Credit Card Companies lowering limits.

[YoFuggedaboutit]

In the past two weeks, two of my credit cards have lowered my limit to just above my balance.  They have done this without my knowledge or consent, and in doing so have hurt my credit rating (balance to limit is a factor in credit rating). 

I have called both companies and they refuse to say why, saying letters were sent to me (I have not received any notice). 

I have been a card member at both of these companies for five years and have never missed a payment.  I am at the point where I will threaten not to pay another dime unless they put my limits back to where they originally were.  And if they start harassing me afterwards, I will file a chapter 7 and tell them to go fuck themselves. 

Any ideas?

[Tepop84]

Cutting off your nose to spite your face?

[Brian Fein]

Yeah, who are you spiting by stopping to pay your payments.  Then YOU will be wrecking your credit, and they don't even have to do anything.

[MaineDolFan]

They are lowering their liability by lowering your credit line and they don't need to tell you anything other than they have lowered it.  You don't have a "right" to a line of credit, they could shut your card off if they wanted to.

Sorry buddy but you're stuck.  I certainly wouldn't screw around and stop paying.

[BoSoxGrl]

It's funny that you bring this up as this has been happening for quiet some times with major company corporate cards.  It is finally trickling down to the Average Joe (or Tommy as it were). 

About 2 months ago, one of our biggest clients called me and said "listen, Amex just cut our limit in HALF (which is substantial as this particular company makes millions upon million of dollars in a month) we need to renegotiate our terms of payment."  It wasn't a big deal on our end because they have never failed to make a payment EVER, but they were looking to pay off their bottom line with AMEX and not add any more debt to it in the meantime so they could cancel their card.

Sorry to hear about your situation, Tommy.  But I think overall it's going to become a very, very common tale.  You best bet is to stop using the card, pay it off and cancel it.  That way you're not hurting yourself in the long run.

[Dphins4me]

They are lowering their liability by lowering your credit line and they don't need to tell you anything other than they have lowered it.  You don't have a "right" to a line of credit, they could shut your card off if they wanted to.

Oh should I take it there?     Better Not.   

Maine is right.  Nothing you can do about it without screwing yourself.  My suggestion.  Try getting a card somewhere else & forgetting these guys.   

Also, that credit to limit ratio is something only a business man would think of as making sense.

[bsmooth]

A lot of places have been doing it. I have several lines of credit reduced, some by half. But one place did offer to reraise it up high enough to make a purchase since I have paid my bill on time. You could try and see if they would do the same with your cards if you need to use them past the current limit.

[Fau Teixeira]

bank of America did that to one of our cards recently .. it's pretty inconsequential really .. it's a sign of the times .. companies don't want to loan out any more credit if they don't have to.

[Dave Gray]

Sorry Tommy.  It sucks when things that aren't your fault negatively affect your finances.

My suggestion is this: Pay your bill and move on.  Sticking it to them would only be sticking it to yourself.

The company doesn't have money to lend to you right now.  It wasn't because they don't care about you or that they're being difficult.  That's what this credit crisis is all about.  If you're really unhappy about it, pay off your bill, stop using the card, and find another company that will offer you a limit you can work with.

[Phishfan]

Be happy you have a credit card still with this economy. Don't expect any others to be jumping up and offering any more either. My advice, just keep your mouth shut and keep paying. Whe the economy straightens out your company will be more than happy to raise you back up if needed.

[Gabriel]

I just e-mailed my bank and asked them to increase the limit on my credit card. Any bets on what will happen?

[YoFuggedaboutit]

I just e-mailed my bank and asked them to increase the limit on my credit card. Any bets on what will happen?

It would depend on your past credit history..... but a lot of banks will be more stringent then than now. 

Question about bankruptcies in Florida.  I own my car outright as well as some furniture, jewelry, a computer, and a TV set and some video games.  Will I stand to lose all those if I file?

[Gabriel]

It would depend on your past credit history..... but a lot of banks will be more stringent then than now. 

Question about bankruptcies in Florida.  I own my car outright as well as some furniture, jewelry, a computer, and a TV set and some video games.  Will I stand to lose all those if I file?

My FICO score is above 800. I don't really need the increase, but your thread made me curious as to whether my request would be rejected.

Sorry, can't answer your question regarding your property. Maybe one of the lawyers knows.

[SportsChick]

No you won't lose them

[Gabriel]

It would depend on your past credit history..... but a lot of banks will be more stringent then than now. 

Question about bankruptcies in Florida.  I own my car outright as well as some furniture, jewelry, a computer, and a TV set and some video games.  Will I stand to lose all those if I file?

The bank doubled my credit limit. It looks like somebody out there is willing to lend.