Reduced Credit Limits? Share Your Experience

Published on October 31st, 2008
Modified on January 16th, 2010 - 262 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!

Related articles...

» Citi and Amex Changing Terms, Raising Rates and Fees
» Evaluate Your Expenses
» Reviewing Your Credit Report: Five Potential Problems
» Credit Limits Poll Results
» Money Poll #26: Credit Limits
» FSA Limits Reduced for 2013
» Reduce Debt With a DIY Balance Transfer
» Is it Time for Cash to Make a Comeback?

Search this site

Was this article useful? Please sign up to receive our content via e-mail:

You will receive only the daily updates, and can unsubscribe at anytime.

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

Pages: « 1 2 3 [4] 5 6 » Show All

1. 151
   MICHELE Says:
   May 4th, 2009 at 7:54 pm

   I think the only resolution is the obvious one. Given the watering down of the last “credit card law” congress has shown their true colors, on both sides of the aisles. The Banking industry owns them lock stock and lobby money and there will be no relief save what we can do on our own. How did we get to this point? How did we become so afraid of 4 letters? FICO, is not all powerful.

   We seem to forget that we are the customers here. These banks serve us. How long will companies like AMEX, CHase and BofA last if we don’t give them our business. If we don’t use them they will go the way of the dodo and the newspaper.

   All of you that are “paying in full” every month, do you really NEED a credit card. More and more, as I am getting out of debt, I am finding that pulling out a debit card is just as easy as pulling out a credit card and much less agravation.

2. 152
   Mike Says:
   May 4th, 2009 at 8:15 pm

   I’ll tell you how we got this way. Our gov. and corporations are in choots with one another. They have robbed us of our wealth our opportunity, life, liberty, and the pursuit of happens. They have done this by allowing millions of legal, and illegal aliens, to flood into our country dropping our wages, eliminating Americans from getting to good paying construction jobs, computer type jobs, etc, by replacing us with Mexican’s, Indians, Muslim’s. Since we don’t make as much money as we use to we have fewer and fewer kids, and get married less and less. Further more we are being replaced by 3rd world people.

   We were given high FICA scores to lull us into a false sense of security. We also need it to make up for our dwindling incomes, and or higher costs.

   Laws have been put in place to benefit the financial/banking industry. Yesterday a CA senator clearly stated that the banks have to much power in Washington, so little will get done, they have to many lobbyists he said.

   The last time we experience crap like this was just before the American Revolutionary War. It’s time for a new revolution, everybody must talk about it every body must say it. We have talked about the Mexican invasion, Amnesty and other problems since Reagan, and nothing gets done it’s time to stop the talk.

3. 153
   VM Says:
   May 5th, 2009 at 3:48 am

   Sadly this is one of the most frustrating and ignored problems of the US economy. I find myself dealing with AMEX best new practices! How long the american consumer and customer should remain silent or passive and allow AMEX (and/or all other financial institutions who have a similar approach) to avoid responsibility and accountability! These practices, arbitrary decisions paired to increased lack of competence and manners of customer service is just an indication that the legislation regulating consumer credit protects primarily financial institutions and favors the percentage of people with large bank accounts with limited socio-economic conscience or interest in changing the status quo (unless directly affected). Note to AMEX management and HR – consider investing some money to teach your employees to speak with basic rules of english grammar(or at least screen your hires better) ” She Don’t” is not the correct use of English language! Seriously, it’s quite offensive and insulting to have to listen for more than 32 seconds to a dumb “Mr. or Miss who-who” with a 5th grade education telling you that you are considered a liability and a high risk without any evidence of a bad credit history, a credit score over 750 (likley higher than some of their management and employees), no deliquencies or negative records.

   Amex management should really take the time to listen carefully to the recordings of the calls made “for training purposes”. Maybe this could help them to understand to care why an increased number of good customers are taking their business elsewhere. Myself included.

   I don’t usually spend time engaging in confrontations or litigations (too much negative energy) but this really the time to do so. These idiots have first seduced customers with high credit limits, realized that in many cases they did not do themselves a favor and decided to play vigilantes. Wake up this is not high-school! They should not have the right to have a direct effect on people credit, without a justified reason; and the legislation should prevent this from happening with specific provisions. AKA in this cases (caused by a preventive punitive action), the increased percentage of used balance should not weigh and drive the review of your credit score. Maybe I am just on glue (to quote Elle Woods!); meanwhile some (bad) press and publicity could really help all of us. The potential of a “swine flu” pandemic is not the only topic we should forced to hear on every single broadcasting channel. Kathy Griffin please help!

   P.S. A plea to Ellen, Byonce and Dianne Von Fustermberg – You can do so much better than AMEX; please partner to endorse a business or ad campaign truly worth of your time and talent

4. 154
   MARIA Says:
   May 12th, 2009 at 2:53 am

   i have a big problem sir?my card got into the limit but im not able to pay my monthly bills because of financial problem.recently an agent called me and said that if im not able to pay my due date on May 11,2009 my card will be cancelled so i will force to pay the whole amount.i bothered do i really got into jail sir?but im willing to pay my card but not this moment.

