As much as we don’t want to admit it, we are in a financial recession. While this recession is different than most that we’ve experienced, the financial institutions also have to cover themselves. In a predictable move, that also means that some people will see some adverse action (AA) on their accounts.
Capital One is reducing credit limits across the board. It looks like many people are seeing their limits drop to less than $5,000 or even less.
As much as I say I’m not surprised, this sort of situation sucks for a ton of people, and at a time when I’m sure many could use the extra credit limit. The thing is, even before coronavirus was a problem, Capital One has been known to give people large credit limits, and then reduce them when the cardholder isn’t using them. While the reduction in credit limit makes complete sense from a business point of view, it sucks for the cardholder.
If you actually use the credit card every month, I would be less worried about getting the adverse action on your account. That being said, if you do own a Capital One card, check to see if your limit has been negatively impacted. If you have, I would not be surprised if Capital One will not reverse the decision, but it doesn’t hurt to try and call in or send a secured message.
Has your credit limit been reduced? Let us know your credit limit and monthly spend in the comment section down below! It could help us out as a community!