Smart Spending

By clthurman

October 8, 2008 11:34 AM | Link to this

Lowering limits sounds reasonable although that will affect credit scores. Raising rates on solid customers with a good payment history is something I would find fault with. And hitting those who are delinquent with higher rates begs the question….Will that make it easier to pay these institutions? Lower or eliminate their credit lines but don’t backdoor them fees and higher interest rates unless you do want to punish people rather than find a solution where you will get some money if not most.This is the next wave of misery we are going to see…the credit card crisis…hopefully we will be proactive in this and not get bogged down in punitive measures against those who cannot pay. Some is better than nothing for these institutions at this point.

By ron

October 8, 2008 11:53 AM | Link to this

My card always has a zero balance. I pay in full when due.I use the card infrequently,just enough to let them know I’m alive.I think most credit cards should be limited to $2000 and only one per person.That certainly would help a lot of Americans stay out of debt.The credit card has runed a lot of people.I’m still getting credit card applications in the mail that promise the sky.

One other thing:I called two years ago and had my own limit lowered by a considerable amount.It keeps me from wanting to go the bank,drawing the limit in cash and skipping the counrty.

By fparrales

October 8, 2008 11:56 AM | Link to this

Banks despite the Financial debacle have finally shown some sense although I ask myself: Where was this mentality before the the financial meltdown; banks buying subprime loans and taking way too risky of deals, and yes, let us NOT forget the CEO’s and their parachute deals. AIG’s (Fuld) accepting blame for his mistakes but others were taking exclusive trips to spas.

As for the banks lowering the credit line on customers on their credit cards, I believe it’s good idea but let’s NOT penalize those of us that pay our [cc] debt every months with higher interest or any other underhanded method for banks to make up for their greed.

Also, if banks do this, let’s not “Ruin” bank customers [cc] with the Credit Reports; personally, I’ve worked way to hard and am extremely proud of my “Excellent standing” and because of some SOB idea of Free Market we [I] will pay for his mistakes.

By carla

October 8, 2008 12:32 PM | Link to this

clthurman, you are so on point. It’s too bad common sense went out the window so long ago. I have an excellent credit rating (800+ FICO score), but my credit card’s interest rate recently went up (Citi Card). I’ve maintained a good standing with them (never been late or underpaid the minimum). Their explanation was that the economy is causing this change. I never meant to accumulate the amount my balance grew to, but due to layoffs, etc. I managed to get through with support of my credit card. The good thing is that I can pay it off within a few months. But it made me wonder why they would shoot themselves in the foot this way? It’s more their loss than it is mine. I thought I’d be more in the target range for the kind of person they would prefer continued business with.

This all happened right around the time they were going to acquire Wachovia (before Wells Fargo appeared on the scene with their side deal). It could be that there’s something else going on that’s not as transparent or it could be that common sense has truly flown out the window.

By justmyopionion

October 8, 2008 12:51 PM | Link to this

I haven’t seen any of the companies I have credits cards with raise my interest rates. I have however had two companies contact me in regards to the use or nonuse of the credit cards. One company asked if there was anything they could do to encourage me to use it (like lower the rates or free balance transfer) the other company is going to close my account if I don’t use it. Of course this would hurt my credit score so I will be using that card and pay it off when the bill comes. I will be watching these closely though to see if in fact my interest rates are raised. I agree that common sense has truly flown out the window on many issues nowadays.

By Sugar

October 8, 2008 1:03 PM | Link to this

Not one single credit card here. Thank god. We live on a cash only basis. If we don’t have the cash, we don’t get it. I love sleeping at night, knowing that if anything happened, no one can come and take anything away from us. We own everything right out (except the house and it will be paid off in less than 10 years.)

If there’s something we want, we will save for it.

By James

October 8, 2008 1:15 PM | Link to this

Yep - got such a letter just yesterday. It’s a card I never use anyway.

By RH

October 8, 2008 1:21 PM | Link to this

The limits on our credit cards have stayed the same - no lowering at all. I am sure the c.c. companies don’t like us and wish we’d carry a balance! They are paid off in full every month and used for convenience only. It’s dangerous (and is about to become more so) to carry cash around. Pay cash for our autos and everything else. The only thing we “owe” is appx $200K for a 15 yr fixed rate mortgage- current appraised value of home is $550K. Our credit is pristine - never any flaws. Have 18 mos worth of cash in case of job loss / emergency. No need to panic - we are fine :)

By Marie

October 8, 2008 1:39 PM | Link to this

What happens to your credit score when the credit card company clses your account becasue you don’t use it. What happens when your credit card company lower your credit balance as well. That just happened to me and I am mad as Hell about that issue all together.

By Marie

October 8, 2008 1:41 PM | Link to this

What happens to your credit score when the credit card company clses your account becasue you don’t use it. What happens when your credit card company lower your credit balance as well. That just happened to me and I am mad as “Hell”about that issue all together.

By Marie

October 8, 2008 1:41 PM | Link to this

What happens to your credit score when the credit card company clses your account becasue you don’t use it. What happens when your credit card company lower your credit balance as well. That just happened to me and I am mad as “Hell”about that issue all together.

By Marie

October 8, 2008 1:41 PM | Link to this

What happens to your credit score when the credit card company closes your account becasue you don’t use it. What happens when your credit card company lower your credit balance as well. That just happened to me and I am mad as “Hell”about that issue all together.

By Marie

October 8, 2008 1:41 PM | Link to this

What happens to your credit score when the credit card company closes your account becasue you don’t use it. What happens when your credit card company lower your credit balance as well. That just happened to me and I am mad as “Hell”about that issue all together.

