๐ณ Learn more about Brianโs Top Picks๐ http://bit.ly/JungyBestOffers
๐ณ Top No Annual Fee Cards๐http://bit.ly/2K9vvGu
Click "Show More" to see Ad Disclosure
๐ Investing | MY Daily Investing & Crypto Apps:
โช Acorns Easy $5 ๐ http://bit.ly/2UDPvYl
โช Crypto.com An Easy $50 ๐ https://platinum.crypto.com/r/1w5ev2if5d
โชRobinhood : 1 Free Stock ๐ http://bit.ly/2VacQAB
โช 2 Free Stocks Webull ๐http://bit.ly/FreeWebull
๐ตEasy Free Cash For You
$75 Sofi ๐ https://www.sofi.com/invite/money?gcp=cee34eb5-37c3-4b58-9cdb-7a02675146a3
Ebates: The Best Cash Back Website ($10.00 Referral Link) ๐ http://bit.ly/2ItToJ9
Plastiq: The BEST service to MAXIMIZE points ($500.00 Referral Link) ๐ http://bit.ly/2UFIMx9
Grubhub $12 Off First Order๐http://bit.ly/JungGrub
โช $55 Off your next AirBnb Trip ๐https://www.airbnb.com/c/brianj187?cuโฆ
Advertiser Disclosure: Some of the card links and other products that appear on this website are from companies which Brian Jung will earn an affiliate commission or referral bonus. Brian Jung is part of an affiliate sales network and receives compensation for sending traffic to partner sites, such as CreditCards.com. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). This site does not include all credit card companies or all available credit card offers. Some offers may no longer be available or expired from the date of the published video. The information in this video was not provided by any of the companies mentioned, and has not been reviewed, approved, or otherwise endorsed by any of these entities.
๐ง My 2020 Youtube Gear, Everyday Carry, Nutrition, Books, & Everything Else ๐ https://www.amazon.com/shop/brianjung
๐ My Go To Shirts: https://cutsclothing.com/BRIAN_JUNG
Credit Card Referral Links ๐ณ
๐ณ Top Business Cards๐http://bit.ly/2YWA8YQ
๐ณ Top Travel Reward Cards ๐ http://bit.ly/2QwhCDz
๐ณ Top Cashback Cards: ๐ http://bit.ly/2VWsCva
๐ณ Top 0% Intro APR Cards ๐ http://bit.ly/30Uswry
๐ณ Top Balance Transfer Cards ๐http://bit.ly/2I5G374
๐ณ Top Cards for Military: http://bit.ly/MilitaryCreditCards
๐ณ Top No Annual Fee Cards๐http://bit.ly/2K9vvGu
๐ณThe Card Match Tool: http://bit.ly/CardMatch1
๐ท Instagram @creditbrian ๐ http://bit.ly/Creditbrian
๐ Linkedin ๐ http://bit.ly/2UnnZt8
๐ฅ FB Group๐ https://www.facebook.com/groups/Creditsociety/
Blogs:
My Personal Blog ๐ https://www.brianjung.co/
The New Credit Society ๐ https://thecreditsociety.com/
๐ณ Top No Annual Fee Cards๐http://bit.ly/2K9vvGu
Click "Show More" to see Ad Disclosure
๐ Investing | MY Daily Investing & Crypto Apps:
โช Acorns Easy $5 ๐ http://bit.ly/2UDPvYl
โช Crypto.com An Easy $50 ๐ https://platinum.crypto.com/r/1w5ev2if5d
โชRobinhood : 1 Free Stock ๐ http://bit.ly/2VacQAB
โช 2 Free Stocks Webull ๐http://bit.ly/FreeWebull
๐ตEasy Free Cash For You
$75 Sofi ๐ https://www.sofi.com/invite/money?gcp=cee34eb5-37c3-4b58-9cdb-7a02675146a3
Ebates: The Best Cash Back Website ($10.00 Referral Link) ๐ http://bit.ly/2ItToJ9
Plastiq: The BEST service to MAXIMIZE points ($500.00 Referral Link) ๐ http://bit.ly/2UFIMx9
Grubhub $12 Off First Order๐http://bit.ly/JungGrub
โช $55 Off your next AirBnb Trip ๐https://www.airbnb.com/c/brianj187?cuโฆ
Advertiser Disclosure: Some of the card links and other products that appear on this website are from companies which Brian Jung will earn an affiliate commission or referral bonus. Brian Jung is part of an affiliate sales network and receives compensation for sending traffic to partner sites, such as CreditCards.com. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). This site does not include all credit card companies or all available credit card offers. Some offers may no longer be available or expired from the date of the published video. The information in this video was not provided by any of the companies mentioned, and has not been reviewed, approved, or otherwise endorsed by any of these entities.
