Yes. AMEX froze my sign and travel option, then a month later AMEX blue lowered my credit limit to by $9000 to just $600 above my balance, essentially maxing out my card. I have always tried to leave wiggle room between my balance and my limit and to keep utilization down as much as possible. I have always had a good score. But I am sure that this will hurt my score just at a time I was considering a home refinance.
Will FICO be able to consider that folks have been involuntarily maxed out by their credit card companies in calculating scores? I feel sure this has happened to thousands of people.
WAMU, CITI, HSBC lowered their limits, reflected on a late payment 3 years ago to justify the interest rate hike. More recently was AMEX lowered both of our cards to $500 over the current balance which removed a few thousand dollars worth of available credit. Bank of America and Capital One have left us alone and we enjoy the low interest rates that they offer.
So after the lowering of our available balances, it makes our balance to debt ratios seem like we are abusers. It was the credit card compainies that lowered our ratios to make us appear bad. Once one company, which seems to be the owners of a couple of our other cards, lowered the limits, it prompted all the other credit card companies to jack up the interest rates and lower our available balances to refelct our NEW RISK PROFILE! A risk profile that they took it upon themselves to cause.
I'm a bit miffed at the whole thing. We are small business owners and we try to take advantage of using our cards to get points, mileage and cash back to ease the sting of the economy. All of the scheister moves that the credit compaines are slinging onto us consumers is disheartening and unfair.
When the Feds reduced their rates, the credit companies should do the same to promote goodwill and prevent others from defaulting. This in turn would make it so that they wouldn't have to siphon the defaulted consumers debts out of me and my family's mouths. AMEX even stated that their hike in rates adn lowering of credit was due to defaulted balances. I pay my bills on time. Why should I suffer??
"When the gov't throws you a bone, you should make broth out of it and share it with the citizens who made it possible!".
"Greed started the need for credit. Greed shall end it."
My capital one cards have lower interest rate and they have not lower my credit limits. I have been a capital one customer for over ten years. As I said before Amex have lower my limit to a max. I just rechecked my score and it has went from a 690 to a 560. Am I mad, Yes! I have NO late payments on any of my cards. GEMB has lower all the limits on every card I have that is own by them. Reminder.....I have never been Late! I will not be using any cards own by Amex or GEMB. Capital one has all my business now. I have a M/C $5000 limit and Visa with a $5000 limit with Capital one.
Have not had any ccl's lowered by ccc's. Have had one offer of increase from cu, declined because of changes in economy & ccc's attitudes, am being cautious. Always pay off entire balances each month early... have one GEMB acct unchanged. Glad I do not have AMEX! I am somewhat concerned, would like to buy new car in the coming year, financing half, and wonder if economy will cause problems.
Had 2 cards/ lines of credit from GE Money... Walmart and Paypal Buyers Credit.
Last month Walmart decrease from $300 to $210
Last week Paypal Buyers Credit decrease from $300 to $250
Never been late...am rebuilding after BK
Guess im going to sock drawer those cards....
They will want the GOOD CUSTOMERS back after the credit crunch dies down...