Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Do credit cards lower your limits @ RE?
Old 06-14-2018, 08:23 PM   #1
Recycles dryer sheets
 
Join Date: Aug 2017
Posts: 107
Do credit cards lower your limits @ RE?

Card keeps nagging me to update my income and they will raise my limit. Just made me wonder if they find out I retire will they lower it?
__________________

badatmath is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 06-14-2018, 08:36 PM   #2
Thinks s/he gets paid by the post
SecondCor521's Avatar
 
Join Date: Jun 2006
Location: Boise
Posts: 2,816
They probably won't find out unless you update your income with them or apply for a new card and list your updated income.

If they do find out about your lower income, I think they will tend to give you a lower limit. Generally any given CC company will only give you total limits across all cards with them at perhaps 1X your annual income.

FWIW, I don't really have much need for credit as an early retiree, except for CC rewards and bonuses that I churn. I probably have 20x to 50x my actual need.
__________________

__________________
"At times the world can seem an unfriendly and sinister place, but believe us when we say there is much more good in it than bad. All you have to do is look hard enough, and what might seem to be a series of unfortunate events, may in fact be the first steps of a journey." Violet Baudelaire.
SecondCor521 is offline   Reply With Quote
Old 06-14-2018, 08:37 PM   #3
Thinks s/he gets paid by the post
 
Join Date: Aug 2004
Location: Laurel, MD
Posts: 3,570
No. I can't believe they'd do that as long as your payments are timely and your FICO scam, er... score doesn't drop too much. Chase keeps bugging me but I ignore it and don't worry about it. I think they just want to pitch me more crap to waste my money.
__________________
...with no reasonable expectation for ER, I'm just here auditing the AP class.Retired 8/1/15.
jazz4cash is offline   Reply With Quote
Old 06-14-2018, 10:50 PM   #4
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
audreyh1's Avatar
 
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 19,048
Quote:
Originally Posted by badatmath View Post
Card keeps nagging me to update my income and they will raise my limit. Just made me wonder if they find out I retire will they lower it?
How can they find out?

When you apply for a new card you will self-report. But I don't think that's part of your credit history on file. I never see it in my report.

I have self-reported that I am retired, that my income is all from investments (as a few credit card companies ask), and my income from prior year tax statements. My credit score is good, and I have always been approved, but as it happens my income didn't drop.
__________________
Retired since summer 1999.
audreyh1 is offline   Reply With Quote
Old 06-15-2018, 02:28 AM   #5
Thinks s/he gets paid by the post
 
Join Date: Jan 2018
Location: Tampa
Posts: 1,607
I applied for new credit cards in retirement with my current BOA bank. I was asked how much income and told them as generated by income sources and investments. I didn't have to prove any of it and received the same limits as pre retirement even though my income was less.
Ass an aside, since we are renters, our credit scores still do matter.
__________________
TGIM
Dtail is online now   Reply With Quote
Old 06-15-2018, 05:34 AM   #6
Moderator
Aerides's Avatar
 
Join Date: Nov 2015
Posts: 1,638
Agree with the above, don't tell them, and oh those "they keep asking me so they can...." ignore em.

I wouldn't be 100% sure that info you submitted for one credit request (income) isn't available in some way to another creditor... I know it's not on the report you see when you pull your own, but I also wouldn't be 100% certain that the contents are exactly the same shared with the consumer vs. the creditor.

But in any case, most banks want to lend you as much as possible under their risk formulas. Not one dollar less. Your spending and payment history is a far better predictor, and lapses there (particularly a late payment) are far more likely to trigger a decrease.
Aerides is offline   Reply With Quote
Old 06-15-2018, 06:20 AM   #7
Thinks s/he gets paid by the post
 
Join Date: Jan 2013
Posts: 1,491
Several credit card issuing banks have started asking for my taxable income. As someone that writes off a boatload of depreciation, the taxable income is irrelevant. So I don't answer the question. If the feds change the unsecured lending standards, a lot of real estate investors and other business people with large write-offs are going to find themselves in a credit pinch.
Another Reader is offline   Reply With Quote
Old 06-15-2018, 06:26 AM   #8
Full time employment: Posting here.
 
