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Why Are Credit Card Companies Lowering Your Credit Limits?

by Connie Brooks

Credit card companies have been on a real limit-lowering streak lately. A few weeks ago we ran an article titled “Your Credit Card Company Could Unexpectedly Lower Your Limit.” At the time, I had no idea that this article would touch such a nerve, or that the practice of decreasing credit limits was becoming so widespread.

So, what’s going on? Basically credit card companies are universally re-evaluating their customers and changing limits, interest rates, and fees at will. Honestly, this is a pretty common practice and has been for years. However, due to the current economic crunch the credit card companies are reviewing consumer accounts on a much large scale, and making more changes than normal. Even for people who pay their bills on time, have high credit scores, and don’t max their cards. In other words – their best customers.

We had several readers who left comments to that effect.

This is from a comment left by cfargo:

I was upset with American Express because they had lowered my limit by 75% over the past 3 months and had flat out lied to me trying to justify their actions. As a small business I have used American Express as my working capital over the past 10 years, so their reduction in my working capital was a real slap in the face and really hurt.

At first I took it real personal and thought they were picking on me but have since learned that they are doing this to most of their customers. In September alone they lowered the credit limits of 20% of their card holders and day by day they are doing it to more and more. If you have some extra time and want to be stunned, Google “American Express credit limit” and you too can read horror story after horror story.

Just last night my sister went to use her AMX card at CostCo and it was denied. She got home and called American Express (1/2 hour on hold) to find out that her cards limit was dropped to $600 (just above her balance) from $16,200. This girl has impeccable credit and they did this to her.

And another similar situation from Marsha Carrol:

I have NEVER missed a payment to any creditor, and I am having the same problem with my high credit lines. First they are lowered for bogus reasons (AmEx said it was because Wells Fargo Mortgage holders were a higher risk…I DON’T EVEN HAVE A MORTGAGE WITH WELLS FARGO!!!!) They lowered my credit line from 30,000 to 20,000, initially, and now lower it every few months by a few thousand dollars, which dropped my credit score significantly.

The other companies were not far behind, causing a domino effect…When Bank of America sent me notice that they were lowering my credit line from 20,000 to 6,000 and I called to ask why–they said it was because of my “payment history”. In 15 years of doing business with them I have NEVER missed a payment, but I was told my account was “FLAGGED” because I made a MINIMUM PAYMENT.

One of our readers, Matt, even did a post on his blog, Steadfast Finances, about the limit on his Discover Credit Card being reduced from $7500 to $5000 – and he has a 750 credit score.

So, the biggest question of the day is, why is this happening? Is there a way to prevent it?

Basically, it’s happening because credit card companies are re-assessing their risk tolerance. They are tightening their purse strings a lot. The days of no-fee 0% balance transfers, and regular credit limit increases could be over – at least for now. They’ve been replaced by unexplained credit reductions and higher fees.

But how do the credit card companies decide who’s credit limit gets the axe and who’s doesn’t?

An article from the News Tribune.com shed some eerie light on the subject for me:

Lenders are now increasingly considering factors beyond late or missed payments. Some are looking at geography and shopping behavior as well. If you live in an area with a high foreclosure rate or shop at stores that risky borrowers frequent, don’t be surprised if your line is reduced or your rate goes up.

“Among other factors, we do look at mortgage information and geography where there has been a greater deterioration in home prices. Those are some other factors, but again, we’re looking at the entire credit profile,” Lisa Gonzales, manager of public affairs for American Express, said of credit line reductions.

“We have taken actions such as lowering credit limits, adjusting rates, tightening credit standards and closing inactive accounts, particularly in certain geographies and where we can use mortgage data to enhance our decision-making capabilities,” said Jeanette Volpi, vice president of public affairs for Citi.

So, it’s not enough to pay your bills on time, keep your balances low, and follow the rules. Nope. You’ve got to live in an area where house prices are stable (Someone point me to that neighborhood please…) and shop at high end department stores, apparently.

I think in this instance I’m going to agree with our readers and let out a big ‘ol cry of “Shenanigans!” directed at some of the credit card companies.

The problem with the unexpected credit limit decreases is simple – It wrecks your debt-to-credit ratio if you carry a balance. Your available credit limit makes up almost a third of your FICO score.

Most readers that left comments were carrying well under 30% of their available credit from month to month. Now that their limits have dropped, they look like they are using nearly all of their credit. That alone is enough to drop their credit score.

Some readers are even angry enough to go to court over it!

So, just because I think it will be fun to do, and because you guys suggested it – I am going to have a brief interview with legal expert about the possibility of a class action suit. Now, I highly doubt that will go anywhere, but I think it will be very interesting to have an expert’s opinion on it. So I am going to do that, and share the results with you guys next week. Stay tuned, and don’t forget to grab our RSS feed so that you don’t miss the article.

How about you? Has your credit card company lowered your limit unexpectedly? Are all of your limits the same and you don’t know what everyone is making a fuss about? Tell me about it in the comments!

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

  1. Matt @ SF Says:

    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:

    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:

    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:

    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. DIXIE Says:

    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

  6. haruka Says:

    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.

  7. Lee Says:

    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.

  8. DIXIE Says:

    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.

  9. David Says:

    $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.

  10. Jen Says:

    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.

  11. Carla Says:

    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.

  12. Rosie Says:

    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.

  13. terripoff Says:

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

  14. Marsha Says:

    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…,.

  15. MARKb Says:

    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!!!!!!!!!!!!!!!!

  16. Matt Says:

    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!!

  17. 1socalgal Says:

    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

  18. Steve Says:

    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!

  19. Mechelle Says:

    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.

  20. Kris Says:

    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.

  21. Tara Says:

    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.

  22. Debbie Says:

    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.

  23. John Fahey Says:

    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?

  24. Michelle Says:

    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.

  25. ll Says:

    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.

  26. Angie Says:

    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.

  27. Melinda Says:

    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?

  28. Chris Says:

    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?)

  29. mdavis Says:

    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…

  30. angie Says:

    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!

  31. trish Says:

    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.

  32. CGD Says:

    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.

  33. Lra Says:

    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!!

  34. Jackie Sacs Says:

    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.

  35. PonyBean Says:

    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.

  36. Randy and Rebecca Says:

    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!!!

  37. Dave Says:

    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.

  38. Jon Says:

    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.

  39. Anna Says:

    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.

  40. Jeannie Says:

    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.

  41. Alison Says:

    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.

  42. Darina Says:

    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!

  43. oklahoman Says:

    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.

  44. Sue Says:

    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.

  45. Rebecca Says:

    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!!!!

  46. Kam Says:

    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.

  47. Dawn Says:

    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

  48. Jane Says:

    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.

  49. Carolyn Says:

    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????

  50. avalon Says:

    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.

  51. Tammy Says:

    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!!!

  52. LOU Says:

    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

  53. Bill Thompson Says:

    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

  54. Myra Says:

    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.

  55. Sheila Says:

    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!

  56. Fred Says:

    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.

  57. Bluesteel Says:

    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.

  58. Annette Says:

    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!

  59. Thelma Says:

    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.

  60. MichaelS Says:

    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!

  61. David Says:

    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.

  62. Karen Says:

    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.

  63. virginia Says:

    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.

  64. TargetVisaBlows Says:

    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.

  65. Monique Says:

    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.

  66. Drew Says:

    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.

  67. Donna Says:

    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.

  68. Sue Says:

    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.

  69. Brian Says:

    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.

  70. Sue Says:

    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

  71. AJ Says:

    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???

  72. Jim Crutcher Says:

    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.

  73. Keir Says:

    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.

  74. debbie Says:

    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??

  75. S P Dudley Says:

    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.

  76. PJ SANCHEZ Says:

    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.

  77. claydean hill Says:

    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.

  78. claydean hill Says:

    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.

  79. Credit Victor Says:

    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.

  80. Craig Says:

    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.

  81. Mark Van Doren Says:

    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.

  82. Jane Says:

    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.

  83. charlie Says:

    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.

  84. Naveen Says:

    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.

  85. Ellen Says:

    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!

  86. Kim Says:

    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.

  87. Kimberly Says:

    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

  88. Gregg Says:

    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!

  89. Lois Says:

    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.

  90. Martien Says:

    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.

  91. Martien Says:

    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.

  92. larry 70 Says:

    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!!!

  93. Debra Says:

    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.

  94. Barbara Says:

    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….

  95. Patricia N Says:

    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.

  96. Tom M Says:

    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!!!!

  97. Gabe P. Says:

    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. !!

  98. Kevin H Says:

    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)….

  99. richelle Says:

    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.

  100. Jessica Says:

    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

  101. kate Says:

    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.

  102. jonie Says:

    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!

  103. Richard Says:

    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..

  104. Barbara Says:

    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.

  105. Steve Says:

    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????

  106. Sher Says:

    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!

  107. Lisa G. Says:

    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!

  108. sarah Says:

    *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.

  109. Nancy Says:

    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?

  110. sally Says:

    Nov 1 2009

    Last month my credit limit was dropped on a line I had opened for overdrafts as my bills come in at different times. I always paid the amount due. I missed 3 payments by a couple of days. The irony of the whole story is that the total was up to $30K as I am going to school and taking care of 2 children that have both graduated from college with a masters degree and bachelors degree both have not been able to find jobs in their fields. They are working, I am working and we are making the bills. I decided to put a large sum of money down on the principle of this account to make the payments easier for all of us. I missed a payment as we had hospital visists and a family emergency, but the bill got paid. 3 days later I got a notice saying that my credit limit was reduced. the bank said I had been late 3 times and I asked from when, they were counting back a full year. The credit line was reduced the exact same amount that I had just put down on principle. I called almost all the way up to the CEO and they would not budge to even give me $2,oo leeway…so instead I was having to pay overdrafts which was putting my credit score in even more damage. When I spoke to the last manager prior to the CEO, I did ask if I could see the gold tile on his roof with my name on it. I also said that I was moving all of my accounts to a credit union, and my children’s accounts, and I have told this story to many of my friend and neighbors and they are thinking about switching to credit unions also. I hope I can save my credit score before the bank completely ruins it.

  111. TJ Says:

    My husband and I had a similar situation happen yesterday. We went to make a small purchase at Starbucks and our card was declined. On the way home, I jokingly said to my husband, “did we spend $15,000 yesterday?” We weren’t sure what happened as we pay that card off EVERY month! We actually only use it to get the 2% back on purchases. :) We got home and accessed our account online and saw that our previous $15002 credit limit had been reduced to $600! 14 years ago (in my early 20′s) when Discover gave me credit, my limit was twice that! I’ve never had it this low! We called to discuss what had happened and the employee told me “that deparment” was closed on weekends and I’d have to call back Monday. I’m irritated that they lowered the limit (esp by SO much!), but the big thing that really got me going was that they never even told us! No letter in the mail, no phone call, not even an email in our messages on our online Discover access! NOTHING! We had to find out by trying to make a small purchase at a coffee shop. Ridiculous! Oh, and on top of that, we’re now $117 over our limit because they dropped it after we’d spent more this month than the new limit allows. Bet they charge us $40 for an over-limit fee!! >:( We don’t need the credit as we don’t carry a balance on that card, but I knew it was protecting our FICO score and also was giving us that “just in case” cushion of comfort. Now we have nothing. And it’s pretty much ruined our FICO as much as it could, so we’re considering just closing the whole account. 14 years of GOOD, SOLID business means nothing to Discover, so why should I give them one more dollar ever? Anyone wanting to do a class-action suit against them, give me a holler and sign me up!!!

  112. Michael Says:

    My wife just tried to make a Black Friday purchase from Best Buy using the Best Buy card for a financing deal and my card got declined. Turns out in the last 3 weeks, HSBC decided to lower my limit (without telling me) from about $900 free to $16 free. We also have a furniture store credit card through HSBC, and it turns out the same thing happened there, to the tune of $1800. There goes the credit score. Thanks guys.

  113. Adrian Says:

    Talk about a double whammy that’s sticking it to the consumer. I have an admittedly high debt to credit ration that I was working hard to pay off, and I have a stellar record of regular payments over decades with most of my cards. I became unemployed last March, and I have still managed to make regular, timely payments on all my accounts. My FICO was already in the high 600s due to the high debt to credit ratio. Now most of my cards have just reduced my credit limits to just over the balances owed, thereby increasing my debt to credit ratio and lowering my FICO score even further.
    When I spoke to reps at several of the companies about going into a hardship situation due to my unemployment, most actually counseled me against it, because they felt if I could keep my payments up, I wouldn’t ruin my credit further by having all these accounts closed for hardship, since I had an otherwise stellar record of steady and regular payments. But now this lowering of available credit seems to be having the same devastating effect I was trying to avoid at their suggestion. I guess the CC companies really are out to screw us.

  114. Jose R. Crespo Says:

    I recently have had my credit score battered by the banks that were bailed out. Bank of America lowered my limit just above what I owe. Citi bank lowered my credit limit from 2,000 to 500, just 8 dollars of what I have on the card. Chase followed suit and lowered my limit from 11,000 to 3400 just 400 above what I owe.

    Discover card which has been heralded on this site as a safe credit card also cut my credit down from 15,000 to 4,300, just 200 above what I owe as well. I had received a letter a few months ago from Discover stating that there were changes being made to help save you more money…Yea right!! it is nothing but smoke and mirror tactics. Getting credit slashes like this has jacked up my debt ultilization percentage and has dropped my credit score from 900 to around 780. This is NOT helping me pay off my debts especially when I’m out of work and on unemployment.

    I’ve always paid on-time and more then the minimum.

    I will be closing my Chase account & moving my money to US Bank who has no fees (except if you overdraw on your account) no minimum balance, no crazy need to use your debit card 10 times a month to avoid a fee.. US bank also kindly gave me a new cc which I was able to balance transfer some debt over for 0% for 6 months which gives me a needed breather.

    The CC companies claim that this isn’t personnal but it is when you hurt peoples ability to get low interest loans for cars homes etc.

    It is personnal especially when these same banks clamored for Billions of Bailout money to use for themselves. It was to OPEN UP MORE credit not CLOSE IT OUT!

