Doesn't matter what you do

[Anonymous]

I have several credit cards and I also have a car loan.  I've always paid my bills on time.  ALWAYS - never been late - not once in YEARS. Usually I pay more than the minimum.  I also never go over 50% of my credit available.  Well, after the big credit card ruling, I was subjected to lowered credit limits which made it look like my credit/debt ratio was out of balance.  In other words, the banks lowered my credit available to just a few dollars over what I owe.  it looks like I'm maxed out on all my credit cards.  That's what I got for being a good customer.  My credit score is in the hole, but not because I was a bad debtor - the only thing I could have done to avoid this situation was not to have a credit card at all. And that's what I'm going to do - I'm going to pay it off and stop doing business with any bank that lowered my credit limit for no good reason.  I'm not the only one, this is happening to a lot of good people who are scratching our heads wondering what happened.  So all this good advice that FICO.com is giving you?  Forget it - it's up to the credit companies - it really doesn't matter what you do.

[Anonymous]

Sad but true.

[Anonymous]

It sucks that if you want good credit you pretty much can't really use your credit cards unless you PIF all the time which defeats the purpose of even having them imo. Arent they supposed to be a tool to purchase something in advance or to help as a temporary loan when you need it? I know I'll never carry a balance over 7% ever again even if my life depends on it. I rather be dead than be alive with terrible credit lol.

[Itsmeagain]

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@Anonymous wrote:

I have several credit cards and I also have a car loan.  I've always paid my bills on time.  ALWAYS - never been late - not once in YEARS. Usually I pay more than the minimum.

Congrats on never having been late but in the current economy, banks expect us to pay 4-5 times the min. to keep them happy.

 I also never go over 50% of my credit available.

Again, in this credit climate, a balance of more that 30% will get you looked at with nervous eyes.

 Well, after the big credit card ruling, I was subjected to lowered credit limits which made it look like my credit/debt ratio was out of balance.  In other words, the banks lowered my credit available to just a few dollars over what I owe.  it looks like I'm maxed out on all my credit cards.

This has been happening since long before the new credit card law took effect.  Even back to a couple years ago when the economy first tanked and the bailouts began.

That's what I got for being a good customer.

I feel your anger.  But it is a very large boat you're in.  Maybe some of those here who have had a similar experience will reply.  In any event, just being a good customer doesn't seem to be enough anymore.

 My credit score is in the hole, but not because I was a bad debtor - the only thing I could have done to avoid this situation was not to have a credit card at all. And that's what I'm going to do - I'm going to pay it off and stop doing business with any bank that lowered my credit limit for no good reason.   I'm not the only one, this is happening to a lot of good people who are scratching our heads wondering what happened. 

Good for you!!  Let them sink in the hog wallow they've created.

  So all this good advice that FICO.com is giving you?  Forget it - it's up to the credit companies - it really doesn't matter what you do.

Not exactly true.  It's just that the rules have changed.  I hope you will take the time to read some of the recent posts regarding the cc strategies used to maintain those high limits and good scores.  I for one, have never had a CLD, cc closure (that I didn't initiate), frequent CLI's and BT offers, but I play by the current rules, not those that worked a few years ago.  IMHO, it is OUR responsibility to keep up on the latest rules and regs that the lenders throw at us and find ways to use them to our own advantage.

So, as they say . . . don't shoot the messenger.  MyFico.com is still putting out sound advice and for those who pay attention, there are many good credit days ahead.  I sincerely hope you have a few of them yourself.

Cheers,

I.M.A.

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[Anonymous]

The very same thing happen to me. Never been late - payments is automatically deducted from my account. Bank of America would not budge even after I explain why I didn't want my credit limit lowered. I just started make additional payments. I can't wait to pay that card off! By the way I also have not used the card since Oct. 08 figure that out! I'll only use credit cards from my credit union from now on and make sure I pay the balance in full.

[haulingthescoreup]

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@Anonymous wrote:

The very same thing happen to me. Never been late - payments is automatically deducted from my account. Bank of America would not budge even after I explain why I didn't want my credit limit lowered. I just started make additional payments. I can't wait to pay that card off! By the way I also have not used the card since Oct. 08 figure that out! I'll only use credit cards from my credit union from now on and make sure I pay the balance in full.

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Hi, welcome to the forums! The section that I highlighted is probably why they went after you. They want to make some money via transaction fees (paid by the merchant.) A sock-drawered card that's just being paid slowly down isn't very attractive to lenders, I'm afraid.

Glad to hear that you have credit union cards. Definitely the way to go in these days, that's for sure.

[blacklotus]

IMHO In the current credit climate I'd say not using your card for 2 years would almost assuredly get it closed by grantor. I think banks are very scrutinizing with credit lines to see who actually uses their products and who sock-drawers them.  I feel that putting some mileage on cards is a necessary evil trade-off for the benefit they add to your credit profile.

Also according to the financial press interest rates on credit cards are historically high.

My thinking on this is that CCC will raise APR's when they want customers to pay down debt and lower APR's when they want customers to spend more.  I am sure that the bank's economists have some model for this just like AMEX has a model for just about everything.

These are just some thoughts not meant to be taken as advice and are only IMHO.

[Anonymous]

I know you're mad but settle down and hang around a bit. Fact is, the advice you get is is not only good but critical. IF you had been floating all your accounts at or just below %50 utl. then I expect the card companies did see red flags in that, especially if that kind of balance was maintained month to month for an extended period of time. Banks today need to see a periodic urnist push to see slates cleaned or minimized....even if there real hopes are that you carry a balance.

Remember this: 1 to 9% utilization of 49% or less of your accounts should be reporting each month for great credit scores.