๐ง My 2020 Youtube Gear, Everyday Carry, Nutrition, Books, & Everything Else ๐ https://www.amazon.com/shop/brianjung
๐ My Go To Shirts: https://cutsclothing.com/BRIAN_JUNG
Credit Card Referral Links ๐ณ
๐ณ Top Business Cards๐http://bit.ly/2YWA8YQ
๐ณ Top Travel Reward Cards ๐ http://bit.ly/2QwhCDz
๐ณ Top Cashback Cards: ๐ http://bit.ly/2VWsCva
๐ณ Top 0% Intro APR Cards ๐ http://bit.ly/30Uswry
๐ณ Top Balance Transfer Cards ๐http://bit.ly/2I5G374
๐ณ Top Cards for Military: http://bit.ly/MilitaryCreditCards
๐ณ Top No Annual Fee Cards๐http://bit.ly/2K9vvGu
๐ณThe Card Match Tool: http://bit.ly/CardMatch1
๐ท Instagram @creditbrian ๐ http://bit.ly/Creditbrian
๐ Linkedin ๐ http://bit.ly/2UnnZt8
๐ฅ FB Group๐ https://www.facebook.com/groups/Creditsociety/
Blogs:
My Personal Blog ๐ https://www.brianjung.co/
The New Credit Society ๐ https://thecreditsociety.com/
So guys, I've actually been seeing a lot of news from our Facebook group of users. Getting credit limit decreases on their account. What we're gon na do in today's video is talk about credit limits, the recession, why it may get lowered, why it may actually go higher and just explain to you guys exactly what is going on now, just as easy as it is to get a credit limit Increase you can also get a credit limit decrease by not doing anything at all. You know if I get hit with a credit limit decrease, I'm definitely gon na be like taken back.
I I might get a little offended if they did decrease the credit limit that I do have on my accounts, just because it's kind of like, like, like y-you, know like like why I'm definitely seeing that a lot right now with some of our users. It actually has not happened to me yet, but I do expect this to happen more often to other people holding credit cards so with the recent news of the pandemic and the recession and the stock market hit an all-time lows and then jump in all-time highs. In a single day, there's definitely a lot of crazy stuff going on right now, with in the economy and with in the world of personal finance. Now, when we're talking about credit limit decreases, I really don't think this is an uncommon thing, especially when people's credit score start dropping or maybe their their credit report.
Identity got stolen or maybe they have very irregular spending habits and the banks just don't know. What's going on with their accounts, credit limit decreases have happened forever. This is not a completely new thing. People often do get credit limit decreases, but this often happens to people who also have like weird stuff going on their account now.
This is very just an interesting topic to talk about when people have completely perfect. Like 850 credit scores, they've never had an issue paying off any of their cards, and then they get hit with a credit limit decrease. Now this actually isn't the first time this has happened back in 2008 during the financial crisis, a lot of credit cards. Consumers also got this.
They actually got a credit limit decrease on their account and the main reason why this happened was because the bank's wanted to minimize a risk that they had. So when we're getting money when we're getting a credit limit increase. This is really just a nota promise that we're gon na pay off this amount. We're gon na lend money, we're gon na borrow money, but we're also gon na be able to pay off that amount.
When individuals get a very high credit limit, it often puts a higher risk on these banks, especially during times of financial uncertainty. Here's the best example I can give just think about someone who has lost their job, who has lost almost everything. They can't pay their bills and real one of the easiest ways to borrow money instantly cash at hand without liquidating anything without applying for a temporary loan or going through SVA or or just trying to find money. Usually, the easiest way to get an access of money is through the credit cards that people have it's already in their wallet. You already have access to it, you don't have to apply for anything and it's something. That's always been there now. The main issue with that is that people who often have a high credit limit and they lose their source of income they lose their job, will often resort to that credit card. But what ends up happening is when you put all your debt, when you put all that balance when you put all your purchases on your credit card, when you have no income and you drive up that debt, if it really goes into more extreme circumstances, and this Individual right here goes into bankruptcy and and they have to send it to collections, it's a lot more work for these credit card companies to retrieve that money that they may never get back.
So that's really the main reason why a lot of people right now may be seeing some credit limit decreases now, if you're an individual who does have a good relationship with these banks and they did decrease your credit limit significantly, where you actually start seeing a decrease In your credit score, maybe because your utilization goes up or your total balance just goes down and you're, just not seeing a positive reflection on your personal credit report. I always recommend you guys to call the banks and let them know usually when this happens. It's not a human just going through and clicking on every single profile. Like you get a ban, you you go down, maybe you only go down $ 1,000.
You go down $ 10,000 because I don't like the way you look it. That's not how it works. Usually the way this whole system works is just by an algorithm people don't have enough manpower to do that. It's a waste of time.
