Lists of Banks that Are and Are Not Reducing Limits

[plasticguy]

Consumer Action: Consumers experience credit limit reductions

Survey: Card holders have seen changes



"During Consumer Action's survey, customer service representatives at six financial institutions (American Express, First Command, HSBC, US Bank, Washington Mutual and Wells Fargo) told surveyors that they would reduce cardholder's credit limits because of perceived customer risk. Factors included a decline in cardholder credit scores, late payments and balances that go too close to the credit limit.

Several of the banks that said they would not reduce credit limits reported just the opposite in 2008. They are Bank of America, Chase, Citi, Discover and EverBank.

With the possible exception of Citi, which made a pledge not to change cardholder terms until their cards have expired, Consumer Action believes it is unlikely that these banks have changed their policies."

[Anonymous]

Thanks Plasticguy.

I will wait for my letter from Amex, but I already know that one of the reasons was the six day late, and the other reason is that my mortage (which is not subprime) is held by Countrywide.

[fused]

Amex and to a lesser extent, Chase, have been cutting credit lines. I fully expect most CCC issuers to follow Amex and Chase. I expect much of my available credit to be reduced in the coming months.

[heirophant]

I guess that means that we that went on app sprees last year and early this year were wise to diversify our portfolios to soften the blow.

[Anonymous]

The whole situation is so annoying. My scores have gone up, I haven't been late on anything in 2 years, my worst and most recent baddies have all been removed, I've PIF most accts and have paid the last 2 remaining balances below 25%, and in general everything has shown improvement.

USBank is one of my oldest CC (almost at the 20 year mark) and I've never been late with them. Earlier this year I paid my balance down to below 25% of my CL. Less than a month later they CLD me to just above the remaining limit. The've been chasing my CL ever since. It continually makes me look like I'm nearly maxed on that CC. I assume they'll cancel me when I pay it off.

I'm so frustrated because I'd love to PIF and tell them to bite me but I'm going to take a big age hit if I close it. It drives me crazy that I'm trying so hard to do everything right and still being punished. I realize it's a business decision, but they're the only CC now making me look like a current risk! I just got a new Amex this year so I'm also worried that this USB situation will give them an excuse to CLD me or pull my acct all together!  

[Anonymous]

I haven't been CLD to date.  I hope it continues

[Creditaddict]

chase CLD my father last year after he paid the account off in full after carrying high balance.

[Anonymous]

NFCU has not, and will not, CLD its customers for anything other than poor payment history.

They are a CU and much more strictly funded and guided in their finances. I have spoken to the teller, the CSRs on the phone, and my branch manager to confirm this.

[cobra19]

Chase gave me a 4.5k cli last week. 

[haulingthescoreup]

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Optimistic08 wrote:

I'm so frustrated because I'd love to PIF and tell them to bite me but I'm going to take a big age hit if I close it.  

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Sorry to hear they bit you!

Just to clarify for anyone else reading, a closed card will (should) report for 10 more years after closing. Any damage to history won't occur until then. But if it was by far the oldest credit account, with a gap of more than several years between it and the next-oldest one, you will definitely get a ding 10 years from now.

Message Edited by haulingthescoreup on 10-09-2008 06:14 PM