So Credit Card companies can reduce your credit...

Linq · **So Credit Card companies can reduce your credit... -** 03-16-2009, 08:07 AM

whenever they want.

They send a notice via snail mail. If you don't read the notice, you can end up being heavily penalized in fees and your credit score.

They reduce it to whatever they want. Let's say your limit is $9000 and your balance is $5900. They can reduce your limit to $6000 and charge you over $100 in fees. They can also just reduce your limit to $5000 and screw you that way.

Sneaky bastards.

[Only registered and activated users can see links. ]

Rhino · 03-16-2009, 09:14 PM

So ... if they notify you the way they say they will in the Terms and Conditions ... giving you the notice they say they will .... they did something wrong?

In all reality, people need a bit of a wake-up anyway. Stop living on credit and buy what they can afford to. Use the credit cards as an interest free bank and pay it off each month.

If it moves people away from the "borrow everything and hope for the best" mentality then it's a good thing.

Linq · 03-17-2009, 06:23 AM

	Quote:			Originally Posted by Rhino
	So ... if they notify you the way they say they will in the Terms and Conditions ... giving you the notice they say they will .... they did something wrong? In all reality, people need a bit of a wake-up anyway. Stop living on credit and buy what they can afford to. Use the credit cards as an interest free bank and pay it off each month. If it moves people away from the "borrow everything and hope for the best" mentality then it's a good thing.

In some cases, the notice didn't come til after they dropped the limit. Also, they seem to be conveniently dropping that limit to a number close to your balance. It would be a different story if your limit was $9k, your balance was $5.8K, and they decided to drop your limit down to $7k. You still have some breathing room to cut back and start paying off your debt.

I basically use (2) credit cards to improve my credit rating.

Raptorman23 · 03-21-2009, 10:39 PM

Dancing with the devil. Need the cards to build credit, often times they help destroy it.

mankong · 03-22-2009, 01:10 AM

Well they also do it to limit their exposure. I'm not saying it's the right thing to do but from a business standpoint I can see why it would be done in some instances.

**veteran** · 03-22-2009, 03:31 AM

Bank and credit lending institutions are the most honest players out there., lmao. Everything you need to know is written in extra small print on the back of the credit application at the bottom. I get a kick out of the 20% APR's the lender can charge you in addition to penalties if you are late on a payment. My credit card applications go into jaws. (my shredder).

dosmatrix · 03-23-2009, 06:50 AM

Yeah I recently read about this. These POS credit card companies are always trying to screw people out of their money. This is a new low.