04-24-2009 05:26 PM
Recently HSBC lowered my limit on 2 cards of mine without ever a late payment in a year on 1 and a year and a half on the other. they told me it was an economic decision to lower some people's limits, however I am now $300 over the limit due to this on each card...they agreed not to charge me overlimit fees until I could pay it down or so to speak. BUT I wanted to apply for a card with another creditor and am now thinking other creditors will see I have 2 cards over limit and flat out deny me. OR do they just see that as making my utilization higher .?and not technically see that any account in particular is over limit and that it just hurt my utlization with my score?
I know I can pay the $600 and bring them under the limit but wanting to rebuild my credit more and add another card and dissapointed at this happening
thanks for any insight on this!
04-25-2009 02:32 AM
OUCH! That's awful what HSBC did.
Yes, unfortunately, this is going to hurt. It's probably killing your utilization. IF your overall utilization is maxed out or over the limit, it's going to hurt a LOT scorewise. Do you have other cards? What is your overall utilization?
Don't apply for more credit until you can get these HSBC cards paid off. I'm concerned that HSBC is just going to keep lowering you (chasing your balance) until your balance is $0. This would be a red flag to new creditors to deny you additional credit, and might even trigger 'universal default' with any other existing creditors (for revolving accounts), whereas they might start to lower your limits as well.
Is there any way you can PIF? If and when you can, go for a credit union.
Friendly, Supportive & Respectful
"However gradual may be the growth of confidence, that of credit requires still more time to arrive at maturity” ~ Benjamin Disraeli
04-25-2009 06:08 AM
It will definatley hurt my utlization ..I am thinking it hurt me about 20%..but my concern is that other creditors can see that I am over on a particular card or two and think I just go over limits!!!! If I still have utlization available (even though not as much as before this) will they see that individual cards are over or does my utlization just look real high?
Also what is universal default?? because it is not like I defaulted ..no late pays at all on either or any in the last 2 years. How do they determine a universal default? especially since I am making on time payments on everything?
i thought I would just transfer them to another card if I can get approved.
thanks for helping
oh by the way HSBC said it won't look like they lowered it and that it will just look like I am over..( wow thats consolation!!)
04-25-2009 06:18 PM
04-25-2009 06:26 PM
HSBC is really slow at reporting...but unforunately this month they just happended to report right away!...it hurt my utilization like 20% but my question is will the potentional creditor look at these limits individually or my utilization as a whole.?
Forums posts are not provided or commissioned by FICO. Forums posts have not been reviewed, approved or otherwise endorsed by FICO. It is not FICO's responsibility to ensure all posts and/or questions are answered.† Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
* For complete information, see the terms and conditions on the credit card issuer’s website. Once you click apply for this card, you will be directed to the issuer’s website where you may review the terms and conditions of the card before applying. While myFICO always strives to present the most accurate information, we show a summary to help you choose a product, not the full legal terms - and before applying you should understand the full terms of products as stated by the issuer itself.
IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more
FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.