My 1st credit card limit cut!

[GregGreen]

This sort of stuff has been happening for at least a year. I have an average credit rating and went to change my AMEX Blue Student to a non-student card. Instead of changing my card, they canceled it....

 

[Evadman]

Originally posted by: Evadman
My current credit limit (if you sum my cards, and don't count no limit ones) is 22.4 times my annual salary. My current balance on all cards (summed) is 1/12th my salary. It's stupid. However my credit rating is awesome; for now.

%$^& I spoke too soon. I got a notice in the mail today that my Advanta card was being closed. Damnit, and that one had the highest limit of all my cards. The bastages! It's on their site too: http://www.advanta.com/ADV

 

[alkemyst]

The main customers they are hitting with this are:

the ones that don't use their cards: no money to be made on these types and a big potential risk

the ones that carry a perpetual balance: huge risk if they stop paying.

the ones that charge minor amounts and pay off in full: no money to be made and a big potential risk.

If you are the type that moves a few thousand through credit each month and rarely carries over a balance you are in general in decent shape. They see you have sufficient cash flow that you could probably weather a storm on job loss.

The other categories they are raising rate to cover the potential risk as well as reducing lines to what seems more realistic to the credit history.

 

[JDub02]

as long as my discover doesn't get cancelled, i don't care. i'm loving 2% cash back. my credit limit went up a few months ago. not sure why. don't know, don't care what the APR is because it's paid in full every month.

 

[DontMindMe]

No CC in this house. The CC companies have been bending this country over long enough.

 

[jpeyton]

Can the OT mods just consolidate these "MY CC LIMIT CUT!!!" threads? There's probably a half-dozen now, with a new one popping up each day.

 

[Miramonti]

Banks don't realize that while they make get more revenues in the shortrun, they are giving everyone a hard lesson on the evils of credit card usage, which is going to bite themselves in the @ss down the road.

 

[Tremulant]

CapitalOne raised my APR and hit me with a membership fee. I cancelled it. It was low limit card ($1800) and I only kept it because it was a MasterCard (I liked having a MasterCard, Visa and AMEX).

AMEX lowered the limit on my personal card from $10,000 to $1250. I'll keep the card though, since there's no membership fee and I really only use it for emergencies.