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111 Responses to “Why Are Credit Card Companies Lowering Your Credit Limits?”

1. Matt @ SF Says:
   December 2nd, 2008 at 15:39

   Nice write up Connie! I probably should have emphasized that this credit limit reduction did not hit me anywhere near as hard as it has hit your other readers, but I can recall reading your previous article on the subject and thinking “Nah, it won’t happen to me”.

   Looks like you had your prognosticator glasses working that day!!!

2. ConnieB Says:
   December 2nd, 2008 at 17:46

   Thanks for your comment Matt!

   I should have mentioned in the article that you weren’t hurt by your credit limit reduction because you don’t carry a balance on your credit cards.

   With so many credit card companies lowering limits, it’s important for us all to know that not carrying a balance is our best defense. We my not be able to stop the credit card companies from lowering our limits, but we can certainly minimize the damage that’s done to our credit score.

   ~Connie

3. david l Says:
   December 3rd, 2008 at 00:48

   AMEX just did the same thing to me. I had a 735 with 0 lates. They took away 70k.

   I wrote a blog with some action you can take against lenders that are doing this:

   http://amexcreditreduction.blogspot.com/

   I am very interested in what legal options are out there. What they are doing is borderline criminal.

4. Gregg L Says:
   December 3rd, 2008 at 02:34

   I have had over $85,000 in credit card limits over five cards with Bank of America. They took a $19,000 limit card and changed it to $1600 without warning. I have been with them over ten years and never paid late and almost always paid over the minimum.
   They say the reason they changed the limit on the card was because of delinquency on accounts with an affiliate of theirs. Now I have had trouble with a Countrywide mortgage (I got scammed, more or less) and may have a foreclosure with them. But I got the cards with B of A long before they bought Countrywide and never stopped paying the B of A cards on time.
   This is a shock to me and I would love to see the credit card companies be given some rules as to how often and how much and under what circumstances they can lower limits or change rates. Any class action suit would be welcomed. With all the money the government is giving these banks, they should have more rules, not less. I think with Biden being VP though it will be hard to win against the credit card companies.

5. Risk Tolerance, Mutual Fund Expense Ratios, Our Money Blogger House Guest Says:
   December 8th, 2008 at 01:37

   [...] Ask Mr. Credit Card: Why Are Credit Card Companies Lowering Your Credit Limits? [...]

6. DIXIE Says:
   December 13th, 2008 at 06:10

   This happened to me tonght at Dillards. Last week I a limit of $6,000 and I have never missed a payment and have always paid more than I owe. I only owed $475 and tried to charge about $150 tonight and was denied. They had reduced my limit to $600. The rep told me they did this to thousands of Dillards customers. I was embarassed. Wal Mart did the same thing to me last month. It brought my limit down to just a couple of hundred more than I owe. It makes you so mad you just want to let it all go.

   Dixie

7. haruka Says:
   December 13th, 2008 at 19:32

   I recently got hit by the domino effect of lowered limits. Target lowered my limit down to just $20 more than my current balance, which dinged my score pretty bad. Due to my “maxing out” of that card, 2 more cards lowered my limit to within $100 of my balance the next month. Now in month 3, and yet 2 more cards lowered my limit… to BELOW my current balance! Both slashed my limit to *10%* of what it was previously, and I haven’t had a late payment for any account for 7 years, and THAT account hasn’t lowered my limit (yet). Three months ago my score was at 763, all accounts have been paid on time, haven’t been doing a lot of spending. This month my score is down to 573. And all because Target lowered my limit for now reason. This trend is very dangerous to consumers. My credit score just keeps getting lower and lower, and there isn’t anything I can do. And each time a limit gets decreased, it sends flags for ANOTHER company to decrease the limit. I had been at about 30% debt to limit 3 months ago, I am now at 68% due to lowered limits, and all of my APRs are being increased because of my scores.

8. Lee Says:
   December 16th, 2008 at 02:13

   I’ve been a customer for 12 years and THEY offered me a balance transfer. I must have received 25 notices begging me to transfer my “higher interest rate cards”. In an effort to consolidate several accounts I took them up on their offer. I had a $25K line and had BT’d $13. I made payments always on time, always more than owed. One day I received an email stating they were lowering my limit because I was an “at risk” customer. One of the things they listed was having a car payment with a company they felt only had high risk customers (not in those words, but frankly, they were punishing me for having a car loan with Capitol One). Next thing I knew they dropped the credit line down to just $300 over my balance. Now about every few months they drop, drop, drop it to just barely over the balance. I went from being a 775 fico person to 660. Why? Because I took them up on their offer. Now they’ve hosed me so much that I can’t even get a transfer offer somewhere else and take the business away from them. I’m losing sleep over this!! Seems like the ole bait & switch, doesn’t it? I’ve never been late in my life on any of my accounts and now I’ve got a 600+ fico. I think this is beyond evil. They’ve pigeon holed me so bad that I can’t move the money away, and can’t get ahead because they chase the balance. I tried reporting AMEX to the Better Business Bureau out of sheer frustration. I’m just sick over this.

9. DIXIE Says:
   December 16th, 2008 at 03:57

   I got hit again this week, This GE Company sent me another letter stating they were working for Lowe’s and they lowered my credit limit to like $40.00 above what I owe. Okay, in two weeks that’s Lowes, Dillards and Wal-Mart. What’s next? I am so upset.

10. David Says:
    December 17th, 2008 at 03:54

    $50K to $2600 credit limit. I used the card for business and am a bit PO’d. They bugged us to death to sign up and we have met our end of the bargin……now they do this. Have had the card for over 12 years and they have made good money on us and of course we appreciated the availability of the card when needed. Never missed a payment. I will simply cancell the card and hope 90% of their customers do the same. They can just go away as far as my company is concerned.

11. Jen Says:
    December 18th, 2008 at 19:10

    Hi Connie,

    Please do let us know what happened with the lawyer – there are thousands of people whose credit scores are now worthless because of the reduced credit limits combined with their equally frustrating practice of ‘chasing the balance’. A class-action lawsuit would be music to many, many ears.

12. Carla Says:
    December 20th, 2008 at 00:54

    I cannot agree with all the comments here. They did the exact thing to me, out of the blue. I went from 735 to 506 credit score because it looks as if I had maxed out thanks to banks lowering my credit without any warning. There must be something that protects us! Please help!!! These type of sudden actions are destroying our economy!!! I’m in for a class action.

13. Rosie Says:
    December 20th, 2008 at 14:53

    I am very upset at all this as well. I don’t have many credit cards or have high credit lines like many of you. I have been a loyal client of Dillard’s for many years and I feel like that didn’t matter to the company. I always made over minimum on time payments, even twice a month if I bought something. I was embarrased to get denied for purchasing a 55 dollar watch, I only had 2 dollars of credit left! Just a little above of what I owe, 465.00. They have lost my business now. Also, I got very bad service over the phone. I still haven’t received a letter explaining why they decided to lower my credit drastically.

14. terripoff Says:
    December 21st, 2008 at 10:37

    So, is there a solution? Besides being able to pay the cards off?

15. Marsha Says:
    December 27th, 2008 at 03:51

    I can not believe it…i was thinking it was me…then i read all of these RECENT posts….it is terrible…i had reestablished my credit score up to a 711 and now i am a 605 and it is dropping daily… and they are lowering my limits daily….it started with paypal (GE MONEY ) and has gone down hill drastically in a few days…no notice!!! NO WARNING…NO REASON!!! i feel for all of you experiencing this too…it does make you feel ashamed and embarrassed! there has to be something we as consumers can do…it does make you want to say the *$## with them … in a economy when people are struggling to maintain credit worthiness and stay untarnished in this grimm economy, the last thing BANKS (bailed out banks at that????) should be doing is punishing the good paying consumers…i understand they face risks but lowering limits to just above or below our limits is further destroying the economy……..my friends car was totalled in an accident -no fault of her own and when she went to buy a new car her credit score was so low (DUE TO LOWERED LIMITS-this exact situation) that she qualified for an 11% rate and could not afford a new car!!!! BANKDS are killing the american consumer and further destroying the already shattered economy…,.

16. MARKb Says:
    December 29th, 2008 at 01:30

    This stuff is why the economy keeps getting worse. bank of america dropped my limit from $14,700.00 to $5000.00 dollars. I called them to have it put back up, they lied to me, once I gave them my real income(high for a single person) they said they would increase it to $10,000.00. 4 days later, got a letter saying they could not extend the limit past $5000.00. I’ve had this card over 10 years, always paid it no problems. I am now trying to transfer the money and be free of there lies once and for good. ALL THESE CARD COMPANIES ARE FULL OF IT.
    ONE COMPANY WON’T GIVE ME A CARD BECAUSE I DON’T OWN A HOME, BUT I HAD A CARD WITH THEM OVER 5 YEARS AGO AND DIDN’T OWN A HOME THEN EITHER!!!!!!!!!!!!!!!!

17. Matt Says:
    January 7th, 2009 at 12:38

    I am glad I came across this article, I thought this was just a random thing that i was facing. Im not happy that many people are dealing with this but im glad im not alone. I had a $2000 Limit with a on and off ballance between 7 and 9 hundred. Making at least 100$$ payments each month. OUt of the blue my limit was droped to 880 with a balance of 770. Luckily I was was able to just pay off my balance and now I actually have a credit of 100$. This practice sure is dirty pool. Im only 26 and have been trying to establish good credit, paying my bills and following the rules and then something like this happens and potentially destroyies all my hard work… Well good luck to all!!

