I looked it up on Google because I was confused because I was below the debt and discovered a new term: credit cycling.
This is a term I’ve never heard of before, but I guess it was by mistake. I made some large purchases on my credit card before I returned to school, paid it off while I still had the money, and then maxed it up once again. I paid it off since I didn’t want to forget it because I’m really busy and have a lot going on.
I’m pretty sure this is why my card is restricted. Will I get my card back? Will my credit be affected? This is a second chance card, building back my credit from 2020.
In the past I missed a payment so I kept paying this card as much as I could to avoid it, but I didn’t know this wasn’t a good thin.
So you are screwed in that when C1 “restricts” a card, it really means that it is doomed to closure in several months
But even tho C1 doesn’t advertise it, them “restricting” it, rather than closing it outright, does come with a saving grace. They are giving you a few months to get a new card from a different issuer in this intervening time. If they closed your only card immediately, your score would tank
I would check Discover for preapproval
up I did this before and my account got restricted, after some more research it turns out when they restrict your account, it actually just means that your account is closed (or will be soon). You can go to the statements and notices and it’ll show the letter they should’ve sent you stating your account was closed.
Yeah I know! It’s crazy and ridiculous but you also gotta remember that it’s a precaution by the bank/credit card company or issuer just in case there’s any fraud and so there’s no risk factors involved.
Awww… I really thought I was doing a good thing. Also, I’m in school so I’m paying for a lot of things, so the account it full from may not be enough for payment.
So I pay more than 3 times a month to make sure the bill is satisfied… this really sucks. I did what I thought would be good to avoid missing payments
It wouldn’t be an issue if you made multiple payments in a month on a balance. But the issue comes in when you use your balance, pay it down, and then use your balance again within a billing cycle. So the bank sees that you have ultimately charged more to your account within a billing period than the credit they have extended to you.
It’d be better for you to spend up near your credit limit, wait for the billing period to close, then pay it off in full. Doing that could help you get a credit line increase, which would help you avoid maxing out your card.
I see. If they can reinstate my card, this is what I intend to do. Well after paying off my card in its entirety. You really learn new rules all the time. Another user explained why it’s risky. I hope they can understand it was a mistake! I’ll definitely wait until the end of the billing period the next time, instead of multiple payments. I won’t even use it much because I’m done with school shopping.
Let’s see what happens.