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Reduced Credit Limits? Share Your Experience

Written by Nickel - 255 Comments

About a month ago, I published an article over at Credit Addict about protecting yourself against reduced credit limits. Since that time, readers have left a smattering of comments lamenting that their credit limit has been reduced. We’ve been totally unaffected by this, so I’m curious as to how widespread this problem is. Interestingly, all of the commenters reporting a reduced credit limit have been dealing with American Express.

Have your credit limits been reduced?

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Reasonable efforts are made to maintain accurate information. See the Discover online credit card application for full terms and conditions on offers and rewards.

Published on October 31st, 2008
Modified on January 16th, 2010 - 255 Comments
Filed under: Credit Cards, Debt Reduction

About the author: Nickel is the founder and editor-in-chief of this site. He's a thirty-something family man who has been writing about personal finance since 2005, and guess what? He's on Twitter!

255 Responses to “Reduced Credit Limits? Share Your Experience”

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101
leo Says:
February 25th, 2009 at 3:01 pm
my hsbc card limit was cut from 2500 to 620. acocunt balance 698, overlimit.. news came via email that i am overlimit.
will fair issac change its way to calculate score, now its whole u.s. problem ?
this is the first card.. lets see what happens to others..
102
Keith Says:
February 25th, 2009 at 6:16 pm
My credit limit with HSBC was cut in half, even though I’ve always payed more than due, and well before the due date. My credit score is around 700. This credit card was a transfer card, and not used for daily purchases at all. I called and they said it was a business decision. They did lower my interest rate, however, when I asked. What can you do? Work fast to pay it off, I guess.
103
Randy Says:
February 26th, 2009 at 1:21 pm
My HSBC Visa was cut from $5,000 to $1,160. I’ve never been late with them since I transferred another card balance to them for a lower rate. I’ve also always paid well above my the minimum payment to keep making the ratio better each month. I will be paying them off soon and will never use their card or bank services again. I guess their business decision is to tick off their customers enough so thy loose them all; real smart!
104
Eric Says:
February 26th, 2009 at 4:41 pm
At the beginning of December, I had a $1500.00 limit on my Discover Card, which I did run up around the holidays to around 1300.00. In January I paid off $1000.00, and earlier this month another $400.00, leaving me with a balance of around $100.00 (when you take into consideration other purchases made this month).

Just went to check my Discover card balance so I could finally pay it off this month, and I found out that with no notification, my Credit Limit had been reduced to $590.00. I called Discover to find out what gives, and someone in India said “This was a business decision and effected almost all our clients.”

Unlike the other people on this site, my credit is nowhere near perfect… I had a Bankruptcy 2 years ago, but since then I have been spending on my two credit cards and paying them off. Since the Bankruptcy (do to the mortgage crisis) I have not had a single late payment, and am actually 2 months ahead on my car payments. In only 2 1/2 years, my credit it within 20-30 points of where it was before the Bankruptcy (I was able to keep myself current right up to the bankruptcy). Luckily, this Credit Limit decrease is not going to derail my plans as my balance will be paid off, but you can bet I will NOT be using my Discover card again except for the occasional $5.00 – $10.00 purchase that I will pay off to maintain my good credit history.
105
Lynne Says:
February 26th, 2009 at 5:39 pm
I was checking my balance on HSBC card yesterday and saw that my CC line had dropped from 3,300 to 590! No notice; called and got the seemingly standard no answer. I pay balance off and just have one utility bill running through on auto-pay. I hesitate to cancel account because if my other two cards do that (zero balances on both) do that I will be hard pressed in an emergency. I guess we just have to eat it. The economy is so scary I don’t feel like I have a real choice and just have to suck it up. What loan sharks these companies are.
106
Ken M Says:
February 26th, 2009 at 5:42 pm
My accounts are still holding strong, except the WAMU/Chase card that got closed since i never used it.

Amex 30k and 20k
Cap1 12.5k

Have an 800+ score.
107
PowerhouseD Says:
February 26th, 2009 at 5:47 pm
Ken,

Do you live in an area that has not been hard hit by housing foreclosures, or by the ensuing layoffs? Just wondering since it seems people with high credit scores (800+) who live in my area have also taken hits like the ones described on this site.
108
Ken M Says:
February 26th, 2009 at 5:52 pm
Seattle, tons of layoffs here and housing market is crashing.