18. 1socalgal Says:
    January 21st, 2009 at 21:31

    we have several high limit credit accounts. over the past 1 year we have worked incredibly hard to cut that debt in half. over the last 3 month boa has cancelled a line of credit we have NEVER been late paying but they cannot change the rate, chase has lowered our credit line to where it looks like we have not paid off anything, raised our interest rate to 36% on balance and we have NEVER been late but they have effectively ruined our credit score and ruined our credit. funny, a card we use for business has increased our credit line through citigroup. what is going on out there. yes we have late mortgage payemnts because we HAD to be 3 behind to get a loan modificaiton but we are paying and have payed EVERYTHING ELSE on time. this is not right

19. Steve Says:
    January 27th, 2009 at 16:50

    Nice article, and please know that there are a LOT of us contemplating a class action possibility. Please let us know what you find – I suspect there are many willing to participate. I had a $39000 Amex with perfect history and no concerning debt to income ratios dropped to $3000 – so insulting I immediately canceled the card, and yes that lowered my score just a bit down to 720. Insult to injury…Cheers!

20. Mechelle Says:
    February 3rd, 2009 at 21:34

    I just got a notice fomr ETrade Financial Services reducing my credit limit from $6700 to $500. I have never been late and pay more than the minimum payment. They listed the following reasons for doing this:

    Proportion of balance to credit limit on revolving or other revolving accounts is too high.

    Time since delinquency is too recent or unknown

    Length of time accounts have been established

    Too many inquiries in the last 12 months.

    I want to Experian for the free credit report to find out what was going on. I paid for my credit rating as well. They call it a vantage score which was 860 out of a possible 990 and gives me a B credit rating which is 65% higher than the average american.

    I have only open one new account in the last year, I have very few revolving accounts.

    I had one late payment reported on my Kohl’s charge card. I obviously overlooked it – for a whole $92 which was immediately paid the following month.

    As for length of time account had been established I opened this account with them in 11/2004 and have never been late or made only the minimum payment.

    As for the too many inquiries – what a joke, my credit has been checked 4 times since 08/25/07.

    There has to be some accountability for their actions. I travel a lot and it is likely that I could charge $5000 in a month but it is always paid.

    Based on the article above – the reason that they reduced my credit line??? I live in Southern California which the last time I checked was the #1 state in foreclosures. This is total discrimination which last time I checked is against the law!

    I am glad I found your article, I was also taking this very personally. This at least explains the why but we should be able to take some action against these giants. They are going to do more damage to the economy by not extending credit.

21. Kris Says:
    February 7th, 2009 at 05:29

    I have two credit cards with Bank of America. One of them I have since last 8 years with credit limit of 20K and I had available balance of $7k. All of a sudden they cancelled my both the cards without intimating me. I was trying to use the card at a store and it was not getting approved. I called BOA and they said due to my hight debt on all credit cards they cancelled my two cards. I was looking at my credit report and these cards are shown as closed at the request of credit grantor. I am afraid that all other credit card companies will follow BOA by looking at the comments on my credit report. I never defaulted in making the payments but still they cancelled the cards instead they could have reduced the balance on my cards every month so I would not even use the cards. Not sure if there’s a way to get the comments removed from my credit report.

22. Tara Says:
    February 16th, 2009 at 18:54

    Reading your articles shed some light on what is happening to me right now. For the third time in the last few months one of our creditors has lowered our limit. I too like many of your readers and those who have posted, have not been late on payments, have not used the card, the company solicited me to open their card with the lure of low interest and a balance transfer. The reasons behind the lowering are bogus, stating information received from the credit bureaus on include late payment history, publice or derogitory comments on my report etc.

    The lowering of the limit couldn’t come at a worse time. We are in the process of purchasing a home. Everytime this happens to us our limit to balance ratio is getting skewed and we may end up loosing our house deal. This should be criminal, when a customer has good payment history, doesn’t over use their cards, transfered balances at their solicitation. We pay off a chunk to have a good ratio and they just lower the limit. These companies are messing with our ability to get good rates on loans, insurance and potentially could even affect getting a job.

    We don’t have credit in the 700’s yet, but were steadily climbing toward that number and now will face another set back.

23. Debbie Says:
    February 20th, 2009 at 17:36

    HSBC did this too me after many years of a cl of $4000 and I had just paid this down to $74 dollars and then got it back up to $500. I hadn’t intended on putting it any higher & went to check as I was going to give them $200 for my next payment and lo and behold my limit is now $600. I am going to get them paid off now and just cancel their card.

24. John Fahey Says:
    February 22nd, 2009 at 15:24

    HSBC just wrecked my plan to move from renting to home ownership. My credit limit of $4,000 was reduced to $840 today. I was planning to put a bid in on a HUD house in Georgia this Friday. Now HSBC is going to wreck my FICO score and make me unable to get the mortgage rate the bank has quoted to me in a pre-approval letter. I’ve always paid the balance on all my cards well before time each month and have many years of always paying utility/tv/internet accounts in full on time. This is a dismal attack from the banks against the best wishes of the Obamama administration to move renters into home ownership. Surely bailout money should give the government some leverage here?

25. Michelle Says:
    February 27th, 2009 at 20:13

    I have had a WaMu credit card for a couple years. I initially had a $2500 limit and unfortunately had maxed it out a little over a year ago because of oil prices and mortgage scam (told to go with higher interest rate due to no prepay penalty and would be able to get out of it in 3 months… it took us two years and almost losing our house before they modified our mortgage). Last year I paid $500 when we got income tax back and then a month later (after checking my balance and limit) I charged $200. At the same time they changed my limit BELOW what my new balance was. We weren’t able to pay more than the minimum (which didn’t cover the over the limit fee and the increased interest rate) and got no where. Now that I’m finally in a position to start paying this down, they CLOSED my account because I was over the limit. I never missed or made a late payment and until this whole mortgage/credit mess didn’t even have any credit card debt. Every time I try to increase my credit I get slammed by WaMu!! I’m frugal and have tried to do the best I can… where’s my bail out? I’m glad my tax money is going to all these banks that are shutting people down and making life more difficult for them while they live off the government’s teat.

26. ll Says:
    March 1st, 2009 at 06:49

    I have a credit score of 780 and have never missed a payment on any bills or credit cards. Direct Merchants Bank lowered my credit limit from $6600 to $470. I have never used up to 1/4 of my credit limit before. I had purchased two airline tickets totaling $336 which put me over 50% of my credti limit, which I never would have done knowingly, but I was not notified my credit was being reduced. I could not believe it. I had shopped at two discount stores the month before (ROSS AND TJ MAX). I think this had something to do with it. I had read previously in the newspaper that a customer had his credit card revoked after shopping at a discount store. Basicly, the credit card companies are ignorantly profiling all customers and evaluating them based on the type of customers who shop at discount stores and their probability of defaulting. This is silly. These are very hard economic times, and everyone wants a bargin.

27. Angie Says:
    March 3rd, 2009 at 21:55

    Citicards lowered my limit from $7500 to $100. I had no balance with them (or any other credit card). I called to ask why and they said it was due to inactivity. Fine…I asked what I needed to do to get my limit reestablished and she said I was not eligible for a credit line increase. My credit score is 803. I have no late payments on anything. I closed the card and they won’t get my business again.

28. Melinda Says:
    March 4th, 2009 at 02:32

    I’ve had a Target VISA with a credit limit of $11,000 for over 5 years. I just bought a house and got an excellent fixed rate due to my good credit. I only have 3 credit cards, all with balances under 10% of available credit, the Target VISA having the most available credit (over $9,000) which I counted on for an emergency. Literally overnight, they reduced my credit limit to $3,300, no warning, no reason … I’m still waiting for some letter they alledgedly sent me that will explain it all! Come to think of it, I had an open HFC account with $9,500 available credit (I paid it off over a year ago due to the 23.8 APR) and they recently sent me a letter stating that they’d closed that account. Now, I’m paranoid as hell, I’ve worked hard to establish good credit, realizing the value in it, what is going on here?

29. Chris Says:
    March 5th, 2009 at 03:23

    The ONLY answer here is was well stated in the “The Godfather”…. It time to “go to the mattresses”…literally! That seems to be the only safe place for my money. As for credit cards, I have but one focus. Pay them off and cancel them all. I’ll keep one card I pay off each month for shopping… I’m done with credit. I’m tired of paying for that privilege. It’s cash and carry time. (Gee, I think I remember how to do that?)

30. mdavis Says:
    March 9th, 2009 at 01:14

    HSBC did the same thing to me…….I ALWAYS make my payment before it is due…I ALWAYS pay my balance off…..When I went on line to schedule a payment i saw that the limit was lower…I received a letter about 2 weeks later telling me that my limit was going to be lowered more than half…..When I called HSBC the rep on the phone said “It’s not a personal attack, this is being done across the board” ….Well that makes me feel better…..So I told her that I had a scheduled payment that was going to post in 4 days, and I would be cancelling the card….She said “OK, thats fine!!” They never once checked the payment history or status…..Simply not fair…

31. angie Says:
    March 10th, 2009 at 17:15

    It seems that those of us who are credit worthy and use credit responsibly are being penalized for those who used it irresponsibly, and for the bad decisions made by credit card companies who issued cards to people who could not afford them. Not fair indeed, but I’m going back to my father’s philosophy, CASH ONLY.

    The credit companies? Well, RIP!

