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05-30-2009 06:39 PM
I just received 2 letters, one from Chase decreasing my limit to my current balance, and one from First USA decreasing my credit limit from $11,700 to $500 and I have no balance. Both reported information received from Experian. Can they use this information if I can't get the scores?
I've recently paid off 7 accounts and wanted to do a balance transfer from the zero balance account to split the balances between the zero balance account with a high balance account to decrease the interest rate and balance. Reason sited was too many open accounts (I did not close any since it lowers the scores), balance too high compared to the credit limits (which is what the companies are doing, lowering the limits to the balances), and number of accounts in use (I just closed 7).
What can I do? When I call the companies, it sounds like they are reading from a script and will not increase the limits or lower the rates.
05-30-2009 07:35 PM
05-30-2009 08:53 PM
05-30-2009 10:02 PM
05-30-2009 10:10 PM
All of the accounts are in good standing, never late, and I pay more than the minimum balances. When I get to around $3,000 below the limit, the limit is reduced again to the balance!
05-30-2009 10:13 PM
By UTIL %, do you mean interest rate? 12.24, 13.99, 8.99, and 9.90. By reducing the limits and increasing the rates, my scores are lowered from 700 and 700+.
05-30-2009 10:32 PM - edited 05-30-2009 10:34 PM
By UTIL I mean what percentage of available credit lines are you using (i.e. 40%, 50%, etc) The higher your UTIL, the greater risk seen by CCC. Do you know what might have triggered Chase and First USA to take the AA?
05-30-2009 10:42 PM
I was wanting to transfer $5,000 from the zero balance 1st USA account with a limit of $11,700 to one of the accounts which had a high balance to credit limit, to bring the balance down again from the ceiling. By doing this I would reduce the payment, and hopefully the interest rate, and move the balance away from the credit limit. The $5,000 would only be 1/4th of the limit to the 1st USA card. It seems that 1st USA and Chase are affiliated because I received both letters the same day.
05-30-2009 10:59 PM
05-30-2009 11:24 PM
Thanks for your explanations and advice. I will try that and see what happens.