I never carry a balance either.
109
ben Says:
February 26th, 2009 at 6:23 pm
AMEX SUCKS !! these …er reduced my limit twice in past few month ,and when you call them ,the answer is that ’s what we do.f…er,what you do is screwing other life,I hate the and I with they go under,i’m gonna file a complain,ant help?
110
Michael Says:
February 28th, 2009 at 9:45 am
B of A:

I recently called to request that B of A stop automatically increasing my credit limit. Last week they just increased it. I have 2 accounts with low balances and high limits. Upon my request to stop increases they unilaterally decreased my line by a significant amount. I undertstand what they have done from a business perspective but it pisses me off. There is 0 chance in the future I will use B of A for more lucrative business such as a mortgage, home equity lines, brokerage, etc.
111
Annie Says:
March 1st, 2009 at 5:36 am
We are not alone. I want to say that it has been great to see that I am not the only one getting pushed further and further into the dirt. I do not like what the banks are doing to all of us. So here is a link to someone who is fighting back. It may be a good example of how to start turning the tables back to a fair place and at least we will be heard if we do what this Dr has done.

http://www.changeinterms.com/join-the-fight/

My son and my accounts once again have had their limits lowered to within a few dollars of what we owe. My son had 2 cards GM ( HSBC) and Discover which took all his available limit away after a few months of not using it since he paid it in full.
reason: debt to credit available ratio was too high

Ame Exp called me. I did not recognize the number so to be safe called customer service. I found that my available 3000 was now 151 dollars after making last months payment. The reason the supervisor gave was that I did not make a payment on my Triumph card in Oct 2008. I told her I had no such card. She said oh you do and it was opened in 1989. I told her no that I was on General ASsistance then and had no cards because I was very ill and had to leave work to go on disability. I told her I had all three credit reports in front of me and none mentioned such a card at all. She reported it to fraud.
I spent 3 days talking to the credit reporting agencies. None had any record of such an account and told me to tell Am Expr it was their mistake.
My return call ended up taking at least an hour and each call transfer I had to repeat my card number and the info.
The last supervisor said the notes only stated that my limit was taken away due to my high debt to limit ratio. I said well gee. I wonder why that is If you take the available credit away I am maxed out. Maxed out caused my credit score to drop now a total of 55 points. I was getting a pre approved 1at time home buyer loan and now that is not happening. I have never missed a payment in 14 yrs. I pay more then the minimum
My son had a credit score of 750 and its now down to 690 and he has no available credit left on the cards he paid off between May 2008 and Oct 2oo8.
I am going to do what the Dr did. I never even recieved a letter telling me that some cards were closed. Care Credit for one. I went to the eye doctor and thought I had 5000 available and none owed. LOL
card had been closed over 8 months ago and to date I have not recieved any notice.
They are keeping the money from the bail out. Chase is going to get the tellers to push credit cards. Some boss guy was giving them the run down in front of customers and said if they could not deal with it to walk.

after all my trying to pay so i could get a home and some health issues taken care of is wiped out of reach.
The company’s all can take their card and eat them
I am not going to go along with the changes. My score will come up again in 8 mos or so and by then maybe they will be loaning again. So screw them. We all work to hard to be left hanging out like dirty shoes blowing in the wind …they have the smell not us!!! Rotten business ethics , greed and more. Shame on all of them. Shame on congress.
we need a class action lawyer we can trust and a way to tell President Obama this is not change this is corruption. This is not acceptable!!!!
We the people . . WE can do it . all of us on this site.
Originally I did not get any new posts Now I get at least 3-5 a day.
Thank you all for speaking up. Thanks for having this site Mr Five Cent nickel who ever you are Bravo!