32. trish Says:
    March 11th, 2009 at 22:01

    Geico did the same to me….lowered my credit limit by $2000.00 with out notice. American Express on the other canceled my account without notice. I paid my balances off every month, never late with both companies. I called both companies, Geico said they could not return my credit limit to it’s limit. American Express they could not help reinstate my account but that I could apply for a new card. Both these companies have just messed up my credit scores and now I am trying to get that fixed since it was not my fault.

33. CGD Says:
    March 12th, 2009 at 01:27

    The fine folks at Direct Merchants Bank/HSBC just lowered my limit from $5000 to $1770, which conveniently was right near my balance. So I’ve paid them $700 in the last couple of days. I’m going to pay it off ASAP then cancel them. I’ve never been late and always paid more than the min, but apparently that’s not enough. So you get dinged if you go over the new really low limit, and you get dinged/cancelled if you don’t use the card? How can you win in that situation? Either way my FICO is probably taking a hit through no fault of my own,and, as usual, there is nothing I can do about it.

34. Lra Says:
    March 15th, 2009 at 01:39

    Today, I went to charge $60 to my Capital One card, which had a balance of 4100. My credit limit was $7500. I called Capital One and the automated system stated that I had no credit available. When I spoke to the csr, I was snottily told that I had exceeded my credit limit of $3000!! I told them that that was incorrect and began the process of speaking to person after person to find out why my limit had been so drastically reduced. I was given a bunch of apologies and told that I would receive a letter stating the reasons my credit limit was reduced in 10-15 business days!! I was not even given the courtesy of being notified BEFORE the credit limit reduction!! I have never been late, I always pay substantially more than the minimum, and (!) I paid $3000 toward my card just last month, leaving me a balance of $1946! Less than a week ago, I purchased my (future) husband’s wedding ring bringing me up to $4100. So, I went from owing $4100 on a $7500 credit card, to $4100 on a $3000 card in less than a week!! I would like to add, I currently have no balance on any other card… those being an additional Capital One card, a gas card, and my Dell card. I am outraged and disgusted that credit card companies can get away with this!!

35. Jackie Sacs Says:
    March 21st, 2009 at 20:49

    HI.
    I just received THE LETTER from Bank of America dropping my credit limit from $13,500 to $1000. They already lowered it and iI got the letter 8 days later!

    I have never used even half of that credit and pay back $1000-$2000 payments to keep it low. For personal reasons, i don’t have personal credit cards and rely on this one card. They raised my credit limit from $10,000 to $13,500 last year because I am such a good customer.

    I have had it over 10 years. It is a source of security. I bought a new digital camera outfit with it, and paid it back the next month. I can’t even max the card now, because I have charges of almost 50% of the new lowered rate, that I made without knowledge of the drop.

    Now, the business trips I planned this summer with this card will not occur. And my FICO score will hit the basement floor. THE RAMIFICATIONS OF FOLLOWING THE RULES ARE HURTING US ALL, THE GOOD GUYS.

    I live in South Florida, Ft. Lauderdale area, where houses are the lowest in the country. IF YOU DO A CLASS ACTION LAW SUIT, I WILL COME ON BOARD WITH YOU. IT’S A GREAT IDEA.

    I am an educator during the day. A high school art teacher, with a side art business. All my internet purchases are on this card.

    The Florida state legislature screws education every day. We are #50 for Educational Expenditures and #48 for teacher salaries. I am a Nationally Certified Teacher, which brings bonus money. They want to discontinue the bonus.

    Being alive in this country is becoming not worth it. We are all in the same boat. Obama never mentioned the banks screwing all their loyal, good customers by lowering their business credit limits.
    I am really screwed here. Any suggestions? Is it worth trying to get
    another card(s)? You have my permission to post this.

36. PonyBean Says:
    March 27th, 2009 at 05:55

    I checked my account online and saw Bank Of America lowered my credit limit in half, from 50,000 to about 24,000. I haven’t gotten a letter yet, but expect to see one soon.

    I missed one payment about 2 1/2 years ago (hectic couple of weeks), and paid that balance in full the following month. Thanks to this article, I’m not taking it too personally and am not too bewildered now.

    It still doesn’t feel as good with the lowered credit, and the thought that BOA could lower it even more is making me rethink my purchases. Cash is looking king again.

37. Randy and Rebecca Says:
    March 27th, 2009 at 17:35

    I am also shocked! I have always paid my bills and recently received a letter from Wells Fargo lowering my credit limits. The reasons they gave are bogus, I immediately pulled a credit report.
    I am so mad! I go to work everyday, pay my bills and pull my weight. I own my home, I take care of my kids without asking for anything from the government. I am so tired of the middle class taking it in the shorts! Sorry for the verbage!
    I am so enraged with what is happening to this country! NO MORE HANDOUTS or BAILOUTS!!!

38. Dave Says:
    March 31st, 2009 at 18:39

    Well I had to go and do it, didn’t I? I went and did what all decent financial planners suggest and paid off much of my credit card debt. That IS the right thing to do, isn’t it?

    Within 1 week of my paying off the balance of my PayPal Plus Credit Card (GE Money Bank) I get a letter stating that my credit limit on the card has bee reduced from $2500 to $100. The reasons they gave were: Recent 60 Day Delinquent Accounts, Debt / Limit ratio too high / Time On Bureau too short.

    This was amusing to me as I have NO delinquent accounts. (Never have had), My Debt / Limit is (was anyway) about 20%, and I have been on the bureau for 25 years.

    SO as far as I can tell, they were just making things up.

    As such I have decided that I will KEEP this card. I will make a small charge on it each month. And then I will overpay the bill by $0.05 forcing them to issue me a refund check every month. (I believe they are required by law to do so.)

    I am just concerned that now that I carry a zero or very low balance on my other cards if I can expect the same from them.

39. Jon Says:
    April 2nd, 2009 at 03:37

    I am a physician with a great credit history. I have several cards and have had a Bank of America credit card for 7 years now. Never late on payment, make a great income and today was notified of a drop from 39,000 credit limit to 19,000. Funny, I have always had some balance on this card (albeit minimal).

    I don’t really need the extra credit limit – but it is funny because when this card started I had a 15,000 limit. BOA kept raising and raising the limits (without me asking for it). Now they slash it in half. I’m just fortunate I don’t have a large balance. Just for this action – I have no desire to ever use BOA again. I will never use their bank’s ATM and I have persuaded my wife to close her BOA account and we have paid off her card from BOA and will never use it again.

    Best advice for the current times is to pay cash and pay very close attention to your credit limits/statements so you don’t get caught going over your limit or near your limit.

40. Anna Says:
    April 4th, 2009 at 15:16

    It’s a relief we’re not the only ones. We were slashed from 33,000 to 17,000 on a B of A VISA signature card that has carried a $5.95 BALANCE for the last couple of months (from a rebate they gave us after I made a mail order catalog purchase). Perfect credit scores for both of us: never carry a balance, always pay everything off on full and well before the due date. Both employed at universities and in no immediate danger of losing our jobs.

    They claimed it was because our historical pattern says we don’t use or need this much credit. There was also some nonsense about making this decision after checking our credit rating – which spooked me into fearing someone had committed identity theft.

    What’s most ironic is that we got the letter on the same day they sent us checks – the kind that try to tempt you into tapping your credit card for cash. And like many, our credit line was actually dropped 2 weeks before we got the letter – I just went back and looked.

    I get the feeling B of A would like to get rid of us, since they’re not making any money from our account. This, after they tried so hard to keep us, and migrated our account to a “World Points” card when the LL Bean card program switched to Barclays.

    Does anyone know if simply lowering your credit line will affect your credit score? We rarely approach even a 10% debt/ credit balance for the month, but we’re thinking about moving and applying for a mortgage. Not a nice time to have your credit rating lowered by something this unfair and arbitrary.

41. Jeannie Says:
    April 16th, 2009 at 19:28

    I waited until now to transfer a high interest rate that will go into effect in a month to a low interest rate card with plenty of credit according to the website for the card and according to the person at Banl of America. But they will not transfer anything. “Call us again in 6 or 8 months!” SO now, the plan I had for paying off the HIGH card interest when it starts ticking in a month with a low interest rate SCREWS me entirely!!! This SUCKS@@@ Now I have a high rate on one card for a floor we had laid a year ago, & unused balances on a card I cannot touch!! Ridiculous!!
    And the university where I work says no raises at least for this fiscal year.

42. Alison Says:
    April 17th, 2009 at 23:21

    Bank of America just cut my credit line in half, from $23,000 down to $11,500, at a time when I’m just starting to look for my first house. Thanks a lot, Bank of America, for screwing with my credit rating at this most inopportune of times. The letter that came today says “It’s a good idea to review your credit rep[orts periodically, Our decision was based in part on information provided by the following redit reporting agency.” Interesting. I have no mortgage, no outstanding loans, and no debt. I have never been in debt, not once in my life. I pay my credit cards off in full, every month, on time. So this letter has frightened me–do I have a fraud problem on my hands? If not–if Bank of America has frightened me for bogus reasons–I will do something about it. I’m in public relations. It’s a bad idea to tick off someone in public relations. I sincerely hope that Bank of America is smart enough to be monitoring what customers say about it on the Web. I hope their PR department sees my comment. I’d never consider a PR job at Bank of America–I feel sorry for their PR team.