    The consumers need their bailout since wallstreet is waiting on us to bail the out to be back in the black.

    The BEST WAY to get the economy going is to enact legisation for all mortgage payments to be suspened for one year and those payments placed on the backend of the loans. This will give every homeowner one year to pay off their debts & save money. Lenders would be given tax breaks and incentives to participate. Think about all of the money that will be spent since it will be available at the end of that year by the consumers. HMMM.

    If the banks can get a bailout then why can’t we the consumer get one?

  115. Mike Says:

    Bank of America did this to me, it’s not the first time it’s happened, but the most ridiculous. I had a $5500 credit limit, now it’s 2700. About 6 months prior to them reducing my limit, I began making $100/week payments in addition to my minimum payment which they automatically take out of my checking account in order to pay the card off. I have had this card for 5 years, never missed a payment on it or any other card, loan, or debt. They lowered my limit due to “my recent payment history”.

  116. mike Says:

    It is happening to me also. My cards have lowered my limits making me look like I am charging too much. Now, Chase just closed my account stating HIGH RISK. I have never missed any payment and have fico scores of 752, 754, and 752 with the 3 credit bureaus.

    This is white collar crime against the people and this needs to stop. What can we do?????? HELP

  117. John Says:

    I had a debt of $15000 on my chase and amex card. I paid it all last month in one shot. And, suddenly this month a got two mails from these banks stating that my credit limit has been reduced from $20000 to $2800. This is insane! They were just eating up finance charges when I had lot of debt & suddenly when I paid all the debt they dont have any use of me. THIS BANKS MUST BE SCREWED AND PUNISHED BIG TIME BY OBAMA GOVT SO THAT THEY ARE NOT ABLE TO DO ANY IMMORAL BUSINESS PRACTICE IN FUTURE. BUT I DONT THINK THIS WILL HAPPEN. Where ahs all the bail out money gone. It was suppoed to make these banks stable. This is SAD & now I really understand the gravity of economic situation in US. This banks control the economy which is unfair. Credit Card companies should have become govt. controlled not Automotive Companies.

  118. AlexD Says:

    Yep, for me it was Dillards…

    Had a 2,000 credit limit suddenly reduced to 124 & right before christmas too!

    I’ve had this card for for over 15 years now, it was one of my first cards before I got married. & I’ve always used it only twice a year. At christmas time for presents & during the spring for make up.

    I can easily spend more that 124 for makeup alone. And I always spend around 500 for christmas. I know that’s not a lot, but I can’t believe that they didn’t look at the spending history of the customer.

  119. TomK Says:

    Want to fight back? Stop using your cards. Pay in cash, and save before you spend. Credit companies make a lot of their money in transaction fees. Stop making transactions with them and they will feel the pinch right back. Not to mention, it’s better financial policy.

  120. susan ross Says:

    Want to really fight back??? Max them out and don’t pay them a dime!!!I think it’s time for silent revolution. If the credit card company’s screw up our scores (and yes, when they lower your limits, it messes up your score), then simply STOP paying them. Credit scores are in their hands. I had a 768 credit score and because I used ONE (BOA) of my credit cards and made a large purchase, my score dropped to 660. Then, several of my cards dropped the limits, which dropped my score another hundred points. I have never been late on anything, always paid more than the minimum payment, if not paying it off, and have had many of these accounts for 10 years or more. I feel like I spent the last two decades trying to build up something that was so easily taken from me. I have decided to behave like the deadbeat they are treating me like. They won’t get another penny from me…none of them. I will max out as many as possible and then NOT PAY. All I used for many years was a debit card so I will go back to doing that. I am sick of getting slapped in the face by these banks. I intend to slap them back. I finally realized that my credit score has never defined me as a person. These banks received so much money (our money)and they wish to treat us like this???? I refuse to give them another dime. If I have to file bankruptcy…oh well. My house is also about $170K underwater so if they want to put a lien on it, GO AHEAD! I have made the payments ( basically renting from the bank). The loan mods really don’t help when you are underwater..We own homes because they are supposed to build equity. Otherwise, why pay maintenance, taxes and insurance. But do you think that the bank would at least adjust the principal to even close to fair market value??? No, they wouldn’t even speak to me about anything unless I was behind on my payments.So guess what? This January, I will become behind on my payments and if they refuse to adjust the principal, then they can have the house back….in a year or so after I have lived rent free for that long. Sorry to sound like such a scum bag but I am hurting like everyone else in this economy and these greedy lending institutions are not worth me suffering a heart attack or stroke just trying to stay afloat. This is a travesty in this country. The lending institutions take OUR TAX DOLLARS and then screw us. I say SCREW THEM BACK!!!! Cash will become king again.

  121. Dave Says:

    Well I guess I am not the only one. I just had my Chase limit lowered for now reason. I have a credit score of 755. Chase lowered my card limit from 15,000.00 down to 5600.00. The letter I received from them said the reason for the lowering was because I was not utilizing my entire credit line. I currently only have a 3000.00 balance on the card.

  122. Jason Jones Says:

    I recently went to use my MasterCard, and it was declined. I for the most part keep my balance at about thirty percent of my limit, paying it off about everyother month. I work out of town and use it alot. Well it was declined due to a change in my credit history. Well it’s B.S. I have great credit. Not only did they move my 8,000 dollar limit to 3,900 they did so leaving me with a 4,300 dollar balance wich means I am now currently 400$ over my credit limit, yes I will be obtaining legal counsel FTM I’m sick of em and done with credit cards period at the end of this month. If people get rid of them then they will be the ones suffering take a stand it’s time!!!!

  123. Bob Says:

    This is happening to almost everyone, myself included. I also have worked very hard to keep a great credit rating, only to have it ruined by these people. The big question here is, what is going to be done about this? I personally haven’t heard of anything being done. The Obama administration’s “change” isn’t exactly what people thought it would be. I know that paying down credit card balances, and refrain from credit card use is the answer. That is being done, but can anyone out there please tell me what is being done to protect us all from this?

  124. Emma Says:

    I am another victim of the heartless drastic line reduction, although in 10 years I have never made a late payment to BOA. I was very loyal to this card, because it earned valuable airline points for me, and I regularly drained my checking account to pay on the balance. My November 2009 statement showed the usual $14,500 line, but I have yet to receive a courtesy notice that the line was drastically reduced. I discovered the reduction when I was paying for my meal the other night, when my card was declined and I had to call the customer service line. Thankfully, I had a just-in-case $100 bill in my wallet. I was so proud of my score being in the high 700s, but I guess it is now safe to assume that the score will just keep going down because, per the earlier comments, my other banks will surely follow suit. Because of unexpected expenses and because I help my mom financially, I have had to resort to credit cards, but I’ve been responsibly making auto-payments to get them down, slowly but surely; I don’t enjoy having CC debt. The game plan that I must now follow is to keep cash and my debit card on me at all times and stop using the BOA card. With my score effectively shot, thank God I don’t have to apply for any credit in the next two years, but I must ignore as many home repairs as I can, I must continue taking peanut butter and banana sandwiches to work for my lunch, and I hope to God I don’t lose my job.

  125. Kimberly Says:

    You know it is against the Law for any Financial institution to play that domino effect anyone. In other words, a bank can not use your credit report angainst you for their financial gain. EVERYONE NEEDS TO FILE CLAIM AFTER CLAIM TO THE OFFICE OF COMPTROLLER against these banks. One bank lowers your credit limit or raises your interest rate because they see another bank doing it, so they tell you that you are MAXED out.. but why is that? They are lowering your credit lines and making it look like you are maxed out, thus to their financial gain.. EITHER STEP UP TO THE PLATE AND FILE OR JUST LET THEM DO IT.. I FILE EVERYTIME .. ONCE A MONTH, they go under investigation. TRY IT.. This is the only way to solve this.

  126. Bob Says:

    Kimberly thank you for the good advise. I am filing complaints against all the banks that have done this to me and I am starting to get calls from them already. Thanks again.

  127. Bradley Says:

    I received a letter from Bank of America saying my credit limit was being lowered from 11,000 to 1800. I have never been late with a payment and always pay more than the minimum. I called them and talked to a credit analyst and their excuse was my my debt in ratio to my revolving lines of credit. I currently have a small balance on their card. When Bank of Aholes would not budge on their stance I promtply told them to take their card and shove it and I would never spend another penny with them. Later i figured my debt to credit line ratio and it was a whopping 16% and my credit score is in the 740 range. If they are dropping credit lines on someone like me then I do not know what they are looking for. It is outrageous the bailout money Bank of aholes received and this is what they are doing to people with the best credit. To hell with them and I wish everyone would do the same.

  128. Eric Says:

    I’m in the same boat as everyone else here. About six months ago I had mild to moderate balances on a few cards with a 790 credit score, with NOT ONE late payment in my entire 12 year credit history. Over the past six months each card company has lowered my limit (creating a domino effect) to just above my balance which has decimated my credit score, and quite frankly my self-esteem. I’ve always prided myself on being a responsible person with integrity who always pays what he owes. Now that my score has gone from 790 to probably mid 600′s which is causing my rates to rise. I don’t know what else to do at this point and it is infuriating. If we have any legal precedent here I would love to here about.

  129. Sameh Says:

    I totally agree with TomK’s statement “Want to fight back? Stop using your cards. Pay in cash, and save before you spend. Credit companies make a lot of their money in transaction fees. Stop making transactions with them and they will feel the pinch right back. Not to mention, it’s better financial policy.”
    I am planning to do that and have already started. Still have couple cards to go though, will pay them off, and either keep them without paying fees or interest or close them down and use my debit card. If I don’t have the money for it in my account, then I won’t buy it. This way CC companies will lose the stores’ commission, customer interest or finance charges, and (if any) annual charges.

  130. Michael Says:

    Like everyone else here, this has happened to me, too. I’ve never had a “good” credit score…lately “fair to good.” I had awful credit but I worked my butt off to get a decent score of 650 and be stable for quite some time (it takes FOREVER to inch your score up) but then all of my credit card limits dropped dramatically and without warning. One of my cards did have a high balance but not so close to its limit. When the limits were dropped, I automatically fell into overlimit on that one card. Then the bank charged me overlimit fees as well as having my credit score taking a hit, which happened literally overnight.

    For a lot of folks like me who are working hard, minding our money and struggling to have SOME kind of decent credit rating, this is highway robbery. It’s a desperate attempt by the banks to snatch more money from those of us who really have no leverage before the new rules kick into place. And these banks got huge bailouts from the governments using OUR TAX DOLLARS?? These people need to be in prison, not in Wall Street.

  131. Michael Says:

    Folks: here’s an idea…forward a copy of this page or copy of all these messages on to your elected officials, community business leaders, the President, the news, etc. Anyone you can think of. A lot of other people will also see themselves in these messages and get fired up to take action. Strength in numbers. It’s time to tell the banks that they can blow out a candle, but they can’t put out a firestorm!

  132. Arleen Says:

    I called Bank of America to request a balance transfer and Barbara ask me for the income and how much for the houses. So based on that She said that the transfer will not be available and my $32,600 credit limit will go to $11,600. I told her I made 5 time more money that I make now than years ago. I am a BOA customer for over 20 years and NEVER late, NEVER made a MINIMUM PAYMENTand pay more of the requested monthly bill. I told her that I was going to pay my total credit by the end of the year and that didn’t help. Now all my creditors will think that I put everything on my credit cards. My credit score will go down do to the fact my limit went down. That will effect my credit score and I know that it is over 750. It takes days to F*ck your credit, but years to repair it.
    They can file for bankruptcy and get billions from the government, but they can’t help me out. The economy sucks now and I know that it is going to take years.
    I closed my checking account a few years ago and it is looking like they will loose me completely as a customer.
    If someone knows how to fix these situation, how to file for some kind of fraud from BOA let me know. I feel that we have to do something in order to stop what the bank is doing to us.
    That is why My Account will stay with a credit union. I can’t wait for them to go out of business.
    Arleen
    PS
    Don’t ask for a money transfer from any credit card or they will lower your credit limit.

  133. Janine Says:

    BofA dropped my limit once already from approx $16K to $10K last year, then as soon as I paid off my whole balance (which was due to purchasing a time share with 0% interest), 1.5 months later, they drop me to a $750 credit limit!

    They’re not the only one’s, JP Morgan Chase (Prev Providian & WaMu) also dropped my credit line from $22K to $4K (they dropped it several times, not all in one swoop).

    Amex dropped me from no preset credit limit to $700 dollars, 5 months later (with a $0 balance) they closed my card, I was embarassed when I walked into CVS to charge $3 and it was DECLINED, I had used it earlier that day and didn’t receive a letter stating my account was closed for another week after the incident @ CVS.

    These are just 3 examples of my many problems with all these credit card companies, of which I’ve NEVER paid late and NEVER paid just the min payment, 99% of the time it was paid in full ever month, the only time I held a balance was for my timeshare. The ONLY reason I use CC’s are for the benefits, cash back and what not.

    @ Kimberly, I really need to look into that, I can’t put up with this crap any longer!

  134. Pam Says:

    I had always paid our bill on the VonMaur credit card I had. Now they dropped my limit to $100.00 from $260.00 I only buy thngs on sale racks.

    They told me they had not pulled my credit report in 2 years and it was their right to check it anytime they wanted. My balance is 120.00 since my limit was more until the other day. I said a few choice workds and call the credit account woman a B and hung up. I think I will pay this off and be done with them.
    I only have a Sears card with about $800.00 on it and I will have NO credit cards owed to anyone.

    You pay your bills and they screw you over

  135. Toby Says:

    Spread the word. Tell everybody to look at credit card companies and banks stock portfolios and tell them pull out all of their stock investments in the companies that are major stockholders with these corporations and companies,if they can afford to do this. Close your checking and savings accounts and move them to local Credit Unions. Put signs on your cars and tell people not to do business with these companines. Since your credit score has been damaged, take all of your credit to a debt settlement companiny to reduce your payments , late charges and interest rates. If you have a house with little investment, give it back to the bank. You can always file chapter 13 or 7. If the banks and credit card companies are “screwing us over” – let ” stick it to them ” and “screw them over”. Send this technique to every email account you can think of and let’s start a domino effect with credit card companies and banks. The retailers will feel the sting and complain to the credit card companies that people are not buying anything and it is hurting their sales.

