Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

How to Blow Your Credit Limit -- Without Spending
SmartMoney.com, via Yahoo! Finance ^ | March 12, 2009 | Kelli B. Grant

Posted on 03/15/2009 11:42:38 AM PDT by Virginia Ridgerunner

If you haven't had the credit limit cut on your credit card recently, count yourself lucky. Risk-averse card issuers are getting slash happy. And while many cardholders gripe that such cuts slice razor-close to their balance amounts, for an unfortunate few the cuts go far deeper: below what they currently owe.

Under different circumstances, David Chaplin-Loebell wouldn't have minded that American Express cut his unlimited credit line to just $5,000. Except that when AmEx reduced his line in October, he had an outstanding balance of $10,000. "I found out by having a business purchase declined," he says. Repeated calls to AmEx failed to yield an answer about why the cut was made. Chaplin-Loebell, who lives in Philadelphia, is now paying the balance under his regular card terms, and presumes the line will free up for new purchases once he's below the limit. "For now, they've essentially frozen the account," he says, leaving him to juggle business expenses on his personal cards. American Express did not respond to requests for comment.

(Excerpt) Read more at finance.yahoo.com ...


TOPICS: Business/Economy; Crime/Corruption; Culture/Society
KEYWORDS: amex; credit; creditcards; fraud
Navigation: use the links below to view more comments.
first 1-5051-56 next last
More crooked doings by the credit card companies, ESPECIALLY AmEX, which seems hell-bent on chasing all of its best customers away and putting itself out of business.
1 posted on 03/15/2009 11:42:39 AM PDT by Virginia Ridgerunner
[ Post Reply | Private Reply | View Replies]

To: Virginia Ridgerunner
More crooked doings by the credit card companies, ESPECIALLY AmEX, which seems hell-bent on chasing all of its best customers away and putting itself out of business.

I'm guessing they think they are too big to fail and Odumbnuts will bail them out with "free" money.

2 posted on 03/15/2009 11:45:14 AM PDT by raybbr (It's going to get a lot worse now that the anchor babies are voting!)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Virginia Ridgerunner

I live within my means and pay my bills on time. I get credit card offers in the mail all the time.

Amex sends me pretty much one piece of junk mail every day. I trash every bit of it.


3 posted on 03/15/2009 11:46:51 AM PDT by Steely Tom (RKBA: last line of defense against vote fraud)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Virginia Ridgerunner

I closed the corporate AmEx account a while back when this all first started. I just had a friend yesterday try to pay a $2000 flight bill with his corporate AmEx but had it declined even though he had been spending ten times that each month and paying it every month without fail and had only used about $10k so far this month. He had another card to use but the entire flight trip might have had issues if that had happened during the trip.


4 posted on 03/15/2009 11:47:58 AM PDT by CodeToad (Liberalism is Communism, and both are a mental disorder. Grow up.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Virginia Ridgerunner

We’re having a heck of a time where I work. We use AmEx business cards and AmEx is not only changing rules and limits day to day, they’re also not operating very efficiently. Payments made aren’t showing up in a timely manner, etc. What do you think is up with that?


5 posted on 03/15/2009 11:49:25 AM PDT by dawn53
[ Post Reply | Private Reply | To 1 | View Replies]

To: PAR35; TigerLikesRooster; AndyJackson; Thane_Banquo; nicksaunt; MadLibDisease; happygrl; ...
*Ping!*
6 posted on 03/15/2009 11:50:24 AM PDT by rabscuttle385 ("If this be treason, then make the most of it!" —Patrick Henry)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Virginia Ridgerunner
More crooked doings by the credit card companies, ESPECIALLY AmEX, which seems hell-bent on chasing all of its best customers away and putting itself out of business.

Looks like Amex is trying to get out of the credit business. Cutting the credit lines of good customers doesn't seem like a very smart way to do it, however.
7 posted on 03/15/2009 11:51:24 AM PDT by AnotherUnixGeek
[ Post Reply | Private Reply | To 1 | View Replies]

To: AnotherUnixGeek

Wonder if they are having funding problems. With their margins, it is hard to imagine, but I guess it is time to terminate the relationship, before they do. I really only used it for merchants I didn’t like.


8 posted on 03/15/2009 11:55:19 AM PDT by Oldexpat
[ Post Reply | Private Reply | To 7 | View Replies]

To: Steely Tom

Problem is, in business, you HAVE to use them, especially if you travel, since everything is done by credit card these days. Cash is not an option when it comes to making airline or hotel reservations if you need to go somewhere for a meeting or conference with a client.