43. Darina Says:
    April 18th, 2009 at 12:11

    I, too, have ben caught off guard by Bank of America. I have had my accounts there for 40 years. I have two credit cards that have NEVER had a late payment, and ALWAYS paid more than the minimum. They cut my credit rate by half. I, too have a good job, and a decent income, and was intimidated by the same letter about “credit reporting.” My credit score is 859, and the employee at B of A told me on the phone “Your credit is near perfect. What are you worried about?” I guess my “near perfect” credit won’t be after they have lowered my credit limits. Paying cash for everything isn’t the answer, because then you don’t have any credit history, nor is closing the account, since that lowers your score. Class action seems the way to go!

44. oklahoman Says:
    April 19th, 2009 at 19:21

    Im dealing with bank of america too. Funny how they get TARP funds to start lending again, the banks refuse to lend, then go around slashing peoples credit. Like most of the other posters i have a credit score over 750, no late payments, and a good credit history. My BOA card that did have a 18k line of credit got slashed to 9k. Funny thing is i that ive had a ZERO balance on the card for months and i was given the same reasons as everyone else for why they cut it. Previous to that i had 3k charged up for a business trip that i immediately paid off within a week once i returned.

    Like most things in this country, the people who play by the rules get screwed.

45. Sue Says:
    April 22nd, 2009 at 21:12

    I wonder if the credit card companies are thinking beyond the current crisis. I am very disillusioned with the credit card companies that have a) changed our terms, limits and interest rates-Chase and American Express or b) canceled cards entirely-American Express Blue. We pay on time. We do carry balances, but can handle them. Actually, my husband and I are working more and making more this year than we did in previous years (I know this is lucky). On the other hand, I recently got a credit card from Citi with a decent interest rate and limit.

    I really don’t want to do any more business with the companies who have treated us so badly. I mean, there is such a thing as a consumer…..

    Anyhow, I was just listening to a show on npr about this….it just seems so strange to me that these companies could turn around and treat people so badly, as if they don’t need us.

46. Rebecca Says:
    April 22nd, 2009 at 23:00

    I am also experiencing the effect of lowering my limits. I have paid my bills on time and now I am getting letters in the mail (two in one week) that I have been delinquent on other accounts and due to this we have decided to lower my limit. I have not been late and have had a score of 710. Of all credit cards Old Navy has decided to hit me with a lower limit. First of all they suck at making clothes these days and I usually pay cash for their t-shirts that shrink to the size of a doll. Plus don’t get me started about their 4th of July shirts they no longer make. Maybe they don’t make them since they seem so UNAMERICAN!!!! Then BOA has decided to lower my limit. So tomorrow I have decided they no longer need my checking and savings account so I will close it!! Id llke to buy an American car – but as you can see Id be better off riding my bike at this point. When the car industry goes bye bye don’t blame us. We wanted to buy your products and the truth is you all suck!!!!

47. Kam Says:
    April 23rd, 2009 at 01:26

    I just got a letter from Bank of America cutting my credit line in half. I haved always paid ALL my bills on time, NEVER carried a balance on my credit cards. We own our home and have lived in it for over 20 years. We have 4 cars all paid for. We owe no money to anyone. I’m to am insulted thier letter.

48. Dawn Says:
    April 23rd, 2009 at 10:50

    I have small limits on my credit cards (500.00-750.00)so I never thought that I would be hit with the credit reductions like I was hearing about from people with I credit limits, but BOY how wrong I was. I had a $ 500.00 limit with walmart which is GE money I tried to make a small purchase of $26.00 on a card that I had just paid $200.00. I tried 3 times to get the card to go through for the purchase I used another card and called customer service to be informed that me that I had $4 available credit and that me credit limit had been lowered to $265.00 I am trying to rebuild my credit.
    I am paying off this card and my other credit cards. I think I am going to try to find a credit union because what these BANKS are doing is wrong! and they know it

49. Jane Says:
    April 23rd, 2009 at 18:18

    I had the exact same thing happen to me, Alison, and apparently got the same form letter you did from BOA. I have had this card since 1978 and never missed a payment, and usually paid in full. Like you, the reference to a credit agency report scared me to death because I had a very small fraudulent charge on my Amex card last summer, and I’ve been worried about identity theft ever since. I am sure I should be more vigilant about checking my credit reports, so in a way, this is a good reminder. But this isn’t the way I wanted it.

50. Carolyn Says:
    April 24th, 2009 at 14:34

    I just got a letter from GE bank re JC Penny account.They lowered my credit limit to $!.00 over my balance. I pay every month, more than minimum and I can’t believe they did this to me. I asked for a letter from them stating that this would be the last time. She said they could not promise that. I told her I would just not make any more payments. I was told all they would do is lower my credit score. So what. The credit card companies have destroyed it already. What can we do and where is my government bailout????

51. avalon Says:
    April 28th, 2009 at 11:00

    QCard/QVC–GE Money is doing the same thing but I see I’m in great company. Last night I went to check my QCard account to see that my payment, that was over the minimum requested payment was posted to find out that my credit limit has went from $1300 to $130. I immediately called QVC to be put on hold for a few minutes and was told that GE has reviewed the accounts. I asked why a letter had NOT been sent via mail–no answer and said one better be in the mail now. Have had this card for years and years, no problems in fact I hadn’t charged anything until January of this year for over a year and a half carrying a “0″ balance. I have a $28 credit now. WOW thanks QVC & GE, I’ll be paying off my $100 balance as soon as I can and this won’t be a priority now like it was. Got meds that need to come first. And QVC’s products aren’t that amazing even to go to the bother of getting a money order.

52. Tammy Says:
    April 28th, 2009 at 11:51

    I got a credit card from Capital One not more than 2 years ago. I’ve always paid them on time and started with a 0% interest which has now gone up to 10.9%. Then they dropped my credit limit down below what I owed (without notice until I got a bill and was charged a $29.00 fee for the over the limit fee). I turned around and cancelled the card and won’t do business with these people ever again. Unfair credit card practices SHOULD NOT GO ON. It’s making a mess of our economy AND NO MORE BAILOUTS/HANDOUTS to these banks!!!

53. LOU Says:
    May 3rd, 2009 at 14:29

    Good-bye BofA, I received a letter last night telling me to cut up my two cards they are no longer valid! CL on one 6000-1600.00 bal the other 6000 CL 90.00 bal! No lates, NEVER EVER MIN payments! The past two years, only monthly payments,no purchases-Income unchanged. Never one day late on a low mortgage payment, acquired from Countrywide. Stated they tried to contact me, Bull-Sh**… Credit score damage now inevitable with domino effect sure to follow! I would be more than happy to pursue any group action to stop these attacks on good peoples integrity! Today your character is defined by your FICO score!!! By stopping good people from making any further purchases will guarantee their solvency. Our payments coming in and little going out. If anyone has knowledge to initiate group action please inform us so as we may have some recourse against this deformation of our character/integrity!! Damage control now is essential!! Personally I am 54 and Fico score repair time is winding down

54. Bill Thompson Says:
    May 7th, 2009 at 10:44

    I used to have a good opinion of BOA until I received one of those infamous credit limit reduction letters yesterday. I by the way have a good credit rating, and do not carry a balance on my cards, I even opened a 5000 CD with BOA 2 weeks ago. So they turn around and slash my credit limit??!!! Needless to say I am angry as hell.

    So let me get this straight, we the taxpayers get to pay out 158 billion dollars in bail out money to BOA so that they can continue to give loans and what do these rascals do? They slash the credit limits of the very same people whose tax dollar is used to bail them out.

    Ref:
    Bank of America given $138bn rescue package:
    http://www.guardian.co.uk/business/2009/jan/16/bank-of-america-20bn-rescue
    Bank of America gets another $20B:
    http://edition.cnn.com/2009/BUSINESS/01/16/boa/index.html

55. Myra Says:
    May 8th, 2009 at 08:44

    Naive. That’s me. I opened my mail yesterday and had a letter from Bank of America lowering my credit limit from $14,000 to $7500. I have no balance on that card and assumed they lowered the limit because I wasn’t using their card! I’d cancel the card, but I believe that also hurts the credit score. Funny thing is, I never asked for that high of a limit. They kept increasing it because I had good credit. Now, they lower and mess up my good credit. Hmmmm.

56. Sheila Says:
    May 9th, 2009 at 23:43

    The same thing has happened to me. I have a bank account and two credit cards with this bank. They begged me to take the 2nd card. They reduced my first card from $5K TO $4K without a letter or notice. It was at Christmas time and I was recently laid off and I had planned on using a part of my credit limit for Christmas. They didn’t even send a letter in the mail. I would have been so embarrassed had I been closer to my limit and tried to charge something at the store. I was furious. I called and asked why they’d reduced my limit. I was told that they’d done that because I had other balances on other accounts. I have perfect payment history and a long banking relationship with the bank and could not believe it. Today I got a letter that they’ve reduced my 2nd card from a $4K limt to $2,600. That’s $185 above my balance! After reading these blogs I can now look forward to lower credit scores. I’ve worked so hard to keep my payments on time and now I just want to tank it all! I think a class action suit is appropriate for this problem. We need to send a message to these credit card companies. Also, when the economy rebounds, I’ll make sure I don’t do business with these companies again. They want American’s to stimulate the economy but taking away our buying power all at the same time. This sickens me. The government should stop bailing them out!

57. Fred Says:
    May 11th, 2009 at 15:12

    my amex card was lowered in one decision from $35,000 to $7,000, which was just above the balance I was carrying with them for about 45 days. Was making payments on time, but they didn’t like that I had suddenly started carrying a balance they said, so they lowered it. I had one other card I had used to it’s max for a really good 0% for a year balance transfer, and they said I had too much credit used, so they were cutting me off.

