Credit Card Companies DECREASING Credit Limit without prior notice!

[Anonymous]

Just wanted to let everyone know who has a credit score less than 620 and have credit cards...becareful!  I have.......uh....had a credit card with a limit of $3500 that just been decreased to $1000 without prior notice from the Bank.  I have been an outstanding member since 2005 and had multiple accounts with them.  I called and insisted in talking with a supervisor.  They said that they can look at your credit profile without approval and determine if you would be a possible future threat to miss payment thus resulting in lowering your credit limit.  I was appauld and threatened to cancel my account when they realized that I have an outstanding account history with them.  Unfortunately the descision was made soley and only on your credit profile.  After taking a deep breath I negotiated a lower fixed apr from 14% to 9.9% and 5% off all gas purchases for 1 year (even if I don't use this card for gas purchases).  If anyone has this same problem, my advise is to please talk to a supervisor, camly negotiate a LONG TERM deal such as lowering your apr or some insentive for you to keep your business. 

I have been relying on the higher credit limit to improve my score by keeping my util % low...however due to this event it will take a little longer to raise my credit score.  As of Nov 08 I have EX 620, TU 620, EQ 613.  I hope this event does not lower my credit score.  Good luck to all and please share if you had any solutions.

[llecs]

Nobody is immune. Look around and you'll find some recent posts of folks with scores reaching into the 800s who are facing CLDs with popular, prime cards like Chase or Amex.

[Anonymous]

I guess this is expected due to the economic crisis.  I am tempted to buy my fico score again just to see if it lowered due to this....even though I bought one 1 Nov 08. 

[llecs]

If your individual utilizations on each card is under 10% (reporting), then a drop in CL for one card won't impact you, so as long as you bring down the balance on that one card to under 10%.

Good news is if there is any damage, it is easily fixable by paying down balances. Knock on wood, out of 16 CCs between DW and I, we had 0 CLDs, but it is a matter of borrowed time.

[Anonymous]

Currently I have 2 CC both paid in full...had a reporting revolving account of $5000...now $2500...not pleased with it...

[Anonymous]

I agree with llecs, however I think the credit union cards are lesslikely to CLD

[rubaty]

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@llecs wrote:

If your individual utilizations on each card is under 10% (reporting), then a drop in CL for one card won't impact you, so as long as you bring down the balance on that one card to under 10%.

Good news is if there is any damage, it is easily fixable by paying down balances. Knock on wood, out of 16 CCs between DW and I, we had 0 CLDs, but it is a matter of borrowed time.

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I'm with you...I have 15 CCs and havent had any problems yet.  I think if anybody can make it through to the spring without a CLD then they will be fine.

[Anonymous]

The stark reality of a CLD, I had a CC with a credit line of 8K carried a bal of 3K one big purchase which I was paying off. They CLD’d my line to 3600 which brought my balance to LOC ratio way up. This all stemmed from my daughter being late 2 times on her car payment for which I am the co-signer causing a snowball effect. I am never late with my CC, Mortgage, or auto loans but because of the late payments by my daughter and CLD and I do carry some balances on CC’s caused a 100pt drop in my FICO score. This seems to be an unfair practice, decisions of credit with a company you currently have relationship should be based solely your history with that company not on what you might do. If you were to use that same logic then if you are a Fire fighter, Police officer, or Soldier you might be killed or wounded and not be able to make your payment. It also seems ironic that our tax dollars are baling them out and they repay us by becoming paranoid and looking for the slightest reason to screw their customers, just MHO.

[cobaltnv]

pttp52,

   Welcome to the forums, sorry to hear about your problems with the ccc's. Try to keep the following in mind. The whole point of the FICO system is to give credit lenders a picture of your risk to them. This is particularly true with credit cards as these are unsecured loans. The companies do not care if it was you or your daughter who was late on a car payment. The fact is as a co-signer you are responsible for that debt. I know it is hard but try to think about this from the ccc point of view. An installment loan on your report is late and you have a 3k balance with them. To the ccc you are now a big risk to default on your cc debt so they drop your cl so you cannot add to that debt. 

The problems you are having is exactly why many of us in here will never co-sign on a loan for anyone. 

[Anonymous]

I agree with you all...just remember though...without us, there is no business.  Despite the CLDs, I was able to negotiate a lower APR....I may of lost the battle, but I have won the war.  I plan to request an increase as soon as our economy repairs itself...fingures crossed.