So my credit card company.......

pjtradekingpjtradeking Posts: 4,045
edited March 2009 in All Encompassing Trip
So I have had this credit card for about 10 years now. I use it mostly for online purchases. I usually pay it off monthly or every other month depending on what the freaking 10Club puts up for sale that month! ;-)

Anyhow, never been late...Never had a dispute...Never had any kind of issue with the card or its people. It had a limit of $4200. So I, get this letter the other day that says due to the economic state and the catergory my card falls into, ther are reducing my limit by $3140 down to $1060!! They said as things get better, that maybe they would increase it again, or maybe they wouldnt. They value my business and hope that I will continue to use my card to its fullest potential....

Just wondering if this has happened to anyone else yet? I understand why they did it, and am not mad as I have other cards if I did indeed need more than that. They dont want to get burned by those who cant pay their bill, or could be in danger of filing for bankruptcy and the like. I guess I would consider myself a good risk considering my payment history and financial state. Wonder how they determined who they did and didnt lower?
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Post edited by Unknown User on

Comments

  • thunderDANthunderDAN Posts: 2,094
    edited March 2009
    they are doing that because they have to report your full limit as a liability on their income statements, they are just trying to reduce that number so they are reducing everyone's limits. They are just lowering people's limits so they don't have that risk of all their customers going out and maxing out their cards in a day and they are left to try to hold onto that debt, or try to sell that debt in a tough economy when nothing is moving. It's something they are basically doing across the board and not on individual cases.

    I just had a card closed. I use AMEX as my everyday card, but I have (or had) a Master Card that I used maybe twice a year- mostly just 10c purchases b/c they don't take AMEX. I always pay off my balances, but they closed it down because I didn't use it enough I guess, plus, credit card companies hate people that pay their balances off
    Post edited by thunderDAN on
  • libragirllibragirl Posts: 4,632
    I have a card that I wasn't using much and they offered to extend my credit. I pay my cards off every month so Im sure they don't like me.
    These cuts are leaving creases. Trace the scars to fit the pieces, to tell the story, you don't need to say a word.
  • mca47mca47 Posts: 13,301
    I had a Mastercard reduce my limit recently too. While I don't pay it off every month, I do make my payments on time and I have good credit.


    Sign of the times I guess...
  • PJGARDENPJGARDEN Posts: 1,484
    It happen to me to about six months ago. I have been a customer since 02 and never once been late. My letter stated that my account was deemed high risk due to the stores I shopped at so they were cutting my limit. And they cut it big time, in half. I read an article a while back that said these little letters were going to start coming to a lot of people.
  • chromiamchromiam Posts: 4,114
    Yep alot of CC companies are actually doing this now. If you have an "emergency" card with no balance, watch out because alot of companies are closing those accounts. And AMEX is offering a deal to cardholders, pay down your balance between now and the end of April and recieve $100 for every $1000 paid off... but at the end of April, they will reduce your credit limit to the balance due on the card at that time.
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  • Indian SummerIndian Summer Posts: 2,296
    Call and threaten to cancel your card from them because this decrease in your credit limit actually hurts your credit score a little. It shrinks the perecentage of your credit to debt ratio, thus lowers your credit score.
    "It's all happening"
  • bee_boybee_boy Posts: 384
    thunderDAN wrote:
    credit card companies hate people that pay their balances off

    Of course they do! When you pay off the whole of your balance they can't charge you for the interests. They prefer when you keep your payments down to the minimum. That way you generate interests and don't fully amortize your debt, which in turn is capitalized and keeps generating interests.
  • arqarq Posts: 8,049
    Let me guess it's a American Express :roll: they did the same to me, from $3000 to $2400...
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  • South of SeattleSouth of Seattle West Seattle Posts: 10,724
    My limit hasn't been shrunk, but they did raise my interest rates by almost 10 fucking percent.
    NERDS!
  • pearljgirl2010pearljgirl2010 Shillington, PA/Tuckerton, NJ Posts: 3,428
    one of my cards was cancelled because I wasn't using it...that pissed me off, but I guess since they weren't getting any money from me, I was useless from them!
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  • wolfbearwolfbear Posts: 3,965
    That's interesting, I hadn't heard about this. Thanks for posting. Hasn't happened to me yet, but glad for the news. :)
    "I'd rather be with an animal." "Those that can be trusted can change their mind." "The in between is mine." "If I don't lose control, explore and not explode, a preternatural other plane with the power to maintain." "Yeh this is living." "Life is what you make it."
  • Heatherj43Heatherj43 Posts: 1,254
    I'm in some debt to my credit card companies. When they call, I just tell them to use the bail out money to cover their losses for me.
    Hell, the bank charges $39 per oerdraft. I owed them $280 and now it almost $600.
    Let them use that bail out money!! Many people did keep up with their mortgages by borrowing thru credit cards, loans, et. They aren't getting any help, only those who here lazy, irresponsible and didn't caare. NOW, they are getting help, while the rest of us suffer!

