[Fred93]

WSJ is paywalled.  Article says banks don't know who is going to pay them back, so they are pulling back across the board.

https://www.wsj.com/articles/flying-blind-into-a-credit-storm-widespread-deferrals-mean-banks-cant-tell-whos-creditworthy-11593423001?mod=hp_lead_pos5
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[Rob L]

We have a number of credit cards we rarely if never use. Pretty much put all our CC purchases on our 2% cash back CitiBank Mastercard. This past week one was cancelled (Capital One) and the limit on the other (Chase) was lowered. Our FICO is excellent but I understand this is a sensible risk reduction on their part.

[Peter]

Ditto.

Only happened on one retail card, but I had two from that issuer.  $15k limit chopped down to $1024 - which is odd, in itself - back in April or so... (My last PIF on it was >$4k, FICO always north of 800).

Someone at Synchrony doesn't know shit about credit algorithms and went nutso slash and burn on a good customer + SYF shareholder.

(Maybe all of that Amazon card exposure, when Amazon was the only retail store open in the whole country, made them really nervous.)

Chase is the other issuer for Amazon, so that might explain yours, too, Rob.

[rawraw]

Got to get those risk weighted assets ready for credit losses 😊

[TravelingPennies]

Hah, yep.  I made a call and... bingo.

On the upside, I hear it's not as bad as they thought it might be, given that people were quite likely to keep those accounts in good standing, for some reason...

[TravelingPennies]

Interesting read from the NY Fed:

Total Household Debt Decreased in Q2 2020, Marking First Decline Since 2014
https://www.newyorkfed.org/newsevents/news/research/2020/20200806

[TravelingPennies]

In other news, I accidentally charged a couple of hundred bucks on that Synchrony-issued card that had had its limit chopped in March or so.  The bill showed up in the last few days and my credit limit had been adjusted back up to $10k.  Wonder what they have learned now.

[TravelingPennies]

Interesting artcle but says what we already knew.

https://www.advisorperspectives.com/articles/2020/08/28/capital-one-cuts-card-limits-amid-u-s-jobless-aid-impasse

Capital One cut the limit on my business card last week. Doesn't matter to me but wonder if there aren't plenty of other businesses that it would.

[Debt Free]

Yes, they cut my business credit line in half as well.  Only affect is the change in debt-to-limit ratio.  Funny though that at my brick and mortar bank, BECU tripled my limit which negated what Capital One did.