58. Discover Card slashed my credit limit. « Xenophilia (True Strange Stuff) Says:
    May 11th, 2009 at 23:00

    [...] financial meltdown of America. Here’s more information from askmrcreditcard: … how do the credit card companies decide who’s credit limit gets the axe and who’s [...]

59. Bluesteel Says:
    May 13th, 2009 at 04:27

    I just got a Best Buy master card YESTURDAY with a limit of $4000. Today, my limit is $500. I JUST GOT THE DAMN CARD YESTURDAY! Insane.

60. Annette Says:
    May 13th, 2009 at 20:47

    Like Melinda, TARGET visa has made me FURIOUS! After being what I thought was a very good customer and never missing a payment, they slashed my limit to within $48 of my balance with NO notice. Very fortunately, I did not use it before finding out, but guess how I found out the limit was changed? When I went online to make a payment. I then complained to the credit dept & was told that it was just a business decision, nothing personal…maybe to them it’s not personal, but IT IS TO ME! Notice came in the mail aprox. 8 days later. Jerks! Oh yeah, my credit score is or should I say was 710. Congress should give us MORE protection from the credit companies than the recent legislature will ASAP!

61. Thelma Says:
    May 20th, 2009 at 13:09

    I couln’t believe it when i went online to make a payment there it was, they changed my credit line by half, i have never been late or missed a payment. I was told my spending habit [lack of], i wasn’t using the card much. This company is hsbc, and i always pay more and early too.

62. MichaelS Says:
    May 21st, 2009 at 16:26

    This is all absolutely true. My balances are being reduced as I am paying down the cards, which were no where near my credit limits. I have not been notified by any of my credit card companies as this has been happening, just finding out the hard way. My credit score has went from a 751 to a 659 in the matter of two months. As mentioned earlier, this is criminal!

63. David Says:
    June 4th, 2009 at 16:00

    I have a number of Visa, Mastercard and retail accounts and have carried a balance over on two of them – less than 10% of total available credit. GE Money Bank has been successively reducing the PayPal and Lowes limits. PayPal 3 times in 6 months, and Lowes in one shot from $7500 to $1000. These were on $0 balance carryovers immediately after I used the cards – and paid them off 10-15 days later. At the same time, Home Depot increased my limit from $7500 to $9000 to $11000 – the last at the same time as the Lowes reduction. Guess where I will go to make the next major purchase for home remodeling? I think GE Money Bank must be in trouble, since Citi, Chase and Amex are apparently satisfied with my credit history. I am peeved, so my revenge is to use the PayPal card for micropurchases (under $1 / month) so it will cost them to process statements and payments and they will not get any interest income.

64. Karen Says:
    June 5th, 2009 at 12:07

    I am 5 months pregnant. I wanted to get my finances in order before the baby comes. I received a balance transfer offer from Capital One Visa I had a credit limit of $6500.00. I decided to take them up on their offer and cashed the promotional check against my savings and paid off $5000.00 worth of credit card bills. I did this on May 27th. On June 4th I find out that the check was returned unpaid to my bank. I called Capital one and they advise me that on June 2nd they decided to change my credit limit from $6500 to $1300. Therefore my check was denied. I couldn’t believe this! Now I am left with nothing in my savings account and a baby on the way. There has to be something that can be done. Capital One can only apologize but refuses to do anything for me. They feel with the “I am sorry” that this somehow makes everything okay. Credit card companies should not get away with this type of abuse.

65. virginia Says:
    June 10th, 2009 at 11:04

    Citi card lowered my limit from $1000 to $500 three days after I made a payment of $550. I wasn’t notified and when I called to inquire they kept repeating a letter had been sent out the same day I made the payment. How convenient for them! No explanations, nor notification received. Well, my notice to them is NOT ANOTHER DIME NOW OR EVER from this Soldier.

66. TargetVisaBlows Says:
    June 10th, 2009 at 13:34

    Target bottoms out my available credit every time I make a payment. BUT, check out USAA. I have a platinum card with them, they DO NOT SCREW with people like the loser credit card companies. It would help to hear from other which companies are practicing fair business. Let’s just go with those. P.S. I’m up for a class action suit too. Game on.

67. Monique Says:
    June 17th, 2009 at 20:30

    Finding this blog was sooo helpful to me. I just found out today that my Amex limit was lowered from $17,200 to $10,200. I’ve been with them almost 10 years and now my balance is just under the max. I’ve paid faithfully every month and was told that an evaluation was done and because I didn’t pay enough per month that I’m now not eligible for a higher limit. I pay more than the minimum every month. And they said my debt to limit ratio was too high. Now they’ve made it worse by setting the max less than $300 above my balance, when it was $7000 below the max. Reading what others wrote I’m concerned that this will have a ripple effect. There is no way they should be able to get away with this. It’s making incredibly tough times even tougher.

68. Drew Says:
    June 18th, 2009 at 09:31

    I got the best one yet. Looked online at my Bank of America account June 17th, balance of $820 owed from weeklong trip to FL in May. Logged in on June 18th, printed the June statement that said next payment due 7-7-09 with credit limit of $33,600, look at the account info online, and my credit limit is now only $900. I also have a checking acct with them and whenever I have a balance I use their online bill pay, so I am never late with a payment. I also got the transfer checks in the mail on June 12. I am still waiting for them to notify me that my limit has been lowered. Oh, and by the way, the last time I got my FICO score (March 2009) it was 813.

69. Donna Says:
    June 22nd, 2009 at 15:21

    I have all of my accounts (checking, savings, business checking) through BOA. Have always paid ontime, NEVER been late, and pay off my cards quaterly. I had 26k credit limit on my small business card which I have never even come close to maxing out. I had a balance of 7600 on it as of May. They lowered my available credit to right below what I had charged on it with NO NOTICE. I called them to ask WTH and they give me their script about how times have changed and I don’t qualify for that much credit anymore (my average FICO score is 765). I tell them fine, it’s their credit to take back if they choose, but how low down to do it with no notice. They inform me that a letter was sent out the day before (yeah right….it took almost two weeks for it to arrive). I also pitch a bitch because it now puts me over my limit and looks like I have maxed out the card. She puts me on hold and says that she has raised the limit by enough to take me out of default. Thanks alot…..she raised it by like $145 bucks! Now I am afraid to pay it off. We are banking our bonus money which we ususally use to pay off the cards because if I pay them off, they may just close down the accounts. It is ridiculous that they are allowed to do this to good paying customers. Just change the game in the middle of the quarter and leave us trying to figure out the new rules.

70. Sue Says:
    June 22nd, 2009 at 16:38

    New theory—we have a (frozen) 2nd with Chase and we are paying interest only, so they make nothing on that. Is this the reason they have lowered limits and canceled cards that we had-because we are in the “drive them away” category?”

    Anyhow, we’re separated from Chase now and dating Citibank.

71. Brian Says:
    July 4th, 2009 at 17:42

    I just d through all of the comments and see I am in the same position as many others. In the last few weeks I have received letters from 3 of my 4 primary creidtors either lowering my credit limit to my balance or trying to entice me to pay down so they can lower my credit limit.

    There definitely is no consumer protection and one creditor can start a vicious cycle that puts good consumers in a bad spot. In my case I paid one of my credit lines down and now that my limit is my balance my credit scorust dropped 100 points, I can’t wait for my other creditors to flag that as risky.

72. Sue Says:
    July 8th, 2009 at 13:56

    The latest–they change your rate to a variable rate. I got the same letter from B of A.

    http://www.latimes.com/business/la-fi-lazarus8-2009jul08,0,7497516.column

73. AJ Says:
    July 9th, 2009 at 04:30

    I just had the same experience today. Have a good credit score. Last month, Wells Gargo decoded to reduce my credit score to half. A 40% utilization became an 85% utilization. Today, my Chase card would not go through. I called their customer servioe who told me that they had cancelled my card. The representative (some foreigner)was very unhelpful and she kept saying a letter has been mailed so I asked for a supervisor. Not much of an improvement but she said that was because I became a risk. Now..just like most of you, I see this as a domino effect because the Chase action will lead others to cut or cancel my credit. This will most certainly affect my credit score which in turn will make getting things as insurance more expensive. Can we as consumers file a class action lawsuit with the intent of forcing FICO and other credit reporting agencies to change their way of evaluating credit scores. By that, I mean that cancelling of credit cards or lowering of limits of credit grantors cannot adversely impact the consumers credit score? If the lawmakers don’t help, we need to boot them all out!!! Thoughts anyone???

74. Jim Crutcher Says:
    July 12th, 2009 at 21:26

    FYI
    Copy of what I just sent to the House Financial Services Committee

    Today (July 12, 2009) I tried to use my Visa card issued by FIA Card Services (part of Bank of America) and the clerk told me my card was refused. I thought she was joking and she repeated it and then showed me the computer screen which said “card denied”.

    Upon calling FIA I learned that my credit limit had been lowered on July 9 from $8,400. to $2,900. They said a notice had been mailed but I did not receive it yesterday and probably will not receive it till sometime next week. I have never missed making payments prior to the due date.

    How can they lower the rate without advance notice?

    I pay my bill in full each month and usually have monthly purchases that total nearly $4,000. Now 2 weeks from the end of the billing cycle, I have reached my new credit limit.

    And being the weekend there is no one there that can answer my questions or address my issues.

    I depend on this card to cover my weekly travel expenses and find this customer service to be highly questionable.

