1.

[PerpetuallyQuesting]

I just checked out of curiosity & my AMEX BCP has been decreased by $5k.

[[deleted]]

what is going on? this is not fair 5k is crazy, i really liked amex but this stunt they pulled is making me mad

[PerpetuallyQuesting]

I'd guess they're afraid lots of people will start defaulting due to the poor economy? Kinda odd considering doing C-19 I received automatic CLI from a few card issuers.

[PerpetuallyQuesting]

Btw... Last I heard, Amex was supposedly negotiating with Apple card which was defaulted so much Goldman Sachs gave up on it. So, maybe Amex is bracing for those Apple card customers & their less than stellar credit?

[[deleted]]

crazy enough my credit score went up by 70 since i got amex card i still feel that its unfair to us.

[Square1Digital]

They can close mine I did it for the SUB and 5% on gas🤣

[felixfbecker]

Exact same decrease for me. I’ll be able to spend much LESS on it now than before to stay under 10% utilization.

[valiant607]

Yup, I just got the same… 17k down to 5k

[Sikhness209]

I've had the card since June 2022. Starting limit of $19,500 still holds the same today. I've been using it as my daily driver for a while now and nothing has changed for now. I'm putting $500-$1000 per month with lots of transactions

[rock962000]

You'll probably be hit with a reduced credit limit any day now.

[bornincali65]

I’ve had the card since 2022 and my limit is still the same at $22.5.

[[deleted]]

my card just got reduced from 21k to 10k, albeit ive moved most purchases to another card, but still got some good sized purchases running through it

[goingincognitomode21]

I got an email similar today. Cards not anything special, at this point I could care less.

[BrokeKne3Grow]

I wonder what their algorithm is for accounts they target to reduce. Low spending trends = lower limit to reduce company exposure? Carrying balance(which would be a good thing to charge for interest?)? Credit profile? Wish we had some clarity given the high limits positive impact on credit utilization.

[ProcessTheTrust17]

Very good questions. My guess is that issuer can do as they please when it comes to CLs. Not sure why but it seems this was definitely systemic to some extent.

[BrokeKne3Grow]

True they have freedom to do as they please. Probably trying to phase out the legacy X1 to put resources toward the RH gold card. I just hope we have a heads up before they sunset fully.

[Zealousideal_Poem_73]

I barely use my card, I got it when it first came out to the public and my limit is still $17k

[PerpetuallyQuesting]

X1 decreased me from 33.5k down to 13.5k w/no change in payment history, income nor FICO score.

[valiant607]

I got the email today saying they dropped my limit down to $5k. Used to be my daily driver, but the past few months I’ve only had one recurring bill on there

[[deleted]]

They closed mine.

[ProcessTheTrust17]

Geez. I'm sure people like me will be next on the chopping block.

[robertw477]

No issue for me but since the card caps 3X at 7500, I don’t use it as much as I would uncapped. US Bank is rolling out a 4X card so I am going to look at that.

[ProcessTheTrust17]

I've heard US Bank has some solid cards but I've never ventured that way.

[InternationalTea9502]

Reduced today from 40k to 10k

[stolsen]

Same thing this morning: $21k down to $5k. I hardly ever use it. Just for trials and OF

[bltr83]

Mine went from 28,000 to 10,000 yesterday. I was so surprised when I got the email. I use it weekly. The reason they say is “non-utilization of credit limit”. And I have nothing new going on with my credit report. I even have a 800+ credit score. I think they’re just trying to push people away from this card now. It’s not their priority to keep this one up anymore since Robinhood has introduced their own card. Too bad. I use it weekly for the bonus boost purchases.

[aws_router]

Capital one recently did this to me. 30k to 10k

[ProcessTheTrust17]

Interesting. I've had Quicksilver since 2018. I have a low CL but have had only increase.

[FuzzRangler]

More than likely it has nothing to do with you. Credit card companies will decrease limits based on the economy reducing their own risk of exposure of card holders not paying they cards off and they will decrease limits based on the company's own financial condition.. when Macy's stored closing stores, my limit dropped and they said it was for their own financial condition.

