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What's sad about this is that they do not notify you prior to cutting your limit. I have a Vegas trip planned for Mother's Day/Graduation present to myself and I reserved my room on my credit card. I would hate to get to the hotel and they say "your card has been declined" How embarrasing. Even though right now I have a zero balance (my limit is only $1500 which i would like to keep it). I just think they should at least notify people so they dont find themselves in another country with no money on their credit card because they secretly lowered the credit limit.
Well,every cardholder's agreement (contract) that I know of state that it is alright for the lender to change the condition of the contract at any time they want to.
I learn this about a PBS Frontline documentary about the history of credit cards. Just check out the PBS FRONTLINE website,they have most of their documentaries online to watch,it is ashame that they don't have all of them.
They also want to cut the amount of credit card debt many have prior to the new guidelines coming out.Unsecured credit is getting ready to have alot of chnages it seems.
I can't believe it's legal to cut limits below balances and then be able to charge an over balance fee
Seriously. They are doing a great job proving why their entire industry needs those stricter regulations. The anti-consumer practices have become simply outrageous.
I would've never believed this would happen to me and yet it did! I haven't carried a balance in my life, have not had a late fee, and my scores are over 800.
I could've not seen this for a long time as I don't use this card often. Since I needed to use a Visa or Master this weekend, I made a few charges and I happened to look up this account this morning. When I glanced on the left menu I noticed the lower limit. It's an old MBNA card that was bought by my dear bank, B of A. I'd always been very happy with this card and was even singing praises to it.
So I call them... The first one says they review accounts periodically and "something" must've changed. Neither she nor her supervisor could tell what the "something" was... I wanted to be transferred to the department dealing with those "changes"... He started asking me about my income, mortgage, etc. and said my income wasn't high enough for those limits. Mind you, this card is at least 7 years old when my income was lower and I didn't even have a mortgage and I never had any problems with them. The bottom line was high credit lines were dispersed freely at those times but not now. Since I have another B of A CC, he suggested he could divide the overall limit any way I want to between them.
The limit was lowered on the 16th. A week later there's still no notification. I asked them what would've happened had I charged a large purchase in the meantime. I was "assured" it wouldn't go through. The question remains what would've happened had I already had some high balance on it at the time they decided to slash it! Since I was annoyed enough I forgot to discuss this possibility.
Frankly, I could close the card... I don't care. I don't care if my scores drop some, either. They're high enough and I don't plan on any major purchases in the near future. It's just the principle of it that pis*es me off!
The truth is I am like you but things are changing with unsecured debt. I fully expect in the future with changes coming in credit card fees etc from congress that we wil actually see less people being approved for credit cards,much as in the past.More companies will also be having accounts that must be paid at the end of billing clycle in full. Things are just changing and if you look at the average spending of 140% of income spent and the amount a debt that maybe more understandable.Credit in line with income and other debt is what I think we are looking;more tranparency in personal debt and risk.They basically will changfe the reward to more close equaol teh risk with these changes.
More companies will also be having accounts that must be paid at the end of billing clycle in full.
You know, if they are to do that, they can bite me. I don't need them in this case; they need me. Even if I never carry a balance they still get money from the merchants.
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How embarrasing. Even though right now I have a zero balance (my limit is only $1500
which i would like to keep it). I just think they should at least notify people so they dont find themselves in another country with no money on their credit card because they secretly lowered the credit limit.
I wanted to be transferred to the department dealing with those "changes"... He started asking me about my income, mortgage, etc. and said my income wasn't high enough for those limits. Mind you, this card is at least 7 years old when my income was lower and I didn't even have a mortgage and I never had any problems with them. The bottom line was high credit lines were dispersed freely at those times but not now. Since I have another B of A CC, he suggested he could divide the overall limit any way I want to between them. 
