Credit line reduced on my Macy''s card!

[MichelleCarmen]

How annoying!

I NEVER use the card. In fact, it''s been over a year since I last charged on it. I''m purchasing a gift today (around $30) and decided to use my credit card to be sure it''s kept as "active." I called this morning to update my address. . .well, they reduced my credit line!

This has never happened to me before! So, what do I do now? Do I charge a small item every month and then once the "credit crisis" is over, call and ask for an increase?

 

[Italiahaircolor]

Have you ever missed payments? Or been late? Those are the only times I''ve ever heard of companies changing your credit line in a negative way...

 

[MichelleCarmen]

Nope, I was about to edit my post to add that. I don't even use my credit cards except for vacations (and I think dept. store cards are pretty much useless, so that's why I never bothered with using mine - I only have 3. I use my Nord card during the sales for the extra points.). The only debt I have is my car loan and it's almost paid off. Just a few more months.

 

[neatfreak]

Can I ask why it matters if you never use it? Unless that reduction was HUGE it won''t really negatively impact anything except your charging abilities...

 

[MichelleCarmen]

It only matters because I thought it would impact my credit score. . .but possibly dept. store cards don''t have much influence on FICO? My Nordstrom card has a ridulously high limit so hopefully that balances everything out. I forgot that I finally used that one the other day! lol I guess that''s how people get into trouble. . .forgetting about charges made

It was only a $20 charge. I can always make installment payments of $5 per month.

 

[DiamondsforDee]

Credit card companies have been reducing limits and increasing interest rates for about a year now. They started with the biggest risks and have now worked their way to people with great credit. They are looking for ways to lower their liability and obviously the bigger your limit the more money they would be out if you suddenly started racking up huge bills. Since it is hard for them to reduce the limit on a card you use all the time (even if you never carry a balance) they go after the ones you never use, since clearly you don''t "need" all of that credit. It''s ridiculous.

 

[partgypsy]

Yep, I''ve heard of companies reducing and sometimes even closing what they consider "inactive" accounts. I wouldn''t worry too much as it is a small department store card and you don''t want to charge to that amount. I don''t even understand why people get so obsessed about their FICO score. I don''t know what my Fico score is. Has it affected my life? No. I always heard it is important to get good rates on loans but I have a friend who didn''t even have a single credit card but knew she wanted to get a house in the next year or so. She got a department store card last year and used it maybe every other month for 8 months, paying it off each cycle. Though she had very little credit she had no problem getting the mortgage (amount and rate) she wanted when the time came.

 

[Steel]

I suppose it is silly but I would take it as an insult! How strange

.

 

[MonkeyPie]

If you were late on other lines of credit (house, car, other cards, ect.), they will consider you a liability even if your history with them is good. This recently happened to me. It isn''t an insult, and you shouldn''t be offended - they are doing it to EVERYONE, regardless of your history with them.

 

[Tacori E-ring]

I had a company close my card recently due to inactivity. I was upset b/c it was my first cc so I kept it open to help my score. They didn''t even warn me. BTW I am so sick of how they are trying to sell those fraud protection programs EVERYTIME you call. Plus they go through their spiel twice before you can get off the phone with them.

 

[Dancing Fire]

Date: 5/13/2009 1:42:36 PM
Author: part gypsy
Yep, I''ve heard of companies reducing and sometimes even closing what they consider ''inactive'' accounts. I wouldn''t worry too much as it is a small department store card and you don''t want to charge to that amount. I don''t even understand why people get so obsessed about their FICO score. I don''t know what my Fico score is. Has it affected my life? No. I always heard it is important to get good rates on loans but I have a friend who didn''t even have a single credit card but knew she wanted to get a house in the next year or so. She got a department store card last year and used it maybe every other month for 8 months, paying it off each cycle. Though she had very little credit she had no problem getting the mortgage (amount and rate) she wanted when the time came.

when did she get this mortgage?

 

[Kelli]

I have a Macy''s card and I freaking hate it, for so many reasons which I will not get into. I have other credit cards and have no problem with them, but I''ll be closing my Macy''s account very soon. Those people are the most annoying, mis-informing people ever.

 

[lucyandroger]

Date: 5/13/2009 1:59:19 PM
Author: Tacori E-ring
I had a company close my card recently due to inactivity. I was upset b/c it was my first cc so I kept it open to help my score. They didn''t even warn me. BTW I am so sick of how they are trying to sell those fraud protection programs EVERYTIME you call. Plus they go through their spiel twice before you can get off the phone with them.

Same exact thing happened to me! I was so upset because it was my first cc AND I had lots of points on there that I never got to redeem. Now I make sure to use each of my cc''s at least once a month (except department store cards).

 

[Kay]

I wouldn''t take it personally, MC. Lots of banks are reducing available credit on home equity lines and credit cards, even for people with good credit. For years, they handed out credit like candy, now with people defaulting, they are overreacting in the other direction.

DH and I have excellent credit, but he just got a letter from one of his credit cards that they are reducing his limit. He doesn''t care because he never asked for that high a limit and never comes close to using half of his limit on that card. The hilarious part of it was the letter they sent him. For years, banks have sent out letters saying essentially "because of the excellent way you have handled your credit we are increasing your credit limit." This letter said "because of the excellent way you have handled your credit we are reducing your available credit on this card so you may use it elsewhere." Talk about Orwellian double-speak. We were both rolling on the floor.

 

[MichelleCarmen]

Date: 5/13/2009 1:59:19 PM
Author: Tacori E-ring
I had a company close my card recently due to inactivity. I was upset b/c it was my first cc so I kept it open to help my score. They didn't even warn me. BTW I am so sick of how they are trying to sell those fraud protection programs EVERYTIME you call. Plus they go through their spiel twice before you can get off the phone with them.

Ridiculous!

I just got back from the mall having purchased the gift I needed to get. . .I have a JC Penny card that I haven't used in years and will have to try that one out next. It would be really embarrassing if it wasn't accepted! lol Better call and make sure it's still active.

 

[MichelleCarmen]

Date: 5/13/2009 4:04:12 PM
DH and I have excellent credit, but he just got a letter from one of his credit cards that they are reducing his limit. He doesn''t care because he never asked for that high a limit and never comes close to using half of his limit on that card. The hilarious part of it was the letter they sent him. For years, banks have sent out letters saying essentially ''because of the excellent way you have handled your credit we are increasing your credit limit.'' This letter said ''because of the excellent way you have handled your credit we are reducing your available credit on this card so you may use it elsewhere.'' Talk about Orwellian double-speak. We were both rolling on the floor.

That is just weird. An article in the Seattle Times talked of a guy who had all his credit limits reduced because he paid on time. Seems he was a hassle for the bank because they never made any money off of him since he didn''t pay interest. Banks like those who overcharge and are stuck in the revolving cycle for 10 years. What a nightmare that would be!

 

[mayachel]

I saw this in the news here and there about a month ago, so wasn''t too surprised when I got a letter saying one of my cards had the limit reduced. I think the cc companies are just trying to reduce their own risk of lending money they don''t have. Considering your financial record, it likely has nothing to do with that. I have a stellar credit report myself. So, unless you need the higher line, no muss, no fuss.

 

[partgypsy]

Dancing she was preapproved last year and approved this month actually. I was surprised because I heard credit has really tightened up. She is an unusual case because she has a low salary but never uses credit in fact has 15K or so socked away for the house.

 

[Dancing Fire]

Date: 5/13/2009 7:47:18 PM
Author: part gypsy
Dancing she was preapproved last year and approved this month actually. I was surprised because I heard credit has really tightened up. She is an unusual case because she has a low salary but never uses credit in fact has 15K or so socked away for the house.

good for her

she''s probably one of thee lucky few.

 

[partgypsy]

Sometimes it''s good to march to a different drummer! I''m glad for her because her budget was very tight for what she was looking for (I didn''t think she was going to be able to do it) but she kept looking and waiting till she found something that fit her specs!

 

[isaku5]

Date: 5/13/2009 1:50:52 PM
Author: Steel

I suppose it is silly but I would take it as an insult! How strange

.

Me too! I would cut that card into tiny fragments and throw half in the garbage and half in the plastic recycle container (limits identity theft).

I seem to remember Suze Orman (sp?) saying not to cancel the account as it impacts your credit score.

 

[MichelleCarmen]

Date: 5/23/2009 3:09:32 PM
Author: isaku5

Date: 5/13/2009 1:50:52 PM
Author: Steel

I suppose it is silly but I would take it as an insult! How strange

.

Me too! I would cut that card into tiny fragments and throw half in the garbage and half in the plastic recycle container (limits identity theft).

I seem to remember Suze Orman (sp?) saying not to cancel the account as it impacts your credit score.

Yep, you want to keep as much open credit as possible to bring down your debit to available credit ratio. I charged both on my Nordstrom and Macy's card this month. I hate using CCs, and had to resist the desire to walk right over to customer service and pay off the $50 I charged in Brass Plum last week. I stuck the envelope in a money and will wait till the bill comes. Between both cards, I charged $90. That's the most I've charged since last summer. I still do not understand why people charge and then have to deal with the bill later on (for those who pay off at the end of the month). It's so much easier (for me) just to hand cash over to begin with.

(The last time I used my Visa was when going on vacation last summer, as well. Guess it's time to use that one too!)

 

[CJ2008]

Date: 5/13/2009 2:25:09 PM
Author: Kelli
I have a Macy''s card and I freaking hate it, for so many reasons which I will not get into. I have other credit cards and have no problem with them, but I''ll be closing my Macy''s account very soon. Those people are the most annoying, mis-informing people ever.

Slight threadjack...but I am with you on this - I closed my Macy''s account about a year ago so I can''t remember a lot...but I do remember there was so many things with the terms and the rules that they had. Then they made another change, I think they were going to decrease the grace period even less than what it was and were going to increase the rate...but something that made it even worse of a card...so I closed it immediately.

 

[Imdanny]

 

[Beacon]

This is happening everywhere - doesn''t have anything to do with your personal situation. All credit issuers are cutting back credit lines and making credit terms worse.

My DH just got a letter from Chase where they are reducing the Awards benefits he gets from that card, though they are leaving the credit line unchanged.

I don''t think there is much you can do.

One friend I know, with perfect credit, had his credit card award program reduced, so he requested a new card from the same issuer that had better rewards. They gave him that new card and cancelled the old one. Sad thing was the old card had a 35K credit limit and the new one only has 5K! Doooh.

 

[AGBF]

Date: 5/24/2009 8:39:23 PM
Author: Beacon

This is happening everywhere - doesn't have anything to do with your personal situation. All credit issuers are cutting back credit lines and making credit terms worse.

Beacon is on target as usual. I got a letter from one of the companies with which I have a credit card saying that they were drastically reducing my credit line.... I had not been using the card and we had done nothing wrong with our payments to anyone. The card, however, was tied to the investment company that held my retirement accounts! So when they lost me money, they cut my credit line. Talk about adding insult to injury! Luckily, as I said, I never use the darned card. All that cutting my credit line did to me at this point was to insult me, which I can live with. And I hope that any injury that it is doing to my credit score will have no permanent effect on my life.

AGBF

 

[Itgirl76]

It happened to me with my Citibank card. It had a limit of $16,000 on it but I rarely used it and they just sent me a letter saying that they were reducing it to $5,500, I have a credit score of 807 so I know it wasn't my credit...they told me since I kept a almost zero balance and rarely used it they lowered it she said that Citibank had been doing that alot, then they told me they did rasie my interest rate and that is when I lost it. The Citibank rep. proceeded to lower it. Credit card companies just try to get what they can out of the public it is sad.

 

[AGBF]

Date: 5/23/2009 3:48:07 PM
Author: MC

I still do not understand why people charge and then have to deal with the bill later on (for those who pay off at the end of the month).

That''s because your husband must not be a banker, MC. Either that or you do not listen to him when he explains things to you. It''s the float!!! Now do you understand?

AGBF