HSBC credit line slashed for no reason!!!

[Guardian]

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@WhirledPeasPlease wrote:

I haven't been slashed by HSBC (yet), but I figure I'm a prime candidate.

Card #1

HSBC UnionPlusCard Plat MC

Opened 2003

Initial limit 1.5k

Current limit 6k

Last statement cut on 2/19/09

I haven't carried a balance on this card in over a year. 

Card #2

HSBC DMB Direct Rewards Plat Discover

Opened 2006

Initial limit 1k

Current limit 1.5k

Last statement cut on 1/22/09

Card is PIF monthly if it gets used.

Other info:

• @Anonymous high interest ARM (10.375%) w/ Wells Fargo's sub-prime branch (ASC).  One FHA mtg @ 5%.  Stable housing market in the metro-Indy area for both properties.
• Current util around 30%
• Scores 642, 655 and 681
• AAoA between 4 and 5
• Oldest acct 18y6m
• No WAMU products, tho I closed a Providian card in 2005
• Have rec'd 1 CLD from Amex from 1k to 500
• Roughly 10 new accts in the past 12 months

I talked to a CSR re: the UPC MC in mid-Jan who said that changes were taking place and any acct modifications would be completed by Jan 27th.  That day came and went and nothing on my acct changed.  I was hoping for a decent BT offer, but I've yet to see one.

I gave up calling CS on the DMB about a year ago.  Worthless.

**Sitting on pins and needles for now**

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It sucks that you feel that way my friend but don't worry, hopefully you won't be affected and this will pass along with everything else. Just keep a close eye on your stuff because some people, including myself, when the cuts happened, with the current balances it causes fees and if you can catch it early enough, you can minimize your hit at least. *crossing fingers* sending you good thoughts, I wasn't affected and was reasonably happy about it until this morning.

[Guardian]

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@haulingthescoreup wrote:
With regards to some of the misunderstandings that appear to be developing, I'd just like to remind everyone that things don't always come across clearly in print, especially since we have members from all over the world, so please remember that posts are sometimes contradictory or confusing. Let's cut one another a bit of slack, please.

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Agreed, I know that alot of what I say is taken out of context and the smileys only convey so much to offset the print. But as always, youre the voice of reason and good to hear you say something on this. On behalf of myself, I apolgoize for any misundertandings and I have repeatedly mentioned on the forums that nothing I say is EVER personally directly and my fault is that I don't mince words. The brutal and passionate honesty of conveying my point is sometimes taken as something it was not intended to be.

Edit: you don't have to say it, I know you weren't directing your comments to anyone in particular but I am just taking the initiative to clear the air just in case my rough edges offended anyone. I like to think I am smart enough and socially responsible enough to know when I might have come across rougher than meant.

[Anonymous]

I have a HSBC  been nothing but problems with them  first they slashed my credit  from 5000 to the amount owing of 1650,  then a short while later -- a computer problem when I  paid on line so the payment did not register next month I had overlimit fees and they closed my account out. and raised my interest apr . I was able to prove I paid on time but they said it was too late, to reopen my account  At least on my credit report  they did not report the late  payment  but it likes bad anyway  and I have been paying on time for the whole time I had the account for five years and no lates however they still did not open the account back, but did reduced the interest apr.from 29% back to 7%

If I pay this off in full will it help raise my FICO score and if so -- by how much?

Loneread

[Guardian]

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@Anonymous wrote:

I have a HSBC  been nothing but problems with them  first they slashed my credit  from 5000 to the amount owing of 1650,  then a short while later -- a computer problem when I  paid on line so the payment did not register next month I had overlimit fees and they closed my account out. and raised my interest apr . I was able to prove I paid on time but they said it was too late, to reopen my account  At least on my credit report  they did not report the late  payment  but it likes bad anyway  and I have been paying on time for the whole time I had the account for five years and no lates however they still did not open the account back, but did reduced the interest apr.from 29% back to 7%

If I pay this off in full will it help raise my FICO score and if so -- by how much?

Loneread

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Wow, that's terrible. Sorry to hear that but I believe it, HSBC is capable of just about anything. I hope you can salvage this. Lots of smart people here, maybe a suggestion to raise your FICO and deal with this.

[WhirledPeasPlease]

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Guardian wrote:

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@WhirledPeasPlease wrote:

I haven't been slashed by HSBC (yet), but I figure I'm a prime candidate.

**Sitting on pins and needles for now**

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It sucks that you feel that way my friend but don't worry, hopefully you won't be affected and this will pass along with everything else. Just keep a close eye on your stuff because some people, including myself, when the cuts happened, with the current balances it causes fees and if you can catch it early enough, you can minimize your hit at least. *crossing fingers* sending you good thoughts, I wasn't affected and was reasonably happy about it until this morning.

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Thanks Guardian.  I've been playing with fire and I know it.  I also have to think that some of the weirdness that's going on right now on our reports won't spook creditors like it would have a year ago (ie, reduced limits, constantly shifting mortgage servicers, high balance appears way over current limit, etc.).  We're all in this together, so to speak.  It's times like these that remind me to do business w/ the companies who treated me well even tho times are tough all around.  I'm telling ya, Capital One looks better and better every day.  How much weirdness are they dishing out?

[bakalao2k]

Hello everyone.  This is my first post, so please be easy on me. 

Do you think HSBC is slashing rates for customers who have FICO scores less than 760??  A 720 score isn't that great in this financial climate.

I have two HSBC store cards (Best Buy and Saks) and the credit lines haven't been slashed.   

Message Edited by bakalao2k on 02-21-2009 09:19 AM

[Anonymous]

My HSBC Lucky Brand Jeans card was slashed from 5K, to 304!!!!! I have FICO's in the 800 range across all 3 CRA's. Perfect payment history, 1% Utilization (I always PIF)  and no craziness with inquiries.

I used the card regularly, as they give out great discounts/rewards. I called and cancelled, as the card is completely worthless to me at 304.00. How they came up with that # I have no clue.

I have 300K in available credit elsewhere. Who knows for how long in this economy, but this card is not a huge loss.

[WhirledPeasPlease]

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bakalao2k wrote:

Hello everyone.  This is my first post, so please be easy on me. 

Do you think HSBC is slashing rates for customers who have FICO scores less than 760??  A 720 score isn't that great in this financial climate.

I have two HSBC store cards (Best Buy and Saks) and the credit lines haven't been slashed.   

Message Edited by bakalao2k on 02-21-2009 09:19 AM

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I'm definitely sub 760 -- as of this morning my EQ is 648, TU is 681 and well, EX is frozen, but a week ago it was 642.  I have not been slashed on either of my HSBC cards.

[trubacha]

I found out this morning that I was slashed from a limit of $4000 to $300

Never been late with them. I've had up to $3500 with them but that was over a year ago, and was because of grag school tuition issues. I've had a $0 balance with them since november.

Was going to use the card on a cruise. Another card I carry will get that business. 

So if I have under 1% total utilization on my credit cards, and the limit on this one is slashed, it won't really have an effect on my scores??  For example say my total usage is $100. My previous limits totaled $16,000, now at $12,000. All other things being equal it won't lower my scores?

[haulingthescoreup]

$100 / $16,000 = 0.6%

$100 / $12,000 = 0.8%

I don't see an impact for you.