  136. Jack Says:

    I paid off my US Airways card online in full 4400.00 – because I wanted to make a big purchase and get the air miles. That big purchase? An engagement ring. The next day I checked the card – they lowered my credit limit from 4500 to 1000. That’s when I sprang into action. I went to BofA once the payment posted and filed a claim to get my money back. Screw you credit card companies! You won’t dictate to me how I have credit. Well, yeah – they probably will…

  137. Kim Says:

    I have been experiencing the same issue as all the other posters. As I read the comments, I am scared by the number of credit cards that people are depending on. It certainly makes me re-evalute my situation and number of cards. I will quit buying things that are not necessary, and use that money to pay my cards off to be free from the stress that this process causes.

  138. Russelle` Says:

    I am so glad I read this and realized my husband and I are not the only ones going through this alone. We were dropped from American Express through Costco. We got declined at checkout and my husband and I came home to call AMEX to find out that our account was closed completely. In addition this also was the case with Discover card as well. A week later we got new cards in the mail from AMEX with a 0 credit limit. How ridiculous is that? We went to go look at houses to build and take advantage of the tax credit for multiple home buyers and low and behold my husbands credit score went from 780 to 655. We were going to build a new home and do a buy out on the interest, but of course it was credit driven, unfortunately due to the low credit score we can’t do anything until we get his credit score up or we can put 20% down on a $400,000 house. I am a stay at home mom and take care of our three kids, therefore I do not work. The funny part is I don’t have any credit cards in my name since 2002 and my credit score is in the mid 700′s. The only thing I pay on is my student loans from when I went to college. I did send an email to the white house for Obama, not sure what really happens to those emails, however, I did copy a link to this site. In addition I plan on contact my local congressman regarding this as well. Lastly, my husband and I took out Nissan Armada and refinanced it through out credit union. We have banked with a credit union since 1996 and will remain with our credit union! The greatest piece of advise that I read on a thread was to pull money out of a bank and put it in a credit union. Especially after hearing that banks are no longer going to be giving free checking accounts. I hope each and everyone here takes some type of action or responsibility to say enought is enough!

  139. Diane Says:

    This happened to me today. We have a Chase business card. There was only a $5000 limit on it but it was adequate enough for travel expenses. I paid over $1600 in this card from Jan 5th thru Feb 2nd. See below
    01/05 Payment – Thank You -100.00
    01/08 Payment – Thank You -67.00
    01/14 Payment – Thank You -50.00
    01/18 Payment – Thank You -75.00
    01/25 Payment – Thank You -100.00
    01/29 Payment – Thank You -300.00
    02/03 Payment – Thank You -1,000.00

    I did this to get my limit low enough as my husband was going away for three days the 14th of this month. Today I checked online to see if all the extra payments had been applied and noticed out limit dropped to $4300. Not early as much as some of you but lowered all the same. This brought my account over the 50% leaving me with having to pay in more to them prior to his going and dipping into my bill funds. The weird thing is that I’d been contacting Chase every week for the last month to assure my balance was going up and was just given my balance this past Friday based on the $5000 limit. I called today and was told that a notice has been sent out Friday. So…I didn’t even KNOW this was happening before they did it. had I not checked the account today, my husband would have been out of state and denied use of the card while there. Fine if his debit card could be used for the more expensive travel needs but even the rental car places will not take debit cards any longer. They require a standard CC on file.
    An additional note to remember for those desiring to pay down your card. Any payments made within the statement period will not all be applied to your balance. In order to directly apply a payment to your balance it must be done within 3 days PRIOR to your billing cycle. For instance, my billing cycle is from the 3rd of the month 28th of the month. In order for me to pay down my balance I have to dump and payments directed towards my balance between the 28th and the 3rd. If you do it in between those date, they will apply your payment to the next payment due and any other fees (check fees etc.) before your balance. So it appears, I have to dump another $1000 on this baby , subtract my monthly payment due the 28th, of $164 and assume whatever other fees they want to pay will be paid added to my balance prior to placing any of that $1000 on the CC because it’s between billing cycles. Never been late, always paid more than due yet always carried a small bal. thinking that would retain my credit in good standing. It’s almost as if they said, ok we have a customer here that’s dumped $1600 on their card and now we’re going to dump on them. You know, regardless of the economic situation we’re in I would think that those that have good credit and maintain their cards as they should, or better ,are NOT the ones that should be punished for doing so. It’s ludicrious!

  140. Terry Says:

    It started for me last year when Amex lowered one of my cards to $300 over my balance of $720. I had a $5000 limit. The also closed another card I have that had no balance. I got mad and paid off my other card and closed the account. BOA did about the same. I had a $15000 limit on their cards and they reduced it to 10% above my balance. Last week I got 3 letters from Chase closing one account with no balance and lowering the limits to 10% above my balance on the other 2 cards. My credit score has gone from 780 to 660. I’ve never been late on any account and I’ve increased my income by 40% in the last 2 years. We all need legal help to stop this. There must be a law that prevents this death spiral of our credit scores causing us to pay more for the credit we’re using. Sign me up for any Class Action Suit.

  141. Sibora Says:

    I called BoA today to order a new card since my old one was worn out. I was transferred to a financial analyst who reviewed my account and lowered my limit from $ 6000 to $ 900. I have never made a late payment and always pay my monthly balance in full, which averages about $ 2000. I called BoA again later today and found out that my account has been closed without a notice. I am shocked. This is my only credit card since I graduated college (2008) and I was hoping to use it to build credit.

  142. Stephanie Says:

    Well I thought I was the only one. My husband and I are currently trying to purchase a home. My credit score is in the mid to low 600′s due to a divorce 5 years ago (ex husband running up credit in my name then not paying the bill). Long Story. My husbands score is in the mid to high 700′s. I have worked very hard to raise my credit score and paid off all of my debt.
    Our lender suggested we use our down payment and pay all of our credit cards down to below 50% of our limits, which we did (she said we could qualify for 100% financing through cal pers). Now our Discover card lowered our credit limit to what we have paid it down to, which in turn effected our credit scores.
    Now we have no money for a down payment. This is frustrating and embarrasing. We both have great jobs with a great income. Now what do we do? Oh and the house we currently rent is in foreclosure. We will soon have no place to live.

  143. Stephanie Says:

    I forgot to mention that our lender will now not return any of our phone calls. What do we as up standing people do about this?

  144. jack g Says:

    Thank God i found this website. In the last three weeks i have had 5 cards slash limits to the tune of 40k, i felt so violated. i did nothing wrong. At least i know I’m not alone.

  145. Tony D. Says:

    I received a written notice today from Bank of America about a credit card I have with them…. they are lowering my credit card limit from $28,800 to $6500… what kind BS is this??? Is a class action suit an option, anyone??? all of us???

  146. justine Says:

    I was so insulted when I received a letter from Wells Fargo lowering my credit card limit – my issue is that I have a “relationship” with them – PMA account – checking (which was detrimental apparently to my credit limit), mortgage, home equity line of credit, savings account and credit card. I don’t even use the credit card – it’s the point! I will pursue my PMA account and what that even means to Wells Fargo. I’m sure I won’t get anywhere – but had I known the various factors affecting my credit card limit I could’ve taken action.

  147. Michele Says:

    Same here. I was out for dinner with my husband, took out my Bank of America card and it was declined. I used another card, and immediately called the 800 number for B of A to find out why it was declined. Answer: my limit had been dropped from $5,000 to just a few dollars above the $900 balance on the card. I emailed them and was told I would get a letter in the mail – they are not obligated to give you prior notice of this. I just checked my two Chase accounts online, same thing – both lines were cut in half, to about $300 over what I owed. They even dropped my $3,000 Best Buy (Chase card) line to just $600 – and I only owed $200 on it! One of these cards hasn’t been used in over a year – I had transferred balances to it for a permanent transfer rate of 2.99 percent, so I just kept sending the same $300 payment each month to pay it off. Thank God we bought our newest car a couple of months ago while our credit scores were still high – mine has dropped almost 100 points as a result of these credit line decreases!

    For some reason, the only bank that hasn’t lowered my line is Citibank – I wonder if they are next. This will definitely affect my vacation plans – I am afraid to go away and discover my credit card isn’t good!

    I must echo another poster’s advice to write the Comptroller of the Currency, with a copy to all the TV consumer reporters in your area. The banks are obligated to have their legal departments respond to regulatory complaints and it costs them big bucks to do so. I did this a few years ago when Chase arbitrarily raised my rate, and they changed the decision.

  148. John Says:

    I do not have a BOA card, however; My wife does, with a previous limit of 10k. She had a balance of 8000.00 which we had decided to put our whole tax check to pay on with the idea that we could use the credit card for emergencies. After applying a 5000.00 payment. The credit limit was immediately dropped giving just 50.00 of available credit. With absolutely no late payments, and them not giving any notice of such, I am in shock… and I’m not even the customer, nor EVER will be!

    The effect that this has on debt ratio calculation for credit reports is an attack on the consumer. This practice must be challenged.

  149. Sam Says:

    Good article – I hope to see the atty interview.
    I just finished paying off my Juniper card in December. My tax return had ot be mailed in this year, thus delaying my refund.

    I put my car’s annual tuneup around Valentines day (I had the day off & had scheduled it in December) & my dog’s annual check up on it on Feb 27th. The cats went in for their required shots today & it was declined – they lower my limit from 5,000 to 500! Thank God I was going to pay the card back off when I get my tax refund on the 19th. Juniper said on the phone I’m too much of a credit risk!
    Turns out Juniper lowered it on the 6th (two days ago) – sent a letter out on the 4th (that I haven’t received yet).
    While the vet was nice about it & can wait to be paid…. I’m pissed about the utter lack of notice, not to mention the vet probably suspects I tried to pull something. Thank God I wasn’t broken down on the side of the road – i too considered the paid off card a kind of emergency fund.
    In my town you have to have the animals vaccinated & registered by March 15th or you could get fined & they will take them away (that has to be unconstitutional). And I know people they’ve actually done that to.

    Now I’m scared to death my other two cards will do the same thing as they get paid off via the snow ball method. How can I ever refinance my ARM if my debt to income ratio is outta wack?

    I know how to handle my money – it’s not my fault we hit hard times two years ago and couldn’t get immediately dug out. BTW – never been late or anything bad, always pay on time & usually at least a little more then what’s due.

    Whats really worries me too is Capital One doubled my limit in January – I’m worried about what they have up their sleeve & it I should trump them by closing the acct now.

  150. me Says:

    This happened to me back in Feb and again this week. My Chase card dropped from 17k to 7500 in November and again dropped this week to 4500 when I owe 4k. I’ve never been late with them or missed a payment. I just called the number on the letter that was sent and explained that I am making all efforts pay off debts and to increase my credit score and that their sudden and steep decrease of my limit could have a negative effect on my personal efforts. They put me on hold and said they could raise my limit to 5500. I know it’s not much, but it was better than nothing. Due to the new laws, the credit card companies are doing these types of things to obviously all kinds people, regardless of credit standing. My advice would be to never use plastic again. Build an emergency fund in a savings account for peace of mind, and then pay off your cards and cut them up. That’s my plan. (And yes, I’m a Dave Ramsey fan – his program and proven principles have offered me wisdom, baby steps toward debt freedom, and most of all, hope.) If you haven’t heard of him, check it out. http://www.daveramsey.com

  151. Kellie Says:

    Discover just yanked the rug out from under me today by lowering my credit limit from $6500 to $3500, which is only $71.00 over what I owe. I too have excellent credit, never missed a payment, and always pay way more than the minimum. I too planned on using my credit for emergencies, now like the rest who posted, I have no safety net and without notice or reason. Thank god I am not shopping for a house or car at the moment or I would surely be at a loss with my credit being maxed out! It doesn’t seem legal what they are doing.

  152. Kellie Says:

    My husband is now on his soap box. He says we should boycott the credit card companies and the banks and hit them back where it hurts! Stop borrowing money and putting money in the lenders pockets. The reason they are cutting every one’s credit is so they can have you re-apply for credit with them later at higher interest rates and worse terms because now you have a lower credit score! It is really scandalous. Besides boycotting them, we encourage everyone to write to your congressmen to let them know how well there plan to protect consumers is working! As usual, it is not the big business, not the government, but us little, hard working people who wind getting stuck with the bill! It’s crap!

  153. Bob Says:

    Good luck writing to your members in Congress. I wrote to mine (Mass)over a month and a half ago. I even emailed the big guy in Washington through their public input section on the white house web page. Still no response, not even a form letter. I even included the link to this page, showing how many people have written in with the same complaint. If you writing your elected official I hope you have better luck than I did.

  154. Derrick Says:

    Well, the same thing just happened to my wife and I am mad as heck. We had a Region card with a credit limit of 8000. I got a text message from my account tracking that the limit is now 4000 with available balance of 115 dollars. Really hurt my credit to depth ratio. I really think they are doing this on purpose to prevent customers from using the card and reapply for credit. I am really thinking about payin off all of my debt with my savings and then rebuild my savings with the money from not making CC payments. I hate lendors because the are taking advantage of the people. I would rather live in a cave than borrow money again. Boycottingggg here

  155. Steve Says:

    I would love to cloese them but then I would hurt my credit score. This is stupid. If you want to have a high score you have to have a credit card. WHY????????????????/

  156. Layla Says:

    It’s happened to me every single credit card I own…never missed a payment never been late a day and never been assessed a late fee. Amex once put my finance charges up to 24% and I called immediately and they said “due to late payments” well I had a fit and they went back 24 months and found out they were WRONG, they put my finance rate down to 6% and have since raised it to 9% before the new laws went into effect. Really sucking the life out of my credit score and I’m furious. They’ve also raised all new balances before laws went into effect across the board so they can punish those of us who pay our bills to make up for the slugs who do not! I have a 3 year plan and then they’re ALL gone except Amex!

