09-21-2009 06:01 PM
I would not generalize. Some AA must be questioned, some not. I have noticed that Macy's Visa went up to 19.49%. I even do not know when it happened and do not care why. DSNB and Citi have not got a dime from me in financial charges when APR was 15.9%, let alone 19.49%. I am not going to waste my time in this case.
But when I noticed monthly fee on my BOA checking account a few months ago ( I have never had monthly fee before) I spent about 45 min on the phone.
09-22-2009 12:00 PM
Because they already did me dirty once....so I will stand my ground and stick to the principle of the matter and DROP them like a bad habit. See ya BOA ! I will just open another PenFed account....whom just gave me a 5k credit limit the same time BOA dropped by credit limits. Go figure !
One of the reasons that banks reduce credit limits
is if they feel that you are carrying too much debt and are seeking to to obtain more credit so that you can go deeper into debt. BoA might be afraid that you can't pay off your current balances and are trying to obtain more credit so that you will be able to increase your overall debt. That would increase the probability that you will default on your BoA accounts.
Did BoA lower your credit limits at "the same time" (simultaneously) that you had PenFed increase your limit? Are you sure that BoA didn't reduce your credit limit after seeing that you had requested more credit from PenFed? How high is your BoA utilization now? Do you revolve balances on many of your 8 credit cards? You said that you intend to "pay off" your BoA debt "quickly" Is there a reason that you can't pay off BoA immediately?
Another reason banks CLD
is to get you to pay off your debt (to improve your FICO score). Is that the reason that you feel that BoA "bullied" you? I can't otherwise really see how CLDs can be construed as an act designed to "bully" someone. If your FICO score does drop because of increased utilization, your other creditors (including PenFed) might take adverse action. I definitely wouldn't close the BoA accounts unless you have fairly high FICO scores.
Bank of America might not have given you the real reason
for the CLDs, but rest assured that it cut the limits for "a reason". It is possible that your "Credit_Capicity_Index" has given the bank cause for concern. Furthermore your earlier baddies might have carried increased weight in a recent internal risk score computation. That would therefore justify the logic that the baddies didn't count much before, but they do know. The current credit climate definitely changes the odds that people with certain credit histories might default.
Final thoughts & observations.
You indicate that you have done a lot of credit rebuilding. Just because derogs age off or get disputed off of credit bureau reports that doesn't mean that banks don't have those baddies permanently archived in their own records. Think back to what your credit report first looked like when obtaining BoA accounts. That is probably the info that is permanently in BoA's files. Other lenders who might have issued credit more recently, might not be aware of derogs that might have been in your files three years ago. If you think that might be the case, then not relying on BoA for "Luv" in the future, is probably a wise move. I still wouldn't cancel the accounts unless you have high FICO scores and relatively low outstanding debt.
You said that you were able to wipe out a lot of debt since your FICO score was only 545 three years ago. If you still haven't paid off all revolving debt over the last three years, perhaps that piece of data played into BoA's decision.
You have certainly come a long way and deserve many kudos. I am simply trying to point out some reasons that BoA might have felt it necessary to CLD you. My intent is to caution you that your other creditors might take additional AA if you simply blame BoA as being unreasonable. Hopefully you will take all the right steps to protect yourself from all of your creditors in this tight credit climate.
IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more
FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.