    I have read of situations like this recently but just cannot understand how FIA cannot operate in such a manner.

    Thanks for accepting my complaint with FIA Card Services.

75. Keir Says:
    July 14th, 2009 at 07:25

    The banks that issued two of my credit cards were purchased by Chase. I have had one card for seven years the other for three, never miss payments and always pay over the minimum. I contacted Chase about lowering my interest rate (which was increased to 29.99%) which is significantly higher then any intrest rate I have ever had on another card/loan. I have an excellent payment history with them and my other creditors, carried a low balance and have a credit score in the 700s and have never defaulted on the card or gone over my limit. They were unwillingly to work with me and when I asked to speak to a manager the customer service rep told me she was trying to help me not waste my time. The manager I spoke with told me if I was not satisfied with the way they do business he would be glad to close my account over the phone. I have paid the small remaining balance in full since then and noticed on my last statement they lowered my available balance from $2000 to $900 and my second card now owned by Chase is creeping down from the $6000 limit I have had. I have never received a notice informing me of the changes. I am just glad I noticed the difference on my last statement before I tried to make a purchase.

76. debbie Says:
    July 14th, 2009 at 20:31

    omg..are we going to have to pay over the limit charges when they lower the credit below what we owed? Like everyone else I am never late and pay ahead and more than the minimum. When I made a decision to use the cards I count on knowing I won’t possibly go over the available credit. How can they charge us for going over a limit that we did’nt do??

77. S P Dudley Says:
    July 16th, 2009 at 00:20

    We had another nightmare experience from BofA. Our credit limit was lowered from 12,000 to 5,000 overnight, all because our accountant made one phone call to BoA credit services to try to pay off a separate credit line. When we found out, we also asked to call BoA and were referred to the credit dept. They then informed us that they were re-evaluating our credit again and asked us all sort of personal questions about our income etc, including our about our Corporation. They then informed us that our credit limit was being dropped further to $1000. Like many of you, we pay off the card on time every month and have done so for years, and have been in good standing with BoA since 1984. We do travel a lot overseas but were lucky because we’re here in the US when this happened. If this had happened if we were overseas we would have been majorly screwed.

78. PJ SANCHEZ Says:
    July 17th, 2009 at 17:47

    My credit card is Sam’s club discover card. I’ve been a loyal card holder for 10 years, also made timely payment, even doubling my minimum payment each month, even paid it off completely in April 08. I went from $5500 to a $200 credit limit with out notice and my balance was $0. I discovered the change when I went to use the card and was denied. When I called they stated it was “probably” a late payment, which I knew was false or it could also be something on my credit report. I pulled my report that night and everything was perfect, not one single late/missed payment for Discover card or any other company on my report. I called back and they simply blew me off, seemed like no one knew why. I will no longer use them and will have to check my credit score to see if it has affected it any. I would be delighted to participate in a suit against these companies for defamation of character. Store clerks look at us like were idiots when you run a card that gets denied, and to top it off you were not notified.

79. claydean hill Says:
    July 20th, 2009 at 20:35

    I just go a letter from Home Depot that my credit limit was reduced from 3000.00 to 1400.00, which leave me with 72.00 available credit. I have been hit by Amex, Washingmutual and several HSBS accounts which lowered my limits and forced my credit score to decrease significantly. This should be illegal. I would like to find out if we could file a class action suit against this unfair practice.

80. claydean hill Says:
    July 20th, 2009 at 20:57

    I was just hit with my credit care through Chase, they lowered my limit to 1100.00 with a balance of 550.00. Now that put me with 50% of the available balance, I will get hit again on my credit score. This is so unfair and no one gives a damn about the consumers who are trying to do the right thing. That is why the economic is so screwed up, because those who have and are paying on time are being hurt from the greedy credit card companies.

81. Credit Victor Says:
    July 20th, 2009 at 21:43

    I am doing well with some advice I found on line. Call all your Creditors, request adjustments, dump the dishonest, greedy banks, who won’t work with you, move your balances to the good banks or pay it off. I have found local banks and in store credit to be the best. Juniper and Discover have worked with me. Other people have mentioned other companies. Most everyone says Bank of America, Premier and Chase are the worst. We can force them into a sale; we CAN get better bankers. President Obama does not approve of greedy banks; email your complaint directly to him.

82. Craig Says:
    July 29th, 2009 at 22:32

    Discover lowered my wife’s limit while we were on vacation now we may have to cut it short. We our in on any class action suit.

83. Mark Van Doren Says:
    August 5th, 2009 at 11:24

    Same as everyone else here. But I moved over to a local credit union, and already feeling the difference. We must all not forget what BOA did to us. Let’s get even!! There are 10,400,000 complaints on line for BOA at yahoo!! Let’s put BOA out of business.

84. Jane Says:
    August 5th, 2009 at 18:55

    I thought it was just me. Credit score was in the 740-750 range. Of my 2 credit cards, one carries a balance and the other is paid in full each month. I make my payments on time and have had both cards over 5 years. I also did not receive a letter from the bank re: my new higher interest rate and my new lower credit limit. I found out when I was reconciling my information in Quickbooks. Monthly, I review each bill carefully (as everything is setup on auto-pay), that’s when I noticed the new lower credit limit and the higher interest rate. Thankfully I did not try to make a purchase with the card that carries the balance as the credit limited was lowered to about $100 over what I owed. And with the card that had like an $80 balance (I pay in full each month), they lowered the limit from $20,000 to $1500.

    Basically my credit debt to available credit ratio is officially in the toilet and my FICO score immediately dropped 100 points. It has increased about 40 points since.

    IMO, the banks are entitled to provide as much credit as they like to their customers, it IS their money. However there should be some protection given during this time of “adjustment” to responsible customers who are having their FICO scores hijacked. I believe the debt-to-income ratio is one of the primary factors affecting a persons score. Having your score decrease drastically in this fashion creates a domino affect where other creditors (including mortgage holders) follow suit and then your entire financial situation begins to suck overnight.

85. charlie Says:
    August 6th, 2009 at 18:50

    im sorry to say to all that for one class action law suit will never happen. because the banks own it all. even the so called our government revolves around bank conglamorates.. infact they are a puppet arena set up by the banks to fool the general slaved public. fear from terror? fear from swine flu? these are just bs to confuse the public. do make sure u pay off any bank debts.. because they will and can garnish you or put a lien on ur property however they want.. they own us all.

86. Naveen Says:
    August 8th, 2009 at 16:54

    I had two Bank America cards each with about 8K limit that I used off and on, always paying off the balance in full. Last month, I called BoA asking them to adjust the limits (increase on one and decrease on other, no net new credit requested) so that I could make an overseas trip without mentally juggling as to what I owed on each credit card. The next day, I get a call from BoA that they had lowered the limit on both cards to 2K based on a review that I did not use their cards often enough.
    I was so POed that I could not control my rage and canceled both the cards on the spot and wrote to their VP (no reply yet. I plan ending my relationship with BoA completely and move my savings and investments accounts elsewhere.
    I have a high credit score and have never missed a payment.
    I hope these banks are taken to task. I am writing to my congressman and senator too, I hope all of the other folks do the same.

87. Ellen Says:
    August 18th, 2009 at 20:21

    Well, guess what I got in the mail today: a letter from Discover Card saying that they’ve lowered my credit limit from $11,000 to $500! No, that’s not a typo. I didn’t omit a zero.

    I’ve been a customer for 17 years, have never missed a payment, have never paid late, and except for twice in that 17-year period, I’ve always payed off the entire balance every month.

    Others here are on top of their FICO scores. I don’t even want to know mine after today!

88. Kim Says:
    August 19th, 2009 at 15:29

    I sold mineral rights and paid off 50 thousand dollars in credit card debt (excessive I know). Two accounts were with Bank of America. Before paying them off I was never late with a payment and I always paid more than the minimum. One of the accounts had a 19,500 limit, which they closed. They other one had a 12,500 limit which they reduced to 1,000. I am now afraid to look at my credit score.

89. Kimberly Says:
    August 22nd, 2009 at 08:51

    I have my business account, mortgage, and this one credit card with BANK OF AMERICA.. Pay on time, more than the minimum. I just got a letter from them lowering my limit to where my balance is — NOW IT LOOKS LIKE IAM MAXED OUT.. Joseph at Bank of America, Credit Analysis dept.. stated that it is because of my not having enough “Available balance” on the other debt. I explained to him.. Bank of America is contradicting themselves, penalizing people for low available balances, but lowering available balances themselves!! He didnt have an answer. I told him they are NOT allowed to ruin someones credit score for their financial gain. No answer. I HAVE DONE THIS TO BANK OF AMERICA BEFORE.. WRITE THE OFFICE OF COMPTROLLER They govern the banking/financial institutions. Have a copy of your credit report showing your available balance, you’ve paid on time, just all documentation.. WATCH WHAT HAPPENS!! Kimberly

90. Gregg Says:
    August 27th, 2009 at 18:56

    Wow, I do find some comfort to know I’m not alone in this mess. Me too, 790 FICO score, home owner, very healthy bank accounts…never missed a payment, pay in full every month, pay all mortgage and utility bills, in full, every month…and guess what? Bank of America lowers my credit limit from 15,300. to 1000. on the day I call them to inquire about the recent change to my account from a fixed rate to a variable rate. They said I could apply for a different fixed rate card…so I applied on the phone, and “Devon”, a “senior credit analyst” said my application was denied, and not only that, they were now going to lower my credit limit on my existing mastercard!!! I told him I felt penalized and that I never would have applied for a new fixed rate card if I thought it would be used against me. Then HE HUNG UP ON ME!! I called consumer affairs, the FTC and the OCC who referred me to file a complaint on helpwithmybank.com, which I have not found the strength to do yet. Remember, the article above states that the best recourse to retain a healthy credit score is to keep the card and pay the balance in full each month…so as much as I hate BOA, this is my only credit card, I will keep it and I will make sure I don’t carry a balance….which I’ve never done anyway! I’m ready for a class action suit. Bring it on!