  157. Bob Says:

    This is so irritating! I can not believe there are sooooo many of us have the same problem. I have had this happen to me 3 times in the past 6 months and yes, when they say it is for “this reason or that” and you show them they are wrong, the Credit Card company makes up another excuse! To top that off, I had a Senior Rep. tell me (from Citibank) that yes, we understand that this affects your credit score but can’t do much about that. You can apply for a higher limit in the future!” I don’t think so! Why should I have my Credit Line reduce to my balance on several cards, and make it appear that I am the person who max’d it out, when it fact my ratio was 30-405% before they lowered the boom! My credit score should not be affected or controlled by THEM, but in fact THEY control us!!! WRONG!!!!!!!!!!!!

  158. Melissa Says:

    While earning a much lower income than I used to (about 40% less), I worked very hard to pay off a high interest credit card with Chase (formerly with Washington Mutual) to improve my credit rating, get out of debt, work on buying a house. I paid the card off last month in its entirety. I got online this morning to discover my $5,000 credit line was dropped to $500. So like so many here, I suddenly have very little available credit.

    After a life changing, financially damaging divorce, it is long, slow work to improve one’s credit rating. I paid on time and always more than the minimum (usually at least double). Now it appears it didn’t matter if I paid the debt down or not. My credit rating will just keep taking hits.

    I am sick and frustrated by this. I think that congress missed the boat last year when they made changes to the credit laws that left so much power in the hands of banks and credit card companies. It’s time to write to our congressmen and point out the damage the companies are still perpetrating on their customers leaving us with no recourse and far fewer life options. I have one card left and am trying to pay down all that I owe so I can be debt free. Does that mean my credit score will drop when they drop my available balance to just above my new low balance? Am I making a mistake?

  159. Mike @ Oh Crap I'm Broke Says:

    ARGH! I was just looking at my wife’s Discover statement. We were paying the card down pretty aggressively. We paid over a thousand dollars last month. The remaining balance was $815. I just looked at the statement and they reduced the credit limit to $800! They reduced it to BELOW what we owe! I’m pretty upset about this behavior. How can it even be legal to do something like that?

  160. maria wall Says:

    Chase just reduced my $8500 limit to $1800 and increased my 9.25% rate 18.99. I am never late, pay in full, or a lot more than the minimum, and generally use 10% of the limit as is advised by financial gurus. The customer service rep tried to recite some canned BS about “inactivity” and then, after I told her I used it every month, she had all kinds of vagaries that made no sense. I asked for the exact reasons for the changes but she could not give them. There was no advance notice for this dramatic change, nor any good reason. I am sure this will hut my credit score as my available credit has decreased dramatically. I WANT TO JOIN A CLASS ACTION LAWSUIT. Please e-mail me with information. I am a responsible card holder and should not be punished for irresponsible actions of banks and other consumers.

  161. Jean Says:

    My Chase M/C had a $16,500 credit limit. I used it for small purchases, paid it off every month. Today I went online and saw that my credit limit was now $500. It had to be a mistake, right? So I called and was told that is was lowered for “low usage.” From $16,500 to $500? I then tried to e-mail customer service for an answer. The cheery reply was that they would be happy to accept my application for a credit increase. Huh??

    What make the story even stranger? My Chase debit card has not arrived, so I called to report that to the bank The rep I got this time told me that she noticed I had their credit cards…and guess what, there was an offer for another one “pre-approved.” It makes no sense at all.

  162. m Says:

    I just had Chase f-me as well today. I had a 15k credit limit w/ 1k balance and they lowered it to 3.5k. I called and got nothing but BS answers from rude managers who seemed to be reading from a script. I never missed a payment and I always paid more than the minimum. Now my credit score is going to decrease. It doesn’t make sense to punish responsible credit card owners.

  163. Megan Says:

    Okay, Wells Fargo have definately done something underhand with me; Last month they offered me a 2% interest rate for 6 months on a card with a $4K balance and a limit of $9K – I only had the 4K due to a recent large single purchase. This offer was contingent on me accepting them lowering my card limit to circa $4.5K. I politely decline & explain to their CSA that I plan to pay the balance in full this month anyway, and why would I do this as it would damage my credit rating. So, one month later (today) I logon to make my payment online, and I notice that they have lowered my limit anyway and not amended any interest rate. WTH! Bandits. I phoned their CS and they told me that this was completely coincidental and that the offers/actions were from seperate departments.

    Can someone please give me the correct full contact details of the best independant body where I should complian to. Thanks, Megs

  164. Megan Says:

    BTW, there is definitely something larger in operation here – like lowering the average US consumers credit score, so we can all be charged more for borrowing whilst the banks advertise killer low rates that are practically unobtainable?

    I am in the lucky position that my salary is in Obama hate territory, clear my balances every month, and only really regularly use my credit cards for convenience and the rewards/miles and they true to screw me? I have cleared the Wells Fargo balance and will buy one coffee from Starbucks once a month with the card, and overpay the statement putting them in a spin. I will also lodge an official compliant to whomever is going to hassle them the most about this. As I said above, if someone could make a suggestion as to who this might be would be greatly appreciated. Thanks, Megan.

  165. Charlet Says:

    I had this experience with American Express. I’ve been a member since 1988 and had a 24K limit. Even when we ran it up to $24K during construction, we had paid it down to a $0 balance. The lowering of my credit limit (to what I owed) lowered my credit score significantly. They were very vague, said they checked Experian (my score was 767….not anymore etc. They said it was based on how I use my cards etc. I think that looking at neighborhoods and shopping habits should be illegal profiling and borders on discrimination. In real estate this would be known as “redlining” look it up….this is discriminatory practice and the credit card companies should be prosecuted for using such a practice.

  166. Kelly Says:

    So, I just found out that BOA decreased my credit limit from 21,000 to 4,400 the other day. When I called to ask why I was told that my debt to income ratio was higher than they “would like.” When I asked for more detail I came to find out that they were only using the income from one of my two jobs and were not using my husbands income at all. When I pointed this out I was told “I know, it’s like a slap in the face. Is there anything else I can help you with?” WHAT?! I have been a loyal customer of BOA for 7 years now, have never had a late payment and have never even come close to using all of the credit limit given to me and yet I am being “punished” just the same. When I inquired about how this would affect my credit score I was told that it has already dropped from 720 to “slightly less than that” (but she wouldn’t give me a number). What can we do? This is going to snowball and affect everything in our lives.

  167. Mariana Says:

    Tonight I received a notice my credit limit with CHASE was reduced from 13000 to 500 dlls!!! I coulndt believe it so I called them to close my account who needs 500 dlls credit? I still have other credit cards which im planing to use more often in an effort to avoid the same situation. what really bothered me is that when I called them that “Lady” on the phone hunged Up on me when I was complaining about it and explaining how good of a customer i had been trough the years by making my payments in time … suddenly I realised I wasted my time when I heard a recording … yes she did Hung up on me!! I also have a checking account with CHASE which im closing tomorrow morning. this is something I wasnt expecting!!!

  168. Laurie Says:

    I received a letter in the mail from CHASE a few weeks ago and I have had perfect credit no late fees and never carried a balance always paid my card in full. CHASE made a change to my card and adjusted it because I don’t use the whole thing. I thought by having a credit card was to build credit and a good financial history. My limit went from $13,500 to $4,600! So much for building credit with a company.

  169. alaska airlines visa signature Says:

    I got a new visa signature credit card with a starting $10,000 limit.
    They let me go over the limit to $12,873 so far.

    I guess boa isnt all bad.

    MN

  170. Marc Says:

    Yesterday, I bought (or so I thought) a high-end multi-function printer using my Discover Card, which had a $10,000 credit limit. I never even come close to maxing it, and I always pay it off in full every month. Today, I got an e-mail from the company telling me that Discover Card denied payment. I called Discover, and I “discovered” (appropriate name) that they had reduced my credit limit to $1000! I’m already right at my max now! This is incredible! We need a class-action suit more now than ever!!

  171. David Says:

    I have banked with Chase for 8 years and have three credit cards with them (all solicited by the bank itself). One, that is used for business, had a $13500 credit limit. Chase dropped two out of the three cards’ limits to less than $1000 over my current balance. This effectively put most of my business dealings on hold until I can reduce the balances. But by then, they will most likely drop the limits even more. All this while retaining a credit score over 760 for years. I will find some other financial institution to do business with as soon as I am a little more solvent. Bank of America is even worse. Thank you for your information and allowing comments.

  172. Elaine Says:

    Hello –

    I think this is the most irresponsible practice I’ve ever heard of. I just got a call from Capital One on a card that I have had for ten years. I have NEVER missed a payment or gone over my limit or even CLOSE to my limit for that matter. I was told that they pulled my credit score and are lowering my limit to within a couple of hundred dollars of my ballance. This actually makes my credit look WORSE! Because it looks like I’ve been irresponsible and allowed a card to get close to the max allowance. My credit score is mid 700s as I looked at it about a month ago! I was told by the “manager” that I spoke with that he couldn’t tell me what was on my credit report that they did not like and was told that he was the “end-all” of managers and that I couldn’t speak to anybody else but HIM. Thank goodness this is a card that we don’t use often – pay off frequently and can take care of quickly. They will be loosing my decade of business.

  173. Cathy Love Says:

    Well, Bank of America did it to me today, lowered my credit line. Chase already had, as well as increased my interest rate. I am a registered nurse working full time, going to school for my doctorate. After reading all the posts, I suppose I can expect that they will chase my balance and continue to lower my credit limits as I pay my balances down. Balances on my cards were once (purposefully) only 25 percent of my credit lines, now are over 90 percent because of the credit line decreases. All because I chose to utlilize my cards’ low interest rates rather than take out student loans, what I thought was a very sound, reasonable, and economically smart decision. Now I am being punished for thinking well? It’s as if two years ago, I decided to buy steak on sale for $2.99 a pound, and ate and enjoyed it; then two years later, being told by the bank that the steak now costs $12.99 a pound, even though I ate it two years ago. I would never have made the decision to buy it at $12.99 per pound. How, please tell me, is this legal? Please, send this to Mr. Obama, and let him know how we are all suffering. The middle class foundation of this country depends on being able to make sound financial decisions that are not arbitrarily overturned by others because of THEIR poor business decisions. Help!

  174. Cathy Love Says:

    P.S. I also have not made late payments. I am paying a mortgage, on time. I bought a used car last year, and make timely payments. My credit score was 720, but not anymore! What is going to happen as my credit score bottoms out because of the actions being forced on me? This is not a democracy; rather, it more closely resembles a monarchy where the Big Bank is King, and it is off with the heads of the middle class simply because the King says so!

  175. Mr Credit Card Says:

    Don’t fret about it. Your mortgage rate ain’t going to change. Your auto loan is fixed also. As far as I can see, the two biggest loans you will ever take from your life are done (mortgage and car). Hence, you are not at a stage where you really need a great score.

  176. Mark Barfield Says:

    Happened to me today with First Equity. I placed an order knowing I had 90 percent my available limit. I found out my order was declined. When I checked online, I found my credit limit had been reduced 88 percent between the time of my last billing and today.

    I pay 10 times the minimum each month.

  177. So disappointed Says:

    I called BOA today to inquire on my interest rate and while they told me they couldn’t help me with that, they did tell me that “they had no choice” but to lower my credit limit right up to my balance amount. I’ve had this card for over 12 years, always pay it on time, and this is the repayment I get. And yeah, Mark the supervisor even told me to “have a nice day” before he hung up on me.

  178. Alex Says:

    I am amazed to find so many similar stories. Mine is the same: good credit score, no balance even to 50% of credit limit. Never missed or made late payments, never paid minimums. 2 out of 3 credit cards suddenly dropped my limits to just over my balances, causing them to appear to max out, causing my credit to drop so that now I can’t even get a consolidation loan. Then they raised the rates from 9-10% to 17-27%. So…what does one do? Aside from a class action against all credit card companies, how does one get out of such an artificially induced and unexpected financial crisis? I’m thinking of a debt management plan. Even though it would hurt me, at least it would force my interest rates back down and take any of my new business away from these crooks (some of whom have had my business-with never a late payment-for over 20 years). I would be interested to hear what others are doing.

  179. marcus Says:

    Wow didn’t realize so many people were in the same boat. I had several credit cards and credit lines slashed. I never missed a payment but now my entire credit line appears that i have maxed them out! ..However, i never used more than 30% of any credit line. So now i cant even get credit as my credit score as dropped so much. Its very disheartening knowing you work hard in paying your bills on time and they do this to you making you appear you have maxed out your credit which is totally wrong. It makes me want to go to one of those debt consolidation companies and negotiate reduced balances as why the heck should i continue paying them each month when its just harming my credit. Although doing the debt consolidation plan will harm your credit; least I’ll be paying back less as the credit companies are already harming my credit so it can get any worse.

  180. Kevin Says:

    Chase just lowered the limit on my card from $15,000 to $2500. My FICO score is over 800, I’ve never been late with a payment, I always pay the balance off in full every month, and I don’t even use the card much. Apparently that’s my sin, because the only reason given for the reduction was “inactivity.” I’m cancelling the card and my Chase bank accounts and only using local banks from now on.

  181. catx Says:

    In January 2010, I had a Citibank/Sears MC account with a $7000 limit and a zero balance. Citi cut that limit to $250! So I closed that account. No late payments on the account, ever.

    In February 2010, Chase cut the $8000 limit on a Visa card to $500. The account had a small balance of about $400 on it. No late payments ever on that account, either. That’s a useless limit so I paid off the balance and closed the account.

    Closing these accounts is probably what Chase and Citibank wanted me to do.

    Just this past week, I paid off a $4000 balance on a BofA card that had a $15,500 limit. BofA then immediately closed that account with no warning to me. Still waiting for the letter from them. I never missed or was late on a payment on this account either.

    My FICO score is 710. Curious what it will be after this latest move by BofA.

    I’m going to start using my employer’s credit union and probably ditch BofA, Chase and Citibank altogether. They lost the privilege of doing business with me.

    I would use a local bank, but the risk there is that they could get bought up by the bigger banks, like BofA and Chase. I don’t think that’s a risk with credit unions.

