Well this is new

[HurricaneHeather]

So I have two credit cards with a large national bank.

Today I get two letters in the mail from said bank. One says: we are cancelling this card because you have sufficient credit on other accounts. (this card has no balance on it, but I use it on random occassions to keep it open.)

The other letter says that my credit limit has been reduced on the other card....reduced by 15K. :panic: (this has a balance on it with stuff for my husband's school).

I have never had this happen before....I am at a loss for words. :scratch:

Has this ever happened to anyone else? Is it because of the economy they think I might rack up all this credit and not pay it? Mind you, my account is in good standing, never had a late payment or overdrafts or any of that stuff.

I am just so confused and angry that they can do that. The one they cancelled was one of my oldest cards and so this is going to effect my credit overall....I'm so bummed. I don't need this right now. :(

[skiergirl]

They are doing it to a lot of people. A guy from work was complaining about the same thing, they are reducing the credit limits of many to stop people from racking up huge debt and not paying. It has nothing to do with your credit rating I was told but I'm not sure what the criteria they use really is.

[tached1000rr]

Yes it's related to the economy, I read an article where the banks were gonna tighten up by reducing credit limits, closing accounts and such.

[JARVIS518]

ya there doing a lot of this shit. i recently applied for a balance increase to put the remainding balance of my bike on my BOA credit card because there is a 15% difference in intrest rates. after checking my credit there was a $15 co-pay from 2 years ago in collection (i didnt know about) so because of this BOA raised my intrest rate, anual fee and declined my credit increase

ya that sucked

[Papa_Complex]

Personal bankruptcies must be beating the shitout of them. To think that last year they would have been pushing for you to take MORE credit, not less.

It's not as bad up here though. Noty yet, at least. I got a new card last month because some fucktard decided he needed a couple of TVs or something on it. When I called to activate the new card, the droid asked me if I wanted another $5K on my limit.

[Apoc]

Personal bankruptcies must be beating the shitout of them. To think that last year they would have been pushing for you to take MORE credit, not less.

It's not as bad up here though. Noty yet, at least. I got a new card last month because some fucktard decided he needed a couple of TVs or something on it. When I called to activate the new card, the droid asked me if I wanted another $5K on my limit.

Ya, HD called to see if i wanted a new visa, 45000$limit, and if I wanted to transfer the balance of my bike on to it.

Uhhh... No thanks, the one I have now is fine...

[goof2]

Actually, I believe they are doing this because they have too much outstanding credit. They can only extend a certain amount of credit at any time. They would rather have that credit extended to people who rack up balances and fees than people who rarely use their cards or only use them "in case of an emergency". Cards that carry balances and cards that result in fees make them money. The other kind do not.

[cbrchick]

Sounds kinda responsible to me in a weird way. Kinda looking out for people best interests and their's at the same time although I am sure it takes away a little freedom and security for others.

I only have one credit card/line of credit. They're not making much off me as the interest rate drops almost every month. @ 2.5% now.

I think the banks where more conservative up here with their lending.

[Particle Man]

Use the existing card to buy some fish from the market... Then use it to mail the fish to them after it has started to rot. :)

[Papa_Complex]

Sounds kinda responsible to me in a weird way. Kinda looking out for people best interests and their's at the same time although I am sure it takes away a little freedom and security for others.

I only have one credit card/line of credit. They're not making much off me as the interest rate drops almost every month. @ 2.5% now.

I think the banks where more conservative up here with their lending.

I had two cards and one of them had a yearly fee, so I dropped it and just increased my CC-LoC by 5K. Two weeks later that card, now the only one that I have, was exploited and deactivated. My daily parking for work is paid for by CC, so I was screwed. Didn't get the replacement card for more than a week.

There actually are reasons for having more than one.

[cbrchick]

I had two cards and one of them had a yearly fee, so I dropped it and just increased my CC-LoC by 5K. Two weeks later that card, now the only one that I have, was exploited and deactivated. My daily parking for work is paid for by CC, so I was screwed. Didn't get the replacement card for more than a week.

There actually are reasons for having more than one.

Sure there are... but a lot of people with a couple have them b/c they live off credit. I've rarely been troubled when something has happened with my credit cards. I lost my wallet outta my jacket once on the bike. The most annoying thing was not being able to access my bank account with my debit card. Debit card was in the wallet. I needed a license to get a new debit card. I needed money to get a license. Vicious circle. My bank knows me and gave me a new debit card with no ID :) But anyway....

My emergency card is my one credit/loc. I don't "need" it to get money in case of anything. But I'm not everyone.

[CrazyKell]

I don't have any credit cards anymore. I pay cash for everything.

Oh wait...I have a corporate card but that doesn't count.

I am on a plan to pay off all existing debt while still being able to "live" so to speak. I cancelled all of my cards except one that I don't even carry with me. If I needed to I could go and get it but I've yet to find a reason to need it. Cash is king with me.

[Apoc]

I've got two, one isnt used, and put away, the other doesnt have much in the way of charges on it. I used it for the golf clubs and club membership I just bought.

But I cant imagine not having one now that I do, just because I can do things like book hotels/flights/shop online/etc. Some things you can afford to pay cash, but its much more convenient to do it online with a CC.

[Papa_Complex]

I've got two, one isnt used, and put away, the other doesnt have much in the way of charges on it. I used it for the golf clubs and club membership I just bought.

But I cant imagine not having one now that I do, just because I can do things like book hotels/flights/shop online/etc. Some things you can afford to pay cash, but its much more convenient to do it online with a CC.

And some things you either can't do with cash anymore, or are made very inconvenient to use cash. Parking machines in Toronto will take Loonies (that's a Susan B or Sacagawea to you Americans) or a credit card, but not debit. Carrying around ten $1.00 coins every day is a pain in the ass. You can't rent a car or reserve a hotel room without a credit card.

[wildchild]

I have two as well. One has zero balance the other has a small balance on it. They just raised my limits.

[Apoc]

yup. Cant book a trip without a CC. and I wouldnt want to travel without one just in case anyway.

I admit that I use it for things I cant afford. I didnt have the cash to buy clubs or the membership, so I put it on my CC. But I can pay it off quickly, so its not something im stressed out about. And i've never gone over 2200$ with it (right now).

And some things you either can't do with cash anymore, or are made very inconvenient to use cash. Parking machines in Toronto will take Loonies (that's a Susan B or Sacagawea to you Americans) or a credit card, but not debit. Carrying around ten $1.00 coins every day is a pain in the ass. You can't rent a car or reserve a hotel room without a credit card.

[CrazyKell]

Oh so true about the trips, hotels, etc. I'm considering getting myself a secured card just for this reason.

[z06boy]

Yep they're trying to avoid a credit card crisis like they have with the mortgage crisis.

People are running up their balances and not paying it back...they are trying to reduce exposure and risk.

It just sucks when you've always paid on time and have never gone over the limit and then get slapped with this.

[HurricaneHeather]

I am not sure I would care as much if my husband had a job right now and/or if I hadn't just been in an accident. :lol:

I just like to have the security of knowing that if I had a 30K emergency that I would be okay without draining savings and 401Ks :lol:

[z06boy]

I am not sure I would care as much if my husband had a job right now and/or if I hadn't just been in an accident. :lol:

I just like to have the security of knowing that if I had a 30K emergency that I would be okay without draining savings and 401Ks :lol:

That makes a lot of sense and many people feel just that way and are shocked/pizzed/ and even scared when this happens to them when they feel they haven't done anything to deserve this treatment from their bank.