5. 155
   Brian Says:
   May 19th, 2009 at 12:08 pm

   Found out yesterday, 18 May, that credit line was decreased by Sear/Citibank. Had a credit line of 10K; it was reduced to 3500 – $200 over balance currently on card. I called and they stated i was a credit risk because of high balances. I’ve had this card 6 yrs and have never been late. Same for all my other cards. I think this is totally wrong. They’ve just hurt my credit score.

6. 156
   Jim Says:
   May 21st, 2009 at 1:44 pm

   Chase just lowered my credit limit with the same reasoning as for Brian, credit risk even though I’m in good standing. Well they lowered it to less than what my balance was! I’m on auto pmts and haven’t used the card in months. So I would have kept right on with my auto pmt amount and this month I would have been over the limit (40.00) and late (40:00) in which time my apr would have jumped to 30 %. Luckily I caught it and made an extra pmt to cover the amount that I would have been over limit. I still fully expect them to try and charge an overlimit fee which I will fight to the death about.

7. 157
   Robin Says:
   May 22nd, 2009 at 8:57 am

   Ken.Chenault@aexp.com – CEO American Express

   Email the CEO personally and complain!! If enought of us do that maybe we will get somewhere.

8. 158
   Richard.CA Says:
   May 22nd, 2009 at 10:55 am

   WAKE UP AMERICA. Don’t you see what has happened? The banks got a bail out. They saw all this money coming in and they really REALLY liked it. They liked it so much that they wanted more and more. It’s called GREED. BUT they knew some day they would have to pay it back, so, those no name, blood suckers in empty suits got an idea – Make our customers pay for it. They lower the credit limits thus lowering the credit scores on ALL customers. Now the pay-off; With lower credit scores they can charge higher interest and that gold up front money called POINTS for all refinance and new home loans. So, looking for a solution to this? Try mine.
   I have unsecured credit card debt a first mortgage (variable rate) and second on the house the bank seems determined to force into foreclosure, they look good with these variable rate loans off the books. So, if you refinance only the first and second (if you have a second line of credit or whatever – but pay off ALL secured debt). After you close on the new fixed rate loan, IGNORE the credit card (unsecured) debt. In fact now is the time to top out those cards. STOP paying on them wait for them to go into collection and now you have options. ONE you can file bankruptcy, best solution. Or, TWO, find a legal firm that specializes in debt negotiation, the good ones can get the debt lowered to 10%. If you take the second choice and have enough equity, apply for a line of credit or second mtg. and pay off the 10% of the credit card debt. Of course realize that both options assume that you plan to stay in the house for a long long time because your credit rating will now be BAD. And oh yes, you will have to do without credit cards for a year or two (and is that so bad). Yet think of the pleasure you will have knowing that you stuck it to the banks just when they thought they were sticking it to you.
   If every home owner did this before year end 2009, the banks would have to do an about face. They make a lot of money on credit cards and if they were to lose even 50% of this business I am sure they would be once again be offering those 0% rates to try to suck us all in again. But now we know better. Yes, my friend, this is a war. It is a war between us and the corporate greed that is out of control in this country and the FAT PIGS called bankers.

9. 159
   howard Says:
   May 22nd, 2009 at 6:53 pm

   My Sears Gold MasterCard Credit line was reduced today from 4,500$ to 3,500$ just above what my balance is. Never missed a payment. Interest is very high though. I will pay off the balance and never shop at another Sears store again. I do not forget an injustice and I hope others will also boycott stores that do this. I will drink champagne if or when Sears goes bankrupt.

10. 160
    Helaine Says:
    May 29th, 2009 at 7:12 pm

    I just discovered Bank of America reduced my credit limit. Thank god I pay my bills online before they even come to me. My bill came today and the amount I owed showed $902.00 and they reduced my line to $900. I had paid the bill prior so by bill was down to $852.00. The bottom line if I didn’t pay my bills promptly I would have overcharge fees. Not only that the bill I received in the mail showed my higher credit limit line. I went on line to check and sure enough it showed a credit limit of $900. This is really making it harder on everyone. Now I am terrified this will happen on all my cards. No warning. Nothing!! The banks received all this free money and now they want more and more causing us into worse financial problems. This is very frightening. What happens if you have an emergency and try to use your card and then no money. I was paying mine down in case I had a major emergency. Bank of America is the worse.

11. 161
    bwry28 Says:
    June 11th, 2009 at 10:48 pm

    I had a few credit increases over the last year and thought I was pretty safe; even with my Chase cards all changing to variable rates. However two weeks before the last few grand was due for my wedding I get a notice from Chase that they are closing my line of credit and valuing my home about 100,000 less than two years ago. That sucked. I have all my investment and debt with Chase and I will be running fast from them as soon as my husband and I get a few months recovered from the wedding expenses.