  182. Karen Says:

    I am in the same boat as everyone else here; good credit history, no missed payments, available credit. And then wham, made a large payment to my BofA card and had it sucked up with a reduced credit line only $100 above the balance. I was shocked. Called the bank, no help there..the same runaround that everyone else gets.

    I decided I needed to handle this proactively as unfortunately, this is the state of credit in America. It is a shame that the banks got themselves into this mess by giving credit availability to anyone, even if they had marginal ability to repay (including mortgages), and in the end it’s the good consumers who are suffering through no fault of their own.

    That being said, my approach will be the following:

    1. Pay off any cards with small balances (the small ones also factor almost equally in the credit score calc as do the large credit lines).
    2. Continue to pay down any larger balances at slightly above the minimum payment each month.
    2. Go back to the tried and true method of “saving for a rainy day”. Instead of paying large chunks to the cards, divert funds needed for travel, emergencies, etc into my savings account and start building it. I can transfer that to my checking/debit account any time needed.
    3. When the balance of savings exceeds the amount I need to have for reasonable emergencies/planned larger expenditures, then tackle larger balances. In the meantime, funds I might need which I had relied on the cards to provide is moot. I can’t afford to make $1000 + payments and have my whole line eaten up by that. I also worry that it’s a ripple effect, once it happens on one card, others follow suit. So, my approach is either pay in full, or continue paying off while assuring myself of a stop gap through savings.

    I think that the real issue that needs to be addressed is the whole “credit score” process. I find it insane that making a large payment to a creditor can result in not only your available credit being reduced but a reduction in the score. It’s a vicious, horrible cycle. I would think that making large payments should earn “better” scores, not worse. That being said, I would propose the following as a basis for a class action lawsuit directed not only at the creditors but at the credit reporting agencies:

    1. Banks should be unable to reduce your available credit to less than the amount currently owed as long as you have maintained at least minimum payments for a period of 24 months or more. If someone is charging irresponsibly and going over their “limit” purposefully, that’s a completely different situation.
    2. Any reduction in available credit line taken by the bank in order to deal with “their” issue of poor responsibility in issuing credit in the first place cannot be reported as part of your credit score calculation by the “big three”, Experian, Equifax and Transunion. These scoring companies maintain your friggin history, the system will show that you’ve been on time, never late, etc..those factors CAN and SHOULD be programmed into their system.
    3. The credit score system needs to go back to when you pay, how you pay, if you pay on time, etc. Much less emphasis should be placed on how much you owe as opposed to how you “handle” what you do owe.
    4. Above laws that are put in place around this will result in the bank’s more responsible granting of credit when things get better in the future; if they can’t just hurt someone through collective misdeeds, perhaps they’ll be a little bit better about what is given in the first place.

    I do realize that the banks are now “reacting” to their poor management policies in order to conserve cash. However, those of us who are weathering the financial crisis due to prudent decisions of our own should in no way be penalized. I understand the need of the banks to reduce risk; however, the real problem I see here is people who have had great scores suddenly trashed because of this policy; it used to be that people were innocent until proven guilty, we’re all being convicted as guilty even if our own financial management policies prove us innocent. Ultimately, the drop in credit scores for millions of us even though we have demonstrated our responsible handling of credit makes the whole credit score system unreliable, flawed and is HELPING to prolong the crisis. No one should be unable to buy a home/car because their score was reduced by BofA having a tissy fit over what they have lent, that’s BofA’s problem, not the consumer’s.

    This whole system needs to be seriously evaluated at a congressional level. Quite frankly, I’m sick of it. I’m tired of having “my” life affected by those who didn’t pull in their part of the bargain. It’s like getting spanked by mommy when your brother did the misdeed. The last I remember the United States was based on individual freedom for all and that you were not behest to your brother’s or neighbors mistakes. Unfortunately, we now all are.

    If you like anything I said above, please copy, paste and send it to your Congressman, Senator. A large uprising by those of us affected WILL earn results. We vote every 2 years, remind them of that. The middle class is still alive and well, we just need to shout a bit more.

  183. Joe Says:

    I thought I had escaped the shafting of the credit card companys when they were lowering everybody I knew credit cards my where left alone. I am a small business owner and need the credit for slow times. Well about 4 months ago it started. First one then another and now they have all followed suit and all saying it was a business decision and blame my debt to limit ratio. Well it was just fine before they stated lowering my limits for no reason. I have lost over 100,000.00 in credit limit. So I am sure my fico has gone in the toilet from the high 700′s that it was at. One has even tied my interest rate to my fico score. Isn’t that a kick in the butt. They ruin it and then penalize me for it. I talked to Citi (which is the worst) and was told we can’t change your interest rate, they certanly could change it when they went from 13% to 26%, but not now, go figure. I think what all Americans should do is tell the credit card companies to take a flying leap off one those skyscrapers our interest rate bought and paid for and twist in the wind for a payment until they learn to take care of there customer and treat us fairly. I realize we borrowed the money but we certainly didn’t expect to be shafted with rediculus interest rates. By the way I have never been late and I always pay more than the minimum payment.
    So maybe if they stop receiving our payments they will come to there senses and stop shafting the cunsumer.
    Course if we had a congress with a back bone and conscience they would have passed a bill with bite in it instead of window dressing the problem.

  184. John M Fox Says:

    Yea this really stinks. I thought I had it bad until comming across this blog. The worst part for my wife and I was that we just paid 2k on a card with BOFA, and as soon as we do that, they lower the limit to just above what the existing balance is. If anyone needs us to assist in a class action suit….we are in.[deleted email for obvious reasons]

  185. Martmanpdx Says:

    Welp, like the rest of you, I’m flabbergasted.
    Wells Fargo, with 12 accounts, $200 G’s in accounts, kids accounts, business accounts, drawlines, savings … they’ve reduced my $20K Platinum Visa (platinum blonde?) … to $6K.
    Reasons could be (as stated by them):
    - Credit reporting, negative
    - Too little time, between new activity
    - Too high balances on credit
    So I look up (through all three agencies) that I we have a 790 FICO (putting us in the top percentiles), no bad negatives and no new activity.
    The rep tries to tie it together that is a blend of all three, to which I laugh, out loud, and ask him if he is actually making any sense to himself.
    He admits he doesn’t write the rules, and I’m like “who does”, as a Computer Consultant, I can’t even fathom the algorithm, except.

    Credit allowed = Current credit – Reduce credit by 60%
    else, make it $200 above current limit

    Fine algorithm.

    I’m done with Wells, will move all my accounts, painstakingly to a local-er Savings bank, in hopes of finding some modicum of decorum and decency.

    I’m sickened by the stories of bailout, Wall Street fraud and blanket corruption by these instutions.

    Everyone should vote with their pocketbooks, I for one have paid tens of thousands to this bank in the past. Never again.

    Think local, think Credit Union.

  186. Henry Says:

    I have had my credit card limited reduced from 25k to 17k, the letter from the credit card company stated that I don’t use enough of the credit line. Perhaps they don’t like that I pay in full every month when I do spend. They also increased my interest rate to just under 30%, what is that all about?

    It is the only card I use, another card I have hasn’t as yet been touched, waiting for the same letter from that company.

    I have a mortgage which is always paid on time with added principal in effect doubling my payment every month. Guess they don’t like that either. I own another house that has no mortgage and is worth about $600k.

    Well, I for one have no intention of giving them the pleasure of taking one cent from me in interest charges.

    If we all work hard towards getting off the credit go round and instead put money in savings to use for emergencies these businesses will go out of business. Oh, too bad.

  187. Carol Says:

    What a shock I had today! Last year I did major home rennovations and charged materials on my credit cards … little by little I’ve been paying them off – and now in chunks or entire cards at a time in full! What a great feeling I’ve had that I have spent and paid so much myself! Today, my new American Express (Bank of America) statement was available on line … and had an amount still due – which is of course for the interest for the balance that I paid off – for LAST month … which I was about to pay as well .. when I noticed that they had reduced my $2,500 card to $500! And, yet I’ve paid on time … sometimes just minimum due – as I was paying off the higher interest cards first! Never late!!! Have they forgotten what a great customer I was – paying them their 24.99% interest for a year??? I have a full time job – annual income over $120k – with a retired husband (although no pension). I’m proud of what I make and what I’m able to do for my home. I don’t eat out lavishly – buy furs or luxury items … but believe I’m responsible with my money and any debts paid back! I would really like to CANCEL this card – but in addition to the negative their credit reduction must be doing to my credit – with debt to credit ratio, and the ANNUAL FEE that they charge for this card – I’ve heard that cancelling the card is another negative to my credit report! It’s a lose-lose situation! How to win here?

  188. Bob Says:

    As suggested from a person on this page, I sent letters to my elected officials, also the same letter to the web site whitehouse.gov. I asked what was being done about credit card companies ruining our credit scores by unjustly lowering our limits. Also as suggested by a previous poster on this site, I included the link to this page to show the numbers of people with the same problems, and each of their situations.

    I sent these letters back in February. I have yet to receive anything from the elected Mass (my home state) officials, but did get this from the whitehouse.gov site.

    I know what was done with credit card accoutability act, but as far as I know it does not cover this particular problem. In fact I strongly believe that it caused it. We all know how great he thinks he is, but how about anwering my question, or just plain do something about it!

    As I recall this all started happening to me a year after was elected. Remember, his “landmark law” took effect last February.

    Here is the letter from whitehouse.gov

    Dear Friend:

    Thank you for writing. I have heard from many
    credit card holders who have had their credit lines reduced
    or interest rates increased without clear justification.
    Concerns like yours remind me why reform is so necessary.

    Last year, I worked with Congress to pass the Credit
    Card Accountability, Responsibility, and Disclosure
    (CARD) Act. This landmark law took effect in February,
    and promotes greater fairness, transparency, and
    accountability in credit card practices. It requires
    companies to inform credit card holders of payment
    timetables and accrued interest, and it ends retroactive rate
    hikes and sudden changes to terms and conditions. Thank you again for writing.

    Sincerely,

    Barack Obama

  189. Jan Says:

    Hello All,

    I just got the big screw from Chase. I have been a customer of Chase for many years. Always paid on time, always paid 4 x’s my payment, was considered I thought a good customer. Well, decided to go on vacation and low and behold my credit card was denied. I thought “what in the world”, maybe my card number had been stolen. So I go online to find that my credit limit had been dropped by $1,000 which would of course put me automatically over my limit. Now I have received a letter from Chase informing me that not only am I over the limit but my interest rates has gone to 23.99%. This is freaking ridiculous!!!!! I have canceled my card, shredded it and sent Chase a nasty letter which did no good. My choices, pay the credit card off or tell them to stick it where the sun don’t shine! Any advice????

  190. Nancy Barton Says:

    Wow! Credit card companies are really screwing all of us over!!! I have been carrying balances that I am working on paying down but seems to be screwing me with Chase. They have cut the credit limits on all of my accounts with them over the last 6 months. Even going as far as closing one account down that I still have a large balance on. That particular account was a Six Flags Reward Card that I had built over 45,000 points over the last few years to cash in for season passess. Chase NEVER gave warning they were closing the account in January (although they said they did when we called and asked about it after being declined) Funny thing is, they were sending those balance transfer checks on that account thru March! They also took the points we had accumulated as well! I didn’t find that out until last week when I tried to redeem them. They told me when I called that those points are just a courtesy they offer their customers and they can take them away when the account is closed. After explaining to them that I didn’t choose for the card to be closed and they certainly didn’t send any warning of the closing so I felt like they owed me something at least season passes for the family or something, the “account supervisor” informed me that they don’t have to do anything. This is crap, I earned those points and they just took them away. I asked to speak with his supervisor and he told me, “I am an account supervisor. You asked to speak to a supervisor and that’s what I am.” After I said to him he had to answer to someone and I wanted that person. He kept stonewalling me and telling me I couldn’t talk to anyone else. Jerk had the nerve to ask me if he could help me with anything else. Screw those idiots. I am working hard to get these cards with Chase paid off, they think they can just do as they please with consumers after taking so much money from everyone. Chase has my mortgage, checking and savings accounts. Mortgage is scheduled to payoff in 2 1/2 years so will leave that with them, the other accounts I am seriousley considering taking to a credit union!
    Those of you with BofA accounts I must ask why use a bank that GIVES credit cards to illegal undocumented aliens? They don’t require a SS# to get these cards…I quit using any of my BofA cards when I found out that is how they chose to do business. If I had to give a SS# to get their card, everyone should. I quit using those cards and I will never use BofA for anything, thanks to the enlightenment I have gotten from this website!
    I sent a complaint about Chase to the US Department of the Treasury. All of you should send a complaint to them telling them what these banks are putting you through. You can file it on the website http://www.helpwithmybank.gov/complaints/index.html

  191. Chris Simone Says:

    BOA really screwed me by dropping my card from $3000 to $500 (not much to some people) right after paying off the balance. Here I was paying off all my other lower credit limit card, then closing them because I had the BOA card with a higher limit. I’m so aggravated with them right now. I never knew there were consequences for always paying your bill on-time, or paying off your balance.
    I really needed that available credit to show on my credit report.
    No wonder this country is going down the crapper, these greedy ass banks don’t give a damn about anything other then their wallets.

  192. Bonnie DeNucci Says:

    Capital One just lowered by credit limit from $7500 to $2700, just $250 over current balance. This is the second credit card this has happened to this year so I haven’t had the desire to depress myself by looking at my credit score. Though I had to laugh at one of the reasons they used which was “No mortgage showing in the credit bureau” What a joke. We’ve been in our house over 25 years and our mortgage has been paid off for over 5 years. I guess this is the reward we get for resisting the refinance boom and paying our bills on time. Class Action lawsuit anyone?? Count me in.

