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I knew something was wrong because my sister got one two and her credit is horrible. Then everyone was lined up getting cards. Now every one i know limits are getting cut . and it puting them over their limit. Do u think this was a sad effort for them to boost the sales for thanksgiving weeken.

2007-11-30 13:30:46 · 4 answers · asked by DABABY 1 in Business & Finance Credit

4 answers

They can indeed cut your credit at any time for any reason. Read your "agreement" with them. I say that in quotations because it's hardly an agreement...maybe an agreement that they can change the agreement whenever they want to.

I heard about a guy who had his Amex credit cut by a lot. He had had like $20,000 in credit with them, and then they cut it to $500. He found out when he was checking into the hotel for his honeymoon and his card was denied!

And then if they cut your limit, they can charge you over the limit fees. Lame, huh? It's really best to never be anywhere near your limit on your cards, under 30% is best, that way if they do cut your available credit, you won't be over.

I don't know about an effort to boost sales, but it's definitely an effort to put more money in their pockets. They charge you that hefty over-the-limit fee until you get it under the limit they gave you, and then they jack up your interest rate to 30% because you were over-the-limit. You could call their customer service and complain. Don't know that it would do any good but it might make you feel better.

2007-11-30 13:55:29 · answer #1 · answered by Tracker 6 · 0 0

They gave you a card and then cut your limit a few days later? Did you get some type of instant approval, where they said your final limit will be set up to a maximum of X?
Maybe you did not recieve the complete disclosure in the store.
If you were given a limit, the company can lower and raise your limit as they see fit, but they can not lower the limit to below your balance plus any authorizations.
If that happened call and write a letter.
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2007-11-30 13:36:22 · answer #2 · answered by Gatsby216 7 · 0 0

Unfortunately credit companies can raise & lower your limit without notice however I don't think they can lower the limit to below what you owe on the card so if this has happenned I would contact head office immediately & ask for an explaination.

In Australia we have industry ombudsmen who will intervene & mediate where appropriate. Great for the "little guy" if a large company has screwed you over & you can't afford a lawyer.

It does seem odd that they lowered your limit though....here most people have trouble with credit companies extending their limit without warning so you apply for a $500.00 card & suddenly have access to $5000.00 - couses so much trouble here in Australia.

2007-11-30 13:48:46 · answer #3 · answered by Anonymous · 0 0

you got a instant approval, then the underwriters audited your account and felt you are at risk so they cut your rate. they can do this for any reason at anytime. Call searscredit and talk to them and explain your concerns

2007-11-30 16:52:31 · answer #4 · answered by Anonymous · 0 0

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