91. Lois Says:
    August 29th, 2009 at 20:32

    My credit limit was cut in half by Barclays (US Airways card; was Bank of America until June)- apparently when I applied for a Bank of America card just befor August 20th. – I live, by the way, in a village in Central New York where real estate prices have not been affected at all by the recession. – Interestingly, the terms of this credit card reject class action suits as a means of settlement.
    Inasmuch as these companies are clearly working together (with Congress – as the deceptive wording of the 14-day advance notice limit for changes in regard to outstanding balances shows) – and their success depends to a large extent on tactics like finding euphemisms and ways of making it sound like they are saying something they are not, perhaps customers must counter them by using strategies. If everyone affected and related to someone affected would write letters, send emails, make phone calls to the companies and to representatives in Government, we might see some alteration in the credit card compaies positions, such as allowing more people to opt-out at fair amortization terms. All communication with credit card companies needs to insist that they support their claim of an individual’s lack of creditworthiness, etc. Similarly, all communication needs to support the counter claim, that is to say, for example, that recent evidence has shown that lowering a credit limit does not impact an individual’s credit score, and so on. Everyone needs to carefully read (online) the amendment to Section 127 of the Truth in Lending Act (Section 101 in HR627; use Hr 627 as a keyword search)and Section 171 if they have subprime outstanding balances. Especially pay attention to the intended ambiguity of the definition of “outstanding balance” in Sec. 171 (d)- suggesting a day (on which the credit card company illegally!!! raises the rate actually changes what an outstanding balance is!). Good luck to everyone.

92. Martien Says:
    September 1st, 2009 at 03:15

    I move her from Europe and just starting to build my credit here in the USA for the past 1 1/2 years. I have never been late on my credit cards and my car loan. Always paying on time and over the min. amount or even paying it off in full before the 30 days. Walmart.GE Money Bank sends me a letter stating my card was being lowered from 2000.00 credit line to 500.00 which put me within 21.00 of my credit limit. I had just charged my daugher’s college tuition and my plans were to pay that off tomorrow. Now I am going to take a big hit on my credit score( I hear it can lower from 20 to 50 points) because of GE Money Bank. I had a good standing on all my cards. They said too many credit inquires, length account opened which doesn’t make any sense. Basically, a lot of banks are doing this and the only thing you can do is file a complaint with FTC and the Office of Thrift. FTC said people need to go online and file and if they get enough complainants they will look at this growing problem. Also contact the Office of Thrift as they get reviewed too just like we do as credit card customers. If more people will take the time to complain to FTC and Office of Thrift maybe something will happen. We need a real good attorney for a class action lawsuit. I could understand it if I didnt pay my bills but I pay mine..Another thing is these banks make money off people who go over their limits and who don’t pay off their credit card amounts. So maybe we are just not making them money so we aren’t deemed important. So they really don’t care if we go or not. Just my 2 cents.

93. Martien Says:
    September 1st, 2009 at 03:23

    Ths is from GE MOney Bank terms page. This is how they get away with it and we have no recourse. I am fortunate to have 6 other credit cards that haven’t been lowered..keeping my fingers crossed…

    TERMINATION/CHANGE IN TERMS. You may at any time terminate this Agreement. We may, at any time and subject to applicable law: (a) terminate this Agreement; (b) terminate your right to make future Purchases; (c) change your Credit Limit; or (d) change or delete any term or condition of, or add new terms to, this Agreement relating to your Account. Unless prohibited by applicable law, we may apply any changed or new terms to any outstanding balance of your Account on the effective date of the change and to any future balances created after that date. When required by applicable law, we will mail a notice of any change(s) or addition(s) to you. Upon any termination of this Agreement, you will continue to be obligated to pay all amounts owing under, and to otherwise perform the terms and conditions of, this Agreement.

    I am sure you have something similiar with your terms. I never thought paying your bills would get your limits lowered. Never been late on any of my cards. Always pay them off..never once late…GE lowered my 2000 limit to 21 days over my card balance was without any advance notice.

94. larry 70 Says:
    September 5th, 2009 at 12:09

    I use to have a credit limit of 12.000 with bank of america always pay my bill on time ,my balance was $7275 on day i receive a letter telling me that they lower my balance to $7400 and unfortunetly i have only 1 credit card,so living in the usa with no credit card when the contry is on crisis it is hard,my credit score reach 765,my wife just went to a school in nyc for a new career and it cost us 11.000$$,that we pay cash we didn’t use a loan for it that is why that this year we pay only our bill on time and minimum,but pay never be late on any payment yes we end up to have no money in the bank in the end of the month,now my wife will be working i hope and we will pay this credit card debt i hope we move and find a cheaper rent place as well to survive and will never touch a credit card after all,but if lot of people decide to do that well bank will not make any money in the future with credit card and they will suffer even more,holidays are coming a lot of people that use to shop with credit card will not shop and our coutry is already suffering but it will get worse if mall are not full of customers that spend money,store will close and employeessss will loose them job ,i think it is only the beginning of a night mare in the usa and everyone have to stand up together but no one will do that and that is why the crisis will not end up in our country!!!

95. Debra Says:
    September 6th, 2009 at 15:32

    We heard all about the lowering of credit card limits on the news, thinking we were immune. We have a high credit score, pay our bills on time and don’t have a lot of credit card debt. We have a citicard credit card that was not used for awhile. We received a letter from them stating that since we had not used it, they were going to cancel the card. Thinking it would be wise to have at least one credit card with a high limit (17,000) to use in case something happened, we began using it still keeping our balance low. My husband had to have knee surgery last week and he charged his medical bill to the citicard. On Saturday, we received a call from Citicard saying they were dropping our limit from 17,000 to 4,000 (just 200 over what our balance was). I am so mad I cannot see straight, this is absolutely ridiculous. We have had to bail out all of these big banks because of their shady business practices and greedy management, then they have the nerve to treat all of us like crap. What a shame, and our hands are tied. The politicians won’t do anything to help us or fix it becase they are all in bed together with the banks.

96. Barbara Says:
    September 14th, 2009 at 19:58

    Yes, I just received notice from American Express today lowering my credit limit to $200 over my current balance! Same BS – they’re being “responsible”. I have never been late on this or ANY OTHER credit card, mortgage payment, or anything else. Furthermore, I always make a point of paying more than the minimum payment, but I am currently carrying a balance on which they’re collecting 13.24% interest. There are nothing but “paid as agreed” ratings on every credit item I carry – as far back as the credit reporting agency goes. I’m really upset at these @#)(**s! Guess they can’t live with 13.24% interest….

97. Patricia N Says:
    September 18th, 2009 at 02:27

    This is fraud. These are big bully banks forcing us to pay more money. It’s a horrible catch 22 where if you don’t pay more than your minimum limit (why don’t they raise it?) or have more on your account, you’re at risk of being punished. BUT, if you have a lot, AND pay on time, they can lower it at a whim to make your credit score bad.

    Someone needs to be prosecuted for this. Someone needs to step in and defend the public which affects the economy. We were also approved for a home loan and within days….they lowered our Bank of America Visa card limit and our Capitol One credit card limit (that one by 9K, because we had excess use one the card….$2000??? WTF!) One day we have $13,000 limit, just in case of emergencies, lowered to 4K. Just like that. Here were their reasons:
    1) There has been insufficient pay down of Capital One revolving accounts. (What?) We paid like clockwork.
    2) There are two few or no mortage accounts (no shit)(If you have a mortage…isn’t it harder to pay off a credit card?)
    3) Revolving account balances are too high (again, $2000 on a $13,000 limit?)
    4) There is an excessive use of Capital One credit. (again, a lie)

    When I called to talk to a person at Capital One about why we were being punished for paying on time, they couldn’t help me….and they were reading a script…from India. I think that pissed me off the most. I could NOT get any American on the phone nor reason with anyone.
    I haven’t even tried to call Bank Of America yet because it’s to late in the day but I’m sure I’ll be met with the same indifference tomorrow. We currently bank with them, have checking and two savings accounts with them and have been approved for a nice home loan. I’m thinking of going to a local bank now and chucking all this national stuff.

    I will also be interested in a Class Action lawsuit if this lowers my perfect credit in anyway. THIS IS A CRIME!!!!

    Those are my two cents.

98. Tom M Says:
    September 19th, 2009 at 19:04

    I was trying to consolidate my higher interest credit cards into a lower interest credit card with Chase Bank (0% for 1 year) and I planned to pay it off in December when I received a payoff from my pension plan. I made a mistake of writing the check for the full amount of my credit limit and deposited the check into my Wachovia account. Wachovia immediately cleared the money so I started to pay off my bills. I then find out in a couple of days that Chase had pulled the money back out again and I had a negative balance in my bank account. I immediately went to Chase and asked WTF? They explained that I owed them the $38 yearly fee for the credit card and since I had maxxed out my limit, they pulled all the money back. The said I needed to give them the $38 and to write the check for a lesser amount. I did this and deposited the money into Wachovia again. The money cleared again so I started paying my bills again. Within a couple of days again, Chase pulled the money out again!!!! I found out today that they pulled the money out this time because they decided on Wednesday to lower my credit limit from $2700 to $400 so they had to pull the money back…..now I have a bunch of late fees getting charged on my Wachovia account and basically I am screwed!!!! This is just WRONG!!!! How can they do this to PEOPLE!!!!

