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Have you had any of your credit card limits lowered by your credit card companies? See the results of this poll.

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New Visitor

Re: Have you had any of your credit card limits lowered by your credit card companies?

I just don't understand why they always screw the person that is always trying to pay down debt rather than work things out..... I have had 2 american express cards for ten years(each with $12,000 limit)....never been late on payments and have paid down balances of having them at one time over half the credit limit.... now they changed one from $12,000 to $500 and $12,000 to $1500(with a balance of $1100) which in turn makes it look like on paper  that i am "maxed" out over 50% of balance lowering fico score!!! its almost like they are punishing the people who are really trying to lower there debt and raise there fico score!!!!

Message 21 of 140
New Visitor

Re: Have you had any of your credit card limits lowered by your credit card companies?

AMEX did this to me recenty.  I had a balance of $1336 (limit $1600) and I paid it in full only to receive a notice that my limit is now $500.  Only AFTER I paid it in full did I get this notice.  I was not late on payments. They said Experian reported concern.  I looked at the Experian report and saw nothing of concern.  This is rediculous.  I am happy to not use AMEX anymore.
Message 22 of 140
Member

Re: Have you had any of your credit card limits lowered by your credit card companies?

No, but I'm prepared by keeping my balances VERY low in case I have to Zero them out quickly.  In fact, I was approved for a Capital One MasterCard ($300CL)  and a Delta Sky Miles American Express ($2000CL). 

EX: 634/EQ:621/TU:620

Message 23 of 140
New Member

Re: Have you had any of your credit card limits lowered by your credit card companies?

AmEx lowered.  Now only has $100 available credit which looks really bad - after paying down from $6000.  Never been late - have been paying over the minimum for the past year. FICO hovers btw 680-720.

 

Only with a "sorry if this is an inconvenience".  I wish I had the funds to pay it off completely today and be done with it.   Soon... just keep snowballing.... soon....

 

 

Message 24 of 140
New Visitor

Re: Have you had any of your credit card limits lowered by your credit card companies?

Just in the past three months I have paid off 3 credit cards which were never paid late, just wanted to reduce the amount owed to help with my FICO score. Two of these credit cards are serviced by GEMB. After those 2 were paid in full, they immediately reduced my credit limit. Within 1 week of paying the balance in full I received a letter from them. So now I have two cards that show a very low credit limit. I have 2 other credit cards that are serviced by GEMB and I absolutely refuse to pay off those balances for fear they will reduce that credit limit as well.

 

Both of these cards would increase my limit every 6 months without ever applying for a higher limit. I don't understand why now they are reducing the credit limits and in turn hurting us for actually taking care of our debts and being responsible.

Message 25 of 140
New Visitor

Re: Have you had any of your credit card limits lowered by your credit card companies?

After over 15 years with American Express, never a late payment, always pay my bal every month, a fico of 746; AND PAYING FEES for the cards! They just lowered 2 of my cards from a total of 37,000 to 4,000 - with no notice. I would like to warn anyone - dont trust axex, dont use their cards etc. They can give me no reason why they did it - other than to insult me by saying lending me money is a risk, and they are rude about it. When I asked if they realize that they will harm my fico score, the reply from the supervisor and even manager was that isnt their problem. I would strongly urge anyone that has a amex to stop using it, and let them keep their money. I will not purchase on mine again.
Message 26 of 140
New Visitor

Re: Have you had any of your credit card limits lowered by your credit card companies?

I had a Visa card that I have had for over 10 years.  My bank recently cancelled that card which had a $0 balance, because thay claimed that I hadn't used it in almost a year. I have perfect credit, have never missed or been later on a payment, and had a 760 credit score, but Bank of America recently lowered the limit on a credit card and a personal loan I held with them for no reason.  Two months later they sent me a notice that they were raising my interest rate because the balance due was to close to my credit limit - which they had just previously lowered. I am paying these cards off ASAP, and have moved all of my other accounts out of Bank of America.
Message 27 of 140
Established Contributor

Re: Have you had any of your credit card limits lowered by your credit card companies?

YES!  I just recieved a letter from Walmart....reduced my credit line from $1000.00 to $960.00

Never late...good paying record. No reason was offered from Walmart either. That really sucks!

Message 28 of 140
New Member

Re: Have you had any of your credit card limits lowered by your credit card companies?

I got an email from Amex on 10/26 informing me that they had lowered my limit by over $17,000 to $7,500.  When I called to find out the reason I was told it was because I'm using too much of my available credit and because there have been too many inquiries in the last 12 months. 

 

What a ridiculous Catch-22: now my total use percentage will be even higher because of their action.  I have never been late, always paid much more than the minimum, and six months ago had a zero balance.  As for the inquiries, I've had three, two of which were authorized by me.  The third, by B of A, and through no initiation of my own, was apparently run because I have a mortgage with Countrywide (also current).  Their inquiry on 10/20 resulted in my FICO score (which I track constantly through Experian and is usually between 765-774) dropping to 740.

 

What's ironic is that I  had a letter yesterday from one of my other credit card issuers that they had raised my limit.  They're likely to rescind that when my FICO score is lowered as a result of Amex's limit reduction.  I informed Amex that I will no longer be using their card.

 

 

Message Edited by Cleverbroad on 10-28-2008 09:39 AM
Message Edited by Cleverbroad on 10-28-2008 09:40 AM
Message 29 of 140
New Member

Re: Have you had any of your credit card limits lowered by your credit card companies?

My Carecredit card (GEMB) was closed due to inactivity.  Zero balance.  I am sure our FICO will decrease.  We have excellent credit.  We have one card that is at maximum with 15 of them at 0 balance.  I'm not gonna go in debt so I have a happy FICO score, cash is king right now.   Smiley Happy
Message 30 of 140
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