Comments on: Why Are Credit Card Companies Lowering Your Credit Limits?

By: Derrick

Derrick — Thu, 18 Mar 2010 08:04:55 +0000

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

By: Bob

Bob — Mon, 15 Mar 2010 21:01:28 +0000

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.

By: Kellie

Kellie — Sun, 14 Mar 2010 01:54:38 +0000

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!

By: Kellie

Kellie — Sun, 14 Mar 2010 01:39:59 +0000

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.

By: me

me — Wed, 10 Mar 2010 22:18:59 +0000

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

By: Sam

Sam — Wed, 10 Mar 2010 18:53:12 +0000

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.

By: John

John — Mon, 08 Mar 2010 15:28:58 +0000

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.

By: Michele

Michele — Thu, 04 Mar 2010 15:25:29 +0000

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.

By: justine

justine — Tue, 23 Feb 2010 09:52:28 +0000

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.

By: Tony D.

Tony D. — Tue, 23 Feb 2010 04:49:16 +0000

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???