  193. Carol D. Says:

    I had an 800 credit score last year, now I don’t know! I went to charge a water heater on my Lowe’s card last night, which I haven’t used in over a year, and found that my credit had been reduced from $3000 to $200! It wasn’t even enough to enjoy the “no interest for a year” deal, which is how I acquire many things! My Citibank card left my $22,000 credit limit alone, but started charging me 29.99% interest! Luckily, I was able to pay the balance down to $27.00 before that disaster waiting to happen took effect. I would close that card, but it may be the only way to keep my excellent credit rating (if it still is excellent). I hate to think what happens to people when the companies raise interest rates like that and they can’t pay it off. They would drown in debt paying close to 30% interest! I paid my Best Buy card way down a few days ago, and I found out yesterday that they lowered the limit to just over the amount I have left to owe. This really bites! I’d better check my other cards that I have not been keeping track of, due to $0 balances. :-(

  194. Lori Says:

    Alas, just like every other tax payer who came to visit this site in search of information to get back at the credit card companies – I am in complete and utter awe at how many people have been effected by having their credit limit lowered.

    I have been with Target Visa for years and years. Paid on time, no lates, working on getting my balance lower, yada, yada, yada. In the last 12 months my credit limit went from $7500 to $2600 as of today. I would pay big chunks then Target would go and cut my limit to $30 above my balance. I stopped paying large amounts and started paying a little above minimum….well today I had about $445 available credit and BANG my limit is lowered again without notice.

    Suckers, you got me once…not again.

  195. Christy Says:

    I was shaking and so mad at this company! I have been an Old Navy customer for years and years and have NEVER been late on my bill EVER! In fact my credit score WAS, last year, close to 800 and with no lates ever of any kind. My husband was laid off last year and it was tough for two months until he was rehired with another, more stable company. My husband is a software engineer and makes 100K + a year and NONE of the details mattered to GE Bank when I called to complain and let them know that I have NEVER been late on any credit cards ever and have beautiful credit until a VERY isolated incident last year when my husband lost employment like so many in these times! So I guess now we are a high risk because Macy’s did the same thing! I was so depressed until I realized, “I don’t need those retailers at all!” I am a good paying customer and I will go where my money is desired and to h*%& with those two losers! :)

  196. steph Says:

    wow… I was wandering around the interwebs really hoping to find out it was illegal or something under the new laws… not caused by them. And I guess part of me feels a bit comforted that it isn’t just me. But this still sucks. How can this be legal??

    AMEX just decided to spontaneously drop my credit by almost 10k, after jacking it up for two years straight. Their letter starts out:

    “Given today’s difficult economic environment, all of us need to think about how we control expenses and reduce risks.”

    So the fact that I could _potentially_ use that money, and drive them deeper in debt scares ‘em, so instead of taking responsibility for their mistakes, they decide to take away what little I have to fall back on and kill my credit score. Wonderful.

    You get that lawsuit started, you can count me in.

  197. Bobby Says:

    The same has happened to me on my CC’s. I would like to be notified if there is a class action suit against the credit card companies. I will definitately sign up.

  198. Don Says:

    Thank You Bank of A for assholes. I just used Alaska Visa reward miles to get three tickets to Maui to attend my sisters wedding. Next I took my vacation savings and payed $5000 on my business visa so I could purchase my hotel through this card and receive more miles. They then took this money by lowering my limit before I could buy the hotel reservations.Do you think I’m pissed?

  199. roxi Says:

    Well we all are here to express how mad we are. I and my husband have both been taken for the credit card ride by Chase. We both had credit scores in the mid 700 but that sweet adorable CHASE wanted to make sure that didn’t last long. We both had a WAMU card that was gobbled up by chase. So now chase has 3 of our 4 credit cards. So what do they do but start reducing the lines of credit I pay 9,000 and they reduce the cards by 6k. These idiots even have our mort loan. You know why they do this by lowering your line your score goes down they know you are a good customer, heck they even call you after they do this and try to get you to buy into one of their other products..(Yeah thats going to happen)So now they have messed up your credit score and no other bank is going to touch you because you now look like your in trouble on paper. They have you you can’t go anywhere else and you know you have to have credit cards for hotels, rental cars, trips etc…. So we are stuck…I say that the whole credit reporting system needs to be changed…Now that will be hard because who supports the credit reporting agency…the banks! yep the banks pay the fees and the agency reports how they the banks want things reported. So until there is true reform…not lets put everyone on the same playing field…some of us did right we continued to pay our bills while other including the banks didn’t they get bailed out because of poor money management and we get the you know. So here we all are paying for all the idiots that can’t manage money or became so greedy that they did what ever they could to make money that we now get to sit back and ask was it worth it. Maybe I just shouldnt of paid anyone…I might be better off someone could of bailed me out.

  200. AmericanCitizen Says:

    I whole heartedly agree with so many Americans here. It’s incredible, I just spent 20 minutes to browse through the comments on this page and am blown away by how many people have been screwed over by these big banks.

    Amazing how our economy and government and finance industry are totally failing and taking care of the American people.

    I’m normally an optimist but feeling more and more pessimistic lately about the state of our union.

    Today I got the letters that my Chase cards formerly First USA and Wamu are having the credit line lowered.

    I called and complained…it’s like talking to a brick wall! With my Fico score high and my always on time payments and other regular good credit habits I find myself being penalized by CHASE.

    These fat cat bankers sit up in their wall street towers while the rest of us sweat it out to make ends meat.

    We all know that it can’t and won’t last. What do you do?

    Class action suit? What’s that going to do?

    I say clean the government…wash it good of all those dirty politicians (term limits) whose cronies are in all the major industries of banking and finance, pharmaceutical, military, health care, alcohol and tobacoo etc etc … it’s all too corrupt and now we are seeing the results of this scandalous behavior. With more to come I’m sure. The house of cards can only stand so long.

    Check out Capitalism the movie by Michael Moore… answers a lot of questions about our government and our finance industry.

    Also, read up on deepcapture.com to see the type of people running these banks and wall street.

    We all know one thing is going to change the government…and I’m happy when that change will come.

    Isn’t it about time that the companies of America serve the people and not the other way around.

    I agree with one of the other commentary.

    Bank with smaller banks in your community. It’s better in the long run.

    Chase / Citi / BOA all should be broken up into small little pieces.

    They are way too powerful.

    The problem 20% the solution 80%.

    The problem… big banks have too much power and influence.

    Solution… break them up and give more regulations…

    Have we forgotten that this is a country of the people for the people by the people.

    It’s apparent that corporate interests have taken over the government… in fact that was noted to be one of the weaknesses of our government by Thomas Jefferson.

    Your choice?
    Leave the big banks… support smaller banks.
    If you have to use a big bank…do it as minimally as possible.
    Support your local banks and your local community.

    Contact your politicians…

    Vote outside of party lines… vote for the right politician.

    Demonstrate and organize. Be proactive, be educated, be proud to be an American.

  201. Tara Says:

    wow. just happened to me too. credit reduced from $3000 to $1400, just above my balance. I’ve never been late paying and have been paying way over the suggested payment almost every month. Time to consider going creditless.

  202. Kandy Weaver Says:

    I am just Sick to my stomache!!! I can’t sleep at night, tension in the home is bad. We are a stones throw away from Bankruptcy. We went from the high 700′s to god knows what now. Every single credit card in the last two weeks has dropped our credit availibilty from x amout, to within $200 of our balance. What do we do????????
    I am scared to death. I have 4 mouths to feed, and I feel like our reputations have been ruined!!! Class action would be great IF I thought it would actually happen.

  203. LittleLucy Says:

    I have a question and I am hoping someone will be able to answer it for me…..Chase reduced my credit limit not once, but twice to below what I owed. In addition to dropping my limit, they are now charging me over the limit fees and calling me at my home and work. Has anyone else had this happen and is this legal? Thank you in advance for any replies.

  204. Jerms0701 Says:

    I had one of these situations with U.S. Bank today. Have their line of credit and the limit was 14,400. I have paid this balance down to a little over 1400 in and so this month they decided to cut my limit to 3000. They have done this with my Platinum card as well. I have never had a late payment with them and use them for all my banking needs (checking, savings, auto loan). My credit score has actually increased over the past 6 months and yet they do this. I am fed up with the big banks. I am paying off all my credit with them and moving all my business to a local bank who will treat me like a person. I think we need to get behind the local banks and show these large companies that they can not survive with out their good customers.

  205. rich Says:

    Target VISA. Customer since 2006. $10,000 limit dropped to $500 limit after making $10,000 payment July 2010. After calling get a stock response to blame experian. WTF, I just sent you $10,000 how can I be a worse risk than anyone else? That kills available credit and FICO score. 3 mortgages on 3 rentals, paid down $30,000 in revolving credit in July. Multiple types of credit all paid perfect for years. The day after dropping my limit an email, “Thank you for using Manage My REDcard and for being a valued REDcard accountholder.” If I’m a valued customer, how you treat not valued customers?

  206. monika Says:

    me too.
    Capital One…6500 line down to 2100 today.

    I figure that I’ll just have to pay it off and close it up…the interest rate is too high to keep a balance on anyway.
    Then I’ll close the store cards and my small HSBC & Chase accounts.

    Why should & keep any of them in business with the rates they charge ranging from 3% to 24.99%?
    As I see it (and as we all really should) they are LUCKY to have me (and all of us) paying them each month–for what???

    I’M CHANGING MY POINT OF VIEW!
    I say be done with them and worry not about the dreaded FICO score ruining our lives!!!
    The more of us who stop using their services–the weaker they will become.
    FICO scores will become useless and taken much less seriously.

    “It is function of government to invent philosophies to explain the demands of its own convenience.”
    -Murray Kempton

    And these plastic cards just aren’t working for us anymore!

  207. Susan Says:

    I just learned about this the hard way. Capital One increased my limit from $1500 to $5500 last year due to making payments on time. This evening I was trying to book a hotel for a trip and my card was being declined. I didn’t understand why, I had enough to cover it. I logged into my account and saw where my credit limit was lowered to $3000, just $300 over what I owe. They never send me a notice via snail mail or e-mail. I make my payments on time and pay well over the min amount due. I am in a WTF mode right now. I use this card for emergencies and now if I have one I am screwed.

  208. Dale Says:

    They know what is coming and they are pulling back their money.

  209. James Says:

    I would like to see a class action lawsuit filed. The best case scenario would be that credit reporting agencies could no longer ding our credit reports for these sorry companies lowering our available credit down to make it look like we maxed out the cards. We too are victim to having our score be grade “C” from grade “A” due to this scheme they have going on. I believe they are doing it to purposely make the interest rates go up. We the consumers are being screwed. I would close them all, but then again, I would be screwed again. HELP!!!!

  210. Sheila Says:

    It not “who’s credit limit” it’s “whose” credit limit…

  211. sciencelady Says:

    Over the past couple of years our available credit has been slashed also. It started with AMEX, 30K to $500, and has continued with Chase closing about 4 accounts, Citi, Bank of America and now Capitol One has gotten on the bandwagon.

    I think James may be onto something “I believe they are doing it to purposely make the interest rates go up.” When we last spoke with our financial/retirement advisor, she expressed her concerns about a coming inflationary period and the devaluation of the US dollar. Perhaps the banks can see the handwriting on the wall better than we can?

    It will be interesting to see what happens in the financial markets after today’s “historic election.”

  212. Craig Says:

    Same story, Bank of America sent letter reducing credit limit. Two days later my statement came in and I noticed that my new credit limit was actually 101.00 less than what is owed. I feel sure this will result in an over the limit penalty on the next bill. I would be very, very interested in any class action against these *&^$%*^ especially since none of my cards were BoA until this past year or so.

  213. Bret F. Says:

    I make almost $250k a year, I received credit card offers a few years ago for $15-$18k and low apr’s…I have never missed a payment, never late and never gone over my limit….3-4 years ago when, Citi-Chase etc… gave me the large limits I actually made less money? Now, they lowered my limits to near my balances and raised my rates. My FICa went from 750-793 down to 645-685 which hurt me financially when I went to buy a truck recently. It cost me 1-2% highre on the APR or $15-$35.00 per month @ 72 months or almost $2,500.00. I want to know, when they took the stimulous money from the government, why do they stop lending, raise rates, lower limits and pay BONUSES to executives? WTF is wrong with this country?? Why do we not launch a mass law suit and sue the banks for unlawful (or maybe its ok?) business practices? If the banks were car dealers, they would be closed down!!

  214. Bank Robber Says:

    Can’t we do anything about this? It can’t be legal in this country? Please, someone gather information and let’s put together a class action lawsuite…..PLEASE, for the love of GOD, some ambulance chaser, please do something right and help us?

  215. big al Says:

    2000 to 1200 to 700 . i dont need chase if they are going to do that . always paid ahead or on time . ill just use my bank debit credit from now on screw chase bet they arnt cutting the CEO bonus

  216. Corrie Says:

    I realize this thread is two years old. Has anyone actually looked into this?

    My limit was lowered by nearly $3000 after not having any late payments and with most of my payments being double or more than the minimum payment. Just when my credit was looking nice again, they lowered my limit to only $50 above what I had charged. Now, it appears that I have a maxed out credit card, which I assume makes your credit score do a nose dive.

  217. Michael Says:

    Two BoA cards — one with a CL of $25000 (currently at $23K), the other with a CL of $11,600 (currently at almost $10K).

    We haven’t used either card in YEARS, and have been faithfully making payments each month.

    Just did a balance transfer to lop off about $7K off the higher-limit card.

    RESULT: Two letters from BoA, lowering our credit limits for BOTH cards to, respectively, $16,600 and $10K. Interestingly, the new CLs are within spitting distance of putting us OVER the limit with just the interest (again, we’re not using the cards…just paying on them). Coincidence? I highly doubt it!!!

    WTF?? If there’s a class action suit in the works for this kind of nonsense, count us in.

  218. Joe Says:

    BoA is of the devil. Period. I have a credit score of 800. Never been late on a payment, never bounced a check. Had 2 BoA cards, one with a CL of 13k (zero balance held jointly with my wife) and another with a CL of 12k (1,000 balance). I received an alumni credit card offer from my former college. The offer was for 0% for 12 mos. and 13% thereafter. I received a call from BoA indicating that I was being denied for the card based upon the fact that I have way too much open credit and 20k balance with AMEX. Ok, so what? I have been a BoA customer for almost 20 years now and have never had a problem with my credit. They held firm and denied me the card. But it didn’t end there. I received notification just before Christmas that they cancelled the zero balance card with the 13k CL and reduced the CL of 12k to 1500k on the other card. I was appalled and called to complain. I’ve never been treated so rudely and with such inconsideration. BoA has refused to restore my credit limits and this will certainly damage my FICO score. I have been never been a credit risk and have always met my obligations in full and in a timely manner. BoA’s decision was unjustified and I will promptly close my checking and savings account and move my money over to Citizens where I’ve also banked for years. F’k BoA!

