Doesn’t the creditor have to notify the card holder in advance of a credit line decrease? Can they just cut it without telling you and let you go on your merry (spending) way? I keep my utilization very low but what about the poor souls who do not?
I have only had my Discover card do this and they notified me ahead of time, but not very far ahead of time. I was right at 30% utilization before the decrease and it bumped me to 36%. Their reasoning was that I wasn’t using it enough and only making minimum payments on the balance. Alrighty then. Now I don’t use it at all.
Interesting, we have never had a warning or a notification of a credit line decrease due to low usage or minimal payments. If we did not use the card, they just sent us a letter saying they were closing the account and that was ok with us. We do have a backup cc that has a transaction every 3 months with a decent credit limit. It is there in case it is needed or there is a rare problem with the other cc.
