Sunday, March 01, 2009

Credit Cards - Limits being reduced dramatically


My husband was checking my recent credit card bill and asked why my credit limit was $500.00. Huh? Yes, that what it says – that’s not even enough to purchase a plane ticket, the main reason I keep the Credit Card, you know, ‘just in case’? The limit used to be $8300. Wow, that's a big change!

I pay my credit card off every month, in time, usually $150-200 – mostly Amazon.com or fabric related expenses. DH was concerned that our credit rating had been compromised in some way. Friday I spent at least 5 hours, calling, asking, getting transferred, getting the runaround, to no avail, but with a great deal of frustration. “Derogatory results on your Credit History” is what they told me, although I have no idea what could be “derogatory”. I printed off my credit histories (frustrating experience in itself, from Internet) of 2 of the 3 reporting agencies. Yes, all is Excellent, No Derogatories, No Collections, and I only have my CC and one closed clothing account, and a mortgage also, in perfect order. Despite what the credit histories say, I am feeling like a no-good, sleazy, dispicable person for having lost so much favor, for unknown reasons, and yes, I DID worry about identity theft, etc.

I mentioned this to a friend Sunday, and she said Suzie Orman (financial person on TV) said a LOT of people are finding themselves in this very predicament, due to the latest financial woes. Apparently the CC company had to inform me (who read that letter???) of this change. Just now, I did a Google Search on “reduced credit limit on credit card” and there is a lot of activity along the same lines – I am not alone!

DH had also mentioned that because of the financial woes of Citibank, this reduction might be their solution. He was right!!! I DID manage to get my limit raised to $1500, enough for an emergency flight, should it be necessary, but I had to do a LOT of talking, giving out income and mortgage payment amounts to the “advisor.” My MOM is 94!! and does not live here in Nebraska. My gosh, how would one even book a flight with such a low limit?

So, keep an eye on EVERYTHING ON your Credit Card Statement. I'm not sure what we can do about it.

14 comments:

floribunda said...

interesting stuff! thanks for the heads-up, and I'll just go and check my statement now...

Mary said...

Thank you for the heads up. I had heard of this happening on the news, but assumed it was an anecdote. I didn't know anyone it happened to. I will check my limit now.

paula, the quilter said...

How interesting: CarGuy just got a new CC and the limit is huge! And then there is this post. Makes you wonder.

Lisa Boyer said...

Wow! Thanks for this info! You made me scramble over to my cc site online to check my balance. I have to book two airline tickets soon for my son to come home this summer--what an unpleasant surprise that could have been! Luckily, they haven't changed my limit, but I'm going to keep and eye on it. Whew!!!

YankeeQuilter said...

The CC companies are a real mess. I had this happen with one card. The woman on the phone told me I didn't use the card enough so they lowered it to a level that they thought appropriate...penalized for paying off my card each month! They raised it back after the phone call!

Colleen formerly of South Africa said...

I appreciate the info... unfortunately, I may be in real trouble since I only work part time..and DH is full time student. But we always had the limits that we could buy a car on a credit card if we wanted..er .. needed to. Wonder if they have all changed. We only use one card at the moment. So who knows. But I so will check into it..

Rhonda said...

Oh wow! Thanks for the post. I will keep my eyes out on my CC.

Shari said...

It seems the mis-management of others affects us all sooner or later... we must be diligent and untrusting... not the world I'd hoped for when I was growing up. Hopefully it will be better for our children and grandchildren...

Sharon said...

Thanks for the heads-up! I hadn't realized...I'll be checking my statement for that piece of info!

The Calico Quilter said...
This comment has been removed by the author.
The Calico Quilter said...

All this banking mess makes me more and more glad there are credit unions here I can deal with. Since they are in effect owned by their depositors, there generally isn't the funny stuff the banks are pulling. A refuge in an insane financial world.

Excuse the deleted comment; I messed up typing and couldn't bear leaving it looking so stupid!

bingo~bonnie said...

that is crazy! reducing your limit by that much. We spend an hour or more on the pone with them also a few weekends ago - apparently Citibank raised our min. amount due percentage each month... we've been paying this min. rate for over two years b/c it is a fixed rate of 3.9% for the life of the amount.. and we only pay minimum b/c we are knocking out higher interest debts first... anyway, it's set up automatically with our online banking... well got a statement and there was a charge for not paying the total amount due.. what?? called and got the run around and finaly got our fixed 3.9 rate back and that fee removed. but just think of all the people who didn't notice!

and CHASE - well those JERKS started charging us a $10.00 MONTHLY service fee! like an annual fee only monthly! That's $120/year. We went round and round with them over that as well... found out after demanding to talk to managemnt we had the right to "reject" the new terms. and did! thing is we can never use that card again to charge - but we haven't in over a year anyway.. so we don't care. What a rip off!

Everyone better be on alert - there is no telling what they will try to pull on us at any given point.

Leah S said...

Sounds like an HSBC credit card. I read on a forum that a good 90% of the folks had their limits cut. If you didn't have a balance, it was around $300. If you did have a balance, the limit was about $100-200 more than what you owed.

I've been keeping an eye on my credit card (not HSBC). Funny how every time I go to the bank, they ask me if I want a Wells Fargo credit card. No thanks, I already have one!! Then I have to drag it out for proof, and usually gotta do a lot of digging cuz I so rarely use it.

You could potentially use a debit card for a plane ticket. If it's really an emergency, I'd think it would be worth the extra risk.

MAMACRAFTY said...

Everyone must keep an eye on their credit from the credit reporting agencies. I have had my identity stolen not once but twice! Go figure! I have a block on my social security number, so if anyone tries to open credit, it will be denied. I don't even have a credit card! It is so hard to build your credit back up when it has been compromised!