Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I'm not sure what your question is, but yes, banks can lower credit lines or cancel cards particularly if the economy is bad. I think banks are doing this currently. I just received a letter from one of my credit cards saying the limit was being cut in half. I've had the card for 15+ years and have an 800+ credit score. The credit line was $25k and I probably charge about $500 per month and pay it off. Banks are looking for ways to reduce their risks.

OP. I thought I was pretty clear..

My question is, if credit cards can cancel when income drops what happens in retirement or in early retirement?

No. The reason is that you will probably have higher NW as you are nearing retirement. I barely work, but there are companies I don't even use that know about the balances of my accounts. So do the scammers. The amount of offers and calls I get (mostly from Florida) is getting on my nerves. My own cc companies also know about my account balances and they like what they see a lot more than a job I may lose any day.
That said, the companies can close your accounts and lower or raise credit lines any time for whatever reason.
Are you planning to charge them up a week before you die?

Unless I plan on moving overseas for good, that won't work.

The question triggered because I came across a very active thread on Reddit about Amex cancelling cards, in a few cases, of people who have been members for years. Sometimes there seems to be no reason and in other cases it was associated with a loss of income so i was wondering what happens when income stops but my payment habits (on time) continues.. Will they still cancel the card?

Almost surely no. There is a list of about 100 things I would worry more about with retirement than this.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I'm not sure what your question is, but yes, banks can lower credit lines or cancel cards particularly if the economy is bad. I think banks are doing this currently. I just received a letter from one of my credit cards saying the limit was being cut in half. I've had the card for 15+ years and have an 800+ credit score. The credit line was $25k and I probably charge about $500 per month and pay it off. Banks are looking for ways to reduce their risks.

Did it change your credit score? My husband is obsessed over keeping his credit score over 800 and sometimes the most ordinary transaction will lower it. He said that if you use certain cards they will drop your score even though it’s paid in full on time.

I got a Bloomingdale’s credit card when he came to the store with recently to get a suit. I wanted a card because I shop there a bit and they have great incentives for card users. The application, which I used all my husband’s info, asked if you wanted an American Express card also. I checked yes. We got the cards and my husband’s credit went down to 785. He was so upset. I don’t understand how it works and I don’t think he always knows either.

If you have the same income, same charges and payments routine, why would they approve a new card and the credit score goes down?

Credit scores have a lot of factors. I assume they did a credit check when you applied, which will lower your score in the short term.

Also, a higher number of credit cards will lower your score. This may be offset somewhat by the overall credit limit being higher so your usage percentage will go down. That being said I think number of credit cards is a fairly negligible affect as I have 5 credit cards and an 800+ credit score.

1. To the PP, that behavior around a 15 point score drop is frankly insane. There is no functional difference between a 785 or 800 when it comes to applying for a mortgage or credit card- everything above around 760 is "Prime" and will get you the lowest rates and highest odds of approval. If you aren't applying for a mortgage anytime soon, there is literally no reason to pay attention to your credit score unless it dropped by probably 50 points+. There is nothing magical, in any way shape or form, about having a score above 800.

2. Yes your score goes down by around 5-10 points when you apply for a new card, because that generates a "hard pull". Usually that drop only lasts for a month or 2.

3. Having more cards generally doesn't lower your score, and as you said, having a lower usage rate from a higher overall credit limit helps your score. I have a LOT of cards and an 840 score. Good in depth summary here.

https://onemileatatime.com/insights/my-credit-score/

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I'm not sure what your question is, but yes, banks can lower credit lines or cancel cards particularly if the economy is bad. I think banks are doing this currently. I just received a letter from one of my credit cards saying the limit was being cut in half. I've had the card for 15+ years and have an 800+ credit score. The credit line was $25k and I probably charge about $500 per month and pay it off. Banks are looking for ways to reduce their risks.

OP. I thought I was pretty clear..

My question is, if credit cards can cancel when income drops what happens in retirement or in early retirement?