Usually an algorithm will do this. I don't know exactly how the algorithm works, but one of the things I do know is that they do make exceptions. So if you do see a credit limit decrease on your account because of a potential recession or whatever state we're in right now, if you do see a credit limit decrease, don't be afraid to call the banks and let them know so. I've seen other reports inside of our Facebook group, where people have had their credit limit decrease, but when they called them, they usually got a responsive.
Look. If you just pay off, your balance will restore it to where it was that that really right, there is a pretty good way for the banks to still allow you to keep that money and work off that money and also not be able to decrease your limits. All the way, my biggest tips to you - guys, not trying to get a credit limit decrease on your cards is make sure you are not that irregular. With your spending that you already do so people often forget these banks.
These credit card institutions, these these apps. They have so much data on us and when banks have this much information on us and they don't know the amount of money that's actually coming in, it really can be a very risky situation, especially for someone lending or borrowing money out. So you know the best example for this I think for me is like I used to have this one friend back in rugby practice, who used to always ask me for money. He used to always ask me like yo: can you spot me, 20 bucks B and I'd be like look bro like you. Didn't pay me back the last time. I don't know if I want to do it this time and I think over time like when he was actually able to pay me back, and I lend him money, but sometimes you wouldn't be able to as someone who was lending money out to my friend in The back of my mind, because he didn't pay me back that one time for that small amount, maybe even five bucks it made me not want to lend him money again in the future. So I think really that's just a good way to put it. You know we always got a friend out there, who's asking to get a little bit of a spot, but you know they not the best at repaying that amount.
That's just what the situation reminds me of, so I would actually go ahead and decrease his credit limit ability of borrowing money for me subconsciously and say: look bro like I yeah you're, not you're, not letting any more money for me, but there are other people in My life, where, if they have a good history of being able to spot pay back money, give it back and do the process. That's kind of, like our internal personal human credit report, scale that we have amongst our peers. So, even if a person has like a perfect credit score and they've always paid me my money back if the economy is just going down, if we're about to be in a recession, if I'm not even sure, if I'm about to make income, then it really makes Me not want to be able to lend other people money out. Just because of I don't know what's gon na go on, I don't know you know if they want the money and then they run off.
I don't know if maybe I'll run off like who knows. What's happening, and I think this is really the mindset that a lot of these banks and financial institutions have right now, no one knows exactly what's gon na happen, no one, no one knows for sure. What's gon na happen, we're really in this state right now, this gray area this limbo, where people aren't sure if we're gon na recover, if we're just gon na, be in the worst financial like the great great depression like we really don't know how bad it may Get guys as the economy continues to decline, don't be surprised to see a credit limit decrease on your account. This is why I always say: diversify: diversify, diversify.
I should just have that in my Instagram bio just just diversify, because that's that's what I say so much diversify the cards on your account. So if you have ten cards, chances are. If you get a credit limit decrease on one of those cards. It's not gon na matter a whole lot but say you only have one credit card, that's your main daily driver and they decrease the credit limit on that by 80 %. Say say that was it say you know they do that you're pretty much screwed. So biggest thing, I recommend you guys check out my other videos on how to get credit limit increases check out my other videos on how to get a proof for any credit card out on the market. Make sure you guys diversify, stay safe out. There stay smart and I hope I see you guys the next one, Oh drop a like if you guys haven't already please.
Thank you. Alright I'll see you guys the next one peace you.
As soon as the pandemic started I didn't hesitate, I filed chapter 7 bankruptcy IMMEDIATELY. That got rid of $36K of credit card debt. I got discharged by May 2020. Now I have two lines of credit, one secured and one unsecured so a total of around $4,000 in credit line less than a year after filing BK. Good thing is that I don't have the mountains of credit card debt holding me down and my Debt to income ratio is extremely low.
I pay on time, I have been paying more than minimum pay, American Express decreased credit limit, I am so angry, because it effected my credit score!!!!
I just got my CC debts cleared successfully by Mitch0222 on ยกnstagrgram. That man is a life saver
Go shop with @Darkphate on telegram he is the best imhe have been helping me with card for about three months now and he never disappoint me in any of my delivery
Citi just decreased my credit limit from $4,300.00 to $500.00! I am still employed and always paid it off before the closing date. Guess I'll use my other 6 cards and Citi can piss-off.