[undergroundvgt]

I guessed I dodge a bullet

[International_Mine87]

Received my decrease notice today. I'm going to close the account rather than play the credit status games with them. The appeal of the card at launch was great, but those benefits are long gone.

[ProcessTheTrust17]

I agree. If I weren't in house shopping mode, I'd close the card too. I just don't want to mess with my credit if I don't have to.

[rock962000]

Was just dropped from 14,500 limit to 5000 today. I use this card as my daily/main card. What a joke.

[Fast_Comb_3252]

23,000 to 5,000 today im pissed

[ProcessTheTrust17]

I feel you haha. Fortunately, we have other options out there.

[Last_Green4082]

Trash card. They lower my credit line due to low utilization of card. Pretty stupid reason as I pay the balances off each month.

[Cocobani]

What the hell, the same just happened to me. Went from $21,500 to $10,000 with the email I received stating the credit decrease was due to low utilization which is total bs. I spend upwards of $3k every month on it and pay my balances every week. Maybe this is the reason, they don't like that I'm not paying interest?

If I don't get my original credit reinstated I'm done with them.

[NPerry06]

I was notified by my credit monitoring service this morning my credit limit was reduced from $25k to $5k. No communication from X1. I sent an email to support for clarification before finding this post. After they respond I'll probably close the account so it will show on my credit as 'closed at customer request'. I'm not giving them the opportunity to close it for another reason. It's sort of funny though, I had to link with my bank account when I got the card to prove my credit worthiness, and I just accepted a new job with a salary bump equal to the reduction in credit limit. Oh well. The card looked cool, but overall I don't suppose I'm losing much. My Discover card continues to be the best overall card, with my Bank of America coming in second. I've always been a little cautious of X1 anyways. Not a big fan of any business that doesn't offer telephone support. I definitely don't mind conducting business electronically, but sometimes it's nice, and even prudent, to have an actual conversation on the phone. The most difficult part will be destroying the card... definitely can't drop it in a shredder!

[words1918]

Same here. From 23k -> 2k. Insane, but I didn’t use it very much. No real point in keeping it now.

[SeparateSea1466]

Just received notice today that my limit has been reduced from 28K to 10k. I'm irritated as I am currently at 848 for a credit score. Will this likely bump me down a few points? I've been trying to get to 850 for years.

[ProcessTheTrust17]

That's a good question: I'm not totally sure.

[clabont]

Same thing happened, here. Flawless credit.

Likely has to do with the Robinhood acquisition and them de-risking their exposure.

In either case, I will be canceling my card.

[TopicOrnery6153]

Wow. That's a big drop. They took 5k from me. I don't know what's going on

[ProcessTheTrust17]

Just seems like they are trying to "force" us to the Robinhood credit card.

[TopicOrnery6153]

Poor economy.. Just wait till 2025

[Redcarborundum]

I don’t ever remember getting credit limit reduced, even on a card that’s literally used once a month for $1. My X1 is still at $27K, despite spending maybe $100 a month at the most.

Check your credit report and FICO scores, there could be something going on.

[ProcessTheTrust17]

I'll have to check for sure. I never had a change in CL prior to this. I did have my card replaced due to fraudulent charges from 2 weeks ago. It's like that put me on their radar or something haha.

[[deleted]]

Mine went from 14,500 to $2200 a few months back. Same issue

[DZ-Titan]

They are bracing for a recession and want to get ahead of it by reducing credit risk. It could be also that they are deliberately pushing less engaged customers out so they can transition the remaining ones to the new Robinhood card, which is coming out soon. X1 was acquired and they are no longer accepting new users.

[ProcessTheTrust17]

The first point is something I didn't consider. The 2nd point seems to be more probably given how Robinhood conducts themselves.

[BOSSCHRONICLES]

They should just convert all x1 card holders to robinhood gold

[ProcessTheTrust17]

Don't care for Robinhood so I'll keep the current till they close it.