WE the people will suceed in getting fair credit actions!
112
Just Jess Says:
March 2nd, 2009 at 8:03 pm
Hi Everyone – I don’t pretend my credit score is 800 – but it’s decent. My story isn’t that traumatic – I had my Orchard Bank card cash advance limit slashed from $1200 to $300. I have been with them for 3 years. I am grateful the guy on the phone didn’t insult me or my record – by simply stating that “Orchard is just trying to manage risk” – as opposed to attacking my record (flawless) or my spending habits (lunacy!) The credit score I was trying to build after my divorce is slowly failing – and I have just about given up…

But unless you run a business or are a consultant – we just need to stop listening to these jerks personally insult us – and just “vote with our feet”. Oh – and file a lawsuit – against the 3 credit bureaus that invented these fake numbers that dictate one’s worth. It’s becoming virtually impossible to defeat these people – and with job loss – loss of home values – loss of investments – the playing field is grossly against our favor.

We need – to fight…hard.
113
Shel Says:
March 4th, 2009 at 12:19 pm
HSBC cut my limit from $5300 to $300. I had a $0 balance for months, never late, and always paid well above the minimum. I’ve had this account for 3 years, very disappointed HSBC treats its “valued customers” as such. I’ll just put the card away until the economy improves, never use it again. So long HSBC!
114
Mike Says:
March 4th, 2009 at 12:42 pm
I have had bad comments numerous times. In all fairness I just recognized Citi Bank has drop my interest rate from 17 to 12.9 % over the past year. I pay on auto pay and I pay the min. plus about $1,500 a mo to $2,000.00 a mo.
115
mel Says:
March 6th, 2009 at 9:44 pm
Hello,
I had my credit reduced with Bank of America from
$5,000 to $700.00, with a balance of $450.00. Good credit history no problems. I Called BOA customer service and asked why, they said a late payment with Sears. I do not have a Sears card. They did reinstate the $5,000 line of credit on 2/26/09, and also sent a letter stating this. On 3/3/09, while on the BOA website, saw the $5,000 had now been reduced to $1,000. When I called and spoke to some arrogant BOA credit person, I was told they should not have reinstated the $5,000 amount. Yeah right…Mad, you bet…They just seem to treat you like dirt, and really could care less.
116
Broke Dad Mountain Says:
March 9th, 2009 at 4:55 pm
Amex Lowered onced from $23,000 CL to $10,000 owed 9$,000 interest rate raised from 9.9% to 12.9%, have been making mostly double the minumum payment the last year and a half, never missed a payment in all 25 years with them.

Six months later got balance down to $ 7,000 and lowered limit again this time to $ 7,500 and raised to now 15.9 %.

Now Capital 1 did the same to us, but went from 5.9% to a whopping 17.9% again a 735 Cr Score and never missed these or any other payments, have a relatively ow mortgage of $890 with 9-10 yrs. left, and a moderatestable income of $ 75,000 annually . No car payments for now, but will need new or used in next 6months.
Only negative is some student loans for our son, even though he and us were fortunate that he got over half of his tuition paid on scholarship, these past three years, that are due upon graduation in 3 more years when out and wiil be certified in the health care field with a shortage, and will then consolidate and pay back us and his other loans. We are just paying interest for now,, that helps reduces loan balance. The only other thing is we now shop as we have our last college student in 1more year, may join the Air Force as a cadet, at places like Walmart and Costcos, instead for college and dorm stuff and even ourselves for due diligence knowing that we will need more, for future costs, car repairs/replacements, more college loans, risng health care etc.
It’s sucks that they are making hard working Americans that sacrifice and scrimp , to make their payments on time and then seem like we are being punished, and thiose that decide that they do not need good credit for the next three years, default on purpose and renogotiate for half.
Good luck to all.
117
ETay Says:
March 10th, 2009 at 1:47 pm
I have had a credit limit reduced and an interest rate raised. What all Americans should be outraged about is this. These banks have gotten bailout money and the way they repay the taxpayer is to not use the money as intended, to turn around and reduce many credit limits, thus causing your credit score to lower. I.E. balance to limit ratio. It does matter.

Then, they turn around and will raise your interest rate and jump on all the fees if you go over limit or anything. Somehow, this is wrong.

I think most of America has realized we need to try to get our debt down and most of us are not intending to continue using our credit cards except in emergencies.

Yet, both the government and the banks are out of control. Congress has befriended the banks and credit card companies giving them free reign to abuse the consumer and they turn their backs on us.

It is true, that some people won’t stop the credit madness. At the same time, the credit card companies and banks are making it hard to stop, but impossible to use.