12. 162
    Chris Jones Says:
    June 25th, 2009 at 11:41 pm

    I have seen my business cards dropped starting with AMEX last fall and ending with BofA and Citi this month. Chase also increased the interested rate to 31% because of what they tell me is a 1 day late payment (first time in 9 years). Banks don’t want small business customers any more.

    I have news for these guys. My kids hear my wife and I talking about this stuff and will remember how these big banks were trying to screw over the family.

    Much Like I remember the crap that GM and Ford put out leaving me and my mother broken down on the side of the road many times. To me their cars are still crap and I will never buy one.

    My dad on the other hand still buys his chevy because he remembers the cars of the 50’s and early 60’s when he was a kid.

    I am not in all that bad of shape, however if things get worse I would not think twice about defaulting on my credit cards and running them up to the limit before I did so.

    The banks are greedy crooks and will get what they deserve in the end.

13. 163
    mad Says:
    July 4th, 2009 at 5:26 pm

    I hate cibc bank they decreaes my credit limit from 16000 to 8000, I’m very upset it took me many years to build to this credit

14. 164
    howard Says:
    July 4th, 2009 at 6:49 pm

    Chase dropped my credit limit from 14,000 to 5000. I had never used the card. At least the letter informing me stated the reasons were the economy and not me. Sears however stated that it was my credit history that caused it to lower my balance from 4,000 to 3,500. There is nothing wrong with my credit history. I will never shop at a sears store again and i will never use the card. I keep the account open only to keep it on my credit history. Cancelling the card would only hurt my credit history. The credit card companies will get greedy again and bring up the limits. Remember who did you wrong and never use them again. Give your credit business to the companies that stayed by you.

15. 165
    Michael Says:
    July 5th, 2009 at 12:21 pm

    I have a small business. My personal credit cards are paid every month. Most of my business credit cards (with one exception) are paid every month.

    AmEx Business cut my small business limit from $15,000 to $10,000 in November 2008. At that point, I owned $9,980.00 on that card. I paid it down to a about $6,450.00 over the next 3-months and they cut my limit again to $6,500.00 in April 2009.

    AmEx cut my personal credit card limit from $6,000.00 to $1,000.00 on a card I never use in November 2008.

    Wells Fargo cut my $6,000 personal credit card limit that I never use to $1,000.00 in about February 2009.

    In the last couple of days, Capital One cut my small business credit card limit that I never use from $10,000.00 to $2,000.00

    And Advanta canceled all their credit cards, one of which I had which a $25,000.00 limit.

16. 166
    howard Says:
    July 5th, 2009 at 10:09 pm

    It’s really getting nasty out there with the current economy. In the short term by cutting down our credit lines, they are increasing the utilization ratio used to give us our fico scores thereby bringing those scores down. I’ve had to use savings to pay down cards by the amount cut on my credit lines. I have 53,000$ in credit card debt but it never bothered me becauce i always paid them on time. Before the economic crisis, i just got another card with a 10,000$ limit to keep the utilization ratio down. Not any more. My plan is to keep paying the cards off completely as fast as possible and let them cut the credit lines. When the economy gets stronger, they’ll be throwing these big lines of credit back at us. Greed will win and the credit card companies will want us back again bigtime.

17. 167
    Michael Says:
    July 5th, 2009 at 10:30 pm

    Howard,

    I agree. However, I will not deal with any of these banks that have reduced my credit limit again. I have never paid late and should be considered a valued customer, but, apparently, I’m not. So, I won’t be for them. I’ll take my business elsewhere.

18. 168
    howard Says:
    July 5th, 2009 at 10:57 pm

    michael i’ve found that the cards that are straight up with me, for example dropping the limit because i don’t use the card and do not blame me is borderline reasonable. They have to keep these limit liabilities on the books (person could run up the full limit tomorrow). Any card that lowers the limit below the amount still owed is unforgivable. Again because sears blamed me for the drop in my limit, i will boycott them forever along with all my family. It doesn’t hurt me at all. I have other credit cards that continue to be reasonable and also keep the interest around 12%. Do you remember providian bank about 8 years ago. It wanted to sell it’s credit card business to another company so it cancelled cards blaming the holders. I believe (or hope) it’s bankrupt. You can only kick people so long before they bite back. Boycott is the way to bite back.

19. 169
    Michael Says:
    July 6th, 2009 at 12:05 am

    One thing that is so frustrating with American Express business is that I spend something like 2 hours on the phone with them to find out WHY they lowered my limit. I still am not sure why. I never even bothered calling the other ones. AmEx was my main business card. It has been taken out of my wallet forever.

