topic Re: HSBC credit line slashed for no reason!!! in Credit Cards

HSBC credit line slashed for no reason!!!

Anonymous — Thu, 19 Feb 2009 13:57:23 GMT

I have an HSBC mastercard, never late, $8500 credit limit, keep a revolving %10 balance which I pay off every month. I have $658 on it right now and just logged in this morning to pay it off and my credit limit dropped to $560!!!!! I called HSBC and I got a southeast asian man that couldnt answer my questions as to why it was lowered and no one told me, all he said is that it was a "business decision".

Now Im $98 over limit which they said would not affect my credit and there are no fees applied but I expect to get screwed over this. Of course Im upset and want to close it but this is my oldest account at 6 years old. Closing my account with them isnt going to hurt them, no on will blink and eye but it will hurt me. But I do plan on never using the card again knowing that my credit limit could drop at any minute for no reason.

Re: HSBC credit line slashed for no reason!!!

techman2008 — Thu, 19 Feb 2009 14:02:14 GMT

Now that just sucks. At least send a letter or notice so you could have paid it off. That's even low that they would lower it below your balance which isn't much.

Re: HSBC credit line slashed for no reason!!!

the1picard — Thu, 19 Feb 2009 14:05:06 GMT

Those @#$% just reduced my limit from 2K to 480. I'm junking that POS card.

Re: HSBC credit line slashed for no reason!!!

Anonymous — Thu, 19 Feb 2009 14:38:35 GMT

Not sure if it will help at all, but perhaps you could have better luck having your CL reinstated via a backdoor CSR.

Re: HSBC credit line slashed for no reason!!!

Anonymous — Thu, 19 Feb 2009 14:41:42 GMT

They just reduced mine from $5,000 to $300. I will never use their card again. It's paid off and I'm leaving it that way.

Re: HSBC credit line slashed for no reason!!!

wilee — Thu, 19 Feb 2009 15:04:23 GMT

WOW! Just wow!

They must be in BAD shape to be pulling crap like that.

Re: HSBC credit line slashed for no reason!!!

the1picard — Thu, 19 Feb 2009 15:19:11 GMT

I'm just going to PIF and close this account. I hope they go up in flames. I've been trying to pay down my debt and lower my utilization and they just wiped out 2 months of progress.

Re: HSBC credit line slashed for no reason!!!

oracles — Thu, 19 Feb 2009 15:24:27 GMT

Wow I just cant believe it.

What type of credit card was this?

Is this an Orchard or platinum, etc?

Re: HSBC credit line slashed for no reason!!!

Anonymous — Thu, 19 Feb 2009 16:41:23 GMT

Yeah.. I just came here to see if anyone else had been cut... mine was cut only by $210.00... but I am sure it is because of the hight balance I had on it.. I was just 400.00 from my limit..I just made a payment of nearly $1800.00 to bring my balance down to zero. Something tells me, they will slash my limit.. now 1990 in half. I do not know if I should cancel the payment or not... mostly.. I am just tired of this company making so much money off me....

Re: HSBC credit line slashed for no reason!!!

oracles — Thu, 19 Feb 2009 16:48:32 GMT

Hi Changing

I would not cancel the payment.

Even if they slash your credit limit, a 0 util% is better than a 80% util% for scoring purposes.

Yes your limit may be slashed but in scoring, it is util% and not the limit itself that helps your scoring.

Also you will save on interest fees.

Hope this helps

Re: HSBC credit line slashed for no reason!!!

Anonymous — Thu, 19 Feb 2009 17:00:04 GMT

Yep I'm in the same boat as all of you..A month or so ago they lowered the cash advance line (which was not biggie bc I never use it)

NOW after reading prev posts I check my HSBC MC from $3400 to $300 and my HSBC DISCOVER from $1000 to $300..I have had no AA no recent inquiries..I've just been paying my accounts in full as usual and this is how they reward me..

Well I will probably close the accts now...They made the decision easier..I have going from $3400 to $300 that's really the only reason I kept it and the card has an annual fee..

sssssssssssssssooooooooooooooooooooooooo bite me HSBC

Re: HSBC credit line slashed for no reason!!!

Anonymous — Thu, 19 Feb 2009 17:02:40 GMT

Don't close the card, thats what they secretly want! Use it for something super tiny, and PIF well before the statement hits. That way they get no interest, the card is active, and it still shows on their books.

