I got this nastygram from Capital One today. They want to play hardball? Comments?
Dear NAME,
We’re writing to let you know about an upcoming account review scheduled for October 2024.
Over the last several months, the highest balance on this account has been significantly lower than your credit limit. Because of this, your credit limit could be decreased following this review.
If your credit limit is decreased as a result of this review, we’ll notify you and make sure to keep your credit limit significantly above your highest balance from the previous two years.
You can opt out of this review if you anticipate the spending activity on this account to change.
Simply call 1-844-422-7183 by October 11, 2024 and follow the prompts.
Thanks for being a Capital One customer. We look forward to continuing to serve your needs.
I called the number (an automated attendant) and opted out of the account review. That’s all I had to do. It wasn’t spam, the letter was in my account inbox.
JUST WEIRD. They want to generate customer engagement, but with a fist inside of the glove? That whole entire process makes me feel really devalued. I’ve had the card for 14 years. I spend about $250 a month on it. Not good enough for them?
It’s a boilerplate letter they all use. On the odd occasion I’ve received one I just called and told them I didn’t want them to mess with the credit limit. It’s always worked.
@ochotona – Thanks for sharing this with the community!
These letters are becoming more common as card issuers are taking inventory on their risks in an era that has incredibly high credit card debt numbers. Unfortunately, that means some of us who are good and responsible customers get hit with these boilerplate letters.
Opting out is a perfectly fine choice and may have been the correct call in your life.
But, while we’re on the topic, I do want everyone to be aware of the potential impact a credit limit reduction could have on credit scores. A percentage of your score is impacted by what is called a “credit utilization rate” … so the higher your total available credit is vs. a small usage = higher score. So, from that aspect, it may be important for some consumers to ask what is required to avoid the limit reduction.
Hope this helps someone. Thanks again for sharing with the community!
I can believe this is happening in the greatest economy in our history. Don’t listen to the politicians, look at what businesses are doing. They seem to be getting prepared for something.
I got a similar letter. NBD. They had given me an enormous credit line - $40,000 - and I wasn’t using anywhere close to that. After their credit review, they dropped it down to $10,000, still well beyond my monthly spending level.
Conversely, other cards that I’ve stopped using have left the lines open, with some of those also having five-figure credit limits.
My wife and I have three credit cards, 20 years with zero debt, no late fees and 780 to 830 credit scores and always pay CC charges 10-15 days ahead of due dates.
In 2020, during the Covid pandemic, one CC company lowered my wife’s CC from $25k to $5k with no notice. From that point forward we limited purchases on that card to less than 30% of the $5k limit.
This year we’ve received multiple requests from that CC company to update our income info so they can increase the spending limit. I put in current income, mortgage info, etc. (Interestingly their form would not accept zero as a monthly mortgage payment, so I put in $1.) and a couple of weeks later they sent us a letter asking for proof of income in writing like tax records, W-2s, etc. I ignore those requests. So they keep their silly $5k limit on the card and we use our other two for 99% of our CC purchases.
I’d cancel the card if it were not for the fact it is a travel rewards card with 50,000 miles on it.
Wow nasty. Have never seen such a letter, though I have had limits cut, but only BoA where i once had over 40K limit on one card. They seem to be attuned to trimming.
C1 though, is DIRT around here. Several years ago I tried for a quick silver I think and they sent me a grubby entry level platinum with a $600 credit limit. After several months I tried again and got a QS but with a $500 limit! And oh sorry sir your card DOES NOT QUALIFY for the cash back we offered after spending a thousand!
Bottom line, C1 soiled my credit report. 800+ still but “too many” inquiries. HALT, CEASE, and DESIST I say! It took over a year to get mention of those off my credit report, and I will do ZERO biz with them.
I also received the same letter a few months back. Like you, have used this card for years without any late payments great credit score…etc…etc. My first thought is Capital One has financial worries since they recently dropped the Walmart Card they offered from Walmart. I never called and they did drop my credit limit. I still use them because of the virtual card they offer, which is great for streaming services I sign up for, but I might forget to cancel after the free trial.
My concern is that in retirement, after my income decreases, so will my credit score if these CC issuers play this “use it or lose it stunt”. Has that been the experience of retirees?
