Credit Card Cancellations...

[IndependentDem]

In the last couple of months I have had 2 of my credit card limits drastically reduced and one personal loan "suspended" by the bank... I know two other people that have had this happen to them in the last month. The really strange thing is that my credit rating has actually gone up in the last 6 months and I make more money... To make matters worse, NONE of the banks notified any of us.

Anyone else hear of this happening lately?

[tismyself]

1. yep

And not only that, but about 2 weeks ago, I got a letter from American Express saying that they have a new program where if you can't pay your bill, they pay it for you. I filed it in the trashcan without reading it, so I don't know any details. Given that letter, I was not surprised to see that AmEx is in trouble.

[IndependentDem]

2. AmEx was one of the cards...

It went from a 15k limit to $500... no reason, no explanation and no notice.

[tismyself]

3. ditto

Don't remember the original limit, but they took it down to $8000. And then, like I wrote earlier, they sent out that equally bizarre letter a couple of weeks ago.

I don't really like the stories I hear about AmEx to tell you the truth, and the stories are coming from reliable sources. I'm getting ready to dump the card.

[IndependentDem]

4. yeah, I usually didn't use it anyways...

the other cards were from Chase and Bank of America... I hope its not a trend.

[Debi]

7. Yep,

Mine went from no limit to $3,500 - for no reason, a card with a $0.00 balance was cancelled.

[IndependentDem]

9. well at least now I know that I'm not alone. n/t

[lunatica]

5. I can beat that...

I paid off a huge credit card balance in which the credit limit was $16,000.00 (I wasn't up to the limit) and then about a month later I got a credit card statement that showed my balance was zero, but it also had a credit limit of $1,000.00. It was Bank of America. I called and told them their limit was less than useless for me and canceled the card. I get tons of mail from them offering me all kinds of deals.

I also read someplace that their doing that out of panic that people will use their credit cards even more because no one can afford to pay their escalating 'minimums' and eat at the same time. But the truth probably lies in the fact that they can instantly say you're above the credit limit and charge some outreageous penalty percentage. Whatever it is, it ain't for our benefit!

[Crabby Appleton]

6. I got a letter today from CitiCard increasing my limit

I have an Amex but don't use it very often, I get a bunch of junk mail from them and usually shred it without reading. I have a fairly high limit on a Chase card, it hasn't changed, I don't carry a balance on it.

[IndependentDem]

8. its crazy.... My BofA mastercard was increased a couple of days after my BofA Loan was suspended...

it doesn't make any damn sense. A friend of mine had her Chase card canceled without any notice, it had a decent limit on it but a zero balance and she had not used it in about a year... :shrug:

[tigereye]

10. I think if you have no or low balance they really don't want your business

or if you haven't used it there's no point in keeping it open. My husband had that happen on a card he had no intention of using and hadn't got around to closing himself...


I only have one card now and they keep raising the limit. It's funny because I have often thought that no one needs as much credit as they often raise the limit to - unless they are financing a film or a business.... I used to think I should call them and ask them to lower the limit since the thought of that much potential debt was scary...


I think a lot of it has to do with the bizarre forms of debt and Wall-street gambling a lot of these companies were doing with no thought of all the losses they could potentially incur. So now they are panicking and trying to reduce the debt load they previously cared so little about...

:eyes: Personally I think the lack of regulation on all those bizarre home loans is a big part of this...

[quakerboy]

11. Nope

Ive had several limit increases in the past couple months. I carry no balances anymore. Ive been thinking about dumping a few cards, to be honest, since I don't use them.