Go Back  FlyerTalk Forums > Miles&Points > Credit, Debit and Prepaid Card Programs > Chase | Ultimate Rewards
Reload this Page >

Is Chase reducing credit limits for no fault of the cardholder?

Is Chase reducing credit limits for no fault of the cardholder?

Old Jun 14, 20, 6:09 pm
  #1  
Original Poster
 
Join Date: Mar 2017
Posts: 1,029
Is Chase reducing credit limits for no fault of the cardholder?

I have a Chase Marriott card which I have not used for quite a long time; initially because I was unwell and later because Covid-19 killed all my travel plans. Now I got a letter from Chase that they are lowering my credit limit (which was admittedly quite generous) by 50%. Surprised because I have never had any issues with the card. Is this something they are doing because I have not used the card for some time or because they are generally concerned that with the economy taking a dive folks will be unable to pay their bills?
puchong is offline  
Old Jun 14, 20, 7:15 pm
  #2  
 
Join Date: Jan 2006
Location: ELP
Programs: AA EXP/LT GOLD, RC PLAT PREM
Posts: 4,007
Happened to my wife also .. we rarely use the card. Keep it as a backup to the Amex.
anaggie is offline  
Old Jun 15, 20, 1:44 pm
  #3  
FlyerTalk Evangelist
 
Join Date: Jul 2003
Location: Florida
Posts: 28,483
Standard practice by the banks during hard time. Happened in 2008/2009. And it is not just Chase, but Citi, Capital One, BofA, US Bank, Barclays, all do the same to limit their exposure. Nothing to be alarmed and definitely nothing personal.
SPN Lifer and Boraxo like this.
Happy is offline  
Old Jun 15, 20, 9:53 pm
  #4  
FlyerTalk Evangelist
 
Join Date: Jan 2005
Location: home = LAX
Posts: 25,167
Originally Posted by puchong View Post
I have a Chase Marriott card which I have not used for quite a long time; initially because I was unwell and later because Covid-19 killed all my travel plans. Now I got a letter from Chase that they are lowering my credit limit (which was admittedly quite generous) by 50%. Surprised because I have never had any issues with the card. Is this something they are doing because I have not used the card for some time or because they are generally concerned that with the economy taking a dive folks will be unable to pay their bills?
Originally Posted by anaggie View Post
Happened to my wife also .. we rarely use the card. Keep it as a backup to the Amex.
Datapoints on another site implied that Chase may only be doing this to people who only have a single Chase credit card (not a bunch of different Chase credit cards). For each of you, is this your only Chase card? Thanks.
sdsearch is offline  
Old Jun 15, 20, 10:42 pm
  #5  
 
Join Date: Feb 2018
Location: Flyover Country
Programs: Hilton Diamond, Free Range Airline Chicken
Posts: 137
Quite a bit of blogger chatter about this, it is a thing. Both because of fear of default, and also because the bank has to keep cash in reserve for each dollar of credit limit they give, so a large credit limit that isn’t used is tying up their capital for no return.
Mike B is offline  
Old Jun 16, 20, 10:26 am
  #6  
 
Join Date: Jan 2006
Location: ELP
Programs: AA EXP/LT GOLD, RC PLAT PREM
Posts: 4,007
Originally Posted by sdsearch View Post
Datapoints on another site implied that Chase may only be doing this to people who only have a single Chase credit card (not a bunch of different Chase credit cards). For each of you, is this your only Chase card? Thanks.
Wife only has that Chase Marriott card
I have had the Ritz card for years and I have a business Marriott
anaggie is offline  
Old Jun 16, 20, 11:07 am
  #7  
 
Join Date: Oct 2016
Location: SBA
Programs: UA Gold 1MM, Marriott Gold, IHG Plat, Hertz PC
Posts: 677
Originally Posted by sdsearch View Post
Datapoints on another site implied that Chase may only be doing this to people who only have a single Chase credit card (not a bunch of different Chase credit cards). For each of you, is this your only Chase card? Thanks.
I only have a single Chase card, the IHG one I got last Oct. No credit limit changes.
tstauck is offline  
Old Jun 16, 20, 10:13 pm
  #8  
 
Join Date: Mar 2009
Location: PHX
Programs: HHonors Lifetime Diamond, UA Million Miler Gold, Marriott Platinum
Posts: 1,062
Think about it from Chase view. If you have a card but have not been using it ......then start using it there is a fear of default. Pretty common sense. Glad to see a bank being smart
HawkeyeFlyer is offline  
Old Jun 18, 20, 9:43 am
  #9  
 
