Risk Assessment?

[Anonymous]

I have an account I have had for over 13 years with no problems.  I logged into my account to find that my Credit limit had been decreased.  When I called, I was told that due to the amount of money I kept in my account, my limit was lowered.  I have never heard of such a thing.  Anyway, the negative impact is that they lowered it to $500.00 above my balance which incresed my utilization and this is a negative impact to me. I opened a checking account via a promotion with this institution because they opened a branch in my neighborhood, but they are not my primary bank.  How unfair is that.  As a result, I will be closing the account there.  Has this happened to anyone else?

[Anonymous]

Yes they can do this, and yes many on this board have reported this. Times are tough right now and banks are keeping a closer eye on accounts and taking action if they feel there is any risk to them. Even though there is no problem with THIS account, they are watching your credit in general. If you have higher utility on even one other account, that is enough to cause panic and for them to react. Unfortunately, there are a number of things that can cause this to happen. Higher UTL only being an example.

The best thing you can do is to continue paying on time and hope they will raise your line back up once our economy isn't in the situation it is in now.

[Anonymous]

Go look for a thread on the credit card forum I started called "Have you been CLD lately?" Several of us have for a varitey of reasons.