I just received a letter from PenFed they are cutting down my Visa Rewards card limit to $1K from $5K. This definitely seems to be due me be opening a new CC for 0% BT 4 months back. Main reasons they gave were:
-Amount owned on accounts -Proportion of balance to limit on accounts is too high -Length of time accounts have been established
These reason clearly point to new BOA Gold CC I open with put in $11K in 0%, the utilization is just under 90%. I have another US Bank 0% BT at 71% util ($5k out of $7k). Should I take any action to reduce my utilization on mine BT accounts? I was also thinking about moving my US Bank BT to another one since the offer is expiring. Should I just pay that off?
The $1K limit on Penfed won't hurt my usage since I only use it for Gas ($100-$150 a month). I am getting a bit worried about my credit score, since I am sure this action lower it farther.
Just wanted to add, I have 6 other CCs. My overall total CC utilization is about 42%, 18K out of 43K.
Message edited by: unseengundam on 2009-11-07 21:58:29 CST
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unseengundam said:I just received a letter from PenFed they are cutting down my Visa Rewards card limit to $1K from $5K. This definitely seems to be due me be opening a new CC for 0% BT 4 months back. Main reasons they gave were:
-Amount owned on accounts -Proportion of balance to limit on accounts is too high -Length of time accounts have been established
These reason clearly point to new BOA Gold CC I open with put in $11K in 0%, the utilization is just under 90%. I have another US Bank 0% BT at 71% util ($5k out of $7k). Should I take any action to reduce my utilization on mine BT accounts? I was also thinking about moving my US Bank BT to another one since the offer is expiring. Should I just pay that off?
The $1K limit on Penfed won't hurt my usage since I only use it for Gas ($100-$150 a month). I am getting a bit worried about my credit score, since I am sure this action lower it farther.You have $16k outstanding on $24.5k limit (now $20.5k limit). If these are your only three accounts, you are lucky all three havent been closed.
You want to keep your utilization on all accounts combined to well below 50%. But these days, any large balance is reason for issuers to cut credit - so you may want to consider just paying one or both off, if you want to avoid any further adverse action.
My Total utilization (all CC combined) used to be under 33%, until the credit crunch started. However, right now total utilization is around 42%, 18K out of 43K. I have a Chase Freedom CC, which is regular used, usually has 2k balance out of 10k limit. Then there are 5 other CC with $0 balance and a total of $18k credit limit. Total about 18K used out of 43K. Last year, I lost about 5-7k of credit mainly due card not being used. When I started AOR in 2007 everything fine with Penfed even though I near 100% Utilization on many of my cards. These days things with the AOR/0% BT are going down hill (for me atleast)
The issue is, I would like keep doing my 0% BT and get interest on the free money. Best way to use the BT CC is to have high utilization, otherwise I am not really putting all the free money to interest bearing accounts. Guess an option would be to just stop doing 0% BT...
Message edited by: unseengundam on 2009-11-07 21:55:30 CST
unseengundam said:My Total utilization (all CC combined) used to be under 33%, until the credit crunch started. However, right now total utilization is around 42%, 18K out of 43K.
When I started AOR in 2007 everything fine with Penfed even though I near 100% Utilization on many of my cards. These days things with the AOR/0% BT are going down hill (for me atleast) .Lets make it clear, your problem has nothing to do with AOR...
At 43k, Your total combined credit lines are very low.
Had you acquired MORE cards in the days of easy credit, and made use of the simple CLI strategies, your total credit lines would have been much much higher and your utilization % would be lower. And then youu wouldnt have the current issue at all.
In reality, your problem isnt that you have too much BT money, $18k is peanuts.
your problem is that you dont have enough credit, and other little used large credit lines to offset the ones being used.
Message edited by: SUCKISSTAPLES on 2009-11-07 23:20:09 CST
At 43k, Your total combined credit lines are very low.
Had you acquired MORE cards in the days of easy credit, and made use of the simple CLI strategies, your total credit lines would have been much much higher and your utilization % would be lower. And then youu wouldnt have the current issue at all.
In reality, your problem isnt that you have too much BT money, $18k is peanuts.
your problem is that you dont have enough credit, and other little used large credit lines to offset the ones being used.
I see it as a combination of all, not just low credit available.
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