Beware this latest credit card antic!

iVillage Member
Registered: 12-29-2008
Beware this latest credit card antic!
26
Tue, 03-17-2009 - 10:35am

http://finance.yahoo.com/banking-budgeting/article/106716/How-to-Blow-Your-Credit-Limit-Without-Spending


I just can't imagine receiving notice that my credit line will be slashed below my outstanding balance, thus throwing me into the over-limit pool!

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Avatar for sohappilyme
iVillage Member
Registered: 03-26-2003
Tue, 03-17-2009 - 10:43am
That is just WRONG! They're putting people in impossible situations by doing that! I'm so glad we don't have credit card debt. I couldn't tell you how angry I'd be if this happened to us!

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Goal #1 $UCCE$$!

Sarah
iVillage Member
Registered: 08-29-2006
Tue, 03-17-2009 - 1:25pm
Thank you for the warning.
iVillage Member
Registered: 03-17-2003
Wed, 03-18-2009 - 9:11am
The article says "The motivation among issuers to make such deep cuts that they plunge below a cardholder's balance amount isn't very clear."
iVillage Member
Registered: 04-10-2003
Wed, 03-18-2009 - 9:20am

I don't know how this is legal. If a company wants to reduce your limit to below what is owed there should be no penalties.


Its makes me shudder and gives me all the more reason to get rid of the balance on my cards!


Bex -


"Yesterday is history, tomorrow is a mystery, today is a gift -thats why its called the present."


Bex -

Avatar for cl_beckymk
iVillage Member
Registered: 03-19-2003
Wed, 03-18-2009 - 9:53am

I use the credit cards but I think they stink.


It's all back to what I have always said...I don't care *what* the fine print says.


Basically credit cards have carte blanche to do whatever they want, whenever they want to, which is basically what their fine print says.

iVillage Member
Registered: 01-25-2009
Wed, 03-18-2009 - 10:03am
Unfortunately you need a credit card for certain things. Renting a car is the first thing that comes to mind. I am going back to my "original" American Express with no pre-set limit and does not allow a balance, i.e. charge however much you want, just pay it off when the bill shows up. Had it for almost twenty years and so far, no problem, yet.
Avatar for cl_beckymk
iVillage Member
Registered: 03-19-2003
Wed, 03-18-2009 - 10:17am

Yes, I do understand the need for it, especially if you travel and/or internet purchases.


In my case, travel is not something we do very often and we drive (which is probably a good thing to have a CC in that case too).


I know right now I have a Disney Visa and I tended to use it to get the rewards.

iVillage Member
Registered: 12-29-2008
Wed, 03-18-2009 - 10:46am

I believe the credit card industry is in the process of throwing the baby out with the bath water.

iVillage Member
Registered: 03-17-2003
Wed, 03-18-2009 - 11:55am
I think the reason credit card companies and banks are gouging the consumer is because they can.
iVillage Member
Registered: 02-27-2009
Wed, 03-18-2009 - 5:58pm

I am new and read all your posts, I just wanted to say that this subject is near and dear to my heart.


In 2007, Amex, with little or no reason

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