No. The reason is that you will probably have higher NW as you are nearing retirement. I barely work, but there are companies I don't even use that know about the balances of my accounts. So do the scammers. The amount of offers and calls I get (mostly from Florida) is getting on my nerves. My own cc companies also know about my account balances and they like what they see a lot more than a job I may lose any day.
That said, the companies can close your accounts and lower or raise credit lines any time for whatever reason.
Are you planning to charge them up a week before you die?

Unless I plan on moving overseas for good, that won't work.

The question triggered because I came across a very active thread on Reddit about Amex cancelling cards, in a few cases, of people who have been members for years. Sometimes there seems to be no reason and in other cases it was associated with a loss of income so i was wondering what happens when income stops but my payment habits (on time) continues.. Will they still cancel the card?

Anonymous wrote:

Anonymous wrote:I'm not sure what your question is, but yes, banks can lower credit lines or cancel cards particularly if the economy is bad. I think banks are doing this currently. I just received a letter from one of my credit cards saying the limit was being cut in half. I've had the card for 15+ years and have an 800+ credit score. The credit line was $25k and I probably charge about $500 per month and pay it off. Banks are looking for ways to reduce their risks.

Did it change your credit score? My husband is obsessed over keeping his credit score over 800 and sometimes the most ordinary transaction will lower it. He said that if you use certain cards they will drop your score even though it’s paid in full on time.

I got a Bloomingdale’s credit card when he came to the store with recently to get a suit. I wanted a card because I shop there a bit and they have great incentives for card users. The application, which I used all my husband’s info, asked if you wanted an American Express card also. I checked yes. We got the cards and my husband’s credit went down to 785. He was so upset. I don’t understand how it works and I don’t think he always knows either.

If you have the same income, same charges and payments routine, why would they approve a new card and the credit score goes down?

Credit scores have a lot of factors. I assume they did a credit check when you applied, which will lower your score in the short term.

Also, a higher number of credit cards will lower your score. This may be offset somewhat by the overall credit limit being higher so your usage percentage will go down. That being said I think number of credit cards is a fairly negligible affect as I have 5 credit cards and an 800+ credit score.

Anonymous wrote:

Anonymous wrote:I'm not sure what your question is, but yes, banks can lower credit lines or cancel cards particularly if the economy is bad. I think banks are doing this currently. I just received a letter from one of my credit cards saying the limit was being cut in half. I've had the card for 15+ years and have an 800+ credit score. The credit line was $25k and I probably charge about $500 per month and pay it off. Banks are looking for ways to reduce their risks.

OP. I thought I was pretty clear..

My question is, if credit cards can cancel when income drops what happens in retirement or in early retirement?

No. The reason is that you will probably have higher NW as you are nearing retirement. I barely work, but there are companies I don't even use that know about the balances of my accounts. So do the scammers. The amount of offers and calls I get (mostly from Florida) is getting on my nerves. My own cc companies also know about my account balances and they like what they see a lot more than a job I may lose any day.
That said, the companies can close your accounts and lower or raise credit lines any time for whatever reason.
Are you planning to charge them up a week before you die?

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:A lot of companies will close your account if you don't use the card. Is that what you are talking about? Just use it once a month.

Nope. I am talking about the CC company randomly reaching out to people asking to do a financial audit (or some such) and cancelling their card once they found out they don't have the declared income. This has happened to people who have been members for years. In one case, the member suspects that it was because he used his Amex CC at a sandwich shop near the house leading Amex to think that he may have been laid off and wanted to verify his income.

Ofc, I don't plan on volunteering information to these companies. heck, i don't even respond to their annual nag to update income.

You don’t seem to like these companies very much. Why use their services?

Hey everyone! We have a wannabe mind reader!

Answer the question, dufus. Your deflection is puerile.

What part of my post made you think I don't like these companies, dumbass?

Anonymous wrote:I'm not sure what your question is, but yes, banks can lower credit lines or cancel cards particularly if the economy is bad. I think banks are doing this currently. I just received a letter from one of my credit cards saying the limit was being cut in half. I've had the card for 15+ years and have an 800+ credit score. The credit line was $25k and I probably charge about $500 per month and pay it off. Banks are looking for ways to reduce their risks.

