Banks Lowering Consumers' Credit-Card Limits

[Anonymous]

Here is another article about CLDs. 

http://www.smartmoney.com/deal-of-the-day/index.cfm?story=Banks-Lowering-Consumer-Credit-Card-Limits...

[sammyfire2001]

Is #2 actually true that they have to inform you of a CLD? From what I've read on past threads Amex has no knowledge of this rule.

[Scamp]

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sammyfire2001 wrote:
Is #2 actually true that they have to inform you of a CLD? From what I've read on past threads Amex has no knowledge of this rule.

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#2 is true, and AmEx DOES snail-mail out letters.  Customers just usually find out what's happened the hard way (card decline) or by checking their accounts on-line, long before the snail-mail letter arrives.

[Anonymous]

I had CLDs from another lender and the only notification I received was my statement reflecting a lower limit on my next bill. I found actually out from my FICO score dropping.

[Anonymous]

Amex first lowers your credit line, then notifies you sometime after (way after) the fact.  Paying your balance in full and on time at ALL TIMES is not really factored into their decision.

[Anonymous]

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Dakota34 wrote:

Amex first lowers your credit line, then notifies you sometime after (way after) the fact.  Paying your balance in full and on time at ALL TIMES is not really factored into their decision.

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You're correct Dakota.  Paying in full and on time means nothing.  One's credit limit is still slashed 50% to 99% in most cases. 

[Anonymous]

I don't understand the reasoning behind trying to keep your scores high if companies are slashing your credit lines for fear of not being paid and you have no choice in the matter.  Why, you're not even important enough to be told beforehand.     Scores are lowered when your  debt to ratio falls.  I don't see any  bail-out for the American people in any shape, form or fashion.   We are catching it on all ends.  Paying for this $700 billion pay-out is ludicrous while many of the CEO's of companies have lined their pockets with taxpayer money and now they want B-I-L-L-I-O-N-S MORE?   Ask  the people who were saddled with these subprime mortgages who are about to or have lost their homes that their credit scores matter right about now.   

We taxpayers evidently are considered stupid or stuck on stupid; one of the two.

Sandy

Message Edited by sankofa on 09-27-2008 09:30 AM

[maggie88]

Actually I think this is a good thing to some degree.

 Half of the credit limits that were placed on cards was put there by them.  Now I am seeing the limits being reduced.  Some will send out letters of what their intentions are, others automatically do it. 

[Anonymous]

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@maggie88 wrote:

Actually I think this is a good thing to some degree.

 Half of the credit limits that were placed on cards was put there by them.  Now I am seeing the limits being reduced.  Some will send out letters of what their intentions are, others automatically do it. 

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The lowering of the limits were hard for me to accept at first and to a degree still is, but it also made me glad in a way because now our family is actually buying only what they need and delaying luxury items.  Already we have decreased our Christmas shopping lists, so we have the credit card companies and the greed of Wall Street to thank for this!

Sandy