HSBC credit line slashed for no reason!!!

[Anonymous]

Slashing is not unique to HSBC.  This is from Liz Pulliam Weston (MSN Money)

Credit card companies are slashing credit limits, even for good customers, and that can slam your credit scores. MSN Money:

Lenders are reeling in the credit lines they were once so eager to bestow, and the results could be catastrophic for your credit scores.

Nearly half of banks have reduced customers' credit limits, a recent Federal Reserve report says, and lenders aren't done yet. Banking analyst Meredith Whitney predicts that credit card issuers will slash limits by more than half in the coming months, from about $5 trillion down to $2.3 trillion by the end of next year.....

Anecdotally, I'm hearing horror stories about Bank of America customers having their accounts frozen or limits lowered after simply contacting the bank to ask for a lower rate or a balance transfer deal.

Bank spokeswoman Betty Reiss insisted that it's not Bank of America policy to respond to customers' requests for rate cuts by freezing accounts or lowering limits. But she stopped short of reassuring me that calls from customers wouldn't trigger closer scrutiny of their accounts. All she would say is that the bank was looking more closely at all of its accounts."  http://articles.moneycentral.msn.com/Banking/YourCreditRating/5-tips-protect-your-credit-scores-now....

So don't take it personally and keep your eyes open to stay in a good position with your cc's.

[Anonymous]

You have a point, I was told by an HSBC banker they look at 'transaction activity'.  Bars,  liquor stores, etc. are no no's.  They have a 'poor mans' list of places not to shop. 

Either way, I have an HSBC MC with a 21K CL when I use it I pay it off in full each month.  So far knock on wood, they have not touched my CL.

Likewise, I have an AMEX (proper) card and a co-branded AMEX black BOFA.  They also follow those guide lines.  So far, I haven't had any CL cuts.

Dan

[Anonymous]

Did you have an HSBC online direct saving account?  I also have one.  I wonder if I move the money, the will cut my CL of 21K.

[MrShush]

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@Anonymous wrote:

By the way, RBS-Royal Bank of Scotland and HSBC are BOTH going to be getting TARP money from the US.....

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Correction: RBS will not recieve US TARP money because they are a foreign owned bank, however, they received money from the British government resulting in their 70% (give or take) ownership of RBS. RBS has always been and always will be a very conservative lender and is very selective in terms of whom they offer credit of any kind.This goes especially for their state-side subsidies.