Paying off CCs / company reducing limit

grumbler

JakeGreen wrote: »

....
I would have thought that carrying a high balance and paying interest on it would make you a profitable customer?...

This is a flawed logic. A customer is profitable only if they pay back everything they owe. Many customers rack up their balance up to the limit, then just keep making minimum payments until they fail ultimately. I know, it's not the case for the OP, but IMO making minimum payments for long time on a balance close to the limit is a good indication of the customer carrying a risk and a good reason for cutting the limit as soon as the customer reduces the balance.

bengal-stripe

JakeGreen wrote: »

If you've never missed a payment would they lose faith in you as a borrower?

CC get regular feedbacks from the ratings agencies about their clients' financial situation.

It is quite possible, someone's ratings have decreased to such an extend that the card feels no longer comfortable with the limit they had given a few years back (although there might not have been major problems with the card in question).

JakeGreen

bengal-stripe wrote: »

CC get regular feedbacks from the ratings agencies about their clients' financial situation.

I read this before on this forum, and I was interested to know what information they can see. Can they see when you apply for new credit? and the balances that you're carrying?

I thought that the only information they had was when the search was performed at the time you applied for the new credit facility. So they will be unaware of any additional credit or problems you run into with other lenders at a later date.

[Deleted User]

JakeGreen wrote: »

I thought that the only information they had was when the search was performed at the time you applied for the new credit facility. So they will be unaware of any additional credit or problems you run into with other lenders at a later date.

They can and sometimes do perform later searches on you. Particularly if looking at credit limits, reviewing their total exposure, and so on.