U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Economics
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 03-05-2010, 09:45 AM
 
809 posts, read 2,687,967 times
Reputation: 494

Advertisements

I just need to vent, because I know it's pointless to even try and get this fixed....... but here's my issue...

two days ago I called the Bank of America Credit Card Customer Service to try and negotiate my APR. I've had my card since 2007 and my limit has been $13,500 this entire time. I was making less money back then (and ironically I WORKED at BoA at the time) and they handed over that size of a limit on my card. Fast forward to two days ago I'm sitting on the phone listing off all my current financial info, and listening as the lady is typing away. She finally comes back and tells me they CAN'T offer me a better rate, ANDDDDDD they will be lowering my limit from the $13,500 to $6,300.....

This is what is so infuriating to me.... I had racked up that card pretty bad in 2007, so throughout ALL of 2008 and 2009 I slaved away at work to earn extra money to throw at this card and get my balance below 35% of the limit. About a month ago I finally hit the halfway mark (I have about $6,100 left to pay on that card).... I was pretty excited to FINALLY hit the halfway mark cuz it was giving me hope that I could possibly get it REALLY paid low this year......... But no....... this wench had to go and lower my limit to $6,300....... so NOW it looks like I have my card maxxed out!!!!!!! I am BEYOND infuriated and there's nothing I can even do at this point because the credit card companies are the devils butt-hole.

ALLLLLL my hard work at paying that card down was in vain..... sure I got my balance down, yay to that and all, but am right back at square one with a credit card that looks like it's maxxed out. I am HOPING TO GOD that this doesnt ruin my credit score since I've been working so diligently and last time I checked my score (about a month ago) it was approximately at a 720ish. UGHHHHHHHHHHHH.....................

End vent....
Rate this post positively Reply With Quote Quick reply to this message

 
Old 03-05-2010, 07:13 PM
 
Location: Fairfield, CT
6,353 posts, read 9,332,622 times
Reputation: 7329
If you get it paid off, the lower credit limit won't matter and the lower limit won't affect your credit score. Neither will the interest rate. Pay the damn thing off as soon as you can, and don't charge again beyond what you can pay on a monthly basis. Credit cards are ALWAYS a bad deal for anything beyond very short-term borrowing.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 03-05-2010, 07:23 PM
 
28,461 posts, read 76,408,299 times
Reputation: 18551
Does not add up. If you are paying down the balance the lender ought to be happy to leave the limit where it is unless you have literally stopped using it for anything. Is that what happened? I mean the way they have their usage models set you need to charge something on the thing every couple of weeks, even if it a small item that you can pay cash for, just so they do not plonk you into the "not an active user" category. I bet you have other cards / debts too, that is probably what really drove the dial down in available credit. Sorta of a wake up call, but might be a motivator to clean up your credit baggage -- if you have cards you do not need and the limit is making it hard to keep things from being over limit your will get whacked with over limit charges. Very frustrating. This is NOT something the telephone customer service person decides, it is something that happens any time you request any charge in card terms... If this happens a lot I would expect to see law makers step in, in fact you might to get a written confirmation of exactly why this happened to you. Might be useful down the road.

Really sucks to find this out the hard way, but odds are that your score will not suffer too badly if you keep working down that debt. I bet that you could have gotten a better deal on card and done a balance transfer, heck you might still be better off doing that if you have decent income / debt ratio / score....
Rate this post positively Reply With Quote Quick reply to this message
 
Old 03-05-2010, 07:50 PM
 
Location: La lune et les étoiles
18,261 posts, read 20,403,088 times
Reputation: 19593
The credit environment of 2010 is NOT the same as it was even as late as early 2009.

Please throw out all of the credit card rules/advice/etc that was given by the gurus pre-2009 because it will not work in today's credit climate.

1) You will not be able to negotiate for a lower rate - so either pay your card in full each month or only have a small balance on your card to avoid paying tons of interest

2) The credit card companies do not care that you have been a good customer since 1988 by paying on time - if you are late (by a few hours even) you will be ratejacked (its not personal, its business)

3) Any time you contact the customer service dept of a credit card company please understand that you will be subject to an account review and a possible credit limit decrease - in their minds they are reduced their risk by lowering your limit (they don't care that it p-sses you off)

4) There is a possibility that the credit card company is "balance chasing" which means that they will keep lowering your limit to just above your current balance which makes your utilization look high (and can drop your score)
Rate this post positively Reply With Quote Quick reply to this message
 
Old 03-05-2010, 07:55 PM
 
Location: Fairfield, CT
6,353 posts, read 9,332,622 times
Reputation: 7329
Quote:
Originally Posted by chet everett View Post
Does not add up. If you are paying down the balance the lender ought to be happy to leave the limit where it is unless you have literally stopped using it for anything. Is that what happened? I mean the way they have their usage models set you need to charge something on the thing every couple of weeks, even if it a small item that you can pay cash for, just so they do not plonk you into the "not an active user" category. I bet you have other cards / debts too, that is probably what really drove the dial down in available credit. Sorta of a wake up call, but might be a motivator to clean up your credit baggage -- if you have cards you do not need and the limit is making it hard to keep things from being over limit your will get whacked with over limit charges. Very frustrating. This is NOT something the telephone customer service person decides, it is something that happens any time you request any charge in card terms... If this happens a lot I would expect to see law makers step in, in fact you might to get a written confirmation of exactly why this happened to you. Might be useful down the road.

