Credit Card Companies lowering limits

[Supa Dexta]

Just reading on another board, member after member is reporting their cards being lowered. Going from in some cases 48k limits, down to 9k.. But most being in the 8-10k limit, down now to 500$!

The companies no doubt know things are going to get tight, and want to lower limits before they get left on the hook, by people maxing out their cards. But damn, thats gotta suck for ones purchasing power..

[Redlyne_mr2]

There has to be a reason for the drop.. makes no sense to lower a well paying customers limits from 10K down to $500.. someone isnt be straight up with the situation.

[Fiddy Yen]

48K on a credit card is RIDICULOUS!

I saw this drop coming, but it will probably affect those with higher credit limits. Its just to minimize risk of default for both the consumer and the company.

[Supa Dexta]

AMEX blue.. ^

And I would be iffy on the whole thing if it was just one guy saying his got lowered, but this is a 2 page thread so far with others saying the same.

[Xtrema]

Originally posted by Supa Dexta
AMEX blue.. ^

And I would be iffy on the whole thing if it was just one guy saying his got lowered, but this is a 2 page thread so far with others saying the same.

Link?

But I'm not surprised. GMAC is no longer giving car loans to any one with a FICO score lower than 700. Lenders will probably re-evaluate your FICO score + your debt ratio and adjust credit limit accordingly.

Credit ain't cheap no more.

[Supa Dexta]

Private board, can't link to it. Sort of an ask leo thing.

so i had a credit card for 3500 which i had 3168 on, i paid off 3k last month and earlier this week i went to pay off the rest online and noticed not only was my limit at 500 but my interest rate was 0 :umm

anyone else experience this?

Yup, I had my home depot credit card lowerd from 6 grand to 500 dollars lol. I didn't even get a chance to use it. Though the bastards didn't lower my interest rate.

=Same here my Amex Blue card had a $48,000 limit and they lowered it to $9,000. What the hell is going on? :help

And so on.

[Fiddy Yen]

Originally posted by Xtrema


Link?

But I'm not surprised. GMAC is no longer giving car loans to any one with a FICO score lower than 700. Lenders will probably re-evaluate your FICO score + your debt ratio and adjust credit limit accordingly.

Credit ain't cheap no more.

yep or charge higher interest rates

I know all of Banks have increased the spread of credit in order to lend with the same criteria (income, credit, TDSR etc..)

By the way: this a US board or a Canadian board? Also, how long ago are these posts? Sounds more US to me if anything

[Supa Dexta]

US board, last couple days.

[Masked Bandit]

I think there is an obvious tightening of the underwriting of all kinds of credit. I wonder what this is going to do to those car lots that will "finance anyone, regardless of past credit". Those guys are the auto version of the US subprime mess and they're financing depreciating property (vehicles).

[Fiddy Yen]

Originally posted by Supa Dexta
US board, last couple days.

ah... that explains a lot.

[gkAeris]

Originally posted by Supa Dexta
Just reading on another board, member after member is reporting their cards being lowered. Going from in some cases 48k limits, down to 9k.. But most being in the 8-10k limit, down now to 500$!

link?

[Thaco]

Originally posted by Supa Dexta
US board

Nuff Said.


Canada =/= USA

[rage2]

No limit decreases on any of my credit cards at all. I've noticed they've stopped upping my credit tho, my primary card has been stuck at a 75k limit for 6 months now. Not that I ever use that much monthly lol. Not sure if that's the card's ceiling or what.

[civic_rida]

they raised my credit card limit

[Xtrema]

Originally posted by rage2
No limit decreases on any of my credit cards at all. I've noticed they've stopped upping my credit tho, my primary card has been stuck at a 75k limit for 6 months now. Not that I ever use that much monthly lol. Not sure if that's the card's ceiling or what.

I doubt they will decrease your baller credit.

They have not raise mine in a while too but I only reached $20K once ever since I used a credit card, can't see myself needing that high of a limit.

People with above average credit score has nothing to worry about.

[rage2]

Ya I don't really care if they decrease that limit, I always have $0 balance anyways and rarely get over 10k a month on the card. I have no clue why they gave me so much credit. Just thought it might be relevant.

[max_boost]

$75K limit on an unsecured credit card? lol wtf man! That's insane.

I thought $25K was pretty high ahha

[kutt3r]

I have always had more issues with getting limits lowered... maybe this will make it easier?

[nonlinear]

credit card companies were outta control during the early 2000s...

I remember at one point in like 2004/2005 I had like 3 or 4 credit cards... a mastercard they gave with my bank account (limit like $2000), an amex (i got it to get airmiles - credit limit $7500), a BMO mastercard (again, for airmiles - credit limit $17000!), and i think that's it.

so i was given like $26,500 in unsecured credit... the crazy thing is that I was in graduate school and was on a stipend that paid just over $20k/year... I had outstanding credit, and i'm sure that's why they gave me so much credit, but I can totally see how people got into so much trouble... I mean if someone making $20k/year maxed out their cards, there is no way they could even make the minimum monthly payments

crazy. i'm guessing that credit card companies lost a shitload of money from this practice with the US foreclosure probs, and now they're being responsible again

[Thaco]

Originally posted by nonlinear
credit card companies were outta control during the early 2000s...

I remember at one point in like 2004/2005 I had like 3 or 4 credit cards... a mastercard they gave with my bank account (limit like $2000), an amex (i got it to get airmiles - credit limit $7500), a BMO mastercard (again, for airmiles - credit limit $17000!), and i think that's it.

so i was given like $26,500 in unsecured credit... the crazy thing is that I was in graduate school and was on a stipend that paid just over $20k/year... I had outstanding credit, and i'm sure that's why they gave me so much credit, but I can totally see how people got into so much trouble... I mean if someone making $20k/year maxed out their cards, there is no way they could even make the minimum monthly payments

crazy. i'm guessing that credit card companies lost a shitload of money from this practice with the US foreclosure probs, and now they're being responsible again

I've way more available credit than i want/need and i keep getting offered more, every time i log in to my online banking they've got preapprovals for LOC's and credit cards... they're just throwing it at me.