BoA $7000 CL reduction

[the_jan_b]

+1

[Anonymous]

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@LS2982 wrote:

Note to self: Stay far away from BofA

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+100

[Ron1]

That's one of the reason they sell it to US Bank.

Ron.

[castlefox]

Wait.... so they called you about a product change you say you need a lower APR,.... and then they ending up reviewing your account and end up getting your credit line cut with the same APR.  Did I get that right?

I would strongly suggest OP does not liquidate their 401K because a retirement accounts, like a 401K, can not be touched in bankruptcy. 

(assuming you have some emergency savings to hold you up in case you lose your job for a couple months at minimum)

I would still suggest you pay down your  Citi and the your BOA card next, (while paying the min on your other CC balances) since they are your highest interest cards (they are costing you the most in APR fees)                                 Maybe apply for card that card 0 APR for a limited time when you get your utilization down to an acceptable level to where creditors will want to give you another card.

I think this is a good lesson for other people to really understand that a credit card company can cut your limit at any time.

[AndySoCal]

Ron1,

Only the cobranded cards are involved in the sale to US Bank.

All,

The credit card companies are watching the utilzation usage on credit cards more closely than they used too.  What seems to be setting a red flag to the credit card issuer is  high utilization over prolonged period of time. Often times but not all this does not end well for either conusmer or for the creditor.  The bad ending is the BK 7 scenerio and  in some cases it does not take much for this to happen.  The OP is on right course just keep the balances going down on all the cards.

[FloridaState12]

Guess I'm the only one who doesn't blame BoA. I mean, you have insanely high balances on those CC's...I really don't blame them for decreasing your credit line, to be honest. 

Not to sound rude, but it might be a good thing for you. Now I don't know the circumstances surrounding your debt, but that's $7,000 less temptation for you the way I see it. 

[CS800]

I will say hello to BOA in 2014 where my baddies will fall off.

[haulingthescoreup]

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@singulardedication wrote:

Wow, Called BoA today and they tried to pitch a companion card their "123" card with rewards (19%), said no I need a lower interest rate than my current 23.7%.

Transferred to credit that reviewed and reduced my line from $17k to 10k.  Asked for goodwill deletion of my only 30d late from 2007 an they said only if a bank error and they will check.

That single change reduces my total available credit from 44% to 27% and probably kills my score.

I'm at a loss what to do.  This just two weeks after Discover increased me $1500.  I'm in aggressive payoff mode with reduction of debt by $2k per month leading to zero balance in about 13-14 months.  Any tips?  I'm thinking of liquidating one 401k and pay large taxes to zero out BoA but they probably reduce the CL again, but perhaps this will help if spread out.

@Anonymous  $8300 / $10k   @ 23.7%

@Cap1 $5000 / $6200 @ 14.9%

@discover $4320 / 7800 @ 7%

-----------------------------------------

@Anonymous    $8200/closed @ 30%

@Aspire $1900/closed @ 21%

Trans 723 myFICO

EquiFax 655 myFICO  (I think this is lower due to addition of one 30d late w-BoA 2007)

Both have one 30d late from 2008 Cap1

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Don't do anything. Your already-high util is going higher; so be it. Your credit history is basically perfect. One 30-day late from 2008 is not really affecting your scores at this point. You're better off without it, of course, but the score impact drops off a lot after 2 years. Util is your only issue now. I assume that you're not applying for anything in the immediate future.

Shrug it off and continue with your CC debt paydown.

Your other creditors might see the change in CL and util, but chances are, they're not pulling your new scores. They're just looking at your reports via softs (if they do.)

Keep your head down, keep going with your debt payoff, and don't call any banks in the meantime.

You (not just you, OP, but anyone) never, ever want to invite attention to yourself by calling in for anything at all when you have high util or anything else scary going on with your reports. I have to agree with a PP --it's not surprising that they did this, because you're carrying a ton of debt (as you know), and it isn't odd that they were alarmed to see this.

BofA is not in its happy space right now. They're selling off affiliate cards and taking other actions in an attempt to reduce their risk exposure.

I'd recommend (as I always do, because I'm a happy credit chicken ) to everyone, especially BofA customers, to fly under the radar if you have anything even slightly spooky on your reports. Don't call in, don't e-mail, don't play with the luv button on your account. Just pay your card(s) off as quickly as possible, and try to appear as boring and conservative as possible.

[namvet]

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@haulingthescoreup wrote:

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@singulardedication wrote:

Wow, Called BoA today and they tried to pitch a companion card their "123" card with rewards (19%), said no I need a lower interest rate than my current 23.7%.

Transferred to credit that reviewed and reduced my line from $17k to 10k.  Asked for goodwill deletion of my only 30d late from 2007 an they said only if a bank error and they will check.

That single change reduces my total available credit from 44% to 27% and probably kills my score.