20. 170
    bwry28 Says:
    July 6th, 2009 at 8:04 pm

    To those who have questioned mine and other’s credit worthiness with these drops in limit; I will tell you that I have never had a late payment on anything or maxed out a card. I’ve come close the last few months to pay for my wedding but other than that I’ve been a reasonable credit consumer. I had commented on this blog earlier about the closure of my LOC. I still haven’t had any limits lowered on my revolving debt but Chase just upped my minimum payment on my lowest interest rate card (locked rate promo of 3.99%) to 5% of the balance. This happened right after I made a larger than usual payment on that card. Now, I had planned to have that card payed off in about 3 years and now I have to pay it off in less that 2. I was confident in my banks and the lending rules at the time the debt was accrued but now the noose is drawing tighter and tighter.

21. 171
    Mary Ann Says:
    July 10th, 2009 at 8:46 pm

    Same thing here!! I heard a story fr two business partners of mine, that AMEX closed their accounts that had $0 balance on them. I was thinking they maybe missed a payment or 2 or had other bad credit.

    I was at the veterinarian office to have xrays on my dog, I have a $7,200 balance with a $20,500 credit limit. I went to use my Wachovia Credit Card (Which is now Bank of America…go figure) and the lady said “It was Declined”! I was so shocked and knew there had to have been a mistake with her credit card terminal, so I had her run it again.

    I have NEVER missed 1 payment, or made a late payment in my 15 year payment history, EVER!!! I never maxed out my cards EVER!! I had a FICO score of close to 800!

    I called the 800 number on the back of my card to see what the issue was. I was transferred (3) times after verifying my security info with them. Once I got to the last rep, she started asking me questions about my job, what type of job, how long I’ve been there, how much I make annually. When she got to the 2nd question, I realized I TOO BECAME another victim of what the banks are doing to people!!

    Not only that, I have Equifax “Score Watch/Monitoring”. My credit took a HUGE ding cuz one of the major factors that impacts your fico score is your “Debt to Credit Ratio”. I had over $62,500 avail credit limit on various cards, now it shows I have TOO MUCH OF A BALANCE with little available. That’s because those banks are now penalizing the good credit people to protect themselves!!

    YES, there should be a class action lawsuit filed and a law put into place RIGHT NOW, that the FICO score and credit bureaus cannot use this to their benefit and hurt our scores!!!!

    This is beyond our control and just happened without our knowing. Unreal!!

22. 172
    Nancy Says:
    July 10th, 2009 at 9:43 pm

    Chase just cut my credit limit in half with no warning. I have no credit card debt. My credit score is near 800 (has been rising every month for about two years since I established and got rid of all previous debt). I only have three credit cards and I charge and pay the whole amount the next month whenever I use them. I purchased a new vehicle 3 months ago and got an auto loan through Toyota directly which I am paying off pretty quickly (the minimum is 200 a month and I pay 400 instead). I woke up this morning to my chase card limit slashed and I called up and they deemed me a “high risk”. It was the only explanation I received. I never got a prior warning at all. I’d like to do something about this but I don’t know what.

23. 173
    Bernard H Says:
    July 11th, 2009 at 6:11 pm

    Nancy,

    I have a Chase account as well, and the same thing happened to me. My credit limit was slashed 40% without any warning. My FICO is 702. I pay my balances in full each month, and I only use about 15% of my combined credit limits(I have 3 other credit cards.) I sent Chase an e-mail asking for an explanation. If or when I get a reply, I’ll share it.

24. 174
    MK Says:
    July 15th, 2009 at 7:58 pm

    Just went to make a payment on my US Bank credit card (we only have two CCs). Noticed my revolving credit was $3000. Thought it had to be a mistake, looked at last months statement and the revolving credit was $30,000.

    Never been late on ANY payments for anything over the last 15 years. No HELOCs, are 5 years into a 15 yrs locked rate mortgage. Only have two credit cards, one with about $7K on it and this US Bank card with $2900 on it (both $30K limits). Immediately pulled all three of my credit scores: average score was 871.

    So US Bank just lopped off 90% of my credit on their card. For no reason I can possibly see.

25. 175
    bwry28 Says:
    July 15th, 2009 at 8:14 pm

    To MK – It sounds like you have done all the prudent stuff…doesn’t seem to matter any more. My husband and I have been tossing around the idea of starting a Class Action since everyone is talking about it but no one is doing it. I think a jury of our peers would find that the companies have broken faith with their customers in a way no “reasonable” person could expect.

26. 176
    Bernard H Says:
    July 16th, 2009 at 9:19 pm

    Just a follow up. I got a reply from Chase regarding my sudden credit limit decrease. They stated that since I only use a small portion of my credit line, they saw fit to reduce my limit to suit my spending habits. In bank talk, that means that since you don’t max out your cards and pay only the minimum, we can’t make any money off of you. So because you won’t contribute to the CEO’s “golden parachute”, we’ll punish you by decreasing your limit. Since when was financial responsibility a bad thing?

27. 177
    Joni R Says:
    July 20th, 2009 at 3:34 pm

    I just received a letter from Chase stating they were decreasing my limit from $2000.00 to $1300.00, reasons given when I called were that credit limit to amount owed ($300) showed I was not spending as much as before. So because I quit using the card and paid down my balance they cut my limit! This is CRAZY!! I even argued that I have never been late and ALWAYS pay more than min due. They agreed that I am a loyal card holder but that there was nothing they could do.

