DECEPTION

[Anonymous]

I recently received a letter from one of my creditors stating that they are lowering my credit limit. There explanation for lowering my credit limit were based on issues that were on my credit report before they issued me credit. Brief history, I paid off the credit card back in Feb. 2009 and have not used it since. Could it be that they lowered my credit limit because I have not used the card since Jan. 2009.

[Anonymous]

That is happening everywhere. I have even been told that my score has gone down 70 points below a certified FICO score obtained on this site. My scores have been improving, just the opposite of what they say. Just be glad you have it paid off.

[JoeBJay20]

Unfortunately, in this climate creditors are looking for any reason (and not always legitimate) for issuing credit line decreases.  It's not terribly uncommon for creditors to issue credit line decreases or flat out close accounts that aren't being used regularly. 

[demi]

At least you got a letter!  I went to use a week old card on Saturday and it wasn't authorized...granted, I ran it up fast (vet bills) but still had a substantial amount left (about 40%).   Saturday I went to use for a minor purchase and it wouldn't authorize.  Called the phone number, and my credit had been reduced.  Have not gotten the letter yet, and they can take it and you know what.....This card is going in the shredder.

[Lel]

Angry41, welcome to the club for folks who have experienced credit line decreases.  As has already been mentioned, yes, lack of use of a card is a sure way to lose your CL.  I read somewhere that the credit card companies have cut a total of $1 trillion in CL in the last year or so.

Personally, I have recently lost $19,999 of CL in the last few months, all because I didn't use the cards that had the lines cut.  To preserve your current CLs, it is a good idea to use all your credit cards on a regular basis, even if it is for small purchases.  Keep in mind, however, that when you dust off your cards you can see a drop in your FICO score, because newly active accounts tend to have a negative impact on your score.  Also, having more credit cards reporting balances will drop your score.  However, there are ways to mitigate those losses, which are easier to do than recovering lost CLs.