"I FOLLOWED ALL THE RULES OF MY CONTRACT WITH THE CREDIT CARD COMPANIES AND THEY REWARD MY LOYALTY BY FORCING MY CREDIT SCORES INTO THE GUTTER."
Whatever you do, don't default on your creditors unless your economic situation takes a turn for the worse and you have no other options. If you've played by their rules and have been a loyal, on-time paying customer, I would suggest calling some of the backdoor numbers listed for your creditors and explain your situation and see if there is anyway they can consider increasing your credit lines to offset the impact it has had on your credit scores. If that doesn't work, by all means, write letters to their top executives before you consider throwing in the towel and starting over from scratch. Good luck.
I'm a self employed, single woman who has worked very hard to get and KEEP my scores in the mid 700's so I could prepare to purchase a home. I have two credit card companies that are royally messing with me by continuing to lower my credit limit as I lower my balances. I have never missed payments, usually pay more than minimum, and have been with the company since the 80's. This is how I am rewarded. It's all a numbers game and no personal background is being considered. It IS affecting FICO scores and the only solution seems to pay down the balances. The banks are wanting their money NOW! They could care less about an individuals history or concerns. Sign of the times is affecting everyone in one way or another.
I am going through the same identical thing as you are. I have two companies now that have slashed my credit limits. One continues to do this every time I get within $1,000 of my balance. This balance is a balance transfer at 4.99%. I couldn't get that low anywhere else at this time so I continue to pay them.
The other company just slashed my credit limit at 5:00AM on Monday morning. I had just checked my balance before I went to bed. Lucky for me I checked this card before leaving the house the next morning. My limit had been cut by 6K....from 12K to 6K. I called the credit card company and was told that I wasn't being singled out, that more of this is to follow this week and next week with their present customers. The reason was given that their bank is undergoing some risk with the unemployment situation and people not paying their bills. Unfortunately, they will have to cut their current customers' accounts to stay in business. I was told my APR would be 16.49% on one account and the other account would stay at 3.99% until June, 2009. After that it would go to 9.99%. I checked that other account and it had been slashed by $900.00!! I said no warning at all!! She stated a letter was in the mail. So sneaky.
Citi informed me last month that they would be raising my APR too after Jan. 31. I have sent a certified letter to the CEO and Credit Manager of CitiCards and just received the proof of receipt back yesterday. My bill generates on Monday and I will see if there are any changes there.
I was irate with all of this. Happened to my Dad too, but he is paying all of his credit cards off and have opted out of his credit card company. He is following Dave Ramsey.
There is nothing that can be done about this it seems. FICO scores are being affected by all of this. Only thing I know is to pay everyone off as soon as you possibly can and don't carry any balances.
How is it, that the new strategy of lowering credit limits on peoples credit cards, by the credit companies, is allowed to negatively affect my FICO scores? My FICO scores dropped 87 points after my credit limits were lowered and AFTER I successfully paid off a vehicle? I am still as responsible as ever and my scores are getting worse! Doesn't seem quite fair that THEY can force my FICO scores down by their limiting their own risk. Why is it that I have to suffer??
Has this happened to anyone else??
DH rec'd email from Amex today advising Delta skymiles cut from 1K to $500.
Email further states that this amount is less than current balance but they wont add late fees.
He called Amex as he only owes $260 on card so this is NOT more than the new $500 limit. CSR couldnt advise about this apparent error, but advised CLD is result of PR on credit report.
The PR is a PAID 1998 state tax lien (which we've disputed as it's in error--a few threads about this elsewhere)
that was on his report when he apped and was approved for this card.
Scores are actually better now, than when he got the cards, and fortunately this is only $500 less in CL so shouldnt affect his score, though it's irritating to be CLD's for something that was on your record when you apped!!
He also has Gold Amex which they so far havent set a limit on so I guess so far it's ok.
I'm now a little more concerned about my Amex situation as I have Green, Blue and Delta, and the Blue and Delta have combined CLs of $10,600 so provide my highest limits.
SO TELL ME WHAT IS THE REWARD IN MY PAYING THEM AT ALL NOW THAT MY CREDIT IS AS IF I HAD BEEN A DEADBEAT?? What is stopping me from the thought of "I just freed up some more money to live on and the start of a little nest egg just in case this economy turns for another "Worst Avenue"".
Please give me some feedback.
FightClub, your reward is nothing that can be given to you by anyone other than yourself. It's the feeling of satisfaction and self-esteem that can only come from your own knowledge that you did the right thing and kept your word by paying your obligations regardless of how the playing field was changed.
Nothing is stopping you from thinking about stiffing the card companies like they're stiffing you, but thinking about it is just that, thinking about it. You'll never go through with it, though, because you've got integrity, and that's a helluva lot better than a FICO score.
When all of this turmoil is over, you'll come out of this just fine. There is nothing any of us can do about these CCC policies anyways, so safeguard the only truly valuable thing you've got, your integrity. Everything else comes and goes at any time, for any reason whatsoever, or no reason at all. It's not fair, but not much is these days.
Good luck to you, FC!