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New Visitor
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Registered: ‎11-04-2009
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Re: Credit Limit Decreases Getting Creative??

As I read this topic, it appears that it is not where one shops, but the pattern of one's shopping that makes the difference.

 

I am not fan of credit cards (as most people use them, certainly), but credit debt is suing other people's money, and those people have every right to prtect themselves from predatory borrowers. As we have read here: credit is not a right. 

 

The word "credit"  means "belief". If the company no longer believes in you or your ability or willingnmess to pay back what you have borrowed, it has every right to stop lending you money. 

 

 Debt Coach

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Registered: ‎07-17-2007
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Re: Credit Limit Decreases Getting Creative??


Debt_Coach wrote:

As I read this topic, it appears that it is not where one shops, but the pattern of one's shopping that makes the difference.

 

I am not fan of credit cards (as most people use them, certainly), but credit debt is suing other people's money, and those people have every right to prtect themselves from predatory borrowers. As we have read here: credit is not a right.

 

The word "credit" means "belief". If the company no longer believes in you or your ability or willingnmess to pay back what you have borrowed, it has every right to stop lending you money.


Many people received CLD letters from Amex with the stated reason, “Other customers who have used their card at establishments where you recently shopped have a poor repayment history with American Express.” In the link I provided earlier, Amex talked out both sides of their mouth by denying they ever discriminated against customers based on where they shopped, but in the same breath said they won't do it anymore!

 

Credit is indeed a privilege and not a right. But when a CCC hands out AA under circumstances like this consumers have every right to be angry.

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Re: Credit Limit Decreases Getting Creative??

This is true, AmEx and others (Citi, Chase, etc.) are duplicitous in their explanations. And, as I said, credit card companies are not my friends (nor enemies, either — thye provide tools, tools that can bujild or mame), but it is pointless to complain that their logic is falacious or that they are arbitrary. In fact, it is their money and we are using it on their terms, whatever those terms may be.

 

I agree that abrupt and seemingly baseless changes to the terms are frustrating (no one likes it when the games goes against him, but that's what we agreed to when we signed the contract). However, as others have pointed out, the law is not our friend, either, and more often than not, the source of the problem lies in government's purporting to fix a problem (which, like as not, it created in the first place) but making it far worse. 

 

The real solution to the problem is to get out of debt. That takes discipline and knowledge. It takes a new vantage point, seeing credit as a tool. Most of us have never learned this: our parents didn't know, so we have no models, and this is one ting that is not taught in schools, neither K-12 nor Master's programs.

 

Debt Coach

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Posts: 3
Registered: ‎11-04-2009
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Re: Credit Limit Decreases Getting Creative??

Refarding legistlation: I agree that the banks and govt only made is worse. For expample: I have been working toward making my credit better: Paying for three years on time and mostly more than the minumum due. Two cards have ungodly interest and monthly service fees. Well one card sent me a letter saying I need to either pay off the balance of $950.28 or accept a hike in interest. Being on a fixed income I had to eat the higher rate. This up'd my payment by 20.00 a month. the Other visa card had a balance of 289.00 with the limit being 350.00. -keep my limits low- for starters. But this company now sends my statement out late. Infact I used to get it 30 days prior to the pay date. Now it is less than 20 days. But the cycle is over and new one starts way before I recieve the statement in the mail. So, I realized that they are gaining each month by doing this in interest. I now. have an amount ready to send and call to find if the statement has been cut. Paying more than necessary and the payment they want has been less monthly but I always pay more. My balances have been going down a little faster this way.. Yeah, sure the legistaliton helped. Yeah, RIGHT~NOT:smileymad: ANYONE ELSE EXPERIENCE THIS HAPPENING SINCE THE SO CALLED GOVT HELPED THE CONSUMER....????:womansad:

Established Contributor
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Registered: ‎07-17-2007
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Re: Credit Limit Decreases Getting Creative??

Skywatcher, definitely look into paperless statements and online payments. Failing that, write down the PO box where you send your payments. You should know your what your minimum payment is; if your statement doesn't come in time just mail a payment to that address, statement or not.
Established Contributor
Posts: 656
Registered: ‎07-17-2007
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Re: Credit Limit Decreases Getting Creative??


Debt_Coach wrote:

This is true, AmEx and others (Citi, Chase, etc.) are duplicitous in their explanations. And, as I said, credit card companies are not my friends (nor enemies, either — thye provide tools, tools that can bujild or mame), but it is pointless to complain that their logic is falacious or that they are arbitrary. In fact, it is their money and we are using it on their terms, whatever those terms may be.

 

I agree that abrupt and seemingly baseless changes to the terms are frustrating (no one likes it when the games goes against him, but that's what we agreed to when we signed the contract). However, as others have pointed out, the law is not our friend, either, and more often than not, the source of the problem lies in government's purporting to fix a problem (which, like as not, it created in the first place) but making it far worse.

 

The real solution to the problem is to get out of debt. That takes discipline and knowledge. It takes a new vantage point, seeing credit as a tool. Most of us have never learned this: our parents didn't know, so we have no models, and this is one ting that is not taught in schools, neither K-12 nor Master's programs.


I would definitely disagree, it appears public outcry is clearly what stopped Amex of this practice. Yes, the truth is they can raise your rate or CLD you or even cancel you for absolutely no reason whatsoever. But this is something no CCC will actually admit, instead they choose to distort the truth or even outright lie to their customers. Which is right where we can draw the line and say "This is not acceptable!". While you can argue about how sharp or dull they are, I would say this one situation is evidence that bad PR and the free market still has some teeth to change foolish corporate policies.

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Posts: 5
Registered: ‎06-24-2009
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Re: Credit Limit Decreases Getting Creative??

I don't care what the credit card issuers use as criteria for lowering credit limits, raising rates, or charging fees.  It'd be a cold day in hell before I'd present a certain card at a certain business because I was afraid of the consequences of the purchase.  I use credit cards as a convenience and as a way to get $$ back on my purchases.  If I don't like their terms at any point in time, I cancel the card.  As credit card companies weed out the folks who need to use credit cards, they'll be left with those who use them only for convenience. At that point, the cc companies lose ALL their power, and the power shifts to the consumer.  They may very well find themselves with not enough customers to sustain their business.

 

As for American Express, the multitude of card offers we got in the mail dropped off dramatically in the past year.  But American Express continues to send offers, and they ping my credit report with soft inquiries every 2 weeks or so.  I've heard way too many horror stories about that company to ever sign up for their harrassment.  I'd never allow a credit card company to have any influence on my life at all.  It just doesn't make sense.

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