Hi! So recently, as I said in the title, I paid off my fully charged card with a majority of our tax return. It was a huge relief, leaving me only about 7k total debt remaining over my other three cards.
I had a plan with my Wells Fargo credit card to only charge it to 1k then pay it off, rinse and repeat. I was very shocked to see, however, that it was saying I was over my limit by $14 with a total balance of $1,014 and that my limit had been brought down to 1k.
I’m distraught, to be honest. I was so happy to have that card free in case of emergencies, and I feel very betrayed as I’ve had this account (the checking) with them since I was in the single digits as my parents opened the account for me, so I’ve been with them for at least 20 years.
I received no email, no physical letter, or any kind of information beforehand that they were going to implement this change and, to my surprise, the two customer support representatives that I’ve spoken with refused to give me any information on why the change was made (one just hung up on me and the other outright refused even when I asked twice.) It’s all very confusing.
So, my first question is, can I go about speaking with them to return my previous credit limit? If so, how? My credit score is fair (647 currently) and I only have the 7k in other credit card debts.
Secondly, if I’m not able to return my limit to the previous limit, should I just close my account with them?
Thank you in advance!
Credit limit reduced with no warning after fully paid off, need advice. Wells Fargo.
byu/ShadeBaby inCreditCards
Posted by ShadeBaby
4 Comments
This is confusing. What was your original credit limit?
You’re getting balance chased. Essentially, you held a balance on your card for too long, and WF is afraid you will go back to being in debt, so they are reducing your limit to try and reduce the amount of debt you take on with them.
Banks do this when they detect signs of financial distress (such as maxing out a card, only making minimum payments, etc). Your choice whether to close the card, but I don’t think Wells did anything outside the industry norm.
Run of the mill balance chasing. They think you’re a risk given the balance you’re carrying against the strength of your credit profile.
They don’t need to warn you; it’s their money, not yours (plus you agreed to this in the terms at signup).
Nothing you can do. It’s algorithmic, and when it comes to risk determination, they’re not going to manually override it. Best to focus on other cards and other lenders and forget about this.