Last year, one of my credit cards received a 60% credit line decrease (CLD). It is understandable as issuers reduce exposure on long-term inactive accounts all the time.
Then a few months later, I got multiple balance transfer offers on the same account.
Well, with the offered interest rate of only 2% vs 6% inflation, I decided to take it.
In a call with the customer service representative, I asked my line to be reinstated.
After 10 minutes talk with her supervisor, the agent advised me unfortunately the line increase request cannot be accommodated.
“You can request again 6 months later.”
OK, no big deal.
After 2 months, I got a credit line increase (CLI) offer on the same account.
🟦 How do you think of the series of events?
Are the messages consistent to the customer?
Could the customer experience be better?
This is a classic example that credit strategies do not work in sync.
This happens often, especially with a large lender - because credit strategies are typically developed by different persons or teams.
In this case, there could well be 4 persons developing CLD, balance transfer, reactive CLI, and proactive CLI strategies separately.
🟦 How to eliminate the inconsistency between strategies?
📌 Maintain a good inventory of strategy documents. Encourage strategy developers to get familiar with all strategies, even those not under current responsibilities.
📌 Have a peer review process - so people managing different strategies have a chance to spot anything inconsistent.
📌 Rotate staff through different decision areas so they become well-versed with the full life cycle of credit strategies.
The line increase offer?
I took it.