Juniper reduced limit from 3400 to 1650....arrghh!

[Anonymous]

I hate banks and their ability to do whatever they seem fit regardless of your payment history or not. Long story short, I haven't missed any payment on my cards in 7 years. I had a medical BK in 2004 and have really bounced back since then. In the past month, I was utilizing my credit more than I normally do but I knew I had 12k in money coming and was going to pay my cards off. Well because of I guess the statement dates for various cards, it reported more utilization than I normally have and Juniper sent me a letter that said that they were effective immediately reducing my limit to basically 100 dollars over my limit (have a zero percent balance transfer on the card that I used last year) because of bankcard utilization and too many cards with balances. Funny because it wasn't like I went on a huge spending spree and the cards that had balances always had them. So by reducing my limit you are just further reducing my credit score and it appears they are hoping that I go over my limit so they can collect fees. I don't even use this card except for balance transfers!

I know if I call them that they will just tell me that the decision was based in part by what is found in my credit report which is 7 years of impeccable payment history! What is the point of credit if you are penalized for using it?!

So tired of these banks when they get bailed out with OUR money for their own bad behavior!

[pizzadude]

Juniper is owned by BofA right ?   They seem to be on a roll lately with taking AA.

How high was your overall utilization ?  I would tend to agree that this was probably the reason but they should also send you a letter.

[Anonymous]

54% total untilziation but that isn't the full story. I went back and paid most of the new balances off from my cards. Barclays owns Juniper IIRC. Regardless, banks need to look at the full picture, mostly your relationship with them and payment history. I understand there are a bunch of people out there not paying their bills. However, thank god I have a good job and am not in that situation! 

Funny how I was able to secure at 240k home loan at 4.25% last year on a 15 year mortgage and am able to get a 55k truck loan at ZERO percent but can't get a good credit card to save my life. Just mind boggling!

Btw...they did send me  a letter telling me that card utiization and number of bank cards with balances weighed heavily on their decision. However again, what is the point of having credit if you get punished for using it!

[pizzadude]

So is the BK still showing on your reports ?  I'm guessing that might be a trigger that has made them keep a closer than usual eye on your revolving activity.

[Anonymous]

Maxed out: It's important in the world of credit decisions not to take it personally. There is not a human being sitting at a desk somewhere that said "Let me mess with maxed outs life today and lower their credit limit". The CC company is using computer algorithms that sort through the info they receive on a review of your current report. Their experience says when X% of people reach X% of utilization the default rate goes up. So the computer lowers their exposure to your possible default.

Could the system be better if someone were to call and say "Hey, we noticed this, what's going on to change the pattern. Oh' you're paying it all this week? Never mind we'll just take another peek in a few more weeks. Thanks for your patronage." Yeah I would love that, but then we would have to forego instant approvals for new credit and CLI's while a human went over everything.

Wait until all the updated balances are reported and call Juniper to see if they are willing to restore your CL. If not there are other creditors out there to work with.

[Anonymous]

The BK is 7 years old and shouldn't have much impact on my credit score by now. I would think a 7 year impeccable payment history would weigh much more than a BK 7 years ago and a medical Bk at that...

[pizzadude]

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@Anonymous wrote:

The BK is 7 years old and shouldn't have much impact on my credit score by now. I would think a 7 year impeccable payment history would weigh much more than a BK 7 years ago and a medical Bk at that...

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Unfortunately, as long as it is on your reports it is going to be an issue ~ probably moreso with your unsecured creditors like CCs.  

[Anonymous]

Which shows how dumb the industry truly is. I can buy a brand new 55k diesel truck at ZERO percent interest and a home at 4.25% on a 15 year note last year with no problems yet you do nt trust me with 3400 in credit?! I guess they could always repo those items but still funny.

[Anonymous]

You are seeing this in the wrong light.

If I were you, I'd be HAPPY. Yes it might shoot up your utilization, but now you know which card to NOT put into rotation. Make sure that card knows what the back corner of your sock drawer looks like.

[pizzadude]

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@Anonymous wrote:
Which shows how dumb the industry truly is. I can buy a brand new 55k diesel truck at ZERO percent interest and a home at 4.25% on a 15 year note last year with no problems yet you do nt trust me with 3400 in credit?! I guess they could always repo those items but still funny.

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It's just one of the differences between secured and unsecured debt.   Creditors who lend you money against nothing are generally going to be more nervous.