Really sucks to find this out the hard way, but odds are that your score will not suffer too badly if you keep working down that debt. I bet that you could have gotten a better deal on card and done a balance transfer, heck you might still be better off doing that if you have decent income / debt ratio / score....
Actually, I've heard that credit card companies are lowering credit limits to just above the existing balances, and chasing the credit limit down with the balance, for customers that consider to be risky for some reason. I'm not sure how they determine that. I've heard that they analyze the ways in which people spend their money as part of their determination of how risky a customer is.

All in all, I'd say it makes no sense to complain about credit card companies if you keep buying what they're selling, which is expensive debt. The best way to get even with them is to pay off the debt and refuse to borrow from them.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 03-05-2010, 07:58 PM
 
6 posts, read 11,521 times
Reputation: 10
Quote:
Originally Posted by chet everett View Post
Does not add up. If you are paying down the balance the lender ought to be happy to leave the limit where it is unless you have literally stopped using it for anything. Is that what happened? I mean the way they have their usage models set you need to charge something on the thing every couple of weeks, even if it a small item that you can pay cash for, just so they do not plonk you into the "not an active user" category. I bet you have other cards / debts too, that is probably what really drove the dial down in available credit. Sorta of a wake up call, but might be a motivator to clean up your credit baggage -- if you have cards you do not need and the limit is making it hard to keep things from being over limit your will get whacked with over limit charges. Very frustrating. This is NOT something the telephone customer service person decides, it is something that happens any time you request any charge in card terms... If this happens a lot I would expect to see law makers step in, in fact you might to get a written confirmation of exactly why this happened to you. Might be useful down the road.

Really sucks to find this out the hard way, but odds are that your score will not suffer too badly if you keep working down that debt. I bet that you could have gotten a better deal on card and done a balance transfer, heck you might still be better off doing that if you have decent income / debt ratio / score....
I am so sorry to hear about that!
Rate this post positively Reply With Quote Quick reply to this message
 
Old 03-06-2010, 07:48 AM
 
Location: North Adams, MA
746 posts, read 3,290,497 times
Reputation: 813
I am sorry you have taken the rules of this extortionist company so seriously. It is nothing personal, they are actually doing you a favor by showing they have no heart, no soul. And there is absolutely no reason to do business with them anymore once the outstanding debt is paid down.

It wasn't easy for me to adjust to a cash/debit card existence, I had decades of free wheeling spending behind me, but I have done it, and am a happier, virtually debt free person today. And when I look around my house, I realize I still have everything I could possibly need, and a few treats beyond that.

Take your money, your business, and invest it in some local bank, not these big money suckers who are about greed, not community.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 03-06-2010, 07:50 AM
 
Location: Fairfield, CT
6,353 posts, read 9,332,622 times
Reputation: 7329
Quote:
Originally Posted by litlux View Post
I am sorry you have taken the rules of this extortionist company so seriously. It is nothing personal, they are actually doing you a favor by showing they have no heart, no soul. And there is absolutely no reason to do business with them anymore once the outstanding debt is paid down.

It wasn't easy for me to adjust to a cash/debit card existence, I had decades of free wheeling spending behind me, but I have done it, and am a happier, virtually debt free person today. And when I look around my house, I realize I still have everything I could possibly need, and a few treats beyond that.

Take your money, your business, and invest it in some local bank, not these big money suckers who are about greed, not community.
Well said.

Going beyond that, I think banks gave out credit lines that were way too high for our own good, and cutting them down is doing us a favor, even though it may not seem that way to some people. It's the first step toward the restoration of sanity to our retail credit markets.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 03-06-2010, 02:01 PM
 
809 posts, read 2,687,967 times
Reputation: 494
Quote:
Originally Posted by dazzleman View Post
If you get it paid off, the lower credit limit won't matter and the lower limit won't affect your credit score. Neither will the interest rate. Pay the damn thing off as soon as you can, and don't charge again beyond what you can pay on a monthly basis. Credit cards are ALWAYS a bad deal for anything beyond very short-term borrowing.
I stated in my vent that it's taken me a year and a half to pay off $6,000 worth of that debt. Therefore it's going to take me ANOTHER year and a half since the remaining balance is about $6000. If it were that easy I'd have paid it off over the phone with that lady and closed the damn card.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 03-06-2010, 03:01 PM
 
Location: Fairfield, CT
6,353 posts, read 9,332,622 times
Reputation: 7329
Quote:
Originally Posted by SubaruFiend View Post
I stated in my vent that it's taken me a year and a half to pay off $6,000 worth of that debt. Therefore it's going to take me ANOTHER year and a half since the remaining balance is about $6000. If it were that easy I'd have paid it off over the phone with that lady and closed the damn card.
I understand. That's as soon as you can. My main point -- that it's a bad idea to borrow money that you can't pay back quickly, at undefined terms -- stands. Complaining about credit card companies while you have a huge balance is sort of like a user complaining that a drug dealer is evil, even as he keeps buying from him.
Rate this post positively Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Economics

All times are GMT -6.

¬© 2005-2021, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Contact Us - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37 - Top