Credit Limit Decrease
I'm in the process of closing on an investment property in the next few weeks. In the process, I have had my credit pulled a couple of times by the mortgage broker and lending institutions.
All of a sudden, I get a letter from one of my credit cards that my credit limit was decreased from $15,000 to $1,000 due to a recent review of my credit report. Now this is a card that I have never been late on and I currently had a zero balance on the card for the past few months. I reserve the card for use with financing renovations when necessary.
Anyways, I call them up and remind them of my outstanding payment history and tell them that I'd like my limit restored. they say that they can't do that and I would have to go through the process of re-applying to get my limit increased. I was so upset at this that my knee jerk reaction was to tell them to simply cancel the card.
Did I overeact in this case? Is there a possibility that I could have had my limit restored? Or was this just a tactic the bank was using to get rid of me as a customer? This is the first time I've ever had my credit limit decreased on any card so I was quite shocked. How is the best way to handle such situations?
Any help and advice would be well appreciated.
Thanks,
JS.
Is there anybody out there with a similar experience? Please help.
Thanks,
JS.
Let me guess...was the lender Capital One??!
I have had a similar situation and I didn't think it was worth my time to mess with it because it was just with a store credit card.
I would be VERY upset if this same situation happened to me and would have worked my way up to the company until I got it fixed. I always ask, "Can I speak with your manager" and "Can I please be transfered to the office of the president?"
Can't help you other than share your frustration.
i've never heard of that happening... But that's ridiculous... I would definitely be interested in hearing what credit card company that you have this situation with?!? I knew that they review your credit periodically just to check up on how things are going and what offers to extend to you, but DECREASING a credit line by 90%??? That's absurd.
I'm sorry - I would complain everyday until you got that fixed...
Good Luck with that!
[addsig]
Hello. I feel your pain!
I, too, have been going thru issues such as this and it has left me unsure of what I can count on.
I just pulled a tri-merge yesterday so that I could see my fico's and report = 672/678/690.
I would have them re-open your account now, even if they will not increase the limit back... Make sure that you use it and pay back over 3 months so that they make a few bucks off of you. Go on www.PlanetFeedback.com and send a letter out for all to see.
I have had a problem opening accounts ever since this happened to me with Citi a few months ago. So Citi closes a zero bal 9K acct and Chase raises from 15K to 19K limit. Who can figure this out? Nobody!
FYI: As ceinvests suggested, I tried to have the card re-opened but they said that because it had a zero balance, they could not re-open the card. For some reason, they are bent on me re-applying for their card and I don't want to do that because of the hit on my report.
Oh well, I guess I'll just have to find other ways to finance potential rehabs.
Thanks,
JS.
Yes, but spread the word.
Put your letter out on planetfeedback as suggested. I did and it helped me learn more.
And you are right...they will probably turn you down and you will have another inquiry....so fight up the line!!
I am quite concerned how the credit companies will be behaving as the rates go up and they have some of us out here using their money for cheap.
So, don't keep us in suspense, who is the company?
Spread yourself among the quality issuers that don't tease with lowball rates then sell your account down the river (a lot of those 4.77% Arkansas banks pull that one):
Bank of America
Amex
Chase
Citibank
National City
Generations Bank
Avoid Crap 1, Juniper and Providian
Sorry it took so long to reply. The bank is First National Bank of Omaha.
I've just learnt a lesson to stay away from these guys.
JS.