Re: HSBC credit line slashed for no reason!!!

Anonymous — Thu, 19 Feb 2009 17:05:00 GMT

why so they can charge me an AF again? I just paid their stupid fee in NOV and NOW they lower my limit..Why should I keep it??? I can't think of a good reason except to maybe scrape dog crap off the bottom of my shoe (it's been a craptastic day)

Re: HSBC credit line slashed for no reason!!!

Anonymous — Thu, 19 Feb 2009 17:11:10 GMT

and I never carry a balance with them except once just to see what would happen..and well look what I get in return!

Re: HSBC credit line slashed for no reason!!!

Anonymous — Thu, 19 Feb 2009 17:15:06 GMT

@Anonymous wrote:
why so they can charge me an AF again? I just paid their stupid fee in NOV and NOW they lower my limit..Why should I keep it??? I can't think of a good reason except to maybe scrape dog crap off the bottom of my shoe (it's been a craptastic day)

Wait til Nov. (maybe this credit crisis will turn around by then) and if they won't waive the AF then close them. Keep it open for now. Somebody better might take over HSBC, you never know in this economy.

Re: HSBC credit line slashed for no reason!!!

Anonymous — Thu, 19 Feb 2009 17:38:06 GMT

Ow. I have a $5400 limit card with them. I am genuinely afraid to log on and check on it now. I just made a big charge to it recently, too, so the limit was intact as of a few days ago, but it's very close to the limit.

Nope, no changes. Just checked. I keep thinking that because mine are sub-prime-type cards, and because I keep some of them charged up, they have not targeted me yet. But really, I have no idea. I also think they may be targeting homeowner, and I am not one. Or homeowners in certain states. I am baffled.

Re: HSBC credit line slashed for no reason!!!

Anonymous — Thu, 19 Feb 2009 19:44:30 GMT

I also think they may be targeting homeowner, and I am not one. Or homeowners in certain states. I am baffled.

I don't think that's it because I'm not a homeowner either and they slashed me from $5,000 to $300. I was upset about it because I just began the pre-approval process to buy a home so I thought this would hurt me. Apparetnly because it's paid off I'll be fine. I don't have an annual fee on my card so I'm going to hold on to it until after I buy a home. Once that's done, I'm cancelling.

Re: HSBC credit line slashed for no reason!!!

Anonymous — Thu, 19 Feb 2009 20:11:58 GMT

@oracles wrote:
Hi Changing

I would not cancel the payment.

Even if they slash your credit limit, a 0 util% is better than a 80% util% for scoring purposes.

Yes your limit may be slashed but in scoring, it is util% and not the limit itself that helps your scoring.

Also you will save on interest fees.

Hope this helps

Yes,... I had paid them off and one of my capital one cards... I canceled the 1500.00 payment to capital one and instead put 1100.00 on hsbc m/c. So the mc and discover should have zero balance late tomorrow...I decided that I would much rather deal with Cap 1.. than HSBC. If HSBC chops up the CL.. oh well... they have not given any cli the entire time I have had the cards... .whereas I have gotten a total of 4 from cap 1 in the past year. Paying them 100.00 a month on both cards.. has been good enough to have them give me CLIs so... I do not need to rush and pay them off now... and with the two HSBC cards now gone... I can double my payments to cap 1. Crappy GEMB cut my Walmart from 575 to 100. I jsut saw that today too.

Re: HSBC credit line slashed for no reason!!!

Anonymous — Thu, 19 Feb 2009 22:35:38 GMT

Wow, this is disturbing especially that I was feeling lucky until I saw all this. About three weeks ago out of the blue they took my $3500 credit limit and increased it to $4500 and I didn't ask them for anything. The only thing they have done to piss me off was they went from the 0% intro which was in effective for a full 12 months to 16.49% instead of the 9.99% they had originally promised when they cut my 2/16/09 statement which charged me $46.90 in finance. That was unexepcted and got me really upset and I came to look for backdoor numbers to call and find out what the heck but now seeing all this I am thinking maybe I should just let it go.

Re: HSBC credit line slashed for no reason!!!

Anonymous — Thu, 19 Feb 2009 23:28:06 GMT

I just checked my account online with HSBC and my credit line is still intact. I never had a CLI on it either but at this stage of the game, I am not going to ask.