28. 178
    mary Says:
    July 24th, 2009 at 2:48 pm

    82.CHECK THIS OUT EVERYONE! I have FICO Score Watch thru Equifax. Under the section, “Understanding Your Score”, it shows you what is helping and hurting your credit score. “YOU’VE MADE HEAVY USE OF YOUR AVAILABLE REVOLVING CREDIT. Your FICO score evaluates your total revolving credit [?] balances in relation to your total credit limits on those accounts. In your case, this ratio of balances to credit limits is too high.

    Keep this in mind: This credit usage ratio is one of the most important factors to your FICO score, so you should work on paying down your balances. Your FICO score looks at the ratio of revolving debt, but not in which accounts the debt resides. Therefore, consolidating or moving your debt from one account to another will usually not help your FICO score since the same total amount is owed.”…

    So, this IS FOR SURE killing everyone’s credit score!!!!

    I have (3) credit cards with a total balance of $19k and HAD an available credit limit of $60k! (I have never had my total balance on my credit cards over $24k, ever, so this always reflected good) So, it all looks great right? Looking at this scenario, I’m using only 32% of my available credit.

    WELL, Bank of America goes and cuts my credit card from $20,500 to $7,500 with NO warning. I have a $7,300 balance on that card, so this now gives that particular card a 97% debt to available credit ratio..NOT GOOD NOW!!

    I just got an email yesterday that HSBC-The GM Card, reduced my credit limit from $13k to $9,750!! This just reduced my overall available credit ONCE AGAIN!!

    ** WHEN IS ALL THIS MADNESS GOING TO END?!!! WE NEED SOME1 TO STEP IN AND STOP THIS! WHERE ARE THE REGULATIONS AND LAW??? WHO IS REALLY HERE TO HELP THE AMERICAN PUBLIC? We have no freedom of speech and defense to protect our own credit scores, or our credit cards. Our rates are being jacked high, limits being cut with no notices and their own made-up reasonings, such as “due to lack of usage”.

    I say we ALL get involved in a home based business, (I already am in one), to make the extra $$ and save it. Then tell these credit card companies to take their credit cards back, all file bankruptcy and they get nothing!!! They have really done it now. We all need to stick together and fight back!

29. 179
    Annie Says:
    July 25th, 2009 at 4:22 pm

    Hi Mary, Exactly what I have been saying and I even called Fair Issac and asked it they were going to change the way they calculate as we were not maxing out the company was doing it to us. They said no they had no info this was several months ago I would have to go back and check the posts here I am on my way to work
    So WE NEED TO DO A CLASS ACTION

    HOW DO WE START ONE??? THERE must be someone who knows an attorney who is part of this blog.

    IT’s insane and the gov knows but does not care how can they not.

    I moved my money to a local bank and am out of the big ones. People should do the same

    will post some links in a day or so on why.

30. 180
    Mike Says:
    July 25th, 2009 at 9:25 pm

    Mary and Annie

    Our government has been over thrown by the corporations. Our government has allowed, and encourage, corporations to move jobs overseas to China. At the same time allowed 50 million plus, illegals to invaded our country driving up costs, ie. hospital/medical, schools, police, prisons. gasoline, utilities…. And now the government and corporations have given homes loans and credit to the illegals as well as all other subprimers. These are the reasons for the collapse in our economy. The damage that has occurred warrants mass march’s by citizens, and more, for the damage they have caused. T. Roosevelt confronted business head on for the dirty deeds the “Robber Barons” were pulling, and he did so be cause he was concerned there would be a revolution in America. In the 1930’s FDR attacked the problems of the 1930’s because he too was concerned about a revolution. Like Thomas Jefferson said,”It’s good to have a revolution every once and a while.” We need a new Roosevelt or something.

31. 181
    MK Says:
    July 26th, 2009 at 9:24 am

    Follow up to my previous post on 7/15/2009.

    So after verifying there is nothing abnormal on all 3 credit reports I find nothing amiss I called and complained about the 90% limit reduction on my card from US Bank. All the official letter said was “after reviewing you account we have decided not to close your account, but have reduced your limit to $3000.”

    We are done, have had it with regular banks. Called Navvy Federal Credit Union, who was happy to immediately give us a nice fixed rate and adequate line of credit.

    US Bank wants to play these games. Fine. We have just mailed in a check to pay off their card and closed our CC, Checking and Savings with them (had accounts since ‘87).

    Will deal exclusively with member owned Credit Unions from now on.

32. 182
    howard Says:
    July 26th, 2009 at 4:17 pm

    Feel the same way. Have dealt with a very small credit union where I work for the past 9 years. Unfortunately my credit union has no credit card, mortgage, etc programs so I deal with BofA as little as possible for my mortgage for example. My credit union is not going to ‘rip me off,’ BofA would if I gave them the chance.