Join Date: May 2015
Location: Atlanta suburbs
Posts: 540
Quote:
Originally Posted by badatmath View Post
Card keeps nagging me to update my income and they will raise my limit.
I just ignore these credit card "update income" messages.
DEC-1982 is offline   Reply With Quote
Old 06-15-2018, 06:33 AM   #9
Thinks s/he gets paid by the post
 
Join Date: Sep 2006
Posts: 1,478
When I was once asked by Amex I reported my investment income from all sources, IRAs, Roths and taxable and I was flooded by credit card offers from different banks.....Never again.

As others have said, if you pay your bills on time they will not reduce your limits.
Corporateburnout is offline   Reply With Quote
Old 06-15-2018, 06:36 AM   #10
Dryer sheet wannabe
 
Join Date: Mar 2017
Location: Andover
Posts: 21
Mine did. Don't know how they knew. I certainly didn't tell them.

In the notice, they explained it was because I hadn't charged to a high level. (I'm a member of the pay it off completely every month anyway).
Mykle57 is offline   Reply With Quote
Old 06-15-2018, 06:52 AM   #11
Full time employment: Posting here.
 
Join Date: Jan 2017
Posts: 716
I was wondering about all the prompts to "update" my income information, too.

In my experience, they give me higher limits than I'll ever want to use anyway. And if one of them chooses to give me less than I need, there will quickly be one less card I have to carry around. So I don't worry about it.

But I'm also curious to see how long I can keep clicking "not now" before one of them escalates the question. And why they've all suddenly started doing this. Maybe the credit reporting agencies have flagged my reduced income in retirement?
CaptTom is offline   Reply With Quote
Old 06-15-2018, 07:08 AM   #12
Thinks s/he gets paid by the post
 
Join Date: Feb 2014
Posts: 1,584
Ive been ignoring them for years. I pay off everything every month so it is irrelevant. All they get from my account is the fee charged to the seller. I have credit limits on 2cards that are more than I have spent on any one thing except property upgrades, so why bother?
EastWest Gal is offline   Reply With Quote
Old 06-15-2018, 07:37 AM   #13
Thinks s/he gets paid by the post
 
Join Date: Nov 2009
Posts: 4,375
In 2015, I asked my CC holder to increase my limit. I don't recall being asked my income, all they wanted to see was my credit report. Once I unlocked it ("thawed"), they viewed it and granted me the increase immediately. I had asked for the increase in anticipation of a large charge I might get hit with in the next few months. Thankfully, by the time that bill came in, I had available cash to pay it.
__________________
Retired in late 2008 at age 45. Cashed in company stock, bought a lot of shares in a big bond fund and am living nicely off its dividends. IRA, SS, and a pension await me at age 60 and later. No kids, no debts.

"I want my money working for me instead of me working for my money!"
scrabbler1 is offline   Reply With Quote
Old 06-15-2018, 08:08 AM   #14
Recycles dryer sheets
 
Join Date: Aug 2017
Posts: 107
Well I think it is likely I will apply for another card sometime after I retire and they would ask then and I assumed they shared the information.


My coworker revealed to me he has a 1500 card limit and I was shocked. (He has bad credit). So then I thought "well if I had less income what would they do?!" and "maybe I should update it now".
badatmath is offline   Reply With Quote
Old 06-15-2018, 08:41 AM   #15
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Chuckanut's Avatar
 
Join Date: Aug 2011
Location: West of the Mississippi
Posts: 7,563
I have not experienced a change in my credit card limits because of retiring. The only reduction in a limit was made by Capital One earlier this year. The reason given was that my use of the card is so trivial (my word, not theirs), that they don't see the need for such a high limit. Interestingly, a month afterward they introduced their ENO system for on-line purchases and I am now using the card much more than I was.
__________________
The worst decisions are usually made in times of anger and impatience.
Chuckanut is offline   Reply With Quote
Old 06-15-2018, 09:12 AM   #16
Recycles dryer sheets
always_learning's Avatar
 
Join Date: Feb 2017
Posts: 87
Quote:
Originally Posted by CaptTom View Post
I was wondering about all the prompts to "update" my income information, too.
**SNIP**
Maybe the credit reporting agencies have flagged my reduced income in retirement?

