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Looks like Scotiabank is beginning to reduce credit limits

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I just had the limits on both my Gold Amex and Passport Visa reduced from $5,000 to $1,000.

I'm currently about to enter 3L. My credit score is around 700~ and there is nothing negative on my report.

It looks like banks are beginning to reduce their exposure in anticipation of the economic impacts of COVID-19.

Seriously considering transferring $20,000 from my LOC into a savings account in case they decide to hit the LOC too. 

Anyone else have this happen yet?

 

 

 

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Posted (edited)
5 minutes ago, Toad said:

I just had the limits on both my Gold Amex and Passport Visa reduced from $5,000 to $1,000.

I'm currently about to enter 3L. My credit score is around 700~ and there is nothing negative on my report.

It looks like banks are beginning to reduce their exposure in anticipation of the economic impacts of COVID-19.

Seriously considering transferring $20,000 from my LOC into a savings account in case they decide to hit the LOC too. 

Anyone else have this happen yet?

 

 

 

Mine are still at $10,000 each. Current credit score of 819 per Transunion on Scotia’s website. 

Edited by BlockedQuebecois

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Posted (edited)
7 minutes ago, Toad said:

Seriously considering transferring $20,000 from my LOC into a savings account in case they decide to hit the LOC too. 

 

can they actually reduce LOC limits? (assuming regular payment and a good credit score) they have the right to decrease credit card limits, but can they actually reduce your LOC? One of the reasons I actually went to Scotia over the others was that they were offering more money. 

Edited by jatthopefullawyer

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Just now, jatthopefullawyer said:

can they actually reduce LOC limits? they have the right to decrease credit card limits, but can they actually reduce your LOC? One of the reasons I actually went to Scotia over the others was that they were offering more money. 

Almost certain they can do whatever they want. They could probably straight up cancel all of your accounts without notice if they wanted.

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2 minutes ago, jatthopefullawyer said:

can they actually reduce LOC limits? (assuming regular payment and a good credit score) they have the right to decrease credit card limits, but can they actually reduce your LOC? One of the reasons I actually went to Scotia over the others was that they were offering more money. 

Of course they can. Banks aren’t under any obligation to loan you money. They’re often contractually limited WRT when they can accelerate a loan, but they don’t have a positive obligation to loan you money you haven’t previously used. 

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4 minutes ago, BlockedQuebecois said:

Mine are still at $10,000 each. 

Mine were both reduced about 2 hours ago by the looks of it. I only noticed because I received the credit limit approaching notice in my email. I thought my cards may have been compromised, but it was caused by the limit reductions.

Credit score a hair over 700. No late payments in my 10 year credit history. No collections. Overall utilization at around 40-45% because of the line of credit.

I suspect if they reduced mine, most students are vulnerable because my credit history is fairly solid.

 

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7 minutes ago, Toad said:

Mine were both reduced about 2 hours ago by the looks of it. I only noticed because I received the credit limit approaching notice in my email. I thought my cards may have been compromised, but it was caused by the limit reductions.

Credit score a hair over 700. No late payments in my 10 year credit history. No collections. Overall utilization at around 40-45% because of the line of credit.

I suspect if they reduced mine, most students are vulnerable because my credit history is fairly solid.

 

I edited to add my credit score. It’s currently 819 per scotiabank’s website.

I’ll update here if my credit limits are reduced

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Posted (edited)

My credit limits are still at 10K and my score is over 750. My utilization ratio is 0% because I pay the balance off in full every month.  With that record I don't see why I'd have my limits suddenly reduced but I'll post an update if they are.

Edited by harveyspecter993

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My second year for the PSLOC was just funded yesterday and my credit limit increased 41k. And no change to AMEX card

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Posted (edited)
9 hours ago, harveyspecter993 said:

My credit limits are still at 10K and my score is over 750. My utilization ratio is 0% because I pay the balance off in full every month.  With that record I don't see why I'd have my limits suddenly reduced but I'll post an update if they are.

I don't think there was anything on my report that suggested I was of particular risk either. I occasionally let a balance linger on my cards, but they were almost always below 10% utilization. No new inquiries. No late payments. No collections.

I'll call when I get some time to see if they have any particular reasons listed as to why they reduced it.

In the last month on this forum we have also had a person with excellent credit get rejected for a Scotia PSLOC and another person whose cards weren't going to get renewed after the expiry date (however, he later contacted someone else and they said it was a mistake). It looks like Scotia, like with most banks, are tightening credit and reviewing their exposure. We are yet to have anything that has effected a large number of people yet though. It might just come down to dumb luck as to whether their discretion effects you negatively.