  219. Tim Fuhrman Says:

    After having my credit limits dedreased by US Bank on 3 cards and one Business credit card and fighting with the bank to have my limits restored, twice, only to have them decresed a few weeks later, I just canceled them all. Yes, like all of you I had perfect credit, Fico around 780, because of the decreases, it lowered my fico to around 667 never a late payment and always paid way above the mininum and this is how they treat their good customers.

    Like I said above I canceled all of them, yes I still have ballances however the way I figure it, by canceling them I will save my FICO in the long run it will just show a ballance not a credit limit.

    yes it will show that I canceled the cards but after a few months. everything will be better, as long as I pay a little over the mininum, they cant report me late, they cant keep decreasing my limit and have to report me as paid as agreed. I feel great and beat them at their own game Ha Ha Banks two can play that game

  220. Elizabeth Goodcild Says:

    Can someone take the leadership on this and CAN DO SOMETHING ABOUT IT…WE ALL HAVE BEEN HURT BY THESE CREDIT CARD MONSTERS…THE STORY IS ALL THE SAME…BUT ITS BEEN 2 YEARS OF THREAD DISCUSSION…WHERE ARE WE ON THIS? I just don’t how we can fight it….DOES ANYBODY HAVE ANY IDEA???? LET’S ALL DO SOMETHING ABOUT THIS. To the author of this website..please email all the people on this thread…please resuscitate this problem…I am begging for change!!!

  221. Barb Says:

    There is another side to the decreasing credit limits , auto ins. in my state won their battle to set rates according to credit rating and that means that a lot of people will be hit with higher premiums because the credit card companies have reduced credit limits despite them following the rules and always paying extra and on time. I am one of those that most of the time has always paid double or much more than double the minimum but yet my credit limits have been considerably reduced.

  222. Andrew Gunn Says:

    I think the point here is that the credit card companies just don’t have the cash to lend. The integrity of the credit card company is being looked at by their lenders, it would be silly of anyone to think that say for example that AMEX had trillions of dollars to lend just because a card holder decided to purchase something. The card companies are also borrowers and their own credit scores are suffering at present so their available cash to lend is less. It is also my view that a lot of these financial institutions have made bad investment decisions over the recent years, and are making their good solid customers pay, and it does rub you up the wrong way when your limit gets reduced. Here in the UK we have the same problem, and since the crisis, I have made a point of paying off debt, only buying what I can afford and using a debit card(straight from your bank balance here in UK) rather than a credit card, its silly to give them more of your hard earned cash in interest and other charges. Credit is no longer cool i’m afraid!

  223. Henry Says:

    CITI SHORT THE AMERICAN CONSUMER

    Citi reduced my credit limit from $12,000 to $1,000 per month. I have had an account with them for 9 years, was late maybe twice during that whole period but the last instance of tardy payment was years ago, and had no negative credit report events justifying their view of me as high risk. Citi refused to provide an explanation for the huge decrease in my credit limit. I paid 75% or more of my monthly balance every month.

    After giving this some thought and noticing many personal and business card account holders going through this same experience and noticing Citi’s massive expansion into emerging markets, a far darker motive is in play. Citi views non-C level executives and consumers in America who spend less than $30,000,00 per year and lack the means or proclivity to spend this much as a “legacy asset: overextended and un/underemployed or at risk of becoming so in the future.” Citi already received their TARP funds, projected that the US economy is in permanent decline, and has decided to cash out of their home market to focus on millions of new consumer in BRIC countries. This is a macroeconomic decision made by senior level management.

  224. Steve Says:

    My wife called her credit card company today, BoA I believe, to ask for a higher line of credit, as we have some moving expenses coming up and wanted to make sure we could cover them. Instead of giving her the higher line of credit, they LOWERED it…by 10 grand! What really stinks is that my wife made a point of mentioning that she wanted to make sure she kept a good debt to credit ratio since we would be applying for a mortgage soon! So now we look like we ran up the card, with only 700 dollars left as a balance. We paid more than the minimum every month and never had a bad report.
    If we had never called them to ask for the increase….ugh.

  225. Dave Says:

    I also have a credit limit of 750 and have had been using discover for 21 years with out ever having late payments or excesive debt my credit dropped to a 500 limit for no reason. I have noticed that since the bailouts the banks and credit card company are intentionaly destroying peoples credit.It appears to me that for some reason if you are not wealthy they are doing what they can to push 75 percent of the people to the bottom.with all the bailout to help out the economic structure that the banks are doing everything they can to extort the bail out money as most have noticed that more people lost homes after the bail out in wich was supposed to help.creditors destroying your credit is nothing more than greed.the peoples money is what bailed them out and appears we have paid the banks to destroy us and the economy. I am saddened that this is happening to good american people.

  226. Kem Lingelbach Says:

    Well, it happened to me this week with Belks. I paid off a 842.00 balance; I had a 1600 limit. Once I paid off the balance, they dropped my credit limit down to just 100.00. I called and complained, then cancelled my card. I just hope it will not affect my FICO since I closed it right away.

  227. Jason D Says:

    HSBC just reduced my Best Buy card from 2,000 to 2 dollars!!! My previous balance was 775 so this is going to hit my credit hard since I do not have many open accounts(mortgage, other credit card, car loan). I have perfect credit and have not been late on any payments in the past 10 years. I was a personal banker so I understand the impact this will have on my credit and just about everything there is to know about a credit report. For reference my credit score is around 750 middle. This is complete BS, I pull my credit every month and I am curious about what my credit score’s will be next month. If this affects any of my other account’s I will be calling my attorney. Credit is such a scam today. This little game that HSBC is playing could cause my insurance rates and other account rates to increase. That is why it is corrupt ,and crap like this shouldn’t be allowed unless the consumer actually did miss payments significantly or is only paying the minimum payment each month concurrently.

  228. Michael M. Says:

    I was flabbergasted today when I went to use my Sam’s Club Discover card and it was declined. I went to the ATM machine to check my balance (I knew it wasn’t over $5,000) in case I might be the victim of identity theft. I didn’t even have the $1.00 fee to pay for the ATM inquiry available. I called when I got home. They lowered my credit limit from $7,000 to $5,000 without warning. The rep I talked to and could barely understand finally transferred me to a supervisor. The supervisor had absolutely no information and was not at all helpful. All she said was that I will receive a letter outlining changes on my account. I was running a $6,000 balance 3 months ago and paid it in full. I have never been late on a payment and I have never maxed the card out. I am completely stunned by this. Alienating good customers is a really bad practice. I intend to pay off the balance this month. I will keep the account open but will never charge more than $100 on it again and will pay off within 30 days. I would cancel the account if I didn’t think it would hurt my credit score even more than it probably already has. I’ll be going back to American Express. I never had any issues with them.

  229. Anna Says:

    I just looked at my BofA credit card account and my credit has been dropped from 15,000 to $500! I have a credit score of 720 and have never missed a payment! I have a significant amount of cash in the bank (BofA) but I do owe a lot in credit cards as well, although, again, I’ve never missed a payment. I’m really upset over this as BofA is one of the 2 credit cards that I have kept and $500 credit is close to worthless.

  230. Sheryl Says:

    Me too… Just like the rest of you. I carry a $700 balance on Home Depot card and it was lowered to $800 credit limit from $3000 and my Walmart card was lowered to 20 dollars over the $500 balance I have. I have a great job, own a home, pay my bills on time, pay more than the min due. And like the rest of you I am confused, hurt, embarrassed, angry and want to know what the hell is going on.

    I hope we soon find out what the credit card companies seem to already know.

    I also think I’m going to cancel these cards and just pay them off. That was a good idea I read from someone’s post here.

    Take care everyone!

  231. Jay Says:

    I was screwed over this afternoon by HSBC. I had just paid off the 400 balance and recently put just under $200 back on.
    Never had any issues w/ this account. Maybe late 1-2 times in the 8+ yrs Ive had the account.
    I went to purchase an item and it was declined. I thought that was impossible, My CL was 2900. I then called to find out it was reduced to $300 . This is Ridiculous!!
    I can’t wait to lay into these Morons either tomorrow or monday.
    Very Tempted to just drop the card.

  232. Beverlee Says:

    Me too. I have been a loyal Sears customer for over 30 years, and my mother was before that. I have bought all my appliances-washers, dryers, refrigerators, dishwashers, as well as clothes, tv’s, lawn mowers, rototillers from them. I had $400 balance on what I thought was a $9000 credit limit. We go to purchase a new washer and dryer for $2000 and the card is declined. I call and was told the credit line was reduced to $1000 last March because of debt to income ratio. They will absolutely not raise my limit to purchase the appliances. I pay on time and have paid off all of these purchases over the years. I was stunned. No wonder their sales are down and credit cards are being paid off–because the banks are tightening credit on good customers who would buy their products. It makes me feel like never setting foot in another Sears store again. Penny wise, pound foolish.

  233. Matt Says:

    This is such BS…
    It happended to me right before Christmas this year. I paid my Credit Card (PayPal Master Card) in full, i had always paid my bill on time and often paid at least $50-$100 more a month on the payment. In November i paid the entire bill (i had a balance of $1440 on a $10,000 card), PayPal after cashing my payment immediatley reduced my credit limit by 90%. Which of course snowballed my credit rating 30 points. The worst thing is i didnt know about this until i tried to use the card which led to a very embarrasing situation. This is an all out war on consumers. Now my other credit cards are doing the same thing because my debt to income ratio has ballooned. All of this started because of Paypal. They are ruining the lives of good people based on a computer algorithim, the human factor has been abolished. The computer says because i paid my bill in full this was an irratic fianancial decision and therfore cannot be trusted to have more money. To add insult to injury, i wanted to refinance my truck as the refi rates at my local bank were 2-3%, my own bank, with whom i have banked with for 18 years denied due to the recent drop in credit lines. I have had 2 mortgages, 1 home improvement loan and 3 auto loans through them and NEVER defaulted. I am so sick of this…and teh sad part is there is nothing we can do. Now i read that credit companies are basing decisions based on geographical real estate regions? What the hell does someone in a neighborhood down the road defaulting on his mortgage have to do with me paying my bills, why should i and my family be punished for somone elses lasck of financial savvy?

    sorry folks rant over, im just so sick of this nonesense.

  234. TL Cole Says:

    What BS! (But thank you for your thorough explanation) I’m out with friends and my ETrade Visa credit card was declined. Huh? This is a card I’ve had for nearly 10 years, never late, $10K limit, and usually about $1,000 a month in charges with I regularly pay off. So I call Etrade and am told that my credit limit has been lowered (to exactly the amount of my outstanding balance — how convenient for them). Oh, and also a letter has been mailed out explaining why.

    So I immediately think credit fraud, get online and check my credit report with all 3 big guys. It’s good, nothing has changed — except for of course the part where my total balance has suddenly become my total credit line, which obviously lowers your score.

    I call the not-so-friendly-folks at Etrade credit card division back to calmly explain that if this is not resolved, I am going to immediatlely move both mine and my husband’s IRA accounts, not to mention a Complete Savings account, and a brokerage account from Etrade to well, I don’t know who yet. But somebody who doesn’t crap on their loyal customers. I’ve always been a big fan of Etrade, to the point where I’ve recommended the online brokerage to friends and even my Mom. But now, I am one of their biggest BAD-MOUTHERS. I will tell anybody who will listen to RUN.

    I DON’T CARE THAT THAT ETRADE BROKERAGE IS A SEPARATE DIVISION FROM EDTRADE CREDIT CARD! I go to one website to see all my accounts. And the credit card prominently displays the Etrade logo. Bottom line is that the Suits from both sides need to get together and determine what actions will help/hurt their overall bottom line.

    This ridiculous and inconsiderate move is absolutely going to hurt theirs. I mean, what’s happened to common courtesy? AT THE VERY LEAST, they could have mailed out their “we’re reducing your limit for no reason” notifications IN ADVANCE of actually doing so. At least then I wouldn’t have monthly auto-bill subscriptions and services bouncing…

    I’ll shut up now. But, people, please. Let’s not take this abuse. Tell everyone. And move your financial resources to a company that will respect you.

  235. Karen Says:

    I have several cards but did not charge more that 40-50% of my credit limit on most of them (had about 2 cards that were charged to 80%). I have not used any of my cards since 2009, I pay more than the minimum on most of them, never been late & have even paid off 4 of my accounts. Since late 2009, one by one my creditors have lowered my credit limits on my accounts (Capital One went from a CL of $15k down to the $6K I owe) and they keep lowering the limits as I pay them down (Sears went from $5K, down to $3k, down to $2k, down to $500) so my credit score doesn’t have a chance of recovering! I made a deal with Citibank last year that I would not use my card for 12 months (not a problem – I wasn’t using it anyway) if they would not lower my credit limit – they agreed. When the 12 months was up, they lowered my $12K limit to the $4K I owe. When I called to complain, they said that they were well within their rights and that our previous agreement was over. Every bank I talk to cites their reason for lowering my limits is because my ratios are too high. My ratios are too high because they keep lowering my limits!!!! Not sure how to repair the damage these limit lowering attacks have done to my credit. I just keep paying my accounts and they just keep lowering my limits, not sure who’s gonna get to zero first…my credit limit, my FICO score, or my balance!! The race is on!

  236. Ed Says:

    Bank of America just closed my credit account. It’s only $1500, but I just made a $1400 payment and the balance never goes that high – unless it’s Christmas. I’m pissed. I paid it off so I could use it. Now I don’t even have that! I am going to withdraw all my money from that bank and close everything. This is not fair, and so not cool. I am never late, never over, and have plenty of money in my accounts. Cash people. Lets use cash!!!

