Credit card horror stories |
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Who knows?
My AmEx card limit was cut by $5,000 and I never missed a payment. The usual excuse of balances on other cards are too high or too many revolving -- or we just feel like screwing you because we can.
-- Pizzaout
You're fired! I quit!
I heard that if a credit card issuer cancels your card, it can affect
your FICO score. So after 11 months of nonactivity on my AT&T card,
I charged and paid off my card. The next month, I received a letter
from them that they were going to cancel my credit card. Not wanting
them to cancel it, I called them and told them that I wanted
to cancel my card, due to nonactivity. They then transferred me
to an accounts adjuster, who offered me a 3.99 percent fixed APR
on higher interest cards till the bill was paid off. I transferred
balances on two higher interest cards, and they are keeping this
account open.
-- Gene W.
Checkout surprise
My American Express credit line got cut down to less than half the
credit limit from $10,000 to the current balance I had at the time.
I found out about it when I went to do a $33 purchase and was told
it did not go through. I said, "Something is wrong," and we called,
and then I was informed by AMEX that the credit limit got lowered
due to a report from the credit bureau. I found out a week later
-- by pulling my report from three bureaus -- that was incorrect
because they did not pull credit through any of the three bureaus.
There had been no inquiries, and my payments had always been on
time and I always paid 50 percent more than the amount due.
-- Pujols
Knowledge overcomes fear
Yes, I was a victim of this "credit limit downsize." As a matter of fact, I received a letter from my Sears MasterCard (credit
card issued by Citibank, South Dakota) on Thursday and read the letter. I was shocked -- my credit limit plummeted from $7,850
to $4,900. Here is what they wrote:
"... wanted to let you know about a change being made to your account. Your credit line is being lowered to reflect
your spending. We strive to be proactive in providing our valuable customers with a credit card that meets their shopping needs.
Based on your spending history, and since you are currently only using a small portion of the available credit, we lowered your
credit line to $4,900."
What a crock! That was my first reaction. I am very
aware of the happenings with the economy and credit crunch. After
reading the letter about five times just to be sure I was reading
it right, I felt that they betrayed me. So I called the number they
provided and spoke with a lady. I asked her why my credit limit
was reduced. I asked, "Was it because of the slow economy and the
credit crunch that they are doing this?" You will not believe what
her response was: "Oh, we did that because with the credit card
fraud that's going on, we had to protect you if someone were to
place a fraudulent charge on your card. So this high credit limit
attracts credit card fraud. And we are trying to eliminate that
issue of attraction of being a victim."
So I asked her, "How does that compute? My credit
score is impeccable. Recently, I purchased a major item, which means
that my credit limit and credit balance is out of ratio and out
of whack. And this will affect my credit score reading." Her response
was: "Oh, we only report credit to the bureaus after 60 days." I
said: "So? I am glad that it will only be reported after 60 days,
as this better not be on my credit report. I am not pleased with
this change without notifying me. I even checked on the Web site
that the credit limit was already reduced." Her response: "Well,
you are not the only one who is not happy about this reduction."
So I said: "Of course I am not happy, nor is anyone else. This kills
my credit score."
So she asked me if I wanted back my original credit
limit. I said: "Of course! I earned that limit and I demand this
original limit be retained." And I asked her to retain my APR. So
in the end, I thanked her for listening and being patient with me.
After that call, I checked my online account statement, and indeed
she changed it back to its original number.
What I learned from this experience is never to let the credit company bully you into their nonsense of "protecting
you from fraud" story. I did not buy it; instead, I stood up for myself and blasted her with crucial information. I was knowledgeable
about the information presented to me from previous readings at Bankrate.com. So thank you for equipping me with a priceless education
about the financial world. It's a scary world out there!
-- Sharon
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