- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Coaching Changes
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
Credit Card Dropped My Limit......
Posted on 5/13/09 at 10:15 pm
Posted on 5/13/09 at 10:15 pm
Got a letter today from my credit card saying my limit had been reduced by $25,000....I know this will worsen my credit score...
is there anything that I can do about this?......
is there anything that I can do about this?......
7
Posted on 5/13/09 at 10:51 pm to Spankum
quote:
I know this will worsen my credit score...
It will only worsen your credit if you have a balance on this CC and it is now more than 50 % utilized.
Have you been late paying any other CC companies recently?
Posted on 5/13/09 at 11:02 pm to Will Cover
Happened to a relative last week. Didn't even send them a notice. Just dropped the limit (from 35 to 15), which caused the card to be declined at one point, which prompted a phone call whereby they told them about the limit change.
Posted on 5/13/09 at 11:53 pm to Spankum
I got hit with an interest rate hike a few weeks ago. Pissed me off.
Credit cards as we knew them are no more.
Credit cards as we knew them are no more.
Posted on 5/14/09 at 7:42 am to Will Cover
quote:
It will only worsen your credit if you have a balance on this CC and it is now more than 50 % utilized
Incorrect. While the percent of balance does come into play, available credit matters also.
Posted on 5/14/09 at 8:13 am to Spankum
quote:
reduced by $25,000
Posted on 5/14/09 at 8:19 am to Spankum
The issuing bank for my Visa did that to me too. Not that I use a lot of revolving credit but the reduction in available credit effects your score.
An interesting thing I found out that at least Equifax does, not sure about the other two. They count the balance on your Amex charge card against your available credit even though the account requires full payment every month.
For instance, if you have a Visa with a $0 balance and a $5,000 limit and your last Amex bill was $2,500, Equifax shows your available credit like this:
Visa: +$5,000
Amex: -$2,500
Available credit: +$2,500
An interesting thing I found out that at least Equifax does, not sure about the other two. They count the balance on your Amex charge card against your available credit even though the account requires full payment every month.
For instance, if you have a Visa with a $0 balance and a $5,000 limit and your last Amex bill was $2,500, Equifax shows your available credit like this:
Visa: +$5,000
Amex: -$2,500
Available credit: +$2,500
Posted on 5/14/09 at 8:20 am to Spankum
I got letters reducing my limit on 2 cards, I rarely use them and pay them in full when I do. I assumed this had something to do with their books and nothing to do with me.
Posted on 5/14/09 at 8:22 am to Spankum
My guess is the stress tests included some factor involving unused portions of lines of credit and the effect they have on the tested banks' liquidity measures and constraints.
Anybody here know for sure about that?
Anybody here know for sure about that?
This post was edited on 5/14/09 at 8:30 am
Posted on 5/14/09 at 8:28 am to LSURussian
Looking at the timing and number of reductions, I would guess you may be on to something. Could also be banks positioning themselves for the impending legislation coming down the pike to further regulate this kind of stuff.
But there's going to be a lot of backlash when people are doing refis or look at their credit scores and see 20 point reductions due to this and they've never missed a payment or carried a large balance.
But there's going to be a lot of backlash when people are doing refis or look at their credit scores and see 20 point reductions due to this and they've never missed a payment or carried a large balance.
Posted on 5/14/09 at 8:29 am to Martavius
quote:Agreed.
see 20 point reductions due to this and they've never missed a payment or carried a large balance.
Posted on 5/14/09 at 9:04 am to Martavius
I don't think so. i think the reason that banks are doing this is to get their capital ratios back in alignment. From what I understand (and I could be horribly wrong) extended credit counts against your capital, even if unused.
I also read on a blog, so not sure if its true, that BAC did this to a number of cardholders and it forced them overlimit and they nailed them with fees, and upped their interest rate. That is just fricking wrong if you ask me, and its true.
I also read on a blog, so not sure if its true, that BAC did this to a number of cardholders and it forced them overlimit and they nailed them with fees, and upped their interest rate. That is just fricking wrong if you ask me, and its true.
Posted on 5/14/09 at 9:13 am to Spankum
i dont see why this is a bad thing
credit cards suck. ive only had one and that was 6 or 7 years ago for a gas card. dont buy shite you cant afford
credit cards suck. ive only had one and that was 6 or 7 years ago for a gas card. dont buy shite you cant afford
Posted on 5/14/09 at 9:19 am to wizard of smart
quote:
dont buy shite you cant afford
brilliant.
Posted on 5/14/09 at 9:22 am to wizard of smart
quote:
i dont see why this is a bad thing
well why credit cards have a numerous set of problems and I am not a giant fan of them, people depend on them to cover gaps in incomes. ESpecially small businesses. Small businesses are the growth engine in america, the banks may be spraying roundup on those green shoots.
Posted on 5/14/09 at 9:26 am to MileHigh
quote:It does for standby letters of credit (100% risk-based capital assessment) but I'm pretty sure the unused portion of a credit card line is not factored into the risk based capital requirement computation.
From what I understand (and I could be horribly wrong) extended credit counts against your capital, even if unused.
I've written an email to someone at the Fed and asked. I'll let you know when he answers me.
Posted on 5/14/09 at 9:29 am to LSURussian
quote:
It does for standby letters of credit (100% risk-based capital assessment) but I'm pretty sure the unused portion of a credit card line is not factored into the risk based capital requirement computation.
I read it on a blog, it must be true.
Posted on 5/14/09 at 9:36 am to MileHigh
quote:Pffftttt! I'll just tell my guy at the Fed to check blogs for his information.
I read it on a blog, it must be true.
Posted on 5/14/09 at 9:41 am to LSURussian
When a loan officer sees that you have a card with a very high limit they will see that as a possibility that you could be X amount in debt in a hurry. It would actually be better to have a lower limit with nothing on it. Having 100K in credit available with no balance isnt always better than having 20K in available credit. In most cases the LO will prefer the later.
Posted on 5/14/09 at 11:07 am to MileHigh
quote:
extended credit counts against your capital, even if unused.
I just got an answer to my question from my Fed friend.
He says the unused portion of credit card lines is not used in the capital requirement computation although it is included in a bank's call report. It doesn't map over to the RBC requirement.
He used Capital One Bank as an example. He said if the unused line was included, COF would not be able to ever have enough capital to satisfy the RBC requirements.
I should have thought of that.
Page 1 of 2
Popular
Back to top
Follow TigerDroppings for LSU Football News