Synchrony Decreased My Credit Limit

[PhilL]

I have a Venmo Credit Card, which Synchrony Bank services.

The other day, I received notice in an official letter that Synchrony was decreasing my $4,000+ credit limit to only a few dollars above my balance.

They said the balance amount to the credit limit is too high and that the payment amounts over the past several months were too low, among other factors. 

That said, I don't heavily use this particular card often and have a consistent on-time payment history with all my accounts.

My main question is:

What is going on? Will action be taken against me on my cards with other banks?

What should I do in response to this?

Thank you in advance for your opinion

[pizza1]

Hello welcome to the forums!

Sounds like they got spooked a little, and are balance chasing you. Are you carrying balances on other cards too close to the limits, or are you only paying the "minimum payment"?

Has any other creditor taken action against you for anything, or any new negatives reporting?

[PhilL]

Hi!

I suspected balance chasing as I've read Synchrony has done this to others with the Venmo card.

Unfortunately, yes, I am carrying significant balances on three or so other cards. I have only recently made the minimum payments on Venmo and the unrelated other accounts.

That said, I have a 100% on-time payment record across all my accounts and no derogatory info against me. 

The only negative thing to happen in the past year was an identity theft issue where someone tried to open an account in my name. However, I informed my bank of this, and they removed it from my record.

[CreditCuriosity]

Sorry this happened but appears you answered your own question and would work on paying down the significant balances so doesn't happen with other lenders as well.  Nothing really spooks lenders more than minimum payments for several months other than of course missed/bounced payments

[PhilL]

I've read with Balance Chasers that you don't want to pay it all off immediately.

Do you know if this is true?

[CreditCuriosity]

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@PhilL wrote:

I've read with Balance Chasers that you don't want to pay it all off immediately.

Do you know if this is true?

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Across that card or all cards?  I would certainly pay if off on either that card or all cards if possible as paying interest especially on a high apr card like venmo is certainly suggested for sound financial advise.   Sure they might close it, but gotta pay it regardless eventually.  I don't think they will do full closure on you though.

[PhilL]

Across all cards?

Why would they do a closure or any adverse action if you make on-time payments?

[Jnbmom]

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@PhilL wrote:

Across all cards?

Why would they do a closure or any adverse action if you make on-time payments?

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If you are carrying higher balances and only paying the minimum payments this is red flag to lenders and they make take adverse action . You appear as more of risk now . 

[CreditCuriosity]

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@PhilL wrote:

Across all cards?

Why would they do a closure or any adverse action if you make on-time payments?

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You said should you pay balance off and I said yes.  Were you refering to just the venmo card or across all cards.  Anyways yes pay the balace off as silly if you can payaing 20-30% interest on a card.  Hope that clears it up

[xenon3030]

I would PIF all cards to avoid letting the other lenders to jump into the wagon of balance chasing. After that, Sync may or may not close the card (it is up to them).

If you can, PIF all cards and use the AZEO method to maximize Fico8. This method does not have any downside.