@sakura wrote:I have an exceptional payment history and no bad remarks on my credit reports which I've worked hard to maintain despite multiple layoffs, death in family, illness, etc. And I'm old and alone. I had a 20K card with a company and I used 5700K for an emergency because I didn't want to dip into savings. I do have 30K in debt which I was finally paying down after another layoff. Yes, having debt is not good. Then abruptly the 20K card dropped my limit to UNDER what I owed. And reported to TransUnion that I went over my limit which clearly I did not. I called the 20K card company all week, mostly getting nothing we can do, we lowered it because your debt went up, which it did because I used the FREAKING card they gave me. I offered to pay the balance and full if they would restore the limit or even part but they didn't care. More concerned about destroying my life then getting paid.
You need a good score for EVERYTHING. Lately even jobs are asking to check this before they hire. And did I mention I'm old and still trying to ever own a home and don't have time for this?
This tanked my credit score 56 points to 590 on Transunion!!! AND another card notified me that they were dropping my limit from 2K to 1k citing that they had seen the TransUnion score drop. So now that card looks maxed. I didn't know this was possible. I discovered it's called balancing chasing and it will only get worse and worse if others see your score if you don't fix it. Because even if you pay your debt they can keep lowering the limit which then makes debt to credit bad and transunion etc. keep lowering your score.
I finally got a Transunion rep who said I could snail mail proof they lowered the limit and I didn't use more or max the card. But god knows how long that will take IF they will raise it. I was finally told by another rep at the 20K card place I could call their lending department and they might budge/help. But I'm terrified. I'm running out of time before any other card notices. Please help! I did all the right things in a bad economy.
OK, to be honest, if they dropped your score "56 points to 590" then you were only at 650 to start with, I'm not suprised at the drop in both cards. With that score, you should always pif.
@NoMoreDebt wrote:A credit card isnt a loan and shouldn't be used or viewed as such IMO. Using it then at statement cut paying in full for the cash back or points is one thing but using a credit card to hold and carry your emergency when you actually have the cash just because you don't want to touch it is a loosing strategy from the start.
Actually a crediit card is a loan. . .an unsecured loan. . .which is why all the regs and fees and penalties. But I agree with your sentiment, especially with a charge that big and a score that low, regardless of the cl on the card.
They're talking about interest rate caps. If they cap the interest on a credit card at 10%, it's pretty much game over for anyone under about a 750 getting a credit card.
I one considers that the finance charges are set as a function of the current prime rate, as described in the cardholder agreement, then the banks are charging interest on an unsecured loan over the rate they are charged to borrow to cover the losses. Perhaps having a score over, say, 700 to qualify for any unsecured credit card isn't such a bad idea.
@Gregory1776 wrote:
@Realist wrote:As you've just experienced, CC companies can completely eliminate your line, or reduce it at a moments notice to protect their exposure. I learned this a long time back, which is why I buffered myself from it likely ever happening again. If I had to guess, your utilization was the culprit among only a few lines of credit. Make no mistake, we are entering an economy where lending requirements will become more strict, and extended credit lines will become scrutinized. You will want to cycle unused credit lines in a timely manner, to avoid account closure.
To find a temporary relief with your situation, I would recommend to pay off the over the limit difference.
To find remedy out of your situation, ideally you would want to pay off the amount in full, or transfer some of the balance onto other cards that you can manage. If this payment was front loaded onto one card, it elevates that card into a questionable status. This compounds depending upon available credit among all of your cards. Utilization scores should never exceed 30% on each card, and certainly not above overall credit available to you. Often times one card doesn't matter, so long as you have a very large of available credit.
Credit scores bounce back. The quicker you can remedy the issue, the less impact it will have on your overall score.
Yes and no offense, a 650 Credit score is going to be scrutinized much more than someone with a 750 credit score with the same credit lines and random purchases. something about your profile flagged you for them.
Barclays did this garbage to me when I getting some BT to pay down debts faster, they gave me $5k and I only put $2,300 on that card, they didnt like my credit spree of 4 cards and reduced my credit and made it seemed like I was maxed. Total scumbag move on them. My scores were 770+ at the times
Thx for this. Agree on economy and election. I can't sadly balance transfer when 3 cards have now dropped limits. 2 that were highest credit line. I doubt I could get a new card with tanked score and guessing that would be another red flag to credit companies
adding another card