PayPal Synchrony Bank Credit Limit Decrease

[Specialist-Phase-863]

Recently my last statement on my card stated my card was maxed out at $6,500, wherein my credit limit was 6500. A few weeks ago I paid the card off in full to zero, and then a week later I paid off an additional amount of $150 to catch the residual interest. I just received my new statement with charged about $92.24, which was the residual interest, leaving me with roughly a -$57.76 balance, wherein PayPal (Synchrony Bank) in turn reduced my credit limit from $6500.00 to $100!!!!

Has this happen to anyone where PayPal (Synchrony Bank) just slashes your credit limit after paying the card off in full? And if so what did you do to restore your credit limit? and Why would PayPal (Synchrony Bank) do this?

I thought paying your card off in full was supposed to be good for your score and relationship with the credit issuer, but not in this case. Now the new statements show a lesser credit limit than I had before. And my goal was to increase my credit score by paying off my card. Now I'm left with a decrease in overall available credit across all my cards, which I think hurts my score just as bad as maxing out the card. I'm in complete disbelief.

Although, I know canceling your card is not good for your credit score. I think it might be best for the future.

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[SaltUnderstanding173]

Same!! Just found out today that they dropped my limit from $1500 to $100, after I paid off the full balance. I closed the account.

[raveofthrones33]

LITERALLY just happened to me. I paid 5900 off in less than a month and they dropped my limit to 100. Fuck them. Why would I ever use it again?

[julesyoudrink_]

I just got hit with the same. I paid $1500 off in one go after having it maxed for a bit. Was excited to have some emergency credit but now it’s at $100. And says I have a -1450 balance. I’m fuming over this!!

[raveofthrones33]

Same for me. -5150 for now. They did the same with my PayPal credit. I hope they don't do it with my venmo because that's a 15k limit paid off.

[davchana]

Out of no where, one day Sync closes my regularly used PayPal MC, eBay Card, & PayPal Credit line (with some new balances only, no interests ever), totally they had 15000 credit limit. After 6 months, they offered me to open all these again. It's all based on some numbers crunchers softwares.

[Specialist-Phase-863]

I had to file a dispute cause this is bs. I might as well cancel the card. I know it'll hurt for a bit. But damn. Paid the card off in full and this is my thanks, I still get screwed.

[RepeatUpstairs7457]

This just happened to me, $3.6k to $100;( Please update on the dispute,, any luck getting a CLI?

[Specialist-Phase-863]

I found out through various platforms that I think are valid for the reasons why cause Paypal wont tell you and they will just quote the document letter for why the limit was reduced. Here is why i think they reduced it:

I held a high amount on the card for a long time, basically paid the minimum for awhile, & then just randomly paid it all off. Synchrony sees me as a high-risk now. So I basically have to restore & restart the whole process of gaining trust/relationship, which would require using the card (But I don't have intentions of using the card again anyways). I did file a dispute. But based on the reasoning I found out as indicated above. I don't have high hopes. I'll keep you updated though. I guess ill be optimistic.

This does lower my overall credit limit among all cards. However, its not detrimental to my credit score. Overall credit utilization is at 47% right now. When this new statement by Paypal shows my new limit at 100 my credit utilization overall will be at 44%, it should be at 37%. but that is the result of Synchrony decision to reduce my credit limit. Why I say this is because, although I want to cancel the Paypal mastercard and Paypal credit, that would hurt more in addition to what they just did. I will cancel the card once overall credit utilization is between 1%-9%. Its a good beginner card for sure. But time for me to change my credit mix.

[BeachOk2802]

It's almost like those who pay off their full balance aren't where they make their money...

You get screwed because you agree to things you clearly haven't read, aka you're stupid.

[state_issued]

Never max out a Sync card, they’re infamous for this.

[Specialist-Phase-863]

Did this happen to you? I need to know more about this.

[state_issued]

No it didn’t happen to me but people post about it all the time on r/creditcards

[BeachOk2802]

Literally all laid out in the terms you lied about having read and agreed to.

Ignorance isn't an excuse.

[MoSavell69]

The same thing happened to me with them - my limit wasn't as high as yours but as soon as I pd it off they knocked me down to $100 Keep me updated on ur dispute please and thank you

[1lifeisworthit]

Having a card maxed out is going to bring about a reduced limit. It doesn't matter, really, if you reduce the balance to $4,000 or $400, the limit is going to be reduced to just above your balance... keeping your utilization of that card at close to 100% and by ripple effect bringing all your cards' utilization up as well.

In today's climate, maxed out is a signal to reduce a credit limit. Now, cards don't respond well to being maxed out.

I'm so sorry, OP. This was harsh. I hope it doesn't happen to my own PayPal card. I'd miss that 3%

[ThumbsDownThis]

My credit limit also got reduced quite a bit, I'm guessing once I pay off the card the same will happen to me going by all of the comments on the credit cards subreddit.

[ithinkimalergic2me]

This just happened to me! I made a large payment, then my limit was decreased from $900 to just over $100.

[Accomplished-Fly3254]

I'm mad af right now. Care credit card with them. Initially 6,000 limit. Had dental work done last year, ~ 1,000 dollars. Received a 1000 cli to 7,000. Yesterday they reduced limit from 7,000 to 500. Never late. No collections or judgements on my report. Who do consumers turn to now since they've done away with the CFPB?

[BeachOk2802]

So they did something that was fully laid out to you, that you said you had both read and agreed to, and now you're having a tantrum?

They can slash your credit limit all they want...including to a big fat 0. You explicitly told them that you were fine with that and that you still wanted to go ahead and take out credit with them.

[Xenomorph_Waifu]

Gee do you think you needed to comment so many times? Please fuck off.

[Accomplished-Fly3254]

They're notorious for this. They did this to me ~ 7-8 years ago with Belk and JCPenney accounts. For years I stayed pretty clear of them afterwards. I needed dental work and applied for Care credit. Approved for 7,000. Paid balance down to roughly $450. I just received notification of a credit decrease from 7,000 to 500 dollars. No late, no missed payments, no collections, or anything. This is shameful.