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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.

Your FICO® Scores can impact your loan interest rates, terms, approvals and more.
New Contributor

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

Yes AMEX Blue Card CLD from 15k to 100 over balance at the time was 5200 ...then I made a 300 payment and they CLD'd it again to 5000....100 over balance again.... so I left it for the remainder of the month and I payed it in full ....it hasnt changed since.

 

I also had a AMEX Gold Card and cancelled it since it really doesnt matter to have a AMEX in your wallet when you dont know if the charge will be approved anymore or not ...so until they change their ways ...me and my interest go elsewhere ....Hello Discover 25k limit ... Hello USAA 25k limit ....

 

Amex is overrated and is losing customers faster than GMAC is losing money! lol well I dont know if its quite that bad yet but close lol ... Just about every professional person I talk to at work has had some sort of run in recently with AMEX .... its sad ...so many years to build up the reputation and now its pretty much junk.. I have no faith in amex...although besides the CLD conversation ...all 3 of them ..with stupid non-answers .... I have always had good customer service up til now...

 

All my other cards have not been touched

 

My scores as of today are TU 747  EXP 749  FAX 762

HHI is over 140k yr

Message 51 of 140
New Member

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

Yesterday I got the letter from Amex citing their reasons for lowering my limit.  They say they use Experian as their source, and I have access to my Experian credit report at any time.  The problem is, they are citing reasons, "According to Experian," that do not appear on my Experian report, such as:

 

-Too many accounts with balances.  

-Too many inquiries.  Three within the last year; one for a refi I was contemplating; one from B of A, which bought Countrywide (they are apparently pulling hard credit reports on all Countrywide mortgagees); and one for Discover, the only new account I've opened in over 3 1/2 years.

-Too many accounts recently opened.   I have one, as noted above.  I don't know what they consider "recently."

 

I can't dispute any of this on my credit report because they are not listed by Experian.

 

 

In addition, they cite this under their own reasons:

 

-The number and value of residential loans, opened within a short period of time as indicated in  your credit report.

I have a first and HELOC on my home, both current. obtained through a refi in May of 2005.  These were on my credit report when Amex gave me this Blue card with a 25k limit. 

 

 

 I tried to send Amex an email about all this, but they will only communicate by phone, which I believe will be useless.  I will, however, send them a registered letter with a copy to Experian.  I will also pay off the balance and cease using use the card.

 

 

 

 

 

Message 52 of 140
Contributor

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

I have not had any of my credit lines cut.  However, I do not have an American Express card.  I called B of A and they INCREASED my credit limit by an additonal $5000 yesterday.  My GEMB Lowes and Walmart have NOT been cut as well.

 

My FICO scores are ok but not as high as many on here. Then again I never owe out on my credit reports more then 1% of my total credit lines.  Who knows why these banks do the things they do.  I do think they are trying to avoid future losses though, who can blame them.

02/14/2009 EQ 797, EX 811, TU 805
Message 53 of 140
Established Member

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

My parents had their card limit decreased by Amex.  Best thing is to balance transfer the balances to another card  if you can and move on.  If you can't afford to, just continue paying them as much as you can.  Some people's cards are still being slashed after paying them as much as they can. 

 

My parents went with Amex at the recommendation of Suze Orman in 2005  when she stated people having problems with other credit card issuers, to go to Amex for better treatment!   Just Monday on an early morning show Suze Orman stated people's credit lines are being slashed and their debt to ratio will unfortunately suffer plus their FICO scores and for people not to use their credit cards at all.  How does her FICO kit on this forum address credit line decreases?  I also believe I heard her  state FICO will not be making any changes to their formula to take in consideration these credit limit decreases either. 

 

I believe it is in a person's best interest to analyze where they are financially and to rid themselves of credit cards altogether. 

