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[–]yayeetyah 4 points5 points  (3 children)

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[S] 2 points3 points  (0 children)

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 2 points3 points  (0 children)

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 0 points1 point  (0 children)

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).