The incredible shrinking CC limit . . .

iVillage Member
Registered: 04-10-2003
The incredible shrinking CC limit . . .
11
Mon, 02-15-2010 - 9:08am

Stupid CC's.


This month was the first official statement of $0.00 (last month I had to pay off about $30 in interest even though I had paid the balance fully).


So I looked at my little statement and noticed my limit was $2000.00. WHAT? It was $15,500 last year, then they lowered it to $13,500. Now that its fully paid, they lowered it to $2k. Jerks. After all the money I've given them in interest!


Oh well. Its really not a huge deal since I have all my CC's paid off and I use my VISA for everything and pay it off (For the cashback). It just makes me more angry then anything. When I got my car loan in December the guy there said I have the best credit he's ever seen (I know I do, I keep tabs on it). I just find it funny that they gave me $15k when I was a student (yes, you read that correctly) and now that I am working fulltime making a good income they decide to cut


Bex -

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iVillage Member
Registered: 07-05-2006
Mon, 02-15-2010 - 9:26am
So Stupid!!! My CC's have done the same thing to me...on a much smaller scale. I'm almost done paying off a store credit card and they lowered my limit from $500 to $160!! I wouldn't be surprised if they cancel it on me once I'm done paying it off!

Avatar for colomom99
iVillage Member
Registered: 03-28-2003
Mon, 02-15-2010 - 10:15am

Virtually every one of my cards (and we have a bunch -- many never used/paid off years ago) have had the terms changed and credit limits lowered. For me that's probably for the best since I have no willpower BUT I know it negatively affects credit score. The worst was Discover which instantly lowered my credit limit to the exact amount I owed so any charges I had outstanding would be over the limit. I had two recurring charges through Paypal that hit the first of every month so that of course made me over the limit because I got my notice from Discover on Dec. 31. I shifted money around and paid the sucker off. But when I was looking for another card I found several had been lowered to zero or closed.

Someone on here posted that this month's statements have notation showing how long it will take to pay off if you only pay minimum. I got those too. Chase "suggested" I pay $600 a month instead of the $200 minimum payment. How many people can do that? I suspect they worry they may never get paid back because of the number of defaults, credit counseling arrangements and bankruptcies going on.

They'll all get their money. I owe it, I'll pay it. But it will be on my terms, not theirs.

iVillage Member
Registered: 10-01-2008
Mon, 02-15-2010 - 12:10pm

OK, I'm trying to look on the positive side.

Norma


"Patience is the best remedy for every trouble"- Plautus


iVillage Member
Registered: 12-23-2008
Mon, 02-15-2010 - 2:08pm

I have heard that if you do not use the card, they will lower the limit based on the inactivity.

None of my limits are too high - I have noticed on most of the store cc's they like to dangle a carrot and send me coupons to use and I usually will plan the coupon use during that period where the new bill posts the statement and you actually get 45 days of no payment ----

Then I just pay the balance the day it posts.

It does get annoying how they can raise rates and lower limits - yet when you call and ask for a lower APR or a higher limit you get the run around --

XoXo Shannon

2010 YTD Flake $320.50
2010 YTD Flake to Savings $193.33

XoXo Shannon 2010 YTD Flake $349.94 2010 YTD Flake to Savings $193.33
iVillage Member
Registered: 12-10-2009
Mon, 02-15-2010 - 4:20pm

That is interesting that they are doing that. But it makes sense with the economy. I would mind either if they lowered our because it would take away that temptation of knowing you have your cc and it may make

Liz

student loan paid off 2010

Bathroom remodel loan paid off 2013

Pending Car loan to be paid by the end of 2014!!!!!

 

iVillage Member
Registered: 07-10-2003
Mon, 02-15-2010 - 5:22pm

What frustrates me is when they lower the credit limits we suddenly then have used a higher percentage of the credit limit!

iVillage Member
Registered: 01-16-2010
Mon, 02-15-2010 - 8:39pm
That is obnoxious, I hate CC's!! My limits haven't changed (they are still ridiculously high) but as I have paid mine down over the last few years instead of charging them up more, they have increased my interest rate. As soon as this balance transfer is over in a few months, it will go up to 18%. I have already decided to transfer the remaining balance to a loan at my bank & quit the CC game. Like Dave Ramsey says - I'm voting with my wallet!





First Debt BUSTED 2/12/10 Second Debt BUSTED 2/26/10 Third Debt BUSTED 3/19/10
iVillage Member
Registered: 12-29-2008
Mon, 02-15-2010 - 8:40pm

This is happening to everyone.

iVillage Member
Registered: 12-10-2009
Mon, 02-15-2010 - 9:50pm
I had the same thing happen back in the fall. But you know what? that is what really made me take a look at how bad my situation was. I was all outraged because I was like how the hell am I going to buy stuff now. That seems so bizarre to me now that my head is screwed on a little straighter. DUH now I know I just can't buy stuff if I don't have money. So they really did me a favor because I was putting bills on credit cards, and groceries, and gas and the occasional stupid purchase of crap I used to want. I can't recall what that crap was but I used to want it really bad. Now I will be paying it off forever. So I wold like to thank Citibank in particular , and i wish them the worst and I hope the government lets them fail. I would also like to thank them for the loan shark interest rates they have imposed on me and others, the gift that keeps on giving. I swear when I am through with this credit card debt I am going to send them the original card back wrapped in dog poop or whatever disgusting thing I can think of. For some reason I am still more mad at credit card companies than myself- I will try to start working on personal accountability, just not today


iVillage Member
Registered: 02-04-2004
Mon, 02-15-2010 - 10:54pm

They have recently changed the laws regarding credit cards. I received something in the mail last week about this. They have to charge interest a little differently. I think it has to start on the day it is charged. They cannot go back to the beginning of the month. I think they have to do this.

Also, several of my cards were closed as soon as I paid them off. I was shocked! I thought "Fine, I don't need you then!" I also got notified that they no longer offer that program. DH found a low rate card, 7.99% fixed and applied for that and got it. If you go to Bankrate.com you can click on the credit card link and look at the terms and apply for a card that way.

I wish we could do that with health care.

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