Until they change the entire structure of the credit process and change what the banks are allowed to do and how they are allowed to offer credit and cap interest rates, nothing will ever change.

People have to take responsibility for their spending. By the same token, people who are running these companies and the country into the ground should have to take responsibility as well.

As for those with high credit scores and low balances on your credit cards……………..they just haven’t gotten to you yet. Trust me, an 800 credit score will not stop them from touching you at some point.

I know this for a fact. Two years ago, most of these institutions could not give out enough credit and often raising limits for people without a basis of expanding their credit.

Now, they are taking our hard earned tax dollars and sticking it to the consumer again and again while telling us to not use credit and then telling us to spend.

Personally, I think more of these banks should have been collapsed and still do. I think that it could have no worse affect on the economy than things about to come our way.

Shut down certain banks that have shaky legs, delete all of the credit(liability accounts they own) and simply forgive the consumer those debts. I am not an advocate of people not living up to their obligations, but just as these banks have been bailed out, so should the consumer. All consumers should be entitled to the same bailout as the banks that have abused the bailout money.

It’s atrocious how we hear how the average american overuses credit, the government lives off credit and then the banks get rescued off our tax money that should go to education, our soldiers and protecting our nation and taking care of our elderly and children. Then, they can turn around and abuse the consumer, break every usuary law they feel like and Congress looks on.

Sad. I love my country. Our Congress needs to get it’s head out of it’s butt.
118
Annie Says:
March 11th, 2009 at 12:05 am
Has anyone else called Fair Issac? They were very polite but did not have any answers to the question of how they are going to set the score when its not our maxing the card but the banks.

They could not even tell me approximately how long it would take from not paying cards till the score would go up again.

I will post a class action law firm that is fighting Chase right now regarding a $10 a month extra so called finance charge which is really an annual fee = $120 a yr on accounts that did a special rate transfer or something.

For people on SSI I am almost positive you can send an award letter requesting the acct be closed paid as agreed if you have not missed any payments nor been late since they can not take your SSI check money for debt. Be sure to get your savings out of the bank though.

will post soon
we need a class action attorney. this is total insanity

My homebuyers loan pre approval was a joke for where I live. My scores now run from 625 Trans Union to 710 Equifax down over 60 points due to Am Exp maxing me out

It back to WE Shall overcome … the banks!!
119
Gavin Says:
March 15th, 2009 at 1:21 pm
My credit is great. No payments ever missed, but AMEX closed my account which I just opened a few months before. Oh well, I’ll never go with AMEX again!
120
annie Says:
March 15th, 2009 at 2:46 pm
http://finance.yahoo.com/banki.....t-Spending

well I guess the top reporters are finding what we already know.
I spent 3 days on the phone at least 4 calls a day to Am Exp
my payment was due yesterday and after another cut in limit down to 120 available from over 2000 I asked if they would put off the payment date till Monday so corporate headquarters could respond to my 2 fax letters. NO, I was told midnight is midnight and so . My payment did not get there and for the first time i am late in over 17 years.
We shall see if they reverse the late fee etc. I doubt it.
Note in the article link above w/ Smart Money. None of the credit card comp. had a comment!!!!

congress has been alerted by several of us and more on other sites but they could not care less either.
new laws .. oh wow! lol lol who the hell will care by 2010 .

Maybe this was all in the works when the new bankruptcy laws began.
they are all crooks.
Madoff goes to jail where’s the money? taxpayers pay for him to live in jail. He will have a private room and get pardoned down the line probably.

I hope we all have a great day and stay well!
121
jiminycrickets Says:
March 22nd, 2009 at 11:49 am
let me preface my comments by saying that b of a cut my credit limit from 20k to 10k; fortunately, i did not have a balance. i am still waiting for the letter with their explanation as i, like many of you, have stellar credit. i also have a 0% interest rate card with chase with a balance of 9k. i can pay this off if i really want to but at 0%, why woud i? the limit, to date, has not been reduced so kudos to them, so far.