33. 183
    Annie Says:
    July 27th, 2009 at 7:29 pm

    I suggest all of you think of going to a local bank
    Here is a link on how and why
    http://solari.com/archive/banks/

    you may want to check out the rest of the site as well. it is an amazing vault of info.

    Circle Bank is my local bank. I was surprised to find an new water cooler that gets the water out of the air and filters and uv lights the water and out it comes. Its nice to see that in a bank. They people by name and my local credit union which was open to me only because there is a branch in my town wrote letters to my creditors and got a problem solved for me. When I brought Jann a small plant to say thanks she was so surprised. They are helpful and if they do not have what you need they refer you. ie rental insurance they also give me free financial advice with a certified advisor.
    so go local the bank that benefits your community.

    still waiting for the class action lawyer to come on line and help us. maybe we should pick a day to meditate on it all of us at the same time.

34. 184
    Annie Says:
    July 27th, 2009 at 7:39 pm

    Hey please excuse the spelling / grammar errors I think you can still understand what I am saying.
    PS
    Fair Issac has not to date changed its method of calulating even though the companys are maxing us out.
    There is a place we need to protest as well They are the ones with credit score program.
    suggestions on how to boycott/ protest them?

35. 185
    Mike Says:
    July 28th, 2009 at 2:17 pm

    I recently called BOA as I carry two cards with them and one of them had a much lower interest rate as I wanted to see if they could match it. They told me to call back on a specific date as that is when the interest would go from fixed to variable and that there shouldn’t be any problem in reducing the high rate to match the other card. Finally I called today and told them the situation. The guy gets back on the phone and tells me that they cannot help me at all, not only that but that they were going to reduce my credit limit on BOTH cards by about 40%, which put the new balance a few hundred dollars shy from the limit. I told him I couldn’t believe I called for help as I am trying to lower my payments and improve my finances and instead he is damaging my credit score by lowering my credit limit…of course he didn’t care.

    Just FYI, you may want to think twice before calling your credit card for anything (such as an interest rate decrease) because apparently someone may “reassess” your account and damage your credit. I have had one card for over 12 years and the other for 8, no late payments ever, and even recently paid them down considerably, and have not made any purchases on either of them in about 18 months. I guess I should have kept my mouth shut and taken their 27%+ interest rate with a smile? Now I wish I would have.

36. 186
    Annie Says:
    July 28th, 2009 at 3:25 pm

    Hi everyone. We really need to include Fair Issac in all this as they set the program that determines our credit scores.
    WE are not maxing out but they are still calculating as if we are.
    Ideas?
    Petition on line? ( I have been told they do not mean much since there is no signature and people can have several diff. email addresses.)
    I called Chase/ Wamu and they told me they had no plan available to help me at all.
    never missed a payment but will in Aug. they are not being flexible one bit.
    credit score really is not anything but a scare tactic now as I see it. seems to mean nothing as far as interest rates, loans etc.

37. 187
    taz Says:
    July 30th, 2009 at 2:26 pm

    Mike, the exact same thing happened to me. I called B of A for some other reason, regarding reversal of finance charges. (I usually pay off my balance in full every month and got behind the past two months but for the past 6 years my account has always been paid off.)

    The “credit analyst” on the phone started asking me a stream of questions, then in the end reduced my credit to $2500 from $12000! I never go over $500 anyway but I think my credit score will get damaged with the reduction. Is this true?

38. 188
    Mike Says:
    July 31st, 2009 at 3:03 pm

    Taz,

    I called back and spoke with a manager who didn’t increase my line back to what it was but at least decreased my APR which is why I had called originally. Meanwhile I did apply quickly to Discover and was able to transfer over $6,000 at 0%APR for 9 months. Will that change in 9 months to a regular APR? Yes. But it sure beats the 27%+ APR I had with BOA. Will my (and your) credit scored get damaged due to BOA decreasing the limit? Yes, not sure by how much but it does.

    BTW I don’t have perfect credit but do have a 720, don’t have any type of late payment for the last 5 years (pay mortgage, cars, etc on time always). Also 3 months ago I payed off a third BOA card I had with about $4,000 and at same time I payed down my balance of yet another BOA card by $4,000… You’d think I’d be their ideal client but no…they don’t really care.

    Also I used to have a credit limit of $58K with AMEX and a few months ago it got lowered to $13K. I’ve had AMEX for 10+ years and would spend about $150,000 per year on it (mostly because of work), and always paid it even way before it was due…yet another bank who is on my sh*t list.

    I cancelled all my BOA checking, savings accounts and now just bank at a local credit union and now all I use is a debit card. I am not charging anything anymore using my BOA or AMEX.

    It seems that these companies know that they have us grabbed by the b. and what other option do we have but to pay, even if just our minimums? Hopefully government will come in at some point and do something like they did with sub-prime loans where people’s finances were getting terrorized by lenders.

