barclayscard just lowered my available credit!

[Flamingo]

This thread has run its course and is being closed.

[jadams]

To do that, I would need to know exactly how much to take out. When buying a ticket, it's a case of "here's the price right this second, it could be gone in 10 minutes!" Getting money from being invested in a mutual fund in the IRA to having it available in the checking account for use via a debit card takes about a week. And then there is the situation of having the distribution take place in one tax year or the other - as well as cause total income to go up for that period of time, which could hamper getting various means tested benefits, like SNAP, which I get when in the USA.

So how do you live day to day if every purchase requires notice so you can preplan a distribution from your IRA? Surely you keep some funds liquid in a checking account to buy groceries and pay living expenses?

Withdraw an extra $100 over the estimated ticket price from your IRA. If you don't end up needing it for the ticket, that's money you would have needed to take anyways for living expenses. Your situation is really that close that an extra $100 is going to make a serious impact on your tax/benefit situation?

I just don't get it. It makes no sense.

You're using the card and carrying a balance? You realize that causes issues with your 0%, right?

You want to "milk that 0%"... for what? The interest you could earn on 15 months of $1,900 deposited in the bank? The tax benefit of not taking a distribution? You are apparently near poverty level, so you'd be paying 10% if no qualified reason and likely no tax. Is playing these games with the card company really worth the savings?

I have $14,000 available credit on my Navy Federal card, and they're offering 0% for 12-months with no transfer fee. I haven't accessed it -- why? The pittance of arbitrage I could earn on $14,000 is not worth the risk profile it telegraphs to my other creditors considering my recent bankruptcy. You're talking about a factor less in credit. You should have left it alone and used it for the occasional expense and paid in full. It's not worth it.

You and I are risky debtors. Even the nicest creditor is skittish in loaning us money, for good reason.

I can't believe you act shocked or surprised that they lowered your credit limit after a risky customer engaged in bust-out very-risky behavior. It's a shame, since myself and many others can prove that with a little patience and good management Barclay and others are very generous in extending credit to post-BK people.

Had you just been a little patient and reasonable, you'd probably have the limit you desire for your ticket purchase in plenty of time.

[JackBondLove]

I contacted Barclays and was told to reapply in 6 months, so I will just stop charging when I reach the limit, pay the minimums, and wait for my credit increase then.

[JackBondLove]

Why not just use the IRA to buy your airline ticket?

To do that, I would need to know exactly how much to take out. When buying a ticket, it's a case of "here's the price right this second, it could be gone in 10 minutes!" Getting money from being invested in a mutual fund in the IRA to having it available in the checking account for use via a debit card takes about a week. And then there is the situation of having the distribution take place in one tax year or the other - as well as cause total income to go up for that period of time, which could hamper getting various means tested benefits, like SNAP, which I get when in the USA.

[lotsahats]

Good. Then budget and save to pay for the things you need.

Even better.

[LadyInTheRed]

I actually garner an income (off the books - or should I say, completely eclipsed by official Per Diem deductions available to me) abroad by teaching English.

Good. Then budget and save to pay for the things you need.

[lotsahats]

Why not just use the IRA to buy your airline ticket?

[JackBondLove]

You are mad because your credit limit will be too low to allow you to buy a transatlantic airline ticket. Guess what: You can't afford to travel overseas! Stay home until you can afford to pay cash for an airline ticket. Even without the decrease in your credit limit, charging that ticket would have used a large portion of your available credit.

I actually garner an income (off the books - or should I say, completely eclipsed by official Per Diem deductions available to me) abroad by teaching English. I can't find work in my field (software development) because folks abroad will work for so much less. Ironically, I am teaching English to folks who are taking my job away.

[Freddy03]

I know I've been struggling with what to say because I fear it will fall on deaf ears. But I'll say what I want to say anyway.

JackBondLove, I don't blame the credit card company for lowering your credit limit. They have broken no promises to you. The credit card agreement allows them to lower your limit. You were a risk when you applied because of your BK. After you got the card, they saw you had applied for a lot of other cards and received a couple. You now appear to be even a higher risk. They did the smart thing. I believe somebody predicted this would happen in your app-o-rama thread. The credit card company doesn't have the information we all have from reading your posts. If they did, they might cancel your account all together.

You are unemployed and are thinking ahead about how you are going to use your available credit. If you don't have any money to pay off the balance, you plan to use your IRA to pay it. From another post, this would be an early distribution from your IRA. That's a terrible financial decision. Considering the penalty you will pay, you will not be getting the benefit of a 0% rate.

