Rich - How can we protect our credit scores in this economy?

[Kristen]

Rich, I've got a question for you.
Right now, I'm having an issue with Bank of America slashing my credit limit by 66%, to just over the actual balance.
They say it's because of 1) my transaction history and 2) high balances on other cards.

My transaction history is that I have paid it off completely, and left it at zero for months, many times. In 2008, I used it twice for two major things, using up about 33 percent of the credit line.

I do have a high balance on one other card, but with a low interest rate and a perfect payment history.

My credit score is really good, and I haven't had any negative comments on my credit reports in over 6 years.

So, now my limit is reduced, which means my credit score will go down right? With no control over how this will affect my score, what can I do to protect my credit in this economy?

Obviously I'll keep making payments on time - but that doesn't seem to be enough any more. So what can we do?

Thanks!

[Trey]

I would like to know this too. Same situation for us...

2 cards slashed our credit limit
1 card raised our rate (thankfully it was a promotional balance, so doesn't affect us)
1 card CLOSED our account!!!
That's $10,000 in available credit closed, plus one valuable credit history closed! 3 of the 4 cards didn't even HAVE balances!!!

We have no missed payments, no late payments, never went over our limit, however we do pay minimum balances on all cards that have balances with the exception of one card getting a "snowball" payment.

I honestly haven't checked my score, because I am nervous to do so!

[Kristen]

Originally Posted by Rileysmom I would like to know this too. Same situation for us... 2 cards slashed our credit limit 1 card raised our rate (thankfully it was a promotional balance, so doesn't affect us) 1 card CLOSED our account!!! That's $10,000 in available credit closed, plus one valuable credit history closed! 3 of the 4 cards didn't even HAVE balances!!! We have no missed payments, no late payments, never went over our limit, however we do pay minimum balances on all cards that have balances with the exception of one card getting a "snowball" payment. I honestly haven't checked my score, because I am nervous to do so!

Trey, I am sorry to hear it's happening to you too! I thought that the snowball payment was going to help me improve my credit standing, but it seems to be hurting us now. I hope Rich has some sage advice!

[Elizabeth]

We haven't had anything cut yet but I have been wondering the same thing. If part of our score is based on what is available to us and they cut that due to economy... well how do we deal with that?

[Brandi]

Originally Posted by Kristen Rich, I've got a question for you. Right now, I'm having an issue with Bank of America slashing my credit limit by 66%, to just over the actual balance. They say it's because of 1) my transaction history and 2) high balances on other cards. My transaction history is that I have paid it off completely, and left it at zero for months, many times. In 2008, I used it twice for two major things, using up about 33 percent of the credit line. I do have a high balance on one other card, but with a low interest rate and a perfect payment history. My credit score is really good, and I haven't had any negative comments on my credit reports in over 6 years. So, now my limit is reduced, which means my credit score will go down right? With no control over how this will affect my score, what can I do to protect my credit in this economy? Obviously I'll keep making payments on time - but that doesn't seem to be enough any more. So what can we do? Thanks!

UGH! We are having the SAME problem. We have a pretty darn good credit score right now, both are over 700 with absolutely no recent history of late payments or anything like that.

Well, we have been getting recent notices of
1. higher APR's being applied basically "just because"... I mean our default rate is going through the ROOF!!! On cards that were at like 9%, we're now getting noticed of "default rate" going to 23-26% with our capital one cards... we have NEVER been late!!! Or carried a maxed out balance!!
2. Lower credit limits! Cards that had limits of like $2,000-$5,000 are being slashed by like half or at least several hundred dollars.

I am getting upset enough about it that I'm actually really considering just cancelling all of them that are doing this. I don't really carry any balances, at least not many that are revolving, so it wouldn't matter to me if we cancel the cards. I know the changes won't really effect us all that much, but it's the principal of it. It's irritating that we've been a good customer and are basically being punished. I'm not happy at all.

[Brandi]

Originally Posted by Rileysmom I would like to know this too. Same situation for us... 2 cards slashed our credit limit 1 card raised our rate (thankfully it was a promotional balance, so doesn't affect us) 1 card CLOSED our account!!! That's $10,000 in available credit closed, plus one valuable credit history closed! 3 of the 4 cards didn't even HAVE balances!!! We have no missed payments, no late payments, never went over our limit, however we do pay minimum balances on all cards that have balances with the exception of one card getting a "snowball" payment. I honestly haven't checked my score, because I am nervous to do so!

You too???? OH MY GOSH! Well at least it's not just us then, but it is upsetting me SO MUCH that it's even happening period Crap.

[Loretta]

I am wondering this, too... All our cards have zero balance on them...I'm just waiting

[Trey]

Originally Posted by Brandi You too???? OH MY GOSH! Well at least it's not just us then, but it is upsetting me SO MUCH that it's even happening period Crap.

Yeah, I called every single one that we got a notice for, and asked why, and they all said "the economy" and "the bank protecting itself". Protecting itself from what? Keeping a good paying customer???????????

[ash]

Your guys posts have me worried. I am paying down the card that has a balance from some horrible incidentals I had last year and my limits have gone UP twice.

I haven't gotten any notice about interest rates, they would ahve to let me know, right?

[Trey]

Originally Posted by Kristen Trey, I am sorry to hear it's happening to you too! I thought that the snowball payment was going to help me improve my credit standing, but it seems to be hurting us now. I hope Rich has some sage advice!

I know! Same here... I'm wondering if paying them equally, or paying down the cards that have a balance close to the limit would be better? But what does it matter if they just slash the limit right down to the balance again anyways?