Credit limits continue to fall...yikes!!

Anonymous · ‎06-21-2007

Honestly, we just can't seem to win for losing. All of our Chase and B of A credit cards lowered our CLs after we paid them off!! Yesterday we got a letter in the mail that AMEX had done the same thing based on our high percentage of available credit used on other accounts (or words to that effect). I am only an authorized user on these cards of my husband's, so it is difficult if not impossible to talk with anyone about the situation. My husband hates calling anyone about anything, so he is inclined to leave it alone. The problem is that when AMEX lowered our credit limit, it made our utilization very high, when it was OK before. If they were going to lower our CLs, why did they wait until we had paid off the darned accounts? I am so frustrated.

Boswd · ‎06-21-2007

I hear ya, my wife has been in major paydown mode, she had them all almost maxed out so she sock drawered them for the past few months now and everytime it seems she making head way in gaining on the Utilization % AMEX and Chase lower her CL's keeping her at close to 70%. Grrrrrr Jerks.

Anonymous · ‎06-21-2007

What was your util % for each before you paid them off?

Tuscani · ‎06-21-2007

This is common practice if you carry high balances for an extended period of time. Call and ask them to reinstate your CL.

MercyMe · ‎06-21-2007

So, Tuscani -- should I be shaking in my shoes, having paid down all to around 17% utilization from 73%? BOAs watching me like a hawk after the TU drop, due to the Sun Trust misreporting. That's supposed to be cleared up now, and TU's back up -- TU Fico 687. After the decrease in util hits, I'm hoping to have 1-700 in there, somewhere! Perhaps with TU Fico? Experian's plus score is up too, since Sun Trust recoded the status to paid charge off. I had to explain the codes to them.

It's 683, right now. Up 13. Fico's holding at 662. I need a vehicle come mid July so we can SEE THE USA IN OUR CHEVROLET -- HAHA. It will probably be a GMC.

:- me

Anonymous · ‎06-21-2007

What is considered an extended period of time? Do creditors notice if you're paying down a rather large balance by 100 monthly increments?

Tuscani · ‎06-21-2007

MercyMe wrote:

So, Tuscani -- should I be shaking in my shoes, having paid down all to around 17% utilization from 73%? BOAs watching me like a hawk after the TU drop, due to the Sun Trust misreporting. That's supposed to be cleared up now, and TU's back up -- TU Fico 687. After the decrease in util hits, I'm hoping to have 1-700 in there, somewhere! Perhaps with TU Fico? Experian's plus score is up too, since Sun Trust recoded the status to paid charge off. I had to explain the codes to them. It's 683, right now. Up 13. Fico's holding at 662. I need a vehicle come mid July so we can SEE THE USA IN OUR CHEVROLET -- HAHA. It will probably be a GMC.

:- me

I wouldn't be "shaking in my shoes". But don't ignore the possibility of CLD.

Anonymous · ‎06-21-2007

They were maxed out. As soon as we paid off the balances, the credit limits plummeted. The only one that hasn't lowered our CL is Discover, and that doesn't mean they won't.

Anonymous · ‎06-21-2007

I did call them. One said the primary cardholder had to call (my husband won't be bothered) and the another "reevaluated" by asking for my income, etc. and said after further review they could not reinstate the CL.

MercyMe · ‎06-21-2007

Tuscani wrote ... don't ignore the possibility ...

1001 questions:

So, what do I do if they do cut me? Call for a reconsideration? Would it matter that my credit limits aren't anything to speak of, really -- but for the BOA -- which is $2500. And why do they decrease limits? Is there a specific/common reason? Should I be getting rid of cards? I worry about the history involved in that. My First Premier is just about useless, with the low limit and high fees, but it's three years old, now. Target, too, is going no where. It's going on a year old. Would it hurt to get rid of these two, when I have mortgages reporting -- closed and paid. One mortgage is dated back to 1987.

I applied for Washington Mutual (and got one --$1500 limit) for the sole purpose of closing down the smaller high fee cards, eventually. Once Wamu had some age. BOAs going on two years, and when I spoke to the credit manager (BOA) regarding the higher interest they were going to charge me (because of Sun Trust) he set me at a fixed 17.99 and told me to apply for a credit limit increase in about 90 days. Can I take that as a sign they won't cut me? I know, I know -- who the heck knows, huh?

I'm concerned about this card because it's the card I put my son's neurobehavioral on, as it has the higher limit and utilization doesn't look so bad as it would on a $400 card.

And .... as always, thanks for being so patient with me!

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