 

 

Message 54 of 140
New Visitor

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

I had heard over the summer that this has been happening to people and small business owners. I didn't think I needed to worry but I should have. I received a letter from AmEx on October 29. I have two accounts, both open since 2002. I have a Gold Card which I play off every month, even though they had made several different kinds of offers to carry certain charges over as balances. The other card, a Blue, which I have paid on time every month, and always the minimum if not a little more. They slashed my credit line from $45,000 to $29,900, a whopping 34% (mind you I never asked for increases, they gave them to me), and cash advances from $2,000 to $200 (90%). My balance is at $29 K and has grown to be a higher balance than I would have liked thid year due to me purchasing my first home in April 2007 and cashing in $35 K of stock options to do it. I had to pay a whopper of a tax bill (Fed and NJ) because of the stock option sale (it counted as extra income), and I also got a lesser than expected bonus at work due some HR policies out of my supervisors control. The two factors combined wiped out my savings this year so I have had to use my credit cards to supplement expenses this year. But tis year, I should have a hefty tax refund due to me and more accurately know my bonus amount. I emailed Amex about the decision and they won't communicate thru email, it must be done by phone. I spoke to Steve, the AMEX representative, and relayed my disappointment and humilation, and I found him to be unsympathetic and frankly very condescending. I told him its fine if they want to reduce my credit limit, but this is going to kill my credit score because the place the limit so close to the balance- my credit to utilization ratio is now awful. (My  credit scores were in the mid 700's but I expect them to drop significantly.) He said its none of their concern. My plan is to not use the card, play off balances and never do business with them again. If I was missing or late in payments I could understand, but they are treating loyal and responsible customers in an terrible manner. I would encourage anyone out there looking for credit to go with someone other than AmEx. I do expect them to lower my limit as I pay it off, so its probably going to be a downhill battle.
Message Edited by NJgal on 11-01-2008 03:07 PM
Message 55 of 140
Contributor

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

I feel bad for you people who have the AX card problems.  For you to do nothing wrong and to take FICO score hits is just not right.

 

Is it legal for them to do this?  I mean wouldnt AX need a good reason to lower your CL??

 

Is this just happening to people who own their own business? or is it for everyone?

 

I was going to get an AX but I never bothered as my BofA card has a $30,000 limit.

 

Now I am glad I never applied for an AX card.

02/14/2009 EQ 797, EX 811, TU 805
Message 56 of 140
New Visitor

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

Mark- I think its happending to everyone. I do not own my own business. The reasons they gave were stated to be conclusions they made from an analysis of my credit report.
Message 57 of 140
New Visitor

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

It's really a shame to see this happening to so many people.. Things are bad enough financially as it is and to make matters worse AX is bailing on card holders. For the longest time I've wanted an AX Blue Cash card but I think I'll keep my paid off WAMU Plat. Smiley Surprised
11/2/08: TU: 702 | EQ: 668 | EX: 720
Message 58 of 140
New Visitor

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

Yes. I have a Gold Mastercard that had a $10,000 limit. My last statement shows that my credit limit is now $9,400. I sent an email asking why and received a letter stating that because my utilization is low, my limit was reduced. I average charging $1400-$2200 per month and pay in full each month. Who would have thought that being responsible with a credit card would cause me to be punished? I thought about not using the card anymore but they have a great rewards program, so I guess I'll keep using it the same way I have been. I just hope it hasn't hurt my credit score.
Message 59 of 140
Valued Contributor

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


@Mark-MD wrote:

I feel bad for you people who have the AX card problems.  For you to do nothing wrong and to take FICO score hits is just not right. It is not only AX thing. Target, Macy's, Citi, BOA and even GEMB CLD people.

 

Is it legal for them to do this?  I mean wouldnt AX need a good reason to lower your CL?? Completly legal. They always can come up with bogus reasons.

 

Is this just happening to people who own their own business? or is it for everyone? Nobody is safe.

 

I was going to get an AX but I never bothered as my BofA card has a $30,000 limit. BOA CLDes too.

 

Now I am glad I never applied for an AX card.


 

IN VINO VERITAS.
Message 60 of 140