39. 189
    Andrew Says:
    July 31st, 2009 at 5:35 pm

    Hi folks,

    Same here. Good credit, years of history, no lates. Over 60k of available credit slashed by BofA, Citi, and Chase. I did as least get an apology for the way it was handled from BofA. I own the premier auto repair shop in a college town. I told the local branch that since BofA didn’t want to do business with me, I would reciprocate. I would stop accepting any credit cards, checks, or debit cards from them. I had a phone call from a VP in Charlotte making nice the next day. Still, I will starve before ever doing any more business with them.

    Perhaps all us business owners really should boycott their products and partner with local banks for touting their products. It appeals to this old hippie! Credit score went from 780 to 700. Glad I don’t need to borrow any. sheese

40. 190
    Annie Says:
    July 31st, 2009 at 6:14 pm

    I am standing and applauding you Andrew. Right On! People we, do have the power! I am not a business owner but I live near Fair Issac and may just figure out some way to get a protest going or get help by calling the local newpaper to do an article.
    PRO- ACTIVE is the way to get this done. I can not believe there is not a lawyer reading our posts.
    This is class action if ever there was a good case.

    Also its interesting as our scores go down people who have had bad credit before the past year are now going up. Especially the 20 something’s who have tried to make it on their own but had no idea how too.
    I have been watching this as my son is 26 yrs old. Credit score is 764 and he has been trying to help his friends learn how to handle just their paychecks and over drafts. He too has had limits reduced w/o reason and some maxed out. I have one of the kids staying with me who has made mistakes and did not want to see her score. I told her to go to http://www.CreditKarma.com and it is free. She was blown away. Her score has been going up steady for the past 6 months w/o any bank account or credit cards,(no loans either)
    Fair Issac is just as much a part of all this.
    Keep the spirit up Andrew!

41. 191
    taz Says:
    July 31st, 2009 at 11:31 pm

    I went to credit karma and checked my credit score. It has gone down from 760 to 698 in one day. I too have decided to open a new credit card account from some other company other than B of A. I will still keep it open, since it’s my oldest card (7 years) but will not use it at all (maybe once a year so that it doesn’t automatically close.) I prefer to use cash or debit cards anyway; I only use credit cards to obtain points and keep a good credit history but its not really working in my favor.

42. 192
    John Says:
    August 5th, 2009 at 9:35 am

    I have been totally abused by Bank of America and Chase this year. They have slashed my credit limits, increased my minimum payments, raised my interest rates, and doing this all while saying they “value my relationship” with me! I was no where near my credit limits with any of these companies, but they have now cut my limits to just about the balance owed, it is crazy. I have very good (not excellent) credit, about 750.

    I agree with people like Andrew who say the only way to fight back is by boycotting these institutions. The problem is many people keep dealing with these banks. I’ve already closed my checking, saving, and IRA I had with Bank of America and moved them all to a non-national bank. I’m paying off my credit cards with both and not charging anything more on them. I will do my part to end my relationship with these oversized institutions and hope you do the same. The only way we can impact them is if thousands of customers tell them “no thanks”.

43. 193
    Bruce Says:
    August 5th, 2009 at 2:21 pm

    Bank of America lowered my $42,000.00 credit limit on my WorldPoints card to $500.00, stating the reason being my “recent payment history with Bank of America Visa Signature.”

    I have never missed a payment, and always pay the entire balance. They further stated that my yearly salary was not enough to warrant the total revolving credit granted; household income is in excess of 250K. Admittedly over the years I have developed a stellar credit history with some very high limits on my cards. What fools! I immediately went down and canceled all BofA checking, Money Markets, and Savings. Just a statement. Glad I did — better deals elsewhere.

    By all means boycott the institution — and tell them exactly why. Sorry, you’re so fired.

44. 194
    Darren Says:
    August 15th, 2009 at 2:25 am

    Wait till you hear this one! I applied for a Charles Schwab credit card (we have over $200K on deposit with them) and ended up having three of our BANK OF AMERICA credit cards reduced/cancelled instead! That’s because the company who makes the credit decisions for Schwab also handles BofA accounts (FIA Card Services, 1100 N. King St., Wilmington, DE 19884). The woman who evaluated our Schwab credit card request had no access to see our Schwab balances and said that not only are they declining our credit card request, but since they also handle Bank of America’s cards, they decided to reduce our credit limits on two BofA cards to the current balances and close an unused card that had a $39K credit limit. That is sure to make our credit score plummet! We have never had a late payment, ever. The moral is (besides a big ditto to all of the above comments about BofA), is watch out who you apply with as they may be able to close your other credit cards!

