Just told US Bank goodbye!

[patrick00032001]

I have a Kroger 123 Rewards Visa and a Cash + card, I go online last night to pay my bill, noticed they slashed my Kroger card down to $2,000.00 from $17,000.00 and my Cash + from $5,000.00 down to $1,000.00, now mind you, I have always paid these cards in full each month, I called customer service, they transfered me over to investigations dept, and they tell me, they dont like the new accounts I have opened over the last year! I politely told her, I like having your card, but I dont NEED your card, please close both my accounts right now! She got queit, then said ok? I told her, I have other options, with much better rates, and much higher credit lines, I told her, the 18.99% you charge tier A customers is highway robbery, I told her, the rewards are nice, but my credit union loves my business, and they love my credit so much they gave me 8.95% with a $20,000.00 credit line, after my rant with her, she said I understand, I will close these accounts right away, I told her, BIG BANKS think they can jerk people around and play games, I said credit unions are focused on people, and taking care of their needs, I told her, I will never consider US Bank for anything else in the future, thanked her and hung up!

[Membersince2013]

I see your frustration, but with all due respect, I'm pretty sure she could care less about everything you said. When dealing with credit service reps or analysts, you kind of don't have any leverage. There will be 1000 more people to replace you. After my Comenity experience I've learned to be more polite when dealing with CSRs AND CAs. They're just doing their job. Most of the time, the computer does slash you limit..

[patrick00032001]

With all due respect, I agree with you, but I was also being honest, thank god I didnt go christmas shopping with these cards to find out I went over my limits trying to buy something, pick on people who run up cards or default, Im over this being placed under a microscope mentality, I pay my bills in full each month, which she agreed with me on, so what if opened up a few new accounts this year? I pay them in full, that was my whole argument, lesson learned.

[Membersince2013]

I see your point. I totally agree. Sometimes I feel like the algorithm they're using to handle credit is all jacked up. The computer does some really weird things sometimes. I'll understand if someone like me gets a CLD for opening too new accounts....

[navigatethis12]

I don't know how many cards you've opened, but new accounts are always a trigger to review. Depending on the file and the issuer, they may not do anything. If it's a lot of accounts, regardless if you pay them each month or not, it's cause for concern. They wonder why you are asking for a bunch of new credit when you already have some and in their eyes you don't need more.

[Ghoshida]

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@patrick00032001 wrote:

I have a Kroger 123 Rewards Visa and a Cash + card, I go online last night to pay my bill, noticed they slashed my Kroger card down to $2,000.00 from $17,000.00 and my Cash + from $5,000.00 down to $1,000.00, now mind you, I have always paid these cards in full each month, I called customer service, they transfered me over to investigations dept, and they tell me, they dont like the new accounts I have opened over the last year! I politely told her, I like having your card, but I dont NEED your card, please close both my accounts right now! She got queit, then said ok? I told her, I have other options, with much better rates, and much higher credit lines, I told her, the 18.99% you charge tier A customers is highway robbery, I told her, the rewards are nice, but my credit union loves my business, and they love my credit so much they gave me 8.95% with a $20,000.00 credit line, after my rant with her, she said I understand, I will close these accounts right away, I told her, BIG BANKS think they can jerk people around and play games, I said credit unions are focused on people, and taking care of their needs, I told her, I will never consider US Bank for anything else in the future, thanked her and hung up!

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It is understandable that you don't like US Bank's decisions. 

I also didn't like it when they kept denying me CLIs. But a couple of months ago my credit improved and I got both a new card (Cash+) and a CLI on my old card (which I use sparingly).

On the contrary, the credit union which has been my oldest card has stayed at its initial credit limit for more than 2 years. I gave it a try with an HP after the 1-year mark, to no avail. Their rewards aren't that great, neither are the interest rate. I keep the card because it's my oldest and no AF, and keep charging bits and pieces to it once in a while. Another CU, NASA, didn't extend me credit citing visa-related issues. Big banks didn't have a problem with that.

Credit decisions should not be personal. I used to get agitated with, for e.g. Cap One, for not raising my CL. But after joining this forum I've understood how it's not a personal decision. In my home country, I used to have an AMEX with roughly $100 AF; I closed it when they slashed my CL from approx $2k to $1k citing negatives on my report with other banks (not them). I resolved the issue with the other bank (HSBC) and now my scores are around 840 on a 300-900 scale (TU). I also realized later that having an ongoing relationship with AMEX in both countries would have helped me in the long run. At least, another positive trade-line with a long-enough history would have taken my score even closer to 900.

While big banks can, have been, and will be, evil (I'm not their biggest fan), they have a risk model in place. Credit Unions do suit the needs of certain customers better; I also like the fact that a credit union office (in this country) seems more personal. However, making a knee-jerk reaction does not help. To financial institutions, it does not matter what others see you as; it's their own model of credit risk. On the other hand, you closed a pretty good 5% cash back card which would have given you decent returns even on a low limit. It's your decision but I'm sure in a few months you could have asked the old limit to be reinstated with SPs.

Lastly, the CSRs do not typically have much power about credit decisions; in this case, she understood your point and agreed to you. There is really no need to lecture her (or other CSRs) about the evil nature of big banks. 

[patrick00032001]

I have opened 6 accounts this year so far, if that spooks them, then I dont know what else to say, I have very low ratios, and high credit scores, like I said, I have choices, I was more upset about them doing it and not calling me right away to ask me whats going on, or even sending me a letter, thats not very good business on their part. If I cant depend on quality service and dependability, then I will find or use a institution who does.

[Ghoshida]

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@patrick00032001 wrote:

I have opened 6 accounts this year so far, if that spooks them, then I dont know what else to say, I have very low ratios, and high credit scores, like I said, I have choices, I was more upset about them doing it and not calling me right away to ask me whats going on, or even sending me a letter, thats not very good business on their part. If I cant depend on quality service and dependability, then I will find or use a institution who does.

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Not questioning this part.

However, a better way to make them pay could have been making heavy use of their loss-leaders at your discretion (i.e. make them pay 5% but earn say 2%). But that's just my opinion. 

[patrick00032001]

Shes lectured me on opening new accounts, so I lectured her on big banks, she never said another word, like I said, the way they handled this was completely wrong, thats why Im so upset.

[CreditCuriosity]

This is only one more reason why you diversify your banking relationship like the OP has done, so things like this won't cripple you.. One can argue that if he/she didn't open new account this wouldn't of happened, but it could.. Always have multiple institutions in my opinions and probably most other peoples opinions.  I would be very upset as well without any prior notice of a courtesy call.. What happens if you were out of country and only had those two cards and other scenarios, etc?