More Limit Cuts.. from CHASE, of course

[Frogge]

Well, Citi did it last month -- I posted that they cut my limit to $38 over my balance because of the 30-day late from my 2nd mortgage..

Chase, who we have 3 CC's with - lowered my large account from $20,500 to $18,200 (balance is $17,700) .. and a $0 balance card from $11,500 to $500 limit. No transferring balances to that one anymore! Another one, in DH's name, still shows a $12,500 limit, balance is $10,500.

I'm keeping a close eye on these limit cuts from month to month. Anyway, this is a much better defense for the CC companies, IMO than rate increases. I've not yet been late on CC's, so as we move forward this helps possibly keeping minimums paid until we decide about filing or negotiating.

[Flamingo]

The same is going on as to folks who have $0 or low balance HELOCS. Lenders are slashing available credit limits.

[magyar123]

Of course they're lowering limits. The economy is going downhill, more and more folks are using their credit cards for everyday expenses, and they want to avoid huge losses when/with more and more folks file bankruptcy. Have a hunch that filings will increase dramatically over the next year or so.

[liz417]

Well, Citi did it last month -- I posted that they cut my limit to $38 over my balance because of the 30-day late from my 2nd mortgage..

Chase, who we have 3 CC's with - lowered my large account from $20,500 to $18,200 (balance is $17,700) .. and a $0 balance card from $11,500 to $500 limit. No transferring balances to that one anymore! Another one, in DH's name, still shows a $12,500 limit, balance is $10,500.

I'm keeping a close eye on these limit cuts from month to month. Anyway, this is a much better defense for the CC companies, IMO than rate increases. I've not yet been late on CC's, so as we move forward this helps possibly keeping minimums paid until we decide about filing or negotiating.

Hi Frogge,
The same thing happened to me around the 1st of the year. I wasn't late/over-limits, but AMEX was the first to cut me, I had a $25k limit, they reduced me to $15K (had a balance right under that), then every payment, they would continue to reduce my limit! I know this tactic took a direct hit on my credit score because it showed that I was "just under the limit" every month! Soon, my Chase card followed suit...so I think it's just what cc are doing now a days to cover their own a**! If I still had those limits...I probably would still be charging on the cards today...and it would have delayed my BK filing.

[Frogge]

AMEX has not lowered YET, and I'm surprised. We have a $26,800 limit and owe them $2,700. I figure they will be next.. it's wierd, even though we plan to get out of this mess and not use the CC's anymore anyway, I feel constricted and strange about them not being available. hmmmm

I can only hope that if we are able to keep paying these minimums through the mortgage part of our process, the rates/ payment amounts won't rise. In our situation, that will make a big difference in how we move forward - AND, what the CC's actually end up being paid. I am starting to think that they could be getting the idea.

[Frogge]

If I still had those limits...I probably would still be charging on the cards today...and it would have delayed my BK filing.

Me too, I'm thinking this is a wake up call...

[epiphany]

Well, Citi did it last month -- I posted that they cut my limit to $38 over my balance because of the 30-day late from my 2nd mortgage..

Chase, who we have 3 CC's with - lowered my large account from $20,500 to $18,200 (balance is $17,700) .. and a $0 balance card from $11,500 to $500 limit. No transferring balances to that one anymore! Another one, in DH's name, still shows a $12,500 limit, balance is $10,500.

I'm keeping a close eye on these limit cuts from month to month. Anyway, this is a much better defense for the CC companies, IMO than rate increases. I've not yet been late on CC's, so as we move forward this helps possibly keeping minimums paid until we decide about filing or negotiating.

Hmmm, when my limits started getting lowered, my due date kept getting sooner, causing me to be late since I paid everything online and never opened most bills. The fact that I didn't notice my due date being sooner caused my payments to be late and then my interest rates started skyrocketing.

Not saying that will happen to you. Just thought I'd share.

ep

[Frogge]

Hmmm, when my limits started getting lowered, my due date kept getting sooner, causing me to be late since I paid everything online and never opened most bills. The fact that I didn't notice my due date being sooner caused my payments to be late and then my interest rates started skyrocketing.

Not saying that will happen to you. Just thought I'd share.

ep

Thanks, Ep.. that's exactly why I'm watching these accounts like a hawk. I don't know WHAT they'll do. The Citibank cut was tricky, and would have caused me to go over-limit if I hadn't caught it the day I did and paid down on it because there was a charge that hadn't hit yet. That would have caused an over limit fee, rate increase, etc.. snowball.

It's not a blatant "rate increase" that they are doing now, but they are finding other ways to throw you off and mitigate a loss. It's keeping me on my toes, for sure..

[epiphany]

It's not a blatant "rate increase" that they are doing now, but they are finding other ways to throw you off and mitigate a loss. It's keeping me on my toes, for sure..

Ah, well, it will keep your mind spry, that's for sure!

ep