with that being said, there may be some method to the bank’s madness. i think they may be taking advantage of those of us who have the resources and are worried about their credit scores to pay off their balances. in my case, b of a really has no excuse other than i hardly use the card but if chase reduced my limit to the balance i owed, your damn right i would pay it off as the debt to available credit ratio would go through the roof and reduce my fico. they would immediately have an extra 9k to play with and that’s what it’s all about these days. just my two cents…..
122
Ken Says:
March 22nd, 2009 at 1:54 pm
Been talking to my mom and she has had two Chase cards cut from 15-20k cut down to i think 5k and 10k.
123
J Says:
March 22nd, 2009 at 4:49 pm
I need some info. I have 35,000 dollar debt on one credit card where I’ve put balance transfers on in the past. Is there a credit card that is available that I can use to transfer this balance so I can get a smaller interest rate than what I have now.
Thank you
124
Nancy Says:
March 23rd, 2009 at 9:43 am
My Amex card was just reduced from 25K to 15K with less than 24 hours notice! That reduction put me $500 of going over the limit. I don’t know how to treat this account now as I’m afraid if I use ALL my savings to pay them off, that I will have no financial cushion, a reduced credit score (which is 776 right now), and that Visa will do the same.
125
Mike Says:
March 23rd, 2009 at 10:48 am
Nancy, people can’t trust the corporations. You and millions of us are twist and confused, we don’t know what to do either. If I pay my cards off my cash cushion is gone and I have helped the very business criminals that put me in this quandary. If I don’t pay them off I help them with the interest I pay out. What happens if you stop paying completely?

Our government has failed to do it’s duty to a watch these scum who have put us/society into this dangerous position. Remember the term deregulation, it’s a euphemism for “no laws for business”. Our representatives were bribed through lobbyist to eliminate laws like “Glass/Steagal Act”. Business criminal’s got rich, representatives filled there coffers. And we are robbed by both.
126
Joseph Says:
March 24th, 2009 at 7:43 pm
AMEX just cut my business lines of credit:

Card #1: $29K to $1K

Card #2: $24K to barely above current balance

Credit score is 794.

How am I supposed to run a business with no credit?

Not only are they trashing my credit score, but they are causing small businesses all around the country to shut down. No wonder the economy sucks.

F you AMEX – you suck.

Where is MY damn bailout.

PS – Sign me up for that AMEX class action suit immediately…
127
m gedrose Says:
March 26th, 2009 at 2:18 pm
Up until this morning I had 2 amex cards with a combined limit of $30k. I was notified the limit on each was reduced to $1K. My credit score is 790, and I have never been late. AMEX is fueling the problem. They will never get my business again.
128
rjdesilver Says:
March 27th, 2009 at 2:08 pm
3/26/09 I just got a call from Capital one today, reducing my credit card balance immediately from $10K to a little over $2K (my balance) . I mean “immediately”, no late payment ever and had this account for 10 years. Reason due to recent drop in credit score AMEX did on my Costco card, reduced from 7K to 1500 (pretty much waht I owed). My credit score drop dramatically due to balance ratio.

As I can see, there is a pattern in all of this. And I’m just afraid it will have a domino effect on everybody.

Just pray hope everything will go back the way they use to be.
129
Ian Says:
March 29th, 2009 at 12:31 am
Bank of America Cut Limit from $49k to $35k which was the balance on the card. Amex reduced limit from $31k to $3k which was the balance. I don’t have any deliquent or derogatory accounts and never made a late payments. My score is in the 700s but is dropping very quickly given the decrease in limits. Amex was my #1 card so with the drastic reduction I was not able to use the card. I paid a $3k balance in full each month for a couple years now so somehow Amex figures I’m higher risk. If I was high risk would I be paying a $3k+ bill in full each month?? No! I hope a class action gets started because I’m upset due to the damage on my credit AMEX and BofA has caused.
130
lee Says:
March 29th, 2009 at 1:57 am
B of A did the same thing to us. We had credit lines of 10,700.00 and 11,000.00 with $500.00 balance. They reduced our total crdit lines down to $2500.00. What a joke. No notice, nothing. Credit Score has dropped significantly.
131
Dondeti Says:
March 30th, 2009 at 5:08 pm
I have a master card and Amex from Bank of America
my MC limit was reduced to $500 from $8500 (i have no balance on that) and my limit on my amex card was reduced from 8000 to 5200 (i have 5100 in debt),
called BOA , said they would reduce my limit on Amex
even furhter once i have paid my balance .(now i hate BOA). Interestingly, Citi has increased my limit from 9500 to 10,000.

i am just afraid that i would not have much to spend when i am in need ..