Join Date: Apr 2017
Posts: 28
Originally Posted by HawkeyeFlyer View Post
Think about it from Chase view. If you have a card but have not been using it ......then start using it there is a fear of default. Pretty common sense. Glad to see a bank being smart
What? If you haven't used a card, there should be zero fear of default.
ConstellationClass is offline  
Old Jun 18, 20, 10:17 am
  #10  
mia
A FlyerTalk Posting Legend, Moderator: American Express, Citi, Diners Club, Signatures
 
Join Date: Jun 2003
Location: Miami & London
Programs: AA & Marriott Perpetual Platinum; HH Gold
Posts: 42,390
Originally Posted by ConstellationClass View Post
What? If you haven't used a card, there should be zero fear of default.
If you abruptly start using a dormant account, one explanation is that your other sources of credit have been depleted or withdrawn.
mia is offline  
Old Jun 22, 20, 11:17 am
  #11  
 
Join Date: Oct 2004
Location: IND
Programs: Marriott Lifetime Titanium
Posts: 218
Received the same letter for a Chase Freedom and called them today. Was told that since I called within the 30 days they would leave the credit limit as is.
SPN Lifer, sdsearch and Drewm33 like this.

Last edited by cjw2001; Jun 22, 20 at 11:19 am Reason: add detail
cjw2001 is offline  
Old Jun 22, 20, 3:53 pm
  #12  
FlyerTalk Evangelist
 
Join Date: Aug 2009
Location: ZOA, SFO, HKG
Programs: UA 1K 0.9MM, Marriott Gold, HHonors Gold, Hertz PC, SBux Gold, TSA Pre✓
Posts: 12,826
Originally Posted by puchong View Post
Is this something they are doing because I have not used the card for some time or because they are generally concerned that with the economy taking a dive folks will be unable to pay their bills?
Both. Account cancellation/CL reduction is a thing regardless of hard time or not. But COVID-19 has definitely accelerated its happening.

FWIW - it may best if you simply close the card if you don't really use it.
garykung is offline  
Old Jun 22, 20, 4:31 pm
  #13  
 
Join Date: Aug 2004
Programs: AA (EXP), Hilton (Diamond), SPG (lowly Gold)
Posts: 7,778
Originally Posted by sdsearch View Post
Datapoints on another site implied that Chase may only be doing this to people who only have a single Chase credit card (not a bunch of different Chase credit cards). For each of you, is this your only Chase card? Thanks.
I have a bunch of Chase cards. They cut my credit line in half on two of them (Hyatt and Marriott) that I haven't used in a long time, didn't touch the BA one that I used a year ago, nor did they touch a Freedom cash back nor a Slate. I haven't used the Slate in many years.

Originally Posted by HawkeyeFlyer View Post
Think about it from Chase view. If you have a card but have not been using it ......then start using it there is a fear of default. Pretty common sense. Glad to see a bank being smart
I don't think it's going from not using a card to using it as much as going from minimal credit line utilization to larger. You could have a card that you charge a tiny amount on every month and pay it off each statement. If you suddenly charge near the maximum, that's a huge red flag, regardless if you use the card or not.

Originally Posted by cjw2001 View Post
Received the same letter for a Chase Freedom and called them today. Was told that since I called within the 30 days they would leave the credit limit as is.
Awesome, I will try that, thanks. Which number did you call?

EDITED TO ADD: called just now on the two cards that were lowered. Agent said the credit lines weren't lowered yet, the accounts were just "notated" to be lowered, and if I preferred to keep the lines the same, she would "notate" that and then the lines wouldn't be lowered.

Last edited by anabolism; Jun 22, 20 at 4:55 pm
anabolism is offline  
Old Jun 22, 20, 4:47 pm
  #14  
FlyerTalk Evangelist
 
Join Date: Aug 2002
Location: Iintermountain West
Programs: Too many to list
Posts: 10,601
Originally Posted by garykung View Post
...

FWIW - it may best if you simply close the card if you don't really use it.
I keep a few cards open to help with AAoA, even if they are rarely, if ever, used.

CITI closed one of my a cards a couple years ago for non use.
philemer is offline  
Old Jun 28, 20, 12:51 pm
  #15  
 
Join Date: Oct 2019
Location: PDX, OGG or between the two
Programs: AS MVP Gold
Posts: 696
Interesting subject - I have two Chase cards that I use regularly and pay off each month. Business card gets 12-15K charged per month and has 58K limit. Personal card gets 5-7K each month and has a 33K limit. I haven't heard anything and the limits have remained constant.

I am sometimes surprised how high the limits are and how many other (non-Chase) cards that I haven't used in years remain open. I have 4-5 others that I forget I even have until I take a deep look at my credit report once a year or so.
mtofell is offline  

Thread Tools
Search this Thread
Search Engine: