8/17/2008

Credit is getting tighter, not just with mortgages

I received a letter yesterday from a Platinum credit card that I was a Charter Member of and have had for 17 years. Never been late with a payment, my FICO score is great and hasn't changed (I have it watched monthly) yet they are reducing my credit line by $1,240.00! Are they kidding? Then I did the math and realized that is approximately the amount of credit I have remaining on the line. So I'm sure it would have been even more had I not had most of my credit line used.

This is similar to what many banks have been doing with Home Equity Lines of Credit (HELOC). They are freezing them at what you already have out on them, or "rescinding" the entire line of credit if it is open without a balance.

This economy and credit crunch just keep getting worse. Do you have any stories?

1 comment:

54114all said...

My wife has had a B of A card for 10 years. The card had a credit limit of 5000. For transferred balances from other cards to this one on a special offer. Carried a balance of 4500 for 6 months. Paid the card off. She received a letter saying her credit limit was reduced to 500.00

It didn't bother her because she didn't need the credit. The funniest thing is she just got a letter saying her credit limit was raised to 800.00 because she was a good customer.

She has not used it since she paid it off.

Go figure.