Hope BOA goes under..
132
Glenn Says:
March 31st, 2009 at 8:18 pm
I requested that my Bank of America AMEX card be increased from $3,000 to $5,000 and in the process not only was it denied but my 2nd Bank of America Platinum Plus credit line was decreased from $15,000 to $5,000.

All the while Citi increased my credit line by $1,500 bringing it up to $8,300.00.

This all happened within about four days, and my credit score which I just pulled my self less than 30 days ago was 755.
133
Melissa Says:
April 2nd, 2009 at 10:36 am
December 2008:
Juniper â€“ card closed for no activity

February 2009:
First Equity – card closed for no activity (never notified and previously rate jacked on this card in 2008)

March 2009:
WaMu card 1 â€“ I recently paid the balance down to $0; they closed this card
Chase card 1 – I recently paid the balance down to $0; they closed this card
WaMu card 2 â€“ $3K CLD
Chase card 2 – $2.7K CLD

I called BoA to do a small direct deposit on a 0% card and the representative asked me why I wanted to do a direct deposit. Why do I need this money? The rep. made a soft pull on my report and then asked me why I was carrying some debt on my other cards. Then he denied me and dropped the credit limit on both of my BoA cardâ€™s; $2K on card 1 and $3K on card 2.

Merrill Lynch – $2K CLD
Citibank – $1K CLD (previously rate jacked on this card in 2008)

My utilization prior to the decreases and card closings was 25-33%. Now my utilization is 90% on these cards.

I went ahead and used the credit I do have available on another card, because Iâ€™m sure itâ€™s likely on the way to the chopping block and given this economy, I think itâ€™s better to reserve a little more cash. Use it before you lose it – sigh.

This has been so frustrating. Twice I went to use my credit cards and they were denied. I worked so hard to keep my utilization reasonable and now this. I paid down some of my debt to only have the cards closed and reduced.

Per this article: http://online.wsj.com/article/.....78113.html
â€œCurrently, there is roughly $5 trillion in credit-card lines outstanding in the U.S., and a little more than $800 billion is currently drawn upon. Over $2 trillion of credit-card lines will be cut inside of 2009, and $2.7 trillion by the end of 2010.â€
134
Martin Says:
April 4th, 2009 at 2:50 pm
Amex got me today and embarassingly so , They reduced my credit limit from just $ 12, 000 to $ 3,700 yesterday , apparently they sent me a letter yesterday- so as usual this morning during my grocery shopping my card was rejected and I had to use my debit card—-there went my reward points. What sucks is that I had chat with a supervisor Karen after a rude discussion/exchange with a Mr Chang or Ching or Chung (I wonder why this guy is in customer service) and she could not help either, instead referring me to a credit bureau who sent in some information about me that I do not know about.- By the way the bureau is closed weekends so no help for me (Note : the customer rep had asked me if I had bought a house or car recently – which I affirmatively replied – NO – I could tell he was fishing). I have used amex for a number of years (both personal and corporate cards) and have stored away my other cards chosing not to activate or spend on them and now this slap on the face. Amex needs to get what’s coming to them and the communication needs to be stern and extremely public. If they are indeed discriminating then this needs to be visible and they can (politically correct ) carve out their “niche” market without making it illegal- My loyalty to these guys is totally eroded and I can’t wait to make sure that they focus their business elsewhere whether thru’ word of mouth or getting media audience…..It’s just not fair that they should go on with business as usual when they are just messing around with people’s finances (people who probably never settle minimum balances but total amounts)

I’m one pissed off customer.

