Has your Credit Card Limit Been Lowered?

This message was edited 1 time. Last update was at 03/19/2009

If your credit limit has been lowered recently, we want to hear your story. Credit card issuers are slashing credit lines - even for customers who haven't made a late payment or otherwise misused their account.

Having your credit limits lowered can have a major negative impact on your credit scores. Share your story in this forum thread or email us.

In particular, we're looking for people around the San Francisco Bay Area who have had their credit card limits reduced.

Hi Emily,

I linked up to your forum and wanted to share my recent experience. I have two cards with Capital One one of which I've had for over 15 years and about a week ago received a phone call regarding this particular account. I was told when I called back that Capital One would be lowering my credit limit and I would be receiving a letter to the effect with instructions on what to do. To date, I have not received any letter but found out that the credit limit had already been lowered. When I called Capital One to complain I was told that the account manager I'd spoken to had provided incorrect information-the action was immediate, I would receive no written notice and I had no recourse. After arguing my case for approximately 10 minutes with the account manager I spoke to, I got nowhere and was told that he'd been hearing this from many customers and that this would be noted in my file. I even argued that any time a credit card company changed terms, I received the information in writing but was told that the call served as the notice and I had no recourse. I also was told that this manager was a supervisor and couldn't speak to anyone else regarding this issue. I understand that many credit card companies are lowering limits but doesn't the credit card company have to notify you in writing to do this?

Thanks,

klgrey14

This message was edited 1 time. Last update was at 04/03/2009

Bank of America did this to me. I had a $20,000 limit on my BofA card and they cut it by more than half - to $8,000. Thankfully, I don't carry large balances and typically pay it off when the statement comes in.

I've also had my interest rates jacked by Cap One. I had a 6.9% rate with Cap One and out of the blue they jacked my rate up to almost 17%!! I have one other credit card account with Discover with a $10,000 limit. Even though I don't carry a balance, I watch my scores like a hawk and I'm just waiting for Discover to follow what BofA and Cap One have done. What's frustrating is that I rarely carry a balance (if I do, I pay it off the following month) AND I've never been late on my credit cards - EVER.

I get the fact that we're in the midst of a severe economic meltdown but what I don't understand is why some of these credit card companies are penalizing their best customers. I mean, i could understand if I had been late or if I was close to maxing out, but give me a break. I've read about the credit card regulations act but if it's not going to happen until next year, the damage will already have been done. Just my two cents -- Jen

Thanks for sharing your story, Jennifer. Would you be up for talking to a reporter about your credit limit cuts? If so, send me an email at emily@credit.com.

Emily,

I received notice today from BofA that my credit card limit had been cut in half. It was a big insult because I've been an excellent Visa Card customer for over 30 years: Never late, balances always paid in full, never maxed out.

So, you tell me, if you can, why BofA is going to the trouble of irritating some of their best customers. And, of course, is there a way that I can convince them that they've made a mistake and should restore my credit limit? I'm actually irritated enough to close my bank accounts and credit cards with BofA, but that could hurt me much more than BofA.

Good luck with convincing them that they made a mistake. I doubt you'll have much luck with them agreeing to give you your limit back... I've had this happen with two of my cards and the problem is that these credit card companies arent' willing to make exceptions for any of their customers - no matter if you've been a great customer for the last ten years. They don't CARE. Their number one concern is their bottom line and seeing just how much they can bleed us dry. Corporate greed is a big part of the reason why we are where we are right now. I know that these credit card companies have us between a rock and a hard place right now so I'm not going to make any hasty decisions and close my accounts in a fit of anger.... but I sure can tell you that when the market DOES change and things DO get better, my loyalty to any credit card issuer will fly out the window. Why stick with a company that's intent on kicking you while you're down? Or in our case, kicking us when we've done NOTHING to cause them to hike our rates like this.

Thoroughly disgusted.

arseroviri wrote:I know that these credit card companies have us between a rock and a hard place right now so I'm not going to make any hasty decisions and close my accounts in a fit of anger...

Arseroviri - I feel your pain on this one but you've got the right attitude. At this point, you have to take the emotion out of the equation and play the game. Does it make it better? No. Does it help keep your credit scores from tanking? Yes. It's a matter of which one is most beneficial to YOU - not the credit card companies - but YOU.