By MO

October 8, 2008 2:04 PM | Link to this

I have 4 CC’s, and I don’t use any of them. if i buy something, it’s always put on the debit card where the money is automatically deducted. For larger purchases, I use my Bof A Visa, and py the balance at the end of the month. I’ve never been able to figure out why people felt they “had” to use their credit cards just because they have them. Then again, these are he same people that had to have a giant SUV and a house they couldn’t afford. Oh well, I hope they enjoyed the ride.

By Noelle

October 8, 2008 2:15 PM | Link to this

If you don’t carry balances, your credit limits don’t matter much. I have two major cards and one store card that I use regularly (all offer rewards), and two other major cards and another store card I use very rarely. I pay all in full every month. The total credit limit on all the cards is about $45,000, but I haven’t gotten any notifications about lowered credit limits so far. I do plan to close one of the major accounts soon, since I never use it and don’t want to have to keep monitoring it just to avoid fraud.

By UGA Class of 1981 Grad

October 8, 2008 2:16 PM | Link to this

If my limits have been reduced, I’m not aware of it (yet). However, Discover Card called me yesterday to ask why I had not charged anything on their card for over a year. When I explained that I did not have a balance on any of my credit cards, she wanted to know if I would be charging any Christmas purchases on my card. I said that if I do, it would not be much.

By Big Juicy

October 8, 2008 2:30 PM | Link to this

I was late w/August’s payment and my available credit was reduced by 70%. Understood but could the CC company have let me know BEFORE I got to that cash register to use the card? I wee bit embarrassing.

By FICO

October 8, 2008 2:46 PM | Link to this

Don’t cancel your credit cards - if the cc company wants to - let them do it. It will hurt your credit score if YOU close your credit card(s). That rule has always applied and continues today.

By justmyopinion

October 8, 2008 2:50 PM | Link to this

Hey Marie, I believe it will affect your credit score negatively when either your limits are decreased or your acct. is closed. One of my cc companies sent me a post card warning that they would close my acct by 11-08 if I didn’t use it. I hadn’t used since 99. I am going to use it and pay off when bill comes in. Hey UGA….Grad Discover called me too on Sat. about my not using my card. We recently froze our credit, it’s a simple process that can be done on-line or telephone at a cost of only $3.00 at each credit bureau (in Georgia). It can easily be “unfrozen” for $3.00 temporarily. Since doing this we haven’t had any unsolicited cc applications or “pre-approved offers. I would highly recommend doing that instead of paying for credit monitoring.

By clthurman

October 8, 2008 2:57 PM | Link to this

If they are calling you then feel prepped for the lower credit limit and or dropping of your account. They are tightening their belts so as to disguise and or prevent the huge amount of flab to bust out or show. And as for those who have paid their balances in full every month, good job. But to generalize that those who do carry balances all have SUVS and are living the high life….sorry to say but that reeks a little of penis envy to use a pun. Yes there are plenty of spending fools out there, but we don’t walk in everyone’s shoes so be glad you are wearing yours as well as you are in this matter. Why the need to be in a good place and lift your leg to urinate on someone in trouble, either through hardship or irresponsibility, is well….dumb.

By sharon

October 8, 2008 3:03 PM | Link to this

I walked up to the register to pay for my merchandise with my Sears card when the the salesclerk told me my card was declined. I knew it had to be a mistake so I called and found out my limit had been reduced! I also contacted my credit card company to ask them to reduce my interest rate because I had never been late, never been over the limit and always paid what was expected or more in twelve years, not only did they not respond but they sent me a letter raising the interest rate!

By CeeCee

October 8, 2008 3:33 PM | Link to this

I haven’t noticed a decrease in my credit limits, or a increase in the interest rate on any of my credit cards. I have never been late on a payment for anything, ever. So, I am totally prepared to stop making the payments if they lower my credit limits or raise my interest rates and mess up my credit score. Where’s the incentive to do the right thing if you’re going to get screwed anyway. Maybe if I quit paying my bills, I’ll get bailed out too…

By Tired

October 8, 2008 3:42 PM | Link to this

I lost my job a year ago. I’ve been working contract jobs, but they are spotty. And I’m draining my savings. I’ve been saving my credit cards as a last resort. But now my limits have been lowered, so there goes my cushion. At this rate, I’ll be penniless if I don’t find a permanent job soon!

By Wille

October 8, 2008 4:11 PM | Link to this

I am guilty of mis-using the credit cards. I do not have any now. I do not want another. I will use a debit card instead. What I have seen is that credit card companies make their money from poor users with penalties and late charges. Also, a lower percent can climb up to and above 29%. I have seen many people get into financial trouble because the blance is beyond their ability to pay. However what can you tell a desperate person with a credit card? I have the fault of believing people managing companies have morals. It is dog eat dog in this world.

By jungleland

October 8, 2008 4:53 PM | Link to this

In my 20’s I missused credit cards in a big way, even used one of the checks they send in the mail (uggg!) You get the feeling that you are broke anyway, can’t get “broke-er” and then you are screwed. Thank goodness I was able to get out from under this before I did any real damage to my credit or went bust. Now I have less than $1000 on one card and ZERO on my other three. I would cancel them if it didn’t hurt my score.

I did notice that one card had a $14 charge and I never saw a statement. they called me on the 41st day to collect the $45 I owed them in late fees, and have called 5 times since. I finally got them to remove the fees and sent them the $14. I WILL be cancelling this card

By bobby dee

October 8, 2008 9:40 PM | Link to this

I got my finances in order after my divorce. I use my CC for everything, food gas, airline tickets. Yet a bank shortened my grace period. And later, another said my due date would flucuate each month. Each time I quit using their card. My old WaMu is 24% and they will not lower the rate. I use it once a year, because they post my credit score gratis. Some of their late fees appear to be outrageous.