Chase Bank Lowers My Credit Limit As I Make Payments Each Month. – Josh
 | By Steve Rhode Ask me your question. |
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Josh wrote to me through the GetOutOfDebt.org site and asked the following question. If you have a credit or debt question you’d like to ask just use the online form. I’m happy to help you totally for free.
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“Dear Steve,
Chase Credit Cards are cutting my limits as I pay off the card saying the same thing each time.
So, Chase has been cutting my limits despite me having a solid 720+ credit rating. Seems like every time I send in $500 they cut my limit proportionately. They claim my balance has grown too much in each letter, always saying the same thing. However, I’ve done nothing but pay down my debts. Is using the same excuse to cut my limits legal?
Josh”
Dear Josh,
They could cut your credit limit because they say you have toe cheese. The reason why is not important. They cut it becuase they can.
I think that since you get the same letter each month your balance is just above an amount they want to see it at and the reduction and letter happens automatically.
It’s not personal, it’s not you, it’s just Chase saying they don’t value your business or you anymore.
Big hug.
Source: Chase Bank Lowers My Credit Limit As I Make Payments Each Month. – Josh
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Comments
Comment by 
Comment by Chris I would like to know Steve’s credentials. He gave such a fantastic explanation as to why the credit limit was lowered. But on a serious note, Chase is cutting limits across the board. They need to do this in order to limit their exposure to any credit risk, thus, they can keep less money in reserves for potential losses. I personally have a 794 FICO, my brother and father are both in the mid 700’s with good thick files. No recent inqueries, no derogs, no new loans, and no closures for any of us. They lowered all of our limits. Many banks are doing this to make themselves look stronger on the books as far as leverage is concerned. I have been the banking industry for a while now, specifically in the large national bank unsecured credit card divisons. This is how it works.
Comment by R.burn Chase has messed with me and my credit score at just the time I want to purchase a house. They lowered my limit after I paid off most of my balance. I’ll never do business them again.
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Hi Steve,
Paying off credit cards only to see my interest rates raised and my credit lines cut (which lowers my score) is beyond discouraging. I’m starting to think of debt settlement–not through a debt settlement company, but by talking to companies myself. What is the short- and long-term impact of debt settlement? Will it wreck my score forever, or just for a few years? So many people are in the same boat… It seems like the banks will have to be more forgiving or that the credit scoring system will have to adjust to debt settlement. What do you think? Thanks so much for the help you’re offering all of us.
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