Could my credit cards lowerv my limit if I paid in advanced for the limit (secured credit card)
Pay off your balance? Bullshit. I had no balances at all and amex still cut my limits from $5000 to $1000. Not even capital one has reduced my limits
I understand with you but not billion dollar banks scamming people and making them homeless
My credit is not good BUT I WAS PAYING MY BILLS BACK AND TRYING TO FIX IT. JUST PAID US BANK 5 GRAND BACK THEY TOOK IT ALL AND DECREASED ME TO 1000 DOLLARS. IF YOU ARE GOING TO STARVE LIKE ME THEN WBY DO THE RIGHT THING WHEN YOU GET PENALYZED FOR DOING THE RIGHT THING. BEWARE OF US BANK
Guys donโt worry!!! According to our President the economy will roar โvery nicelyโ and better than before (today the stock market lost more 1800 points), the government is claiming that will do anything to help the American people (after crying about the $1200 given in the first stimulus package theyโre taking more than 3 months to prepare a second stimulus because Congress is on vacation while the American people are suffering), credit cards are there to help us (after gettin bailed out in 2008 and screwing us over in 2020 theyโve got the nerve to lower the credit limit even with current customers). This whole system is rigged!!!!
My SEARS Shop Your Way card just did this to me today!!! I was shocked, like what. $750 CL reduced to $300 EVEN with $3.98 balance!!!!!! Not kidding.
For years, Iโve had a Nordstrom store card with a $5,000 credit limit. But all of sudden, this was cut in half to $2,500 because โI donโt spend nearly enough on the card to legitimize the first limitโ. Ridiculous.
I work for a bank and when it comes to credit decreases I commonly see two cases. First is that there has been a high balance for years and finally it was paid off or down significantly. And if you rarely use the card.
I have 25k in available credit with a zero balance. I haven't gotten a decrease. I have a 805 FICI. No debt
My Petal just went from $2000 to $1000. All good payments and never a high utilization.
Credit is no more now ! The big oh Fico,will crash because of the virus. Just pay cash. Then no more worries.
Interesting enough, I have had a decrease or two when I basically I stop using a card (3 months without a charge) with leaving the balance at 0.
Honestly I wouldnโt mind if that happened to me. I owe about 4K in credit cards and Iโm working on paying them off. I donโt like using credit cards unless itโs an emergency and I really canโt afford something until I get paid. I moved out before I was ready and I was essentially LIVING OFF of credit cards because my paychecks werenโt enough for rent and all my expenses.
Brian – when you get your new Chase Ink cards for your new business with a new EIN, do you apply for the CIC, CIU & CIP at the same time since you are established with them or do you wait a month+ between applications?
love the comment below that says he's a "Student" and has a $20k limit credit card. These aren't strange times, its beyond idiotic.
US Bank knocked one of my higher limit cards down for no apparent reason. My credit score hasn't moved. I called them and they won't budge. I figure it will shave 30-40 pts off my score. Pretty pissed and not sure what to do.
Three different credit card companies decreased my limits all within the same couple of days. This was before we knew about the virus and the impact it was gonna have.
Banks are looking to limit their liabilities, don't take it personally.
I had a good credit rating and I recently paid off some credit cards recently with my tax return and my score went up but on the bottom weโre it said good credit it now says fair credit even with a higher score
This happened to me once and it made it look like I was way behind my payments. The creditor told me that credit is a privilege and not mandatory. I had to use my savings to pay it up and it was one we used to replace all the appliances in the house we just bought. Now we are in a terrible financial distress.
I have 6 credit cards but mainly for reward points but I paying off monthly. So hopefully this doesn't impact me. Lol
Thatโs odd…I got significant limit increases on 2 of my accounts within the last 3 months…. but then again have been on that Dave Ramsey life lately and been paying my debt down like itโs going out of style, (and score went up 30 points as a result), so that probably has more of a factor.
Capital one havenโt given me a increase in 2 yrs. I make 15 payments a month what the hell
That's weird. I got a $3,000 increase without asking right as the virus was hitting the US. I was surprised because normally when they increase my limit, it only goes up by a thousand. It was weird but I was thankful. I chucked it up to my credit score only fluctuating 10 points for the year span.
..coronavirus is cannibalising credit right now…
… excellent analysis… good analogy.
Try calling a major bank today and you will be on hold for more than an hour. The Fed is throwing so much money at banks to avoid a liquidity issue that we have negative interest rates so it costs the banks money to keep cash. The 2008 crisis was caused by the banks so, of course, they couldnโt afford to lend. Anyone laid off will get $15 an hour from the 1.2 trillion dollar Federal fund plus whatever they get on a State unemployment insurance plan for 39 weeks or if you even look like a business or a sole proprietor the SBA will probably cut you a check for $10K as a grant as in free money in 3 days no strings attached. Finally, most of just get $1200 . No idea what this all means but it seems that there is going to be so much money out there and the social safety net will be better than ever to get a lot of people through this impossible time while weโre stuck at home watching YouTube videos.
Thank you for reporting on this! I was paying my Chase credit card a few days ago and noticed my credit limit had decreased and was wonderingwhat the heck was going on. I have NEVER been late with them and have been a customer with them for 3 years!
They decreased my limit on my everyday card. I was at 1,000 spending limit now itโs $910. Definitely calling them