Each of us lives only now, in this brief instant. The rest has been lived already. So make the most thoughtful choices you can today that will lead to a better future.
Steve's Thought of the Day
Stop drifting and hoping a magic solution will appear. Instead, you can participate in rescuing yourself. Find peace by pursuing facts through trusted advisers and research rather than the blind trust of salespeople trying to sell you something by almost any means necessary.
Steve's Thought of the Day
Make decisions to deal with your debt with logic and facts, not assumptions, and worry about what other people will think. People who judge you will soon be forgotten. Nobody thinks about anyone that much.
Steve's Thought of the Day
The world is nothing but constant change. Your life is only a perception. Choose a way out of debt based on facts, not assumptions. Do what is best for your future because those that judge you will not feed you.
Steve's Thought of the Day
Do you have a greater responsibility to repair your financial past or your financial present and future? Make good choices that allow you to tackle your debt and immediately start building your emergency fund and saving for retirement. Tomorrow will be here before you know it. Lost time is a sin.
Steve's Thought of the Day
There is no sense in wasting a perfectly good financial mistake. Instead, learn from it and do better moving forward. The past is gone. Turn and face the future now.
Steve's Thought of the Day
Those who judge you for past financial mistakes are not your friends. So don't make choices about your future out of fear of what they may think. Instead, make choices based on truth, fact, and what is best for you moving forward from today.
Steve's Thought of the Day
Don't believe everything you think. Challenge your assumptions about getting out of debt. Do what is best for you, not others.
Steve's Thought of the Day
Is it less moral to file bankruptcy or to not take action that leaves you old, broke, hungry, and dependent on others?
Steve's Thought of the Day
If bankruptcy is so bad, why did our Founding Fathers specifically include it in the U.S. Constitution as protection for financial difficulties?
Steve's Thought of the Day
Maybe it is time to read what the Bible really says about bankruptcy instead of listening to the assumptions of others. Throw out your misperceptions and you'll be fine. (And who is stopping you from throwing them out?) - Marcus Aurelius
Stop listening to people that say bankruptcy is a last resort. It is neither first nor last. It is a tool like credit counseling, debt settlement, and others. For the best result, you need to use the right tool for the job.
Steve's Thought of the Day
People that tell you to avoid bankruptcy want to sell you something else are repeating something they heard or do not know what they are talking about. Get the facts and then make your own decision. Don't let an unskilled script-reading commissioned salesperson make life decisions for you.
Steve's Thought of the Day
Debt problems are like fingerprints. No two are alike. A one-size-fits-all solution will give you a one-size-fits-all result. You deserve better.
Steve's Thought of the Day
You are not your debt. Your value, self-esteem, and existence should not be defined by the money troubles you may be facing right now. Debt problems are solved with proper action, not guilt, self-hatred, and disgust.
Steve's Thought of the Day
Debt is nothing more than math wrapped in emotion. The math is easy, the emotional part leads us to do impulsive things. Not the right thing.
Steve's Thought of the Day
What type of money personality do you have? It is important to know. Take my online test now and discover how you unconsciously deal with money, credit, and debt.
Steve's Thought of the Day
How much retirement savings are you willing to throw away by dealing with your old debt instead of preparing for your financial future? Find how much you will lose by making the wrong choice. Use my online debt repayment calculator now.
Steve's Thought of the Day
Does it make more sense to ask for life-altering debt advice from an unskilled and untrained commissioned salesperson in a call center or an experienced debt coach like Damon Day that provides a customized solution for money troubles?
Steve's Thought of the Day
Throw out your misperceptions and you'll be fine. (And who is stopping you from throwing them out?) - Marcus Aurelius
Chase Bank Lowers My Credit Limit As I Make Payments Each Month. – Josh
Chase Credit Cards are cutting my limits as I pay off the card saying the same thing each time.
Do You Have a Question You'd Like Steve to Answer? Click Here.
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.
Sincerely,
You are not alone. I'm here to help. There is no need to suffer in silence. We can get through this. Tomorrow can be better than today. Don't give up.
Do you have a question you'd like to ask me for free? Go ahead and click here.
10 thoughts on “Chase Bank Lowers My Credit Limit As I Make Payments Each Month. – Josh”
My question is that if Chase lowers the limit without looking, then wants to pull your credit rating, is it worth it to face their scrutiny or leave it alone? I know my limit inrease request(more like restoration to former limit) will be denied, so why have an inquiry on there unless I’m sure? Isn’t dumping them bad also? I have no debt but want to maintain good credit and they decreased me to $ 500 for not using it. Semms like I lose either way.
The limit was $2000.00 reduced to $500.00, no balance on it, never carried one in the past. I’m thinking I’ll just continue to use American Express, also no balance, and leave it alone.
I don’t see any advantage in pushing the limit back up other than possibly improving your overall debt to credit ratio if you are carrying balances on other cards. If you want to keep the card open and take advantage of your credit history length on that card you should use it from time to time and you can pay the balance off monthly.
It’s wise to keep it open. Any creditor can close any card, at any time, for any reason.
My Chase card has been completely paid off to $0 due for 6 months and in 12 years has never been late or in default. My reward? they dropped my credit limit from $9000 to $500. If that’s the treatment you get for following the rules and paying on time then I can live without Chase Bank.
I won’t trust an Institution that while barely paying its own bills punishes those who do.
I feel your pain. I have ALWAYS paid my Chase mortgage as well as credit card on time. Proudly got to pay it off last month. It was a 2800.00 limit, and we had it right up to 2700. Paid it off, and with ZERO notification they dropped it to 500.00 limit! NICE! I closed the account. Screw them.
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.
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.
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.
My question is that if Chase lowers the limit without looking, then wants to pull your credit rating, is it worth it to face their scrutiny or leave it alone? I know my limit inrease request(more like restoration to former limit) will be denied, so why have an inquiry on there unless I’m sure? Isn’t dumping them bad also? I have no debt but want to maintain good credit and they decreased me to $ 500 for not using it. Semms like I lose either way.
Well at the end of the day it is their card anyway. Are you carrying a balance on the card and if so what is the limit on the card?
The limit was $2000.00 reduced to $500.00, no balance on it, never carried one in the past. I’m thinking I’ll just continue to use American Express, also no balance, and leave it alone.
I don’t see any advantage in pushing the limit back up other than possibly improving your overall debt to credit ratio if you are carrying balances on other cards. If you want to keep the card open and take advantage of your credit history length on that card you should use it from time to time and you can pay the balance off monthly.
It’s wise to keep it open. Any creditor can close any card, at any time, for any reason.
Steve
My Chase card has been completely paid off to $0 due for 6 months and in 12 years has never been late or in default. My reward? they dropped my credit limit from $9000 to $500. If that’s the treatment you get for following the rules and paying on time then I can live without Chase Bank.
I won’t trust an Institution that while barely paying its own bills punishes those who do.
I feel your pain. I have ALWAYS paid my Chase mortgage as well as credit card on time. Proudly got to pay it off last month. It was a 2800.00 limit, and we had it right up to 2700. Paid it off, and with ZERO notification they dropped it to 500.00 limit! NICE! I closed the account. Screw them.
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.
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.
I agree with all the other Chase customers. Chase stinks.
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.