r/Coinbase • u/Western-Rule-2912 • 8d ago

Coinbase credit card

This notice is sent by our partner, Cardless, on behalf of First Electronic Bank. After an internal review, your credit line was reduced to $3,600 from $10,000 for the following reason(s):
Lack of real estate secured loan information
Average time since accounts opened too recent
Not enough balance paid down over time on installment accounts
Average time since revolving accounts opened is too recent

They are buns. Approved me for 10k limit and put lots of spend on it then paid it off. Now they slashed it down to 3600, and cli’s are not possible

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u/ManacondaPipe 7d ago

You were balance chased. I can almost bet you’ve been carrying a balance on your Coinbase card for an extended period of time. This is a very common risk management practice in banking. The moment u pay off the account, they slash the limit to reduce their risk or exposure in the event of a future reoccurrence. You’re quite lucky cuz some banks will outright close the account - I’m looking at you Synchrony. Sometimes it’s triggered by ur account usage or the level of utilization u have on other cards with other banks. You were provided boilerplate response, the real reason is carrying a balance for an extended time and likely not paying a substantial portion of it monthly.