susanhannah wrote:
Today I received a letter from HSBC telling me that my line of credit has been reduced from $8000 to $7000 because their mitigation department has reveiwed my card usage. I have never used beyond $1000 on this particular card and have ALWAYS paid the card off in full at the end of each month. I have only used the card once in the past twelve months and that was a $47.75 to Whole Foods which I paid off at the end of the month. What do they mean about my card usage? Why did they lower my line? Will this kill my FICO score? I have no outstaning debt. All of my cards have zero balances.
Thanks,
SusanHannah
It sounds like what they mean about card usage is actually how little you use it; from what I've read about HSBC elsewhere, you're lucky all they did was take your CL down a bit - many folks who fail to use their cards for 2-3 months are finding they have been cancelled.
Credit issuers across the board have been reducing CL's and more in an effort to reduce their own risk in the current, highly-stressed economic climate.
Since you have 0 balances on other cards, it sounds like this lowered CL won't really hurt you to speak of, score-wise, since you so rarely use it and use so little of what's available to you on it.
HTH.
Message Edited by Scamp on 03-03-2009 02:28 PM
