Why does my credit card limit keep reducing??

[MrMatt]

Every other month I get a letter informing me my limits have been reduced again.


Here's a quote:

The factor(s) which most significantly affected our decision is (are) as follows:

Ratio of balance to limit on bank revolving or other rev accts too high
Time since delinquency is too recent or unknown
Increasing balance on account
Insufficient balance to limit ratio.

I don't know what the first one in the list means. I'm not accumulating debt currently. The 2nd one makes no sense as I've never been late. The third one can't be right. I carry no balance forward month to month. The 4th one only makes sense if you look at the fact that they keep hacking my limit, but again the balance is always 0. WTF gives??? I have a 740 credit rating, and a mountain of student loans, but other than that I have 0 credit card debt.


Edit: Just checked...my limit is down to 300 dollars. WHAT THE FUCK?? I went from about 8000 18 months ago to 6000 to 1000 to 800 to 500 and now to 300.

 

[Raduque]

You're not profitable enough. This is their way of telling you they don't want you as a customer anymore.

 

[Phoenix86]

The replies ought to be interesting, but simply put this isn't in your favor.

 

[SoulAssassin]

Either you are viewed as a risk and they don't want you bringing your debt (that they believe you have) over to them or, as stated above, you aren't profitable and they are showing you the door. If you've had it open for several years and they don't charge an annual fee, put it a drawer and forget about it.

 

[amdhunter]

I haven't gotten any cards cut down, but all my cards are over 20% now. I am glad I paid those shits off last year. I rarely carry more than a $100 balance anymore.

 

[PieIsAwesome]

I think they don't like you. Get another card.

 

[SandEagle]

You're not profitable enough. This is their way of telling you they don't want you as a customer anymore.

this.

and pay your bills

 

[duragezic]

What card?

 

[quikah]

The first one means your revolving credit debt on all your cards is too high compared to your available revolving credit.

Either you are in more debt than you realize or your credit report is messed up. Check your credit report.

 

[JS80]

Risk management.

Chase recently did this to me. $20k to $1k. Milked 0% BT and never used it.

 

[Phoenix86]

The first one means your revolving credit debt on all your cards is too high compared to your available revolving credit.

Either you are in more debt than you realize or your credit report is messed up. Check your credit report.

Yeah, they reduce his available limit on one card, then his total available limit is lessened so the other cards do it. They get you coming and going! :awe:

 

[spidey07]

Thank Obama and Congress. This was predicted because of the "consumer protection" bill.

 

[Anubis]

lol 300$

 

[tfinch2]

lol 300$

This.

 

[Leros]

Banks can only loan out so much money at once. If they reduce your credit, they can loan more money to schmucks who will actually make them money.

 

[JMapleton]

There is not a generic answer to this, but this is happening with select banks.

It's not something you did, just don't cancel the card, it will harm your credit usually. I have a credit score that has been consistently going up and I have one credit card from a major bank that is being cut again and again, while all my other cards go up in limits. Don't sweat it, a few of these major banks are being idiots and it's happening to everyone. You have to stick with the right banks and cc issuers.

 

[Corporate Thug]

wow, I thought I set the record by getting reduced from 10k to 4k on my AMEX...seems like a drop in the bucket compared to some of the shit here.

 

[thecoolnessrune]

In the 4 years I've had a credit card I've never been able to raise my limit above $500.

 

[JMapleton]

wow, I thought I set the record by getting reduced from 10k to 4k on my AMEX...seems like a drop in the bucket compared to some of the shit here.

Amex is getting better in the last year. But a year ago, I heard of stories of Platinum charge cards getting reduced to $1000 limits.

 

[JMapleton]

In the 4 years I've had a credit card I've never been able to raise my limit above $500.

Get a different card, it's not you, it's the bank. Some banks are normal some are stubborn and irrational. But don't cancel that card, it usually hurts your credit score.

 

[onza]

my first ever CC back in 2001 has a credit limit of 4k still. Amex is 3k.. opened 3yrs ago and my Home depot card is good for 5k.

The amounts haven't changed since I've opened my cards.

 

[IGBT]

all that p0rn.

 

[OverVolt]

Get a different card, it's not you, it's the bank. Some banks are normal some are stubborn and irrational. But don't cancel that card, it usually hurts your credit score.

Best response(s) here.

 

[sjwaste]

Amex is getting better in the last year. But a year ago, I heard of stories of Platinum charge cards getting reduced to $1000 limits.

That's incredible. The annual fee alone is 50% of the limit there. Are they just banking that the cardholder is as stupid as they are financially irresponsible?

 

[Ika]

In the 4 years I've had a credit card I've never been able to raise my limit above $500.

my citi card (first card ever) started at $1200 when I got it last year. sometime over the past year it got bumped to $2400. I rarely spend over 600-700 a month on this card, and never carry a balance from month to month.