Change of CL on sears/citi card

Anonymous · ‎10-05-2008

Hi,

I am wondering why my sears/citi card would change a Credit limit downwards. I had a CL of 5500 and now it went down to 4000. I am carrying 2030 of debit on this card. I have been paying the card off way over the limit and several times a month. I also cleared my balance on my wamu card and have been making sure that my balances in my Capone accounts are not more than 60% of the card's CL. By the way Sears/Citi just changed it this week. Why would they do it?

(Cl= Credit Limit)

Here's my scores:

657 tu

697 equifax

695 experian

thanks in advance,

LK

Anonymous · ‎10-05-2008

Most likely they lowered it cause you have been carrying a balance. Banks are cutting back with the economy being in such a mess.

Anonymous · ‎10-05-2008

Is it that my scores are not the best? I never asked to have a 5500 cL. I have been paying down my higher interest cards. Next month, I am getting rid of the balance on Wamu and will have 5000 off my total obligations because my name is being removed off a joint account being used by someone else. I am working hard to get hard the balances below 50% of the balance/credit limit ratio. So, the change is sort of troubling me.....

should I look into a balance transfer on this card to lower the balance? Should I do it now?

thx

LK

Anonymous · ‎10-05-2008

Not sure about the balance transfer but i would try to hardest to pay that balance down on the Sears card allot of banks are CLD for carrying high balances evan if you have good history with the creditor.

Anonymous · ‎10-05-2008

I'm really sorry to hear about what happened to you.

I, too, over the last few years have been carrying large balances on my other cards, but so far I have never received a Sears MC cld. In my case, though, my overall utilization has been around 30 to 40%. What is yours ?

This is, of course, totally a guess. But what if the multiple payments per month triggered this ? I've read that for a cobranded credit card, it's the department store (and not the bank) that sets the underwriting rules. In addition, I've read some comments in favor of and some comments against making multiple payments per month. Depending on how many payments you were making per month, perhaps it could have appeared to Sears' underwriting rules that you were not a customer with a steady income and you were paying with whatever money was trickling in.

If it's important enough to you to get that original limit restored and if you'd be willing, if asked, to provide additional information such as payment stubs, then I think it'd be worth fighting this decision.

Here is a number worth trying.

"(Sears) Adverse Action Department". I received that name after several phone calls complaining about an unresolved issue. The rep suggested that I try contacting that department. She apologetically said she wasn't entirely sure what issue(s) that department handles. The number is 1-800-663-4850 . The hours are Mon-Sat 07am-10pm MST and Sun 08am-7pm MST. I was given that number about two years ago.

Message Edited by MojaveMoon on 10-05-2008 02:35 PM

Anonymous · ‎10-05-2008

Also, out of curiousity, how old is your Sears account ?

Over the last few years, I've read enough complaints about Sears charge/credit cards about what I regard as shady practices that I literally have zero trust for this card. I now just use this account for a monthly rental fee. The funny thing is that once I started using the card as little as possible per month, then after about a year of that Sears gave me a credit limit increase.

This just popped into my head, but a few years ago around the time that I was carrying a balance of ~ $ 4k, Sears/Citi increased the interest rate on my MC from 15% to 22%.

Between your experience and mine, it could appear that the Sears MC is not the card for carrying a large balance.

Anonymous · ‎10-05-2008

My utilization prior to what just happened was between 40 to 50 percent. Now, I am wondering how this has affected my utilization ratio.

I had 5000 sent to be from a relative and I wanted to use part of it to pay off some of my bills. My salary is never the same from paystub to paystub so I didn't want to make one big payment all at once, but I did want to make sure that I pay off some of the balance off of a few of my cards. So, I wanted to attack my high interest accounts (sears/citi and wamu) and paid them quite a few times over the month of September. This may have hurt me rather than helped....

I really don't need the credit from sears/citi. I am trying to get rid of this balance and never use this card. I am considering a balance transfer from this account to chase. Should I?

Should I pursue the issue with sears/citiconcerning the Decrease?

thanks in advance!!!!!!!!!

LK

Anonymous · ‎10-05-2008

I have this card for over 10 years. I am a trying to get rid to this card. I never seen a hugh interest rate increase. I am a bit concerned about the CL decrease. I ma working hard to pay this balance off. Is it worth doing a balance transfer from sears to another card such as chase?

thanks for your help!

lk

Anonymous · ‎10-05-2008

Why would you get rid of a card you have had for 10 years? Why would you want to lower or get rid of their credit limit? In the credit game you want to increase limits and retain longevity. I personally use my Sears card when I get a 0% APR for 2 years promotion or I pay in full. My Sears MC has a 21% APR. I can't imagine carrying a balance on the card with such a high APR.

Anonymous · ‎10-05-2008

FaircreditguyFL wrote:
Why would you get rid of a card you have had for 10 years? Why would you want to lower or get rid of their credit limit? In the credit game you want to increase limits and retain longevity. I personally use my Sears card when I get a 0% APR for 2 years promotion or I pay in full. My Sears MC has a 21% APR. I can't imagine carrying a balance on the card with such a high APR.

Well said-