Tuesday, October 28, 2008

Credit Card Horror Stories: Tales of Credit Limit Reductions and Account Closures


Bankrate.com did a story on Friday (sorry for not getting to this earlier) highlighting some of the same stuff that I've been pointing out at GlobCredit.com for weeks. More and more customers are experiencing credit-limit reductions and account closures. Over the course of the past few weeks, Bankrate.com readers have been chiming in with their own credit-card tales. Many of their stories will seem familiar. Indeed, many of my readers have been experiencing the same thing.

From the story: Credit Card Horror Stories (link here)

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.

This is just one reader tale. There are more.

Enjoy the story.

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15 comments:

Marilie said...

Sounds like the person in the story above is not familiar with the infamous AR soft inquiries on EX. Believe me, they pulled that report...probably pulled it 3-4 times in the last month, lol

GlobCredit.com said...

Yep. Absolutely not familiar with Amex's AR policy. The reader should have read this: http://GlobCredit.com/2008/10/10-credit-questions-and-answers-at_28.html

Oh, wait, that was published this morning. That would not have helped. LOL. But anyhow, I lay out Amex's AR practices there.

M, are you on my mailing list? How is that you found this article so quickly?

LBCS said...

This will only get worse. Apparently Credit card delinquencies have not peaked yet and so there is plenty of chopping left.

I expect massive action by BOA, followed by Chase in the months to come.

GlobCredit.com said...

Chase is already stepping it up. BOA is not on my radar screen yet, LBCS.

lupoman said...

Someone send George over there! lol

lupoman said...

BofA Just gave me a Luv button increase

GlobCredit.com said...

Lupo, nice to see the CLI. As far as I can tell, BOA hasn't been aggressive about cutting limits -- so far. My Google search queries (how people find me) have been quiet in regard to BOA.

Anonymous said...

CM,I can't find any LUV button for BOFA business cards online.Do you have any suggestions?Thanks

GlobCredit.com said...

Anon, I don't have one either. If you need a CLI, I imagine that you have to call BOA and ask for one over the phone.

Marilie said...

I'm not the mailing list...I just spend time finding other things to do besides actual work. :lol: But seriously, I just check your site a few times each day. :) I came back to check something from a previous post, and saw this one.

GlobCredit.com said...

Ahh, ok, Marilie. Thought you might have had a subscription to the site. Might be easier for you if you did. Whenever a new story is published, you get an email alert.

Anonymous said...

CM,I would like to avoid a hard inquiry hiting my credit report,if i'l ask for BOFA CLI over the the phone,and it can be Experian inqury...

GlobCredit.com said...

Anon, just be upfront with BOA. Ask if it will result in a hard inquiry. Also, I would expect an Experian pull (preferably soft).

Cosmo's Human said...

I have been checking all my accounts, especially CHAMU....no changes.

GlobCredit.com said...

I check all of my accounts daily. No changes here. I've really been working on using all of my accounts this month. That's very important right now. Use those accounts.

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