HSBC credit line slashed for no reason!!!

[Military_Man]

Very sorry to hear your credit line was slashed without notice. Something similar happened to me with this same company. I had 2 credit lines. One was used for everyday purchases and the other was an emergency card for large and unexpected purchases. My credit history with this company is outstanding. The credit line I had on standby for emergencies was closed without prior notice due to my not using the card for about a year. When I contacted customer service, it was explained to me that accounts with no balances cost the company money to maintain them so the company closes them to keep costs down. Now I only use the everyday purchases card to make a small purchase about every 6 months to keep the credit line open. I have other cards with another company that gives me lower interest rates and higher limits to take care of me when needed. I also make sure to read all the fine print concerning credit cards.

[Anonymous]

I just today got the letter in the mail advising me of their "business decision" to reduce my CL based on the class of cards that my account falls into (I originally posted about my CLD about 10 pages back or so). HA. I'd like to know what class that is: the class that has a 10+ year history of paying on time? Or the class that has a util under 1% and rarely carries a balance? Jerks got me all riled up again...

[Anonymous]

Once a year I let all of my credit  many cards go to within 90% of my CL  Just one card at a time of course. I let it report on my statement then I PIF, I do this to all of my major credit cards.

Since I have large outstanding CL's my utilization is still always very low.  It does not seem to lower my scores at all as well.

Needless to say I NEVER had a CLD.  I was given a CLI on my HSBC GM Flex card this month from a $12,000 CL to a $18,500 after asking for one over the phone with CS.

Use your credit lines or lose your credit lines, the choice is yours

[Guardian]

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@Anonymous wrote:
I just today got the letter in the mail advising me of their "business decision" to reduce my CL based on the class of cards that my account falls into (I originally posted about my CLD about 10 pages back or so). HA. I'd like to know what class that is: the class that has a 10+ year history of paying on time? Or the class that has a util under 1% and rarely carries a balance? Jerks got me all riled up again...

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Yeap, the same crap they said in my letter that I posted. Such bull, sorry you got hit though but it was only a matter of time.

[Anonymous]

Here's my experience with credit cards within the last few months.  Bank of America lowered my CL from 14k to $8900 when my balance was about $8700.  Then to top it off, they increased my interest from 12.99% to 19% for no reason.  I've never been late or over the limit on any accounts for that past 5-7yrs.  I called them & they said there was nothing they can do about it.  I got pissed off & found a way to pay them off.  But before I went through that process, I tried calling them again.  But this time the account manager that I spoke to apologized to me & said that she can lower my interest rate back to what it was as long as I don't spend on the account.  I agreed & it was done.  I went ahead & paid the account off anyway.  It scared me!

Then comes along Citibank.  They didn't even send me notice or anything.  One day I opened up my statement & saw that the interest rate was 16-18%.  I can't remember exactly.  When I opened the account, they said that my interest rate was a fixed 7.99%.  That was the only reason why I opened it.  I called them up & told the account manager that & he said it wasn't.  They totally lied to me.  He kept repeating that the interest rate is a variable... when I kept disrupting him to say that it was fixed & not variable.  It was like talking to a computer that didn't compute.  He didn't even try to look it up or investigate as if I was an idiot that didn't know what variable & fixed were.  Then finally he said that they could lower it down to 12.24%.  So I said reluctantly agreed to that.  This should be against the law.  They should not be allowed to increase your interest rates on existing balances. The government need to step in & save the American PEOPLE not the Credit Pirates!

[Anonymous]

Hey Emily,

My hubby has been a customer with Citi forever.  He has a super high CL, and 800 scores across the board.  Nevertheless, he was rate hiked as well.  When he called Citi they told him that it was no fault of his, due to the crisis they needed to protect the business.  They did lower his interest to 12.something % and he has decided to use it every three months for something small.  He almost closed it, but I said NO WAY!

They hid the notice on one of the billing statements back in November.  Luckily he reads everything on his statement.  I would have missed it completely.  Citi is heading south fast. Just wanted to let you know they are doing this to EVERYBODY with certain cards.  

[haulingthescoreup]

Citi and BofA are currently the two most hurting banks.

As upsetting as this is, try not to take it personally. They are in their leaky little rowboats, frantically bailing out with empty diet Coke cans, hoping desperately to stay afloat. One of the things that they have to do is reduce the amount of extended credit on their books, so that's what so many of us are seeing.

It's entirely up to you as to how you see your future, but you're actually in the driver's seat. My plan for any upcoming CLD's is to keep the card, charge a Slurpee each month on it, and wait it out.

The banks are in blind panic mode now. There's no telling where they'll be in 3 months, 6 months, a year, or more.

[Anonymous]

$1600 CL for HSBC Plat about 2 years old w/zero balance.  CL just reduced to $300.  I had a $2000 CL BOA 4 yers old with a $1800 balance. They they raised rates to 24.99%. Luckily I had money to pay them off. 

[Anonymous]

I posted the original message about credit card slashing -- now that HSBC slashed my credit and the account is now closed but with a balance owing but paid as agreed...  my score is 700 ---for Equifax,,,

 I am a student and have student loans clogging up my CR -- anyway I am looking to move and wondering what shows on a rental screening  credit report?   what information do they get to see?  thanks for any good reply

Loneread

[Anonymous]

I have a friend with a 610 score who just got an apartment.  I am not sure what they see, but she had no problems renting the place.  HTH