---

Better name for this thread would probably be "Looks like Scotiabank is beginning to reduce credit card limits" for now.

 

Edited by Toad
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2 hours ago, Toad said:

I don't think there was anything on my report that suggested I was of particular risk either. I occasionally let a balance linger on my cards, but they were almost always below 10% utilization. No new inquiries. No late payments. No collections.

I'll call when I get some time to see if they have any particular reasons listed as to why they reduced it.

In the last month on this forum we have also had a person with excellent credit get rejected for a Scotia PSLOC and another person whose cards weren't going to get renewed after the expiry date (however, he later contacted someone else and they said it was a mistake). It looks like Scotia, like with most banks, are tightening credit and reviewing their exposure. We are yet to have anything that has effected a large number of people yet though. It might just come down to dumb luck as to whether their discretion effects you negatively.

---

Better name for this thread would probably be "Looks like Scotiabank is beginning to reduce credit card limits" for now.

 

Please give us an update after you speak with Scotia.

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My cards are still both at 5k so no changes there. I know there has been issues with the scotia system making changes to the PLOC automatically. Im sure if you call them they will reinstate your credit limits as I bet this change was without anybody at scotia actually triggering it

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Posted (edited)
On 8/6/2020 at 10:04 PM, Toad said:

I just had the limits on both my Gold Amex and Passport Visa reduced from $5,000 to $1,000.

I'm currently about to enter 3L. My credit score is around 700~ and there is nothing negative on my report.

It looks like banks are beginning to reduce their exposure in anticipation of the economic impacts of COVID-19.

Seriously considering transferring $20,000 from my LOC into a savings account in case they decide to hit the LOC too. 

Anyone else have this happen yet?

 

 

 

I've worked for Scotia and this is unheard of. I would encourage you to go to a branch nearby and speak to a Universal Banker. Have them call the call centre on your behalf to start an investigation or ask the Universal Banker if there is a senior advisor you can speak to. 

I've worked as a Universal Banker for about two years and I believe I may have come across something similar to this, but the customer wasn't a student. Their limits were reduced due to missed payments. Have you missed more than two payments in one calendar year?

Edited by SimmmiSS
Adding more information

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Is it possible that the reduced credit limit is due to you reporting a lower income compared to 2019 on your tax return? You are in law school, so I don't imagine your reported income was overly high while you are studying. 

I don't know myself how this works. It's just a guess.

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I think something funny is going on with student loans — I have heard that some people have been reported delinquent, notwithstanding that payments have been deferred due to COVID.  The resulting hit to your credit score might affect the limits on the cards.  

This is more than a little speculative, but may be worth looking into.

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3 hours ago, SNAILS said:

Is it possible that the reduced credit limit is due to you reporting a lower income compared to 2019 on your tax return? You are in law school, so I don't imagine your reported income was overly high while you are studying. 

I don't know myself how this works. It's just a guess.

I'm pretty sure unless you report it to them, banks don't have access to your income information from your tax returns. Same with the credit agencies. 

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Contact them. Mistakes happen. My partner randomly had their credit score reduced by 100 one month and then jump back up to normal the following. I would be really surprised to hear that they intentionally lowered your credit limit without notice.

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On 8/7/2020 at 7:23 AM, harveyspecter993 said:

My credit limits are still at 10K and my score is over 750. My utilization ratio is 0% because I pay the balance off in full every month.  With that record I don't see why I'd have my limits suddenly reduced but I'll post an update if they are.

 

On 8/7/2020 at 12:08 AM, BlockedQuebecois said:

Mine are still at $10,000 each. Current credit score of 819 per Transunion on Scotia’s website. 

Do you guys have a 10k credit card limit because of your high credit score or did you apply to increase your credit limit? I only got 5k when I signed up. 
 

On 8/7/2020 at 12:04 AM, Toad said:

I just had the limits on both my Gold Amex and Passport Visa reduced from $5,000 to $1,000.

I'm currently about to enter 3L. My credit score is around 700~ and there is nothing negative on my report.

It looks like banks are beginning to reduce their exposure in anticipation of the economic impacts of COVID-19.

Seriously considering transferring $20,000 from my LOC into a savings account in case they decide to hit the LOC too. 

Anyone else have this happen yet?

I just checked and I'm still at 5k.

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2 hours ago, penguinh said:

 

Do you guys have a 10k credit card limit because of your high credit score or did you apply to increase your credit limit? I only got 5k when I signed up. 
 

I just checked and I'm still at 5k.

I don’t know, they upped my limit to $7,500 per card fairly quickly into 1L then bumped me to $10,000 per card some time during 1L summer. I never applied for it, they just offered and I accepted. 

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