You are mad because your credit limit will be too low to allow you to buy a transatlantic airline ticket. Guess what: You can't afford to travel overseas! Stay home until you can afford to pay cash for an airline ticket. Even without the decrease in your credit limit, charging that ticket would have used a large portion of your available credit. Not a good way to rebuild your credit rating and make you look attractive to a mortgage lender.

If you continue along your current path, you appear to be at high risk of once again winding up with more debt than you can pay. With any luck, creditors will continue to keep a short leash on your ability to borrow and help minimize the damage.

Agreed 100%

[LadyInTheRed]

I think others on here may feel/see the same and don't know exactly what to say because you appear to be in a bit of denial about the whole thing and will just indicate that you are not doing anything wrong.

I know I've been struggling with what to say because I fear it will fall on deaf ears. But I'll say what I want to say anyway.

JackBondLove, I don't blame the credit card company for lowering your credit limit. They have broken no promises to you. The credit card agreement allows them to lower your limit. You were a risk when you applied because of your BK. After you got the card, they saw you had applied for a lot of other cards and received a couple. You now appear to be even a higher risk. They did the smart thing. I believe somebody predicted this would happen in your app-o-rama thread. The credit card company doesn't have the information we all have from reading your posts. If they did, they might cancel your account all together.

You are unemployed and are thinking ahead about how you are going to use your available credit. If you don't have any money to pay off the balance, you plan to use your IRA to pay it. From another post, this would be an early distribution from your IRA. That's a terrible financial decision. Considering the penalty you will pay, you will not be getting the benefit of a 0% rate.

You are mad because your credit limit will be too low to allow you to buy a transatlantic airline ticket. Guess what: You can't afford to travel overseas! Stay home until you can afford to pay cash for an airline ticket. Even without the decrease in your credit limit, charging that ticket would have used a large portion of your available credit. Not a good way to rebuild your credit rating and make you look attractive to a mortgage lender.

If you continue along your current path, you appear to be at high risk of once again winding up with more debt than you can pay. With any luck, creditors will continue to keep a short leash on your ability to borrow and help minimize the damage.

[JackBondLove]

Correct me if I am wrong since it has been some time since I've applied for a CC. Don't they ask you what your present income is and where you are employed? I thought you had said you weren't working right now and are living off of your IRA? I thought I read that somewhere.
Maybe they just ask where your income is coming from?

The $38K was for a Roth conversion and traditional IRA distribution.

[IBroke]

AMEX wanted proof of income but only from the IRS!

They are the worst out there. When I had a Business Gold Card with them, I even got a phone call one day, asking why my visitor-counter on my business-website was so low??!! The guy from AMEX DEMANDED access to ALL my business numbers and documents - not just proof of income. Basically, they even wanted to have the names of my business-partners and companies I was dealing with. I had to LOL into the phone and told him "You won't get that information. Who do you think you are? Take back your card. Good buy!"

[mountanddo]

My income for 2010 was $38K.

Correct me if I am wrong since it has been some time since I've applied for a CC. Don't they ask you what your present income is and where you are employed? I thought you had said you weren't working right now and are living off of your IRA? I thought I read that somewhere.
Maybe they just ask where your income is coming from?

[Flamingo]

The problem here is that anyone who has filed and been discharged from BK cannot force a creditor to give them credit again even though that credit may be needed to plan for something as in your situation. Since you are desperate to obtain those lines of credit, you tried to do it all at once which may have just ultimately blew the boat out of the water for you. Time is one's friend after a BK and the more credit one tries to obtain at once after a BK discharge the worse it looks to creditors. You are considered high risk to begin with and now you already have a new creditor lowering your credit limit. I just believe you went about this the wrong way to meet your goals and have just made things worse for yourself by doing so and are now trying to figure out how to get out of it when the only thing now that will help you is time. While filing BK may not be the end of the world, it does take time to rebuild and not everyone can get credit again following a BK and those that do need to be very prudent and careful with the credit they do receive. You are finding this all out...

[JackBondLove]

Did CapitalOne say you needed 4-6 lines of credit all opened at the same time to get your HELOC? Perhaps it would be a good idea to just let your credit 'marinate' for a while. Let time do some healing.

Yes, when I was rejected for my HELOC application, I called up and asked if I would ever be eligible because of my BK, and was told that 4 years post-BK, if I had 4-6 open lines of credit, I would be able to get the HELOC.

I agree that my credit should marinate, but at some time, I have to put the meat in the pot to start the cooking!