    This stimulus plan will not work! :evil:
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    Save room for dessert!
  • mensanemensane Posts: 912
    3 of my credit cards have raised my interest rate by a huge amount in the last 6 months. one went from 17% to 30%. they claim they have re-evaluated the credit scores of their cardholders. my credit score is up 75 points since i opened the account, so that is crap.

    our tax money is going to these banks to bail them out and they are turning around and screwing us over. :evil:
  • Call and threaten to cancel your card from them because this decrease in your credit limit actually hurts your credit score a little. It shrinks the perecentage of your credit to debt ratio, thus lowers your credit score.

    Only problem with this advice is that an astute telephone rep (if any exist) would explain that canceling the account would hurt your credit score even more. Two reasons why:

    1. Assuming you have a $0.00 balance so you can cancel the account, your overall credit to debt ratio will increase. You're taking away available credit while your debt remains the same. That adds credit risk.

    2. If it happens to be one of your older, establisheds accounts, then canceling it will make the overall length of time your accounts have been opened decrease. This is considered additional credit risk as well.

    Granted, most reps wouldn't think of this counter-argument and would just try to avoid an account closure. In any case, this has happened to me as well...when Chase bought WaMu, they did me the "favor" of closing one of my $0 balance accounts that hadn't been used in years. Great.
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  • mensane wrote:
    3 of my credit cards have raised my interest rate by a huge amount in the last 6 months. one went from 17% to 30%... my credit score is up 75 points since i opened the account, so that is crap.


    Sounds like it's time for you to take that higher score and apply for a new, low rate card, then transfer your balances. Keep the high rate cards open (with zero balances) for the two reasons I mentioned in my post above, but get out of that mess!!!
    <a href="http://www.shawnsmithsinger.com">Shawn Smith</a> / <a href="http://www.thebandbrad.com">Brad</a&gt; / <a href="http://www.allhailthecrown.com">All Hail the Crown</a> / <a href="http://www.satchelpartnership.com">Satchel</a&gt;

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  • dunkmandunkman Posts: 19,646
    Call and threaten to cancel your card from them because this decrease in your credit limit actually hurts your credit score a little. It shrinks the perecentage of your credit to debt ratio, thus lowers your credit score.


    interesting how that in America actually being in debt or having credit cards actually increases your credit score?!?

    In the UK having 3 credit cards and all of them having a £4000 limit would actually be a bit of a credit risk and therefore your score would be adversely affected.

    seems odd that to get a credit score you have to actually to own a card that can get you into debt? :?
    oh scary... 40000 morbidly obese christians wearing fanny packs invading europe is probably the least scariest thing since I watched an edited version of The Care Bears movie in an extremely brightly lit cinema.
  • ewokpeltsewokpelts Posts: 730
    Almost every bank doing this got bailout money. including citi and BOA
  • Heatherj43Heatherj43 Posts: 1,254
    dunkman wrote:
    Call and threaten to cancel your card from them because this decrease in your credit limit actually hurts your credit score a little. It shrinks the perecentage of your credit to debt ratio, thus lowers your credit score.


    interesting how that in America actually being in debt or having credit cards actually increases your credit score?!?

    In the UK having 3 credit cards and all of them having a £4000 limit would actually be a bit of a credit risk and therefore your score would be adversely affected.

    seems odd that to get a credit score you have to actually to own a card that can get you into debt? :?
    OMG! I couldn't get credit for so loong, then once I did, I got a lot. After I filed bankruptcy, I got tons of credit, still do. As long as I am in deep debt, they want to give me all the credit I ask for.
    Save room for dessert!
  • dunkmandunkman Posts: 19,646
    Heatherj43 wrote:
    dunkman wrote:
    Call and threaten to cancel your card from them because this decrease in your credit limit actually hurts your credit score a little. It shrinks the perecentage of your credit to debt ratio, thus lowers your credit score.


    interesting how that in America actually being in debt or having credit cards actually increases your credit score?!?

    In the UK having 3 credit cards and all of them having a £4000 limit would actually be a bit of a credit risk and therefore your score would be adversely affected.

    seems odd that to get a credit score you have to actually to own a card that can get you into debt? :?
    OMG! I couldn't get credit for so loong, then once I did, I got a lot. After I filed bankruptcy, I got tons of credit, still do. As long as I am in deep debt, they want to give me all the credit I ask for.


    in the words of the great Sophocles.... "thats fucking stupid!"

    ;)
    oh scary... 40000 morbidly obese christians wearing fanny packs invading europe is probably the least scariest thing since I watched an edited version of The Care Bears movie in an extremely brightly lit cinema.
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