Anyone out there who knows how we can take this to them and stick it there? I will explore some more avenues.
135
Martin Says:
April 4th, 2009 at 2:56 pm
I SAY A CLASS ACTION AGAINST AMEX and SOON and a NATIONAL BOYCOTT as well

I will not leave this alone.
136
kissmy Says:
April 8th, 2009 at 11:34 am
You know what I have to say is haven’t yall realize that amex don’t give a shit about yall. Especially those who think it’s theirs to keep remember you are borrowed it’s not your money. all of you who pretends you don’t understand people with accent there are no tru americans living in america. Especially Tamara Hogue who was making fun of people’s acct you can kiss my ass to answer. you are very lucky I could not cussed your ass wanted to speak with manager who speaks english.
137
kissmy Says:
April 8th, 2009 at 1:13 pm
my own line of credit has been reduced and I survive. I will for everyone who’s not knowledgeable enough to respect those who are taking their time to explain what happens. trust me no one wants to sit down for 8hrs a day five days in a row listen to card members who want to vent about line of credit reduction. those of you who are kind enough to understand and respect the individual who’s providing that message to you God bless you all. remember you don’t know people’s heart amex is a big company with maximum protection but that individual have enough info to mess up so bcareful. it’s not an individual fault you’ve been reduced. we are human and we understand we’re simply there to deliver you a message. Just because of our race, religion, etc… or people like me with accent it does not give you a right to disrespect. there’s always a nice ways of going around some you don’t like or unconfortable with. I’m glad that Tamara Hogue the super american can make fun of people’s accent but hey we are all god’s creature. good for you you don’t have an accent. people like you dont affect me because you don’t me
138
Doug in Utah Says:
April 8th, 2009 at 2:03 pm
A stellar credit history with absolutely no late payments to any creditor and what does AMEX choose to do? Like the rest of you, they clamped our Costco AMEX credit line twice in as many months – now at ~$6k just following a $10k payment! To say I am angry about this would be an understatement. And then a supervisor at AMEX had the gall to lie to me and tell me that some of my accounts were delinquent was an outrage! I ended my conversation with then by canceling my account which, inevitably, will have consequences for Costco as well (as it already has). AMEX is going down and taking Costco with it!!! What is so ironic about this is that at least some of their customers, including myself, are now attending graduate school and, in 3 years, will have the 6-figure incomes they will be seeking to secure as customers. Not this kid. I do not intend to do ANY business with them in the future. There are obviously better credit companies out there to deal with.

Are there any legal actions that can or should be brought to bear against this paranoid, now-deplorable company? Might a class-action of some kind save this company from themselves, and maybe help put Costco back on some sure footing?
139
Benjamin Hall Says:
April 15th, 2009 at 12:27 pm
My credit limit has been reduced twice since January with Care Credit (GE Money). I took they line of credit in order to have Lasik surgery and have been making timely payments ever since. Despite my timely payments, however, they reduced my credit limit back in January when the layoffs reached the all time high and the economy was going haywire. Shortly after that, my wife got laid off from her job. When I asked them why they did this to us, especially since we were being good debtors and making our payments on time, they told us they determined their decision based on a consumer report. I couldn’t believe that they were judging me based on past credit incidents AFTER they approved me for credit and I had already made a solid 2 years of good payment history with them. But they wouldn’t budge, so I gritted and beared it. Just recently (beginnning of April) I was checking my credit report, because we’re trying to get approved to buy the home we’re currently renting, and I saw that they did it again with no warning. They decreased my limit so much this time that I was $900 OVER the limit AND they reported me as deliquent to the credit angencies and slapped a major “ding” on any chances I had of getting qualified to buy my home. If I would had known about this ahead of time, I would have been able to prevent it by paying the acct off with what I had left in my savings, but now I owe an extra $900 to them, plus fees.
140
Credit Card Guru Says:
April 16th, 2009 at 10:59 pm
Thanks for the info. With all the bad information we get online with crazy credit websites, it is good to read something from someone who knows what they are talking about.
141
RNT Says:
April 19th, 2009 at 11:20 pm
All my AMX cards including platinum have spending limits. Never had a late payment on any AMX cards for the last 15 years. American Express is making bad decisions about how they treat their best customers.
142
Chris Says:
April 20th, 2009 at 3:53 pm
My credit limit on my fia mastercard was just reduced from 40,000 to 20,000 without a warning. When I called their customer service the rep. explained that the reason for the cut was that I had never approached the old credit limit.
143
K Says:
April 21st, 2009 at 10:31 am
Earlier this month I got a letter in the mail saying that BoA had reduced my Mastercard (which I’ve had since 2000) from 30k to 15k. Personally it’s not really a big deal for me since I just use credit cards as a firewall between my bank account and internet purchases or automated payments, always pay it off, and never get close to my max. It’s more of the principal of the thing and I am currently debating how to protest this the most without hurting myself too badly. This is still my largest account and my longest opened account (got it in college and started out with a $500 limit they have continually increased). My problem is it does affect my credit score. They also just bought out Country Wide, who has my mortgage. I’m thinking the best recourse is to let the card go inactive and refi with another bank who I can be fairly certain won’t sell my mortgage(which has never been late in the few months I’ve had it) off…