99. Gabe P. Says:
    September 23rd, 2009 at 23:29

    This will blow your mind !!!

    I have flawless credit history. I just refi’d and cashed out on some property.. (I know hard to beleive, but I purchased dirt cheap in 2001). Anyway, I paid off about 45k in debt (4 credit cards) and 3k in car loan. Now I’m debt free. (hurray !! u think … Listen to what happened:

    Citi lowers my 18,500 credit limit to 500.
    B of A lowers my credit limit on two cards,
    Visa Platinum 16,500 to 500 and
    World Mastercard, 44,800 to 4k.
    I lost my top on the first phone call with the rep. cause I had some ghetto female on the phone mumbling to her colleague that I was upset cause she lowered my credit limit. Called back, tried to speak to a manager or supervisor, (guess what) apparently everyone in working in credit management is a freakin “senior credit analyist”. (Wipe my butt with their title). It’s so very true. These credit card companies are ruthless. I closed my b of a checking account, and am looking to change lender (Unfortunately, these are the same arrogant bastards who funded my refi). Chop up them cards, and mail them back to the credit card co. !!

100. Kevin H Says:
     September 29th, 2009 at 05:42

     Hooray!!! I’m not alone. I’ve had AWESOME credit forever with a credit score around 780. Just took out a loan for a new motorcycle without a problem, the bank told me I was a very low risk customer and managed a 4.9% loan on the bike. Just yesterday, I get a letter from Wells Fargo stating that my credit limit was decreased from $16K to $1600 ($200 above balance)… Thought for sure this was some kind of F*$@ up on their part, but obviously this is a problem with others as well. I agree with the above poster about how friggin ridiculous this is after they get a “free skate” from the government (our money)… I’ve always thought I was “helping” out by maintaining a balance on these cards, but I have set my goal to pay them all off and not look to them again!! Seems that we (the good credit folks) are the one’s you would want to have the credit… Seems to me they are looking to get themselves into more trouble (and prosper doing so)….

101. richelle Says:
     October 5th, 2009 at 18:20

     I just finished paying off over $13,000 in credit card debt. I paid all my cards off. I once had high limits. Since i have done this they all lowered their limits. I had one card reduced from $15,200 to $500. They lowered each single one i paid off. I dont get it, they want you to pay them off, yet they slam you when you do. I wish i had just paid half of the balances. I think this is a crime. My credit report went from 720 to 574 and i cannot purchase a condo now because of this. Makes me sick.

102. Jessica Says:
     October 9th, 2009 at 10:10

     I guess this is common for everyone, but Bank of America has the most uneducated, disrespectful representatives possible. We called the other day concerning why they lowered our credit limit to our balance and they said it was due to our payment history, which is crazy because we have never failed to make a payment and we always pay over the minimum, plus, we took them up on their offer of .99% interest and since then they have been trying to penalize us by taking away our limit. Since they are taking away our limit isn’t it just better to pay it off and close the account.

     Bank of America – has been the worst CC company, with the most uneducated disrespective representatives and I hope our complaints and our voices tears them down, for all the heart ache they are putting through good users

103. kate Says:
     October 9th, 2009 at 14:57

     Well, I just had the experience everyone is talking about.

     Discover lowered my limit from $15,000 to $1,100 this week — when I was never late, not once, in 20 years.

     They didn’t give me any notice — I was at a grocery store and my card was declined.

     I gave them a mouthful when I called. I will be happy to join anyone in a class action suit. I hope it happens, but I think it would have happened by now.

104. jonie Says:
     October 15th, 2009 at 16:31

     My credit card limits were all lowered to exactly what I owe on them. I have been with American Express for years! I have been with Chase for approximately 5 years. When they lowered my limits my credit score went from the mid 700’s to the mid to low 600’s. I paid off my car In September 2009 so I could give it to my daughter. I went to go buy a new car and found out my score was so low I didn’t qualify for the preferred financing. I was so confused! This had never happened to me before. I was so embarrassed! I am going to pay off these damn cards and NEVER do business with either company again. I am also going to make sure I tell everyone I know my story!

105. Richard Says:
     October 15th, 2009 at 21:47

     Discover Card lowered me from $10,000 to $2,500 for no reason…I have alot of credit card debt, however, it is the only debt I have as I inherited a house (that was paid off), car has been long paid off, & I don’t have any college loans…..Last credit score was 790.

     I don’t see how ANYONE can win w/credit card companies today – no matter what scenario (pay off your balance every month, don’t pay it off yet you always pay on time & pay more than the minimum, etc.) the cc companines will deem whatever you do as risky….You simply can’t win with these people….

     There needs to be a class action lawsuit of some sort….The cc reforms enacted earlier this year are a good start, but much more needs to be done..

106. Barbara Says:
     October 16th, 2009 at 13:22

     My husband just received a letter from Wells Fargo lowering our credit limit to $3,000 from $20,000!!!! There is perfect credit. We are outraged!! This will hurt our credit score!! Where do they get off doing this? I’m writing the Federal Trade Commission, as well as, the Attorney General on this issue. We make more than required payments, we pay as soon as we get the bill, and because they want to use other guidelines to determine whether or not your credit limit will be axed they do it…and they do like they are telling you to have a nice day. I am writing to all broadcasting companies as well. Someone has to make a stand with these credit card companies. Banks are doing badly, and they think if they lower their risk it will look better to the government, in the mean time good old good paying clients get their credit limits lowered.

107. Steve Says:
     November 6th, 2009 at 10:22

     The reasons my cards have been maxed out is moot; however I’ve always paid on time with extra over the minimum amount. Now that I’m focusing on strengthening my FICO and reducing debt, I’ve started to focus on paying more substantially against my balances. In doing so–it looks like I’ve started a domino effect that is making matters worst for me.

     My largest creditors, Bank of America and Wells Fargo (Raymour & Flannigan) decided to lower my limits after substantial payments were made to my balances on the accounts I hold with them. Now, I’m spiraling into a perpetual state of having near 100% usage because each time they lower my limit to just above my balance. It is so unfair, and disrespectful to the responsible consumer (or anyone trying to pay-off their accounts and strengthen their FICO).

     The class action suit sounds like a great idea. What else can we do???? I’m ready to march on Washington DC. All my efforts to be responsible are being met with opposition beyond my control. It has to stop somewhere. Maybe lobby for legislation that restricts reductions on spending limits to within specified percentage points from the balance would work????

108. Sher Says:
     November 8th, 2009 at 05:45

     I just got off the phone with American Express and they have also lowered my business credit limit from 15k to 5k. I took it personally at first; I’m always on time with my payment, early at times, never missed a payment and even doubled or tripled the amount due. The represenative could not give me a clear answer as to why this was done. I asked to speak to his manager or supervisor and was told that they’re not in the office and would need to call back around 9am the next day.

     I have excellent credit, score of 792 last time I checked. I’m scared to find out what it is now but after reading the comments I don’t feel alone anymore. Something needs to be done, this isn’t right. I need much more than 5k to run a business. Class Action Suit sounds perfect to me! This is how American Express rewards their customers in good standing, how terrible!

109. Lisa G. Says:
     November 13th, 2009 at 21:44

     I handle my mother’s credit cards, etc. She has received a few letters from Target’s bank notifying her that they dropped her credit limit from 8,500 to 1,000 to 800 to 600! She has an excellent credit history. I called Target asking them to clarify their decision/reasons and in their letters they pretty much say that’s its due to her having no active real estate. She has a house that’s paid off. The other reason they put is because of recent bankcard inquiries (mind you, she’s opened two cards within two years) which is not excessive! Subsequently, this had lowered her credit score. It is totally unfair what they are doing to their good customers!

110. sarah Says:
     November 17th, 2009 at 20:56

     *sigh* I just got the ominous call today from Bank of America that they are reducing my credit limit from nearly 20,000 to 15,000–and only 200$ above the current balance. This news came despite the fact that I’ve been a customer for 10 years and have never, ever missed a payment. My credit score is excellent, but like many other single people who are in school and working full-time, I have not been the most aggressive at putting a payment plan together to eliminate my credit card debt entirely.

111. Nancy Says:
     November 18th, 2009 at 21:21

     I am still fuming from my experience with HSBC bank yesterday. I’ve had their credit card since 1993 and over the years aquired a $10,00 credit limit-never asked for it,and never came near the limit. But it
     was always a piece of mind knowing it was there in case of an emergency.I did, however carry a balance on the card. I was shopping yesterday and tried to use the card and was declined, I was quite embarrassed and accused the shop of it being their error, because It could not have possibly been a problem with my card. I called the credit card company and they said that on Nov. 10th a letter was sent to me stating my new credit limit. I stated that I never recieved notification of change in my credit limit. She said my credit limit was now $1500.00 and this this took effect that day
     (Nov. 17th). Infuriated, I asked to speak to a supervisor
     who would only tell me that my credit limit was lowered because too many people have accessed my credit. I have not tried to get a loan, car payment or new credit card in over 3 years….How are they allowed to do this? And give you 7 days notice? (which I still have not recieved)Isn’t this illegal?

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