45. 195
    jbrare Says:
    August 15th, 2009 at 11:16 am

    Same thing happened to us last December! BofA closed five accounts plus one thru our credit union just because we called in for a $200 increase on one account! NO LATE PAYMENTS OR OVER THE LIMIT FEES!
    AMEX is on the same crusade against customers also!
    Just got a notice that they intend to raise rates on outstanding balances starting in October! AGAIN, NO LATE PAYMENTS OR OVER THE LIMIT FEES! They made no mention of an “opt out” provision, but I think that if you notify them and reject the new terms, they have to leave your term as they are now unless you pay late or go over the limits. DOES ANYONE KNOW IF BY NOTIFYING THEM THAT YOU CAN AVOID THESE INCREASES! WILL APPRECIATE ANY HELP ANYONE CAN GIVE!!

46. 196
    Bruce Says:
    August 15th, 2009 at 2:16 pm

    The problem here is the general reduction in availability of credit. Without the ability to make purchases over time and at fair interest rates, individuals simply don’t make the purchase. I still make purchases with credit cards but would negotiate like a grizzly bear over the price of a big-ticket item.

    The credit card companies are not on your side. Be careful, read the fine print.

    As I am writing this I just received a letter reducing my pay pall account to a $124.00 limit. I will make the obligatory call and report later.

    Without the ability that credit allows consumers to consume there is no growth in the economy. The economy and for the most part the recovery will be consumer driven.

    I use my credit quite wisely and don’t particularly need these huge lines of credit. But the banks have made a huge mistake here and have over-estimated the risk involved with the grating of revolving lines of credit. The credit card has become an American institution without which the consumer driven economy will grind to a halt

47. 197
    Bruce Says:
    August 15th, 2009 at 6:27 pm

    Well, shut my mouth! With regards to my previous post stating that Pay Pall had lowered my account line of credit to $124.00. I actually got an apology an a reinstatement of my line of credit. Go figure. Doesn’t help, but I can use the card as a beater card.

48. 198
    Jeff Says:
    August 16th, 2009 at 7:38 pm

    My credit has never been great. ASPIRE shut my credit card down, so I’m just paying them off. They deal with a lot of high risk loans. My $500.00 Capital One cards have not changed (I have MC and Visa). My $300.00 Orchard Bank and $2000.00 card have increased their rates to over 25%, and Juniper has increased rates to 29%. My Old Navy card lowered my limit from $500 to $200.

49. 199
    Ellen Says:
    August 18th, 2009 at 8:49 pm

    Discover card just reduced my credit limit from $11,000 to $500. I’ve never missed a payment, always paid on time, and except for two times, have always paid the balance in full. I’m not going to check my credit score. I already know it’s taken a really big hit.

50. 200
    Ktty Says:
    August 23rd, 2009 at 5:16 pm

    I hate that there are recent reports of the companies reducing limits. Very scary to me…

    Until June 08, I had no CC debt; graduated b-school without a job, so I took advantage of a couple 0% interest cash advance offers from Citibank (~$20k) so I would have cash in the bank (5% APR at that time) in case it took a while to find a job. To conserve cash (for rent), I started using my CCs for most things.

    In October, I had AmEx drop my limit from $7100 to $3400 (about $100 over the balance at the time). Annoying, but not devestating.

    Started a GREAT job (thank goodness) in January and,
    In February, I paid off my Discover card (had ~$4600 balance on a $5k card). They reduced my limit to $500. At the same time, I paid off significant chunks on my two CitiCards (limits were $25k and $20k). A short time later, Citi lowered both limits to just above the balances (so, now they’re $19k and $11k, respectively).

    At the same time they did this, they also raised my interest rates and minimum payments. Why? Because they were concerned that I wasn’t able to handle my current debt payments, so they were ‘helping me’ by making me pay off more principle each month. (B-b-but… I thought you didn’t think I could handle the lower paymens? Why do you think I could handle higher ones?!)

    I cut those cards up the next day, not wanting to be beholden to a company that acts so irrationally. And I increased my payments to both cards significantly. I can’t wait to pay off the Dividends card and start using it again – paying it off every month – and costing them the 1% – 5% cashback again.

    BofA, when I called to report a lost DEBIT card, told me they felt I had enough credit already, and closed my $2500 account with them.

    All these, even though I have paid every credit card bill on time for the past 12 years – even while unemployed. Apparently, that is high risk behavior these days.

    Chase has been the ‘winner’ in all of this, leaving my limit alone and, as a result, earning all of my business. Of course, I pay this balance off each month and earn 2% – 5% cash back, so they’re not making any money off of me, but I do say nice things about them.

    So…. now I want to buy my first home. I have $35k in the bank. $15k of that is down payment/closing costs… I want to use the other $20k to pay off CCs to reduce my utilization and increase my credit score.

    And I’m scared to do it because I’m terrified that, as soon as I throw a significant chunk of money at the cards (the Citi ones), they will just lower my limits again… which will probably lower my credit score more. I wish I had time to dole this money out in small extra payments, but closing is in November, so I have to have the balances down by the time the cards cycle in October. Time, I guess, to call my mortgage lender and see how to play the timing game, I suppose…

    What an idiotic situation. Sorry for the loooooong note. Had to vent.

Pages: « 1 2 3 [4] 5 6 » Show All