I received a letter a week ago from Bank of America that my credit line was being "adjusted" from $22,500 to $11, 500. I called to ask what was going on and had I made the mistake of shopping at the "wrong" merchant? I was told that he had no idea what I was talking about "wrong" merchant. It was noted that I had my card since the 1970s and I was congratulated for paying on time, but because I had never carried a balance higher than $3,500 they determined that I didn't need such a high credit limit. So in the past they increased my credit line for responsibly handling credit, but now it would seem that they have changed their minds and decided to reduce my credit line for being responsible. I was also told that this was not intended to be a negative reflection on me---I could not believe my ears, because that was exactly the way it was coming across! I pulled my credit report from all three agencies and found nothing negative. Now today I received notice from them that certain transaction fees are increasing. My first thought was to pay off the $800 balance (I just had dental work), stop my two automatic monthy payments to the gym and Internet provider and stick the card in the drawer; then my second thought was to pay it off and keep the two automatic payments which total $65.00 a month and just pay it off every month and keep it in use as something of a "nusiance account". Clearly they are not likely to care because when I mentioned I would stop using their card and switch to only using my American Express which has a rebate program, I was told "well, you are certainly entitled to do that" . Obviously we consumers have no recourse in the matter, but I would like to know the best way to react because in either scenario above when the card expires in 2011, they can decline to re-issue for lack of use or because I am not using it enough. I also would love to understand just who it is that they want as a credit card customer these days, if anyone?

then my second thought was to pay it off and keep the two automatic payments which total $65.00 a month and just pay it off every month and keep it in use as something of a "nusiance account".

This would be your best option as far as your credit and credit scores go. It's a shame what the industry is doing to some of their best customers. I know it doesn't help the matter but you're not alone.... it's happening to all of us. President Obama met with the major credit card industry execs last week and put his support behind the new credit card legislation to pressure them into making changes. Legislation was passed a few weeks ago but it wasn't expected to go into effect until July 2010. With the new pressure from the Obama administration changes are expected to happen much sooner...

Seems to me that it's a little too little a little too late... These credit card companies are just going to push to get all of their rate hikes and limit cuts in before the laws go into effect... They should put some type of moratorium or freeze on them until this takes place. Or maybe even push for retroactive changes so that anyone that had their interest rates go up when they didnt have any late payments or go over their limit - they have to lower them back to what was originally agreed!!!

Self fulfilling action?

Credit card companie worried about your credit risk.
Reduces your available credit line.
Your available credit goes down and maybe your utilization ratio goes up.
Your credit report shows you are a higher credit risk than before.

Bank of America just lowered my credit limits for 2 credit cards i have with them from $40,000.00 total to $11,000.00 total. I've never been late, never missed a payment, and have I only have a $300.00 total balance. They're reasoning is I only make around $56,000.00 a year. I don't like B of A anymore.

I know this topic is a big deal but it actually pales in comparison to not having the right to opt out when a bank changes terms, such as what Chase bank is currently doing to almost a million of their best customers who were never late on a payment and now have had their monthly minimum payment increased 150% above and beyond what it already was.

My credit limit with DISCOVER CARD was lowered from 5,000 to 1,000. I was alarmed because I have a balance of 3000.00 on the card and now they are charging me overlimit charges which are quite extreme! Any help out there? Tks.

I'll be glad to see the back of 2009. My partner lost his job, I couldn't get a loan modification, and Bank of America SLASHED my credit limit. I finally sold my home, prior to a mortgage payment increase, for what I believed was less than market value. Now that I'm not popping pills for anxiety and depression I can honestly say I don't care if my credit scores are affected WHEN I cancel the
B of A credit card, which used to be MBNA, I've had for about ten - fifteen years.
When I first came to the U.S. twenty years ago I had nothing but I soon realized it was important to establish a credit history. So I did. I have almost excellent credit, no late payment charges, no loan defaults, and I've never declared bankruptcy.
The only satisfaction I've had this year is not giving my mortgage business to Bank of America. It's not really that I believe that one bank is any better than another one but after hundreds of calls to BofA to try and get a loan modification I swore that I would NEVER borrow money from them again.
So, if anyone out there knows of a great company which offers a credit card which doesn't charge an annual fee and would welcome a customer who has excellent credit and doesn't carry a credit card balance then let me know!