I also believe I’ll pester them as much as possible, mainly just to eat up their time without giving them business…it’s the small things that add up.
144
Ken M Says:
April 21st, 2009 at 12:01 pm
Story on CNN of a guy with 800+ score getting limit reduced.

http://moneyfeatures.blogs.mon.....-enough-2/
145
michele Says:
April 21st, 2009 at 1:57 pm
This is another weird one that just happened to me. I recently paid off the last of my Sallie Mae student loan. They closed the account, paid off, and my credit score dropped by 7 points. It just amazes me that doing the right thing, paying off loans, still dings you.
146
Mike Says:
April 21st, 2009 at 9:48 pm
Michele, This doesn’t surprise me, but it is bizarre. The whole credit thing is a master fraud. It use to be if you closed accounts after paying it off you were considered a good credit risk. They make the rules to suit them as they go, just like the fraudulent stock market. You can’t trust any of them or our government who turns head for a “buck”. The whole country needs to be torn down in anger and in the name of hatred and we need to start all over. Remember the FRENCH REVOLUTION. The rich and government r out of control.
147
Doug in Utah Says:
April 21st, 2009 at 10:28 pm
How is this in keeping with the government’s edict to free up credit to spur the economy on once again? Some of these companies have already received TARP money (i.e., American Express) and/or are in line to receive more. Isn’t the whole idea to spend, spend, spend so as to prevent economic collapse? Haven’t the banks been ordered to free up additional funds for mortgages and mortgage bailouts? Why do these financial institutions feel that they are immune to the “stimulus” edicts and are free to clamp down on credit and, thereby, hinder consumer purchases?

Personally, I believe the “stimulus package” proposed and implemented by the current administration to be a sham and merely the means to breed further reliance on a centralized government. The behavior of the financial institutions is further proof that there is little interest in reviving the economy UNLESS the government can somehow benefit. It is sad to see the increased intrusion into our lives under the guise of doing what is good for the economy and best for the citizens of the USA. And, unfortunately, what we are witnessing from these financial institutions is, I believe, just the beginning. From now on, we can’t depend on the private institutions that we have developed trusted relationships with (by paying on time, etc.), but will be turning to bloated government bureaucrats to bail us out in our time of need. What a shame. God save our country!
148
C B Says:
April 27th, 2009 at 3:58 pm
Seems like this trend may be increasing. Like “K” and some others above, I have a high credit score, I have two cards (Amex & BofA) that I’ve used for a long time, I’ve always paid the balance, and my credit balance has always gone up…
That is until my last statement – BofA went down from $21K to $11K – I called and they raised it to $15K, but if it affects my credit score, then I’ll have to do something.
-CB
149
nai Says:
April 28th, 2009 at 7:12 am
citibank has reduced my credit limit from 12K to 500$ for a late payment of 60$ for a month. How ridiculous can they get. first they ruin my credit history and then use the reason to reduce the limit. The worst part is I never used for revolving credit and paid all bills on time for the last 5 years. Unfair practice. Is there any resolution?
150
Susan Says:
May 4th, 2009 at 7:42 pm
Today I was checking my online statement for my CC and my available credit was slashed more than 70% without warning. I have never been late. I always pay my statement balance in full and have a credit score in the 700’s. They slashed my credit on the same day as my statement was issued, which made my outstanding balance exceed 50%. No letter, no call, nothing. Luckily i have paid off my statement balance today.

Bottom line you cannot trust these services-it is not just AMEX or large CC companies-my bank is a small local bank-this card was thru my bank, which supposedly has a strong portfolio. Banks and CC companies are cutting their balance sheets and WE will all be screwed as a result.

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