Change in credit limit

[swamp]

I got a notice from my Chase Disney card they are lowering my credit limit to $7,000 because of my use pattern.  I have no idea what the limit was previously. 

I use my AmEx for the daily spending and pay it off every month.  It's got the best cash back rewards. 

I also have a few other cards, but the Disney card is my back up for places that don't take AmEx.   It's hooked to my kids' school lunch account, my son's nintendo account (yes, he pays me back in cash if he buys something), and the CVS online pharmacy.    The highest bill I can remember on it was $400.  Last month was $86. 

Should I panic?  Is the world ending?  Does this even matter?  Will it increase my already 800ish credit score because I now have access to a smaller line of credit? 

Should I even care? 

[minnesotapaintlady]

Mar 3, 2023 12:07:48 GMT -5 swamp said:

  Will it increase my already 800ish credit score because I now have access to a smaller line of credit?

If anything, it would decrease your score because your usage to available credit ratio would increase.  But in reality, this is probably not going to matter at all.  I churn cards, so have a lot of lines and have had this happen occasionally on cards just sitting around or only charging one or two things a year just to keep them open.  If you were young with just a couple accounts to your name and your credit limit was cut by 10 or 20K out of the blue it might be different, but I'm guessing you have a pretty long since established history that won't be so easily rattled by something like this.  You can always go open up some new cards to increase your available limit. 

[NoNamePerson]

they are lowering my credit limit to $7,000 because of my use pattern.

Years ago I had a card close my account due to lack of use. Two months later the other cards I had upped my limits!! Credit scores/cards are like a bouncing ball - catch me if you can! 

[CCL]

I wouldn't give it much thought. I've had cards reduce my credit lines or even cancel them if not used for a year or 2.

I only use my Disney card for vacations or Disney Store, which hasn't been for a couple years. They haven't changed anything for me. I think my limit is $10k or $12k. I should go check. We have a few other accounts with Chase, so maybe that's why they havent changed it?

[Cheesy FL-Vol]

One of DH's cards dropped 9K for the same reason.

[Tiny]

One way to look at the risk -

Do you have other Credit Cards - other than the AmEx and the Disney card that have a credit limit greater than 7K?

As in, what if you needed to charge 4K or more in a single billing cycle AND you couldn't put the transaction(s) on your AmEx do you have a enough space on your other cards so you are at less than 1/2 utilization on the card(s)??

Having a lower credit limit - may negatively impact your FICO score. It's all about utilization when you have all the other bases covered for keeping a good credit score.


I've been hemorrhaging money since January - and had some of the biggest CC bills I've ever had (my bills are typically $600 or less a month - maybe 1K a couple times a year.) I have money to pay the bill in full. I've been trying to optimize cash back and due dates. If I have to watch money leave faster than I'm earning it - I want every little "reward" or interest from my Ally account that I can get.

I had to pay attention so I didn't put a total of 5K on a card that only had a 7K limit... I have other cards with 10K plus limits (and similiar rewards).

Normally I would NOT worry about it effecting my score for a month or so... but I have insurance renewals (Jan/Feb/Mar) at the same time... I'm not sure if they pull a credit score/report (or some abbreviated form)  or not. So far nothing unexpected with my insurance renewals. 

I haven't staunched the cash outflow yet. Thank goodness for an EF and good handle on my spending plan/budget and having an overall financial plan/goal. Everything will be OK when the dust settles.

I didn't want to trigger any sort of red flags with the MUCH bigger bills for my other handful of credit cards.  I'd like the cards to more or less stay the same - same credit limit same rewards program same other benefits. 

[TheOtherMe]

For some reason, my Discover card has $20,000 limit.  That's where I charged dad's hearing aids and put other large expenditures like that.  Usually pay them off before the end of the billing cycle, but it dings the score for a month or two.

[susana1954]

American Express did the same to me over a  year ago., cutting it from 16k to 8k  I have the EveryDay card and only charge groceries that I buy at real grocery stores (not WM).    I spend about $150 a month.

It irritated me at first, mostly because I have 35k in personal savings with them.  It had no effect, though, on my credit score that I could tell.

Life went on.

[Rukh O'Rorke]

Mar 3, 2023 12:07:48 GMT -5 swamp said:

I got a notice from my Chase Disney card they are lowering my credit limit to $7,000 because of my use pattern.  I have no idea what the limit was previously. 

I use my AmEx for the daily spending and pay it off every month.  It's got the best cash back rewards. 

I also have a few other cards, but the Disney card is my back up for places that don't take AmEx.   It's hooked to my kids' school lunch account, my son's nintendo account (yes, he pays me back in cash if he buys something), and the CVS online pharmacy.    The highest bill I can remember on it was $400.  Last month was $86. 

Should I panic?  Is the world ending?  Does this even matter?  Will it increase my already 800ish credit score because I now have access to a smaller line of credit? 

Should I even care? 

check your credit report JIC?

[tractor]

I would panic 😊, mainly because it could mean the Disney doesn't love me anymore...actually the credit limit is probably meaningless given your credit score. I have a similar score, but my Disney visa has a $30k limit...not that I've ever even come close. They might be lowering my next?

[minnesotapaintlady]

Lowering limits and closing unused lines is really common for credit card companies to do when inflation is high and they are worried about a recession and people running up debt they can't pay.  The economy has been pretty wonky lately and they're probably getting spooked.

[saveinla]

I Had Amex do that to me a couple years ago and Chase Amazon card just let me know this . It will be a ding for a few months, but when you have a high enough score and don't need to borrow money, que sera que sera.