  237. Herbert Says:

    Hello, I have a paypal plus credit card that I use with my ebay and paypal. it was set up just to use for small charges. I have had the card for 5 years never was late or missed a payment. My credit was lowered for no reason. I called customer service and asked her why? She said it wasn’t lowered and my account was good. I asked her to look at my statement a tear ago and report back. She put me on hold and said she sorry that it was in fact lowered for a management reasons. I said tell your managers if they lower my credit again I will cancel your card. I will also tell all of my friends to cancel their paypal plus card and pretty soon you will be looking for a job. Thanks She said, thank you we appreciate your business, “I said, know you dont”. Good Bye

  238. William Says:

    Just happened to me, have had a credit card with USAA since 2006 with a limit of $6200. Currently have a zero balance, and when I check my account today my limit dropped to $2500. Sent them a wonderful letter (sarcasm) but I am sure nothing will be done. Best thing I can do is not use it at all anymore, therefore not giving them any of my hard earned cash.

  239. Paul Says:

    Chase Bank, with whom i have had a terrible relationship with since 2009 when one of the tellers refused to give back a check i was attempting to deposit in my account and was then accused by the bank manager and the teller of stealing. The check was from the company I work for and was eventually deposited after I talked to the head of human resources at my company who talked to someone at chase. Anyway, Chase just decreased my credit limit from 3500 to 1100 after I paid off my balance with my tax refund. They are a crooked bank and I regret ever having opened and accout with them. It will all be over soon though.

  240. Terry Says:

    Target started that downward trend for me too…they lowered my credit limits, starting a spiral….most of my cards are now just at the limit, making me look like a maxed out mess. I have paid on time, every card ever and thanks to this new credit card company trend and a very unfortunate short sale last year, my credit sucks. I went from over 700 to a measly 569 with red flags all over my credit report….if they keep lowering my limits, it only exacerbates the apparent “problem” credit card companies see when they review my reports. I am sick of this crap…will somebody please stop this, fight it or something? It is so damn depressing……

  241. Errica Says:

    I had a shortsale 3 months ago so BOA decided to cancel every single card I had with them. I found this out when I was trying to pay for my car. I am very angry and I will be leaving BOA. Even though I had a shortsale, I never missed a payment ever! Then I started to look on the bright side….I don’t really need these credit card companies as much as they think I do! So I decided to not use credit cards anymore. Screw them. If they want to treat us like trash and throw us away at their will, then I don’t need that kind of abuse. If we all band together and stop putting ourselves in debt, maybe next time they will treat us with a little more respect. Because truthfully, at the end they need us more than we need them. I am going back to cash! Cash is KING!

  242. Adam Pedersen Says:

    I recently made a large Payment on my B of A visa Alaska air card. I Paid down $5000 on my card that was carrying a $7300 balance. My credit limit was $7500 but i make large purchase amounts regularly and then when i can, I make large payments to bring the balance down. I had set up an automatic payment with them from day one. I never once missed a payment, nor do I have a single negative mark on my credit score that sits at 720. The $5000 payment on the card posted today and in the SAME DAY within just a few hours they lowered my credit limit to $3000. Can they do that?? Can they have a payment come through and then on that same day take all of those funds away from you?? Isn’t there some kind of law that restricts the amount of time it should take after a large payment is made for these company’s to then decrease your limit? I just gave them almost all of my money I had in the world, and they leave me with nothing to show for it…and on the same day they finally make the funds available!! Now i do not know if i will be able to pay my Mortgage, my car payments, or even put food on the table. It is criminal what they did. How are these company’s allowed to do such a thing without first giving you some kind of warning? Because of this I am now in such a distressed situation that I no longer know what i am going to do. I have spent the last 13 years of my life making sure that I stayed on top of all of my finances, payed everything on time, and never fell behind. Please, if anyone knows anything about this, tell me what i can do if anything…any advice would be greatly appreciated!

  243. USAF Ret Says:

    There is no way to win with these folks. When I pay off a credit card they have lower my my credit card limits from 15K + to $100. Can you believe it? Fine with me because I will never use them again. Kiss off credit card companies – I dont need you ever you again!

  244. Amanda Says:

    I paid my home depot charge account off 2 years ago. It had a $11,500 limit which I had used to nearly the fullest and then paid it off with a tax return. In any case, they have been sending me’0% interest’ deals in the mail and ‘% off coupons’ in the mail ‘if I use my card’ ever since.
    Husband and I have been looking at carpet lately, decided with their $1699+ purchase/24 months same as cash coupon that came in the mail + my $11,500 credit line sitting there unused,+ 10% off coupon + free upgrade on padding, we’d take advantage and get 3 bedrooms re-carpeted. Cost: $2100.
    Just got this done, just got a 6-months same as cash offer in the mail and noticed that my credit line said ‘$5K’. So, in the 2 years we didnt use our credit, we kept a huge limit available then, when we finally do use it, they cut our credit limit over 1/2.
    I wasnt planning to charge any thing else, but still, very frustrating considering we both have 740+ credit scores, always pay more than our minimum payments or, pay things off, and have lowered our debt to income ratios over the years.
    Im thankful that it wasnt cut as much as some people’s Ive read above, but still, its very frustrating.

  245. Nichole Says:

    I have been paying on my husband’s overdue child support. We have a low amount Mastercard through HSBC, which is now owned by Capital One bank. The child support collector now only accepts Mastercard and Discover, the credit card is a mastercard and out debit card has a visa logo on it.

    I paid all I could, the whole enchilida. I did it again in the same month and paid off the credit card not once, but twice. Well, I overpaid it so that there was a balance due by the credit card company to us.

    Now, I look at the account and they have HELD the last payment, even though it has cleared our bank account already. It shows we have a balance due, even though I paid it off.

    This week, I am paying with a check from our checking account. Who needs the child support “convience fee” and who needs this crap from the credit card company?

    We live a cash based life, for the most part. We have a $300 CL credit card that is paid off for the most part every month and a car loan that has never missed a payment. We have bad credit, but we have been paying it off in chunks.

    Unlike most of the people here, we have built up a security fund just in case of an emergency in our local credit union and we do not deal with credit card companies on a regular basis.

    Check with your local credit unions and see if they do “credit building loans” so you can build back up your scores. You deposit money in a savings account, and they report to the credit bureau. They have the loan in full before you even take it out, and you get it all back when you are done, some even give you the interest too.

    We, however, are looking into buying a home and will be purchasing with 20% down. Only 3 more years to go….

  246. Laurie Says:

    I’m so glad I found this site! After years of building and maintaining excellent credit,(no late payments EVER on any account) Bank of America dropped the axe on my two credit cards (after begging for my business). Unfortunately, like so many of you, my FICO score that I’ve worked so hard over the years to improve has taken a major hit. When all is said and done, THIS single issue that screwed my credit rating has caused anger and frustration towards the powers that be. Although my credit limits at B of A were quite high and balances low, I frequently checked during the month to see that nothing unusual had transpired on the accounts. Lucky for me…this is when I found out that my credit limits had been decreased by over 2/3′s…to just a few dollars over my balances. No letter was ever received informing me of the change. Good thing I didn’t go out and charge something or I would have ended up going over my limit..ding, ding, add on a penalty fee…ding, ding and a blemish on my credit. I called B of A to find out what was going on and received some nonsensical reasoning as to why the drop. Being totally ticked off, I closed both accounts on the spot. I’m still making monthly payments on time each month but they can’t lower the limits again and cause more FICO issues. WHERE is the common sense in attacking those of us who play by the rules. No wonder some people go the bankruptcy route and start fresh with secured credit cards. I would really like to know what kind of hit their credit scores take and how long to build it back up to where mine has plunged…and I’ve ALWAYS been responsible for repaying my debts!!!

  247. Claudio Says:

    I have had an amazon credit card for like 10 years. It had a limit of 1170 which I was close to paying off. I went to buy my niece a present with my avialable credit and come to find out I did’t have enough for 250 bucks. For no real reason they just reduced my credit. This is a scam to lower your credit rating so you have to pay higher interest. I contacted Amazon and told them they just lost a customer for doing business with GE capital. I told them I would never buy from them because with Cash I can get it anywhere cheaper. Ge Capital only “Randomly” does this when your close to paying off your card. Not sure how that is random. So they lower your credit because you pay off your card. I guess it’s anything to make a buck. I don’t trust them. I don’t like this kind of businss. I’m done with them. I am quite angry.I’m done. Cash is god, think i’ll just start paying them all off and be done with them since you can’t count on them.

  248. Pam Says:

    Just happened to me, and had never heard of this before. I was shocked to find Capitol One card dropped my credit limit from7500.00 to 4000.00. The reasoning was excessive use of the card (haven’t made a purchase in the last two months) and high balance..which was approximately a 3000.00 balance. I made more than the minimum payments and obviously was not excessively using the card. Now that they decreased my limit, looks like I am nearly maxed out on this card. I will be calling them on this. I will pay the balance and will not use this card anymore, if they don’t want my good and responsible business.

  249. KATHY Says:

    I GOT MY LETTER TODAY,WHAT A SHOCKER.MYCREDIT SCORE IS 812 WITH NO DEBT.BOA CUT MY CREDIT LINE IN HALF.TO ADD SALT TO THE WOUND,MY FATHER WAS ON THE BOARD OF BOA 40 YRS.AGO WHEN IT WAS AN ASSET TO PEOPLE.I HAD SUCH LOYALTY THAT MOST OF MY INCOME WAS FROM THEIR DIVIDENDS AND WE ALL KNOW THAT STORY,SO HERE I AM, NO INCOME AND STUCK WITH A BUNCH OF USELESS STOCK.ANY IDEAS FOR THIS CALAMITY?

  250. Angie Says:

    Well looks like it is still going on. Capital One cought out our HSBC cards. They dropped both credit limits to about $50 above our current balance. We went from having 20% usage on one card and 10% usage on one card to 98-99% usage. Since we don’t keep a really high credit limit overall, this made my credit score drop from a 710 to a 630. It is so irritating that they can wreck your score without you even doing anythign wrong! Never made a late payment and VERY few times ever made a minimum payment. We are going to pay off both the cards and then retire them. I called to talk to a rep and she indicated that they don’t notify they are dropping your limit by 1000s of dollars so you don’t go out and max out your card. I will never do business with Capital One again.

  251. KC Says:

    Received a letter by mail from Discover saying that they reduced my credit limit of $4,000 to $500 (WTF?!!!!!!)

    Since yesterday, off the $4,000 credit limit, I only had about $250 to pay off (meaning $3,750 unused credit limit).

    The worst thing is, the letter says that ‘we recently tried to contact you regarding your Disc Card a/c…” ,and I never received any phone call or email or text message or mail before this letter today (2/10/2013).

    Have written to Discover, but don’t expect anything of worth in response.

    The Discover commericals showing “We treat you like you treat you” is all hogwash.

  252. mike foote Says:

    I have been doing a 8 month credit score increase exorsize, I have spent over $30,000 trying to increase my credit score. All I have done is lower my scores by over 50 points. I have no derogatory credit and no late payments. After paying my revoling debt done to under 30% the credit card companies merily lowered the bar to max me out again. Has they lower my credit limits on all my low interest credit cards the preclude my ability to function. I have been paying two credit services to help with this. This did nothing to resolve any real issues. Just wasted over $300. Has i am a disabiled american vet I feel I am being taken advantage of with no means of defense or recourse. I wish to peruse legal action for defaming my good credit and name.
    In the mean time they twice this yesr kept us from being able to buy a home we need. We are getting older and can not maintain the big house without the kids. We are being bleed dry. The guys that did it are getting bonous for stealing our retirement.

    HOW do we fix it???????

  253. SL Says:

    To date have not had any card limits reduced. Actually in the past 2 years six of them have increased the limits; 3 major, 3 store cards (more than $10k total). Generally, I keep our %cl to less than 20%, more often than not less than 10%. Two major cards (Discover & Chase) have also lowered our interest rate. We have not asked for any increase in limit or decrease in interest rate; but we’ll take it! But I’m fully aware that anytime that could change. So that it doesn’t take us totally by surprise, I check our balances & limits daily.

  254. Jeff Says:

    So here I am another vicitim of the machine. Just found out that my Wells Fargo account was reduced from $4000 down to $700 (Just above my balance after a $2300 payment). I too have never been late and have had impecable credit to date. The ass kicker about this is, I was just approved for a $10,000.00 line of credit with Wells Fargo two weeks prior to the CL decrease. I called to speak with someone about it and explain that I wanted to separate my rental property accounting from my personal credit card and that is why I opened the line of credit. They repeated everything they saw on their screen as to why the reduction occurred. Yes, you guessed it. My account was too new and my balance was too high in relation to the limit. Oddly enough, I have never missed a payment, my Fico score is well above 700 and I have had several mortgages with them (1 current and 3 paid off). I wrote a letter to the board of directors and do not expect a response. Possibly a closing of all my non-mortgage accounts. In any case, I fully intend on paying off what I owe on my open card, and refinancing my remaining mortgage with them through another institution. If they are out to financially choke me out, I can only return the favor. In the end if all customers seek out resolution elsewhere, they will indeniably be cutting their own throats. No customers = no money. No money = bankruptcy And hopefully not another government bailout. I don’t think I can afford to keep bailing out failed policies.

  255. Sandy Says:

    I am so glad I am not alone. I have two cards with Chase. I really am fortunate not to need them at this time but I was keeping them pretty active for the rewards. They just shocked me today by lowering my lines drastically so that it does now look like I am a risk. I always kept this in mind about utilization and ratios. The big shock is like the rest of the readers that last month they were calling saying I don’t use the card as much and I am one of their best customers. Then I actually started using it. I want to add I have a credit score of almost 800 well until these companies are done with me. Now, I wonder if it is a snowball effect and my whole credit history will just implode. I don’t get it since they ask us to help stimulate the economy then take everything away just as there is a little light beyond the tunnel. I have learned my lesson. I will pay them off in a month and keep using them for $50.00 a year just to keep them open unless they have a new game. It is actually a shame as it taught me again not to trust. I have been a customer there too since 1988. Thanks for an eye awakening and very good article.

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