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

By: Nancy

Nancy — Thu, 19 Nov 2009 01:21:37 +0000

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?

By: sarah

sarah — Wed, 18 Nov 2009 00:56:51 +0000

*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.

By: Lisa G.

Lisa G. — Sat, 14 Nov 2009 01:44:26 +0000

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!

By: Sher

Sher — Sun, 08 Nov 2009 09:45:56 +0000

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!

By: Steve

Steve — Fri, 06 Nov 2009 14:22:34 +0000

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????

By: Barbara

Barbara — Fri, 16 Oct 2009 17:22:45 +0000

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.

By: Richard

Richard — Fri, 16 Oct 2009 01:47:38 +0000

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..

By: jonie

jonie — Thu, 15 Oct 2009 20:31:36 +0000

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!

By: kate

kate — Fri, 09 Oct 2009 18:57:57 +0000

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.

By: Jessica

Jessica — Fri, 09 Oct 2009 14:10:08 +0000

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