topic Credit Cards Lowering credit limits are dramatically decreasing my score what can I do? in Credit Cards

Credit Cards Lowering credit limits are dramatically decreasing my score what can I do?

Anonymous — Tue, 23 Dec 2008 18:39:13 GMT

The first credit card that was lowered was AmerEx. This went from 25,000 credit limit to 500 it showed maxed out at 500 which decreased my score a few points. From there Sears lowered my credit line to my credit line to my current balance so that card appeared maxed out and my credit score dropped again. Its been a domino affect and every creditor I have has decreased my credit limit to what I owe on the card. This has dropped my score by 50 points. I am not in a financial position right now to pay them down. Is there anything I can do to bring my credit score back up?

Re: Credit Cards Lowering credit limits are dramatically decreasing my score what can I do?

MidnightVoice — Tue, 23 Dec 2008 18:52:01 GMT

They all appear to be "chasing your balance", possibly with the aim of closing your cards. This is happening more and more nowadays.

Has anything bad suddenly arrived on your CR?

Message Edited by MidnightVoice on 12-23-2008 12:52 PM

Re: Credit Cards Lowering credit limits are dramatically decreasing my score what can I do?

Anonymous — Tue, 23 Dec 2008 23:02:46 GMT

Did I read that right, 25,000 down to 500? WTF? Thats more than a drop thats an execution of your credit.

Re: Credit Cards Lowering credit limits are dramatically decreasing my score what can I do?

hyprble — Wed, 24 Dec 2008 00:30:02 GMT

I found that creditors are chasing down my balance. I'm paying down my balances but can't pif. Each time a creditor lowers my credit limit, my credit score goes down, then prompting other creditors to increase my apr due to "high debt to credit ratio" (caused by the creditors themselves lowering my credit limit). I'm in the same boat. I have no late payments or negatives on my credit report...

Re: Credit Cards Lowering credit limits are dramatically decreasing my score what can I do?

Anonymous — Wed, 24 Dec 2008 02:08:59 GMT

Get to Zero Balances folks! Here it comes.

Re: Credit Cards Lowering credit limits are dramatically decreasing my score what can I do?

Anonymous — Wed, 24 Dec 2008 14:13:53 GMT

The FEDS are lowering the lending rates, they are at ALLTIME lows yet we are being punished for good behavior. WOW

Re: Credit Cards Lowering credit limits are dramatically decreasing my score what can I do?

MidnightVoice — Wed, 24 Dec 2008 14:53:27 GMT

@Anonymous wrote:
The FEDS are lowering the lending rates, they are at ALLTIME lows yet we are being punished for good behavior. WOW

I am not sure carrying large unsecured loans is what the Fed considers good behavior

Re: Credit Cards Lowering credit limits are dramatically decreasing my score what can I do?

Anonymous — Wed, 24 Dec 2008 15:10:12 GMT

Well in some cases it sounds like creditors are taking prudent (though harsh) action against high risk consumers. But many people with spotless histories and low utility have been hit with AA and that certainly goes contrary to expectation. We have many accounts of people with low balances (not a large unsecured loan) having a decrease, probably for having a Countrywide mortgage or shopping at Walmart.

Re: Credit Cards Lowering credit limits are dramatically decreasing my score what can I do?

Anonymous — Wed, 24 Dec 2008 15:20:16 GMT

@Anonymous wrote:
Well in some cases it sounds like creditors are taking prudent (though harsh) action against high risk consumers. But many people with spotless histories and low utility have been hit with AA and that certainly goes contrary to expectation. We have many accounts of people with low balances (not a large unsecured loan) having a decrease, probably for having a Countrywide mortgage or shopping at Walmart.

A sign of the times... In war our government calls this "collateral damage."

Message Edited by Royal27 on 12-24-2008 07:20 AM

Re: Credit Cards Lowering credit limits are dramatically decreasing my score what can I do?

Anonymous — Wed, 24 Dec 2008 18:05:43 GMT

Welcome to my club Haleystar, not that it makes your situation any better, but I'm in the exact same boat. I started in the mid 700's with a 25K line on Amex. They CLD me down to just above my balance and have been chasing me for a year. The logical thought would be to move this money elsewhere, but now they've hosed my fico so much that all my other offers are drying up. I feel your pain. I am not going to say I haven't made mistakes and used more cred than I should have, but I was making strides to take care of business with my snowball plan. I literally have to ignore what they're doing because it makes me sick to my stomach to think about it. I just keep plugging away on the payments with my head down. Each time I get about $1K between my balance and the line, Amex dumps it again. My fico is in pain. F*amex.

Re: Credit Cards Lowering credit limits are dramatically decreasing my score what can I do?

Anonymous — Wed, 24 Dec 2008 19:19:14 GMT

I like Cheezy's attitude toward this whole dilemma! Just keep paying off your account balances and send more when you can. If you get a good offer in the mail at 0% or a low interest rate, pay them off! Otherwise you just will make yourself sick worrying about Amex and their chasing your balance.

This punishment will end one day and people will remember th companies who were lenient with them and the ones who gave them no mercy! The companies who helped the consumers will thrive! Watch and see.

Re: Credit Cards Lowering credit limits are dramatically decreasing my score what can I do?

Anonymous — Thu, 25 Dec 2008 02:13:31 GMT

I'm certainly going to remeber the good ones from the bad.