Shocked by USAA!!!

[Anonymous]

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@recoverychick wrote:

I never would have believed it.

Last month I received a letter that said they would be reviewing my file at the next billing cycle and that "my credit limit may be reduced, but I would still have a good card to use".  I thought it was kind of weird, but let it go.  My available FICO scores were in the mid 720's, overall utilization a little high, 41% due to an emergency, but I didn't anticipate a problem.  Had the USAA Amex 2 years.  Initially pre-approved with a 702 score for $18,000.  Never above $5,000 (currently $4,300 and had just used).  

Slashed from $18,000 to $7,100.  Never a late or missed payment.  I sent an email to ask why.  Received:

"Thank you for your e-mail regarding your credit card account. USAA Savings Bank regularly reviews credit card accounts and makes adjustments when necessary. Based on a recent review, we reduced the credit limit on your credit card account ending in ---- to $7,100.00. You'll receive a letter by mail in the next few days explaining our decision.

Your new credit limit is the maximum amount available to you at this time. After improvements have been made to the factors disclosed in your notification, we may review your credit limit for appropriate adjustments.  

Thank you,
edited
USAA"

Don't get it.  All I can think of is they want me to reduce my available credit.  Have one negative, a 30,60,90 (in succession) day late from 5 years ago on my mortgage from a missed payment recycling during a lay off.   It's still hurting a lot.  I just bought my scores.  It's only dinged me 3 points, (surprised)  but it's the principal.  You try to do the right thing and this is what you get.  I can hardly wait for this letter.

So much for consumer protection.  The banks don't care about us. had to rant.  Thanks for listening. 

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Please let us know what reasons they give you when you get the letter.

[recoverychick]

Hi.  No changes.  Never taken a cash advance on any card.  Haven't used any place that's new.  Never made a purchase more than 2200.00 at a time.  Usually pay at least half of it before first statement.  This time, only paid 25% of new purchase and about 500 toward the previous balance.  Paying the same large amounts used on the 3 I actively used.  No card close to maxed out.  Others are empty.   Checked all three reports.  No changes.  Haven't received notice yet, so I'll keep you posted!

[recoverychick]

Sure would like to know what's considered risky.  I've never had a balance over 5000 in 2 years and haven't carried a balance on the card more than 4 months at a time.  I think they're shedding their liability.

[recoverychick]

Will do.

[recoverychick]

Me, again.  What get's me is while this was going on, I kept (and keep) getting pre approvals from Discover.  I'm not biting. 

[haulingthescoreup]

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@recoverychick wrote:

Hi.  No changes.  Never taken a cash advance on any card.  Haven't used any place that's new.  Never made a purchase more than 2200.00 at a time.  Usually pay at least half of it before first statement.  This time, only paid 25% of new purchase and about 500 toward the previous balance.  Paying the same large amounts used on the 3 I actively used.  No card close to maxed out.  Others are empty.   Checked all three reports.  No changes.  Haven't received notice yet, so I'll keep you posted!

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I'd say it's the combination of carrying balances (even though you never did so for over 4 months) plus making a new purchase, not paying off the carried balance, and not paying off the new purchase either.

All banks are worried that cardholders might start running up balances and eventually default. At least, unlike other banks, they don't seem to be chasing your balance, and they didn't close you outright.

Hope they reverse and reinstate soon!

[Anonymous]

To maintain their stance as a financially secure company and to ensure the financial security of ALL of their members, credit limits were reduced. They did however research your highest balance within a 12 month period and kept the credit limit at or above what you needed within those 12 months. Keep in mind it's member owned, so they are protecting you ultimately from having to raise prices, add fee's and raise rates. A no fee credit card with the benefits and rewards USAA offers, is not able to come by these days.

 It simply sounds like GOOD BUSINESS to me. You should be proud to be a member, not all of us can.

[score_building]

USAA is a member owned bank?  

[haulingthescoreup]

USAA is a bank that acts like a CU. I don't think that members actually own it, the way they do a CU, but their loyalty is to its members. (I will be completely non-surprised if it turns out that we do.) They're not listed on the stock exchanges, so they're not sweating trying to please angry stockholders.

Notice that they call us "members" instead of customers.

[Anonymous]

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@Anonymous wrote:

To maintain their stance as a financially secure company and to ensure the financial security of ALL of their members, credit limits were reduced. They did however research your highest balance within a 12 month period and kept the credit limit at or above what you needed within those 12 months. Keep in mind it's member owned, so they are protecting you ultimately from having to raise prices, add fee's and raise rates. A no fee credit card with the benefits and rewards USAA offers, is not able to come by these days.

 It simply sounds like GOOD BUSINESS to me. You should be proud to be a member, not all of us can.

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My CL has never been reduced.  I seriously doubt they are doing across-the-board CLDs.  It's more likely done on an individual basis due to changes in one's credit profile.