We aren't retired yet (still have full-time income) and have also been suddenly flooded with requests to update our income. Like once a month. My understanding is cc companies can lower limits for any reason at all, so why would they ask if not to pitch new products/award higher limits? I would guess these requests have more to do with internal company policies than suddenly figuring out who has retired/lost their job/etc, with the goal of reducing credit limits.

As an aside, is Chase the only company suddenly asking about updating incomes? That's the only company bugging us.
always_learning is offline   Reply With Quote
Old 06-15-2018, 09:15 AM   #17
Recycles dryer sheets
always_learning's Avatar
 
Join Date: Feb 2017
Posts: 87
Quote:
Originally Posted by Chuckanut View Post
I have not experienced a change in my credit card limits because of retiring. The only reduction in a limit was made by Capital One earlier this year. The reason given was that my use of the card is so trivial (my word, not theirs), that they don't see the need for such a high limit. Interestingly, a month afterward they introduced their ENO system for on-line purchases and I am now using the card much more than I was.

Capital One outright cancelled my card many years ago out of the blue because I wasn't using it "enough". Be glad they just lowered your limit. While I don't like to say "never", I will say that I will not ever willingly apply for credit with them/use their services again if I have other options.
always_learning is offline   Reply With Quote
Old 06-15-2018, 10:22 AM   #18
Recycles dryer sheets
 
Join Date: May 2015
Location: NorCal
Posts: 98
I applied for a increase on my Fidelity 2% rebate card ($9.5k limit) a couple of months ago and was denied. The reason I got was something like they didn't have my last year's tax return or something. It was an interesting response since I also had Fidelity's 1% rebate card with $20k limit at the time. So my response to them denying my request was to cancel the 1% rebate card which I wasn't using anyway.
FIREd_2015 is offline   Reply With Quote
Old 06-15-2018, 10:46 AM   #19
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
calmloki's Avatar
 
Join Date: Jan 2007
Location: Independence
Posts: 5,732
Quote:
Originally Posted by FIREd_2015 View Post
I applied for a increase on my Fidelity 2% rebate card ($9.5k limit) a couple of months ago and was denied. The reason I got was something like they didn't have my last year's tax return or something. It was an interesting response since I also had Fidelity's 1% rebate card with $20k limit at the time. So my response to them denying my request was to cancel the 1% rebate card which I wasn't using anyway.
You might have tried transferring some of the credit from the
$20k card to the $9.5k card.

I wanted to do that but have $40k on a joint Fidelity card and wasn't allowed to shift credit to a $10k individual card. Have a bunch of auto-payments already set up on the $10k card and didn't want to go through changing them all to the joint card. We are using another poster's suggestion to have a "carry" card and a "drawer" card that has all the auto-pays. That way if the carry card is compromised in our use out at random stores we don't have the pain of re-doing all the auto-pays.
__________________
"Be kind whenever possible. It is always possible." Dalai Lama
calmloki is offline   Reply With Quote
Old 06-15-2018, 11:06 AM   #20
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Amethyst's Avatar
 
Join Date: Dec 2008
Posts: 6,650
Just one piece of anecdata;

We are both retired. I have been retired for 4.5 years now; Mr. A. for several times that long.

The only time we have been asked about our income is when we apply for a card.

The credit limits get raised periodically, whether we ask for it or not.
__________________

__________________
If you understood everything I say, you'd be me ~ Miles Davis
'There is only one success to be able to spend your life in your own way. Christopher Morley.
Amethyst is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Do Increased Credit Card Limits affect Credit Score? marc515 FIRE and Money 6 11-15-2012 04:36 PM
Diversifying Doesn't Lower Risk, But It Does Lower Potential Gain justin FIRE and Money 44 11-05-2005 04:16 PM

» Quick Links

 
All times are GMT -6. The time now is 05:43 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2018, vBulletin Solutions, Inc.