I'm at a loss what to do.  This just two weeks after Discover increased me $1500.  I'm in aggressive payoff mode with reduction of debt by $2k per month leading to zero balance in about 13-14 months.  Any tips?  I'm thinking of liquidating one 401k and pay large taxes to zero out BoA but they probably reduce the CL again, but perhaps this will help if spread out.

@Anonymous  $8300 / $10k   @ 23.7%

@Cap1 $5000 / $6200 @ 14.9%

@discover $4320 / 7800 @ 7%

-----------------------------------------

@Anonymous    $8200/closed @ 30%

@Aspire $1900/closed @ 21%

Trans 723 myFICO

EquiFax 655 myFICO  (I think this is lower due to addition of one 30d late w-BoA 2007)

Both have one 30d late from 2008 Cap1

---

Don't do anything. Your already-high util is going higher; so be it. Your credit history is basically perfect. One 30-day late from 2008 is not really affecting your scores at this point. You're better off without it, of course, but the score impact drops off a lot after 2 years. Util is your only issue now. I assume that you're not applying for anything in the immediate future.

Shrug it off and continue with your CC debt paydown.

Your other creditors might see the change in CL and util, but chances are, they're not pulling your new scores. They're just looking at your reports via softs (if they do.)

Keep your head down, keep going with your debt payoff, and don't call any banks in the meantime.

You (not just you, OP, but anyone) never, ever want to invite attention to yourself by calling in for anything at all when you have high util or anything else scary going on with your reports. I have to agree with a PP --it's not surprising that they did this, because you're carrying a ton of debt (as you know), and it isn't odd that they were alarmed to see this.

BofA is not in its happy space right now. They're selling off affiliate cards and taking other actions in an attempt to reduce their risk exposure.

I'd recommend (as I always do, because I'm a happy credit chicken ) to everyone, especially BofA customers, to fly under the radar if you have anything even slightly spooky on your reports. Don't call in, don't e-mail, don't play with the luv button on your account. Just pay your card(s) off as quickly as possible, and try to appear as boring and conservative as possible.

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+1  Amen

[jefftca925]

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@namvet wrote:

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@haulingthescoreup wrote:

---

@singulardedication wrote:

Wow, Called BoA today and they tried to pitch a companion card their "123" card with rewards (19%), said no I need a lower interest rate than my current 23.7%.

Transferred to credit that reviewed and reduced my line from $17k to 10k.  Asked for goodwill deletion of my only 30d late from 2007 an they said only if a bank error and they will check.

That single change reduces my total available credit from 44% to 27% and probably kills my score.

I'm at a loss what to do.  This just two weeks after Discover increased me $1500.  I'm in aggressive payoff mode with reduction of debt by $2k per month leading to zero balance in about 13-14 months.  Any tips?  I'm thinking of liquidating one 401k and pay large taxes to zero out BoA but they probably reduce the CL again, but perhaps this will help if spread out.

@Anonymous  $8300 / $10k   @ 23.7%

@Cap1 $5000 / $6200 @ 14.9%

@discover $4320 / 7800 @ 7%

-----------------------------------------

@Anonymous    $8200/closed @ 30%

@Aspire $1900/closed @ 21%

Trans 723 myFICO

EquiFax 655 myFICO  (I think this is lower due to addition of one 30d late w-BoA 2007)

Both have one 30d late from 2008 Cap1

---

Don't do anything. Your already-high util is going higher; so be it. Your credit history is basically perfect. One 30-day late from 2008 is not really affecting your scores at this point. You're better off without it, of course, but the score impact drops off a lot after 2 years. Util is your only issue now. I assume that you're not applying for anything in the immediate future.

Shrug it off and continue with your CC debt paydown.

Your other creditors might see the change in CL and util, but chances are, they're not pulling your new scores. They're just looking at your reports via softs (if they do.)

Keep your head down, keep going with your debt payoff, and don't call any banks in the meantime.

You (not just you, OP, but anyone) never, ever want to invite attention to yourself by calling in for anything at all when you have high util or anything else scary going on with your reports. I have to agree with a PP --it's not surprising that they did this, because you're carrying a ton of debt (as you know), and it isn't odd that they were alarmed to see this.

BofA is not in its happy space right now. They're selling off affiliate cards and taking other actions in an attempt to reduce their risk exposure.

I'd recommend (as I always do, because I'm a happy credit chicken ) to everyone, especially BofA customers, to fly under the radar if you have anything even slightly spooky on your reports. Don't call in, don't e-mail, don't play with the luv button on your account. Just pay your card(s) off as quickly as possible, and try to appear as boring and conservative as possible.

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+1  Amen

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I'm in total agreement witht this response.  The reason why OP is getting a CLD from BofA is because 1) credit utilization is high, 2) you've brought it to the attention of the bank by asking for a interest rate decrease (on an already high balanced account), and 3) askng for the rate decrease which could be interpreted as being desperate for assistance.  It is what it is... move on from it... and make your goal a priority.  In time this will be behind you and you'll feel the joy of achieving a wonderful accomplishment and the banks will begging to give you a card