OP. I thought I was pretty clear..

My question is, if credit cards can cancel when income drops what happens in retirement or in early retirement?

Anonymous wrote:I'm not sure what your question is, but yes, banks can lower credit lines or cancel cards particularly if the economy is bad. I think banks are doing this currently. I just received a letter from one of my credit cards saying the limit was being cut in half. I've had the card for 15+ years and have an 800+ credit score. The credit line was $25k and I probably charge about $500 per month and pay it off. Banks are looking for ways to reduce their risks.

Did it change your credit score? My husband is obsessed over keeping his credit score over 800 and sometimes the most ordinary transaction will lower it. He said that if you use certain cards they will drop your score even though it’s paid in full on time.

I got a Bloomingdale’s credit card when he came to the store with recently to get a suit. I wanted a card because I shop there a bit and they have great incentives for card users. The application, which I used all my husband’s info, asked if you wanted an American Express card also. I checked yes. We got the cards and my husband’s credit went down to 785. He was so upset. I don’t understand how it works and I don’t think he always knows either.

If you have the same income, same charges and payments routine, why would they approve a new card and the credit score goes down?

I'm not sure what your question is, but yes, banks can lower credit lines or cancel cards particularly if the economy is bad. I think banks are doing this currently. I just received a letter from one of my credit cards saying the limit was being cut in half. I've had the card for 15+ years and have an 800+ credit score. The credit line was $25k and I probably charge about $500 per month and pay it off. Banks are looking for ways to reduce their risks.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Why would you tell your CC companies that your income has gone down?

American Express just sent me an email to confirm my income. Not the first time.

Same here but the last time I updated it was eight years ago, apparently. Income is significantly higher now, as are assets. I almost never use this card, so I don’t want or need a credit line increase, but I’m curious to see if they offer one.

Most Amex cards don't have a credit line. They are charge cards. Your spending power is variable and unknown to you.

You are right that the most well known Amex cards are charge cards without a published credit limit- like the Platinum and Gold cards.

But they have 3 personal charge cards and 11 personal credit cards
.
https://www.americanexpress.com/us/credit-cards/category/all/?inav=us_menu_cards_personal_cards_view_all_credit_cards&intlink=US-Axp-Shop-Consumer-VAC-CardMember-all-StickyFilter-leftrail-varB

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Why would you tell your CC companies that your income has gone down?

American Express just sent me an email to confirm my income. Not the first time.

Same here but the last time I updated it was eight years ago, apparently. Income is significantly higher now, as are assets. I almost never use this card, so I don’t want or need a credit line increase, but I’m curious to see if they offer one.

Most Amex cards don't have a credit line. They are charge cards. Your spending power is variable and unknown to you.

I retired early a decade ago from a very high paying job. I can’t count how many times I’m asked by my credit cards to confirm my income so they can “offer an increase.” I just ignore them.

Anonymous wrote:

Anonymous wrote:Why would you tell your CC companies that your income has gone down?

American Express just sent me an email to confirm my income. Not the first time.

Same here but the last time I updated it was eight years ago, apparently. Income is significantly higher now, as are assets. I almost never use this card, so I don’t want or need a credit line increase, but I’m curious to see if they offer one.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:A lot of companies will close your account if you don't use the card. Is that what you are talking about? Just use it once a month.

Nope. I am talking about the CC company randomly reaching out to people asking to do a financial audit (or some such) and cancelling their card once they found out they don't have the declared income. This has happened to people who have been members for years. In one case, the member suspects that it was because he used his Amex CC at a sandwich shop near the house leading Amex to think that he may have been laid off and wanted to verify his income.

Ofc, I don't plan on volunteering information to these companies. heck, i don't even respond to their annual nag to update income.

You don’t seem to like these companies very much. Why use their services?

Hey everyone! We have a wannabe mind reader!

Answer the question, dufus. Your deflection is puerile.