9 posted on 03/15/2009 11:57:21 AM PDT by Virginia Ridgerunner (Sarah Palin is a smart missile aimed at the heart of the left!)
[ Post Reply | Private Reply | To 3 | View Replies]

To: Virginia Ridgerunner

My four credit card bills ( Discover, MC, 2 Visa) all arrived within the last week ). I always pay them off in full every month. Have never had a finance charge. Oddly, this month ALL four sent me notices that they were INCREASING my credit line..Go figure..


10 posted on 03/15/2009 11:59:21 AM PDT by ken5050 (Don't blame me, I voted for Palin!!)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Virginia Ridgerunner; Mrs. B.S. Roberts

Various Credit Card Companies are really the unsuspected causes of GLOBAL WARMING. I and millions of others daily received unasked for envelopes, full of paper offering FABULOUS deals on new credit cards. We also received envelopes stuffed with Credit Card Company CHECKS, to used “When and As needed”.
All this paper must be SHREDDED in shredders that consume increasing amounts of electricity etc etc etc.
The above referring to Credit Card companies is TRUE.
The above reference to Global warming....I’m kidding.


11 posted on 03/15/2009 11:59:34 AM PDT by CaptainAmiigaf ( NY Times: We print the news as it fits our views.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Virginia Ridgerunner

Chase pays 1-2% cashback and gives great service if you have good credit.


12 posted on 03/15/2009 12:04:07 PM PDT by sickoflibs (Keynesian Eco 101 : "If you won't spend your money WE WILL, and your kid's too!")
[ Post Reply | Private Reply | To 1 | View Replies]

To: Virginia Ridgerunner

Chase pays 1-2% cashback and gives great service if you have good credit.


13 posted on 03/15/2009 12:04:08 PM PDT by sickoflibs (Keynesian Eco 101 : "If you won't spend your money WE WILL, and your kid's too!")
[ Post Reply | Private Reply | To 1 | View Replies]

To: Virginia Ridgerunner

It is my fault. I use credit cards for convenience - like a debit card - and traditional banks for (secured, lower-rate) loans. I keep the credit limit very low, put the balance temporarily into the black for purchases over the limit, and never pay interest or fees. The credit card companies thus only derive from me indirect revenue via retailer/merchant fees/commission.

I am prepared to atone for my sins - send me the tax bill, destroy the value of my savings. I should have never learned addition, subtraction, multiplication, and division.


14 posted on 03/15/2009 12:09:57 PM PDT by M203M4 (A rainbow-excreting government-cheese-pie-eating unicorn in every pot.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: raybbr

To lower your limit and then charge you fees for being over the new limit sounds like a reasonable time to get a lawyer.


15 posted on 03/15/2009 12:10:26 PM PDT by tbw2 (Freeper sci-fi - "Humanity's Edge" - on amazon.com)
[ Post Reply | Private Reply | To 2 | View Replies]

To: Virginia Ridgerunner

bump


16 posted on 03/15/2009 12:10:32 PM PDT by VOA
[ Post Reply | Private Reply | To 1 | View Replies]

To: sickoflibs
Chase pays 1-2% cashback and gives great service if you have good credit.

Which card or program - they have hundreds of them.

17 posted on 03/15/2009 12:12:26 PM PDT by 2banana (My common ground with terrorists - they want to die for islam and we want to kill them)
[ Post Reply | Private Reply | To 13 | View Replies]

To: Virginia Ridgerunner

I use cash for hotels/motels all the time.


18 posted on 03/15/2009 12:23:20 PM PDT by mamelukesabre
[ Post Reply | Private Reply | To 9 | View Replies]

To: dawn53

I have had issues with AMEX,too. They claimed they had not received a payment while I was on an overses trip, called and harassed my wife, later apologized for not having posted a $1,500 payment properly. When I got back to the uSA, I cancelled their card.
Would not do business with them EVER again.
Three years later, a rep called and wanted me to open an account, and was shocked when I told him I’d rather vote Democrat!


19 posted on 03/15/2009 12:23:46 PM PDT by madrastex
[ Post Reply | Private Reply | To 5 | View Replies]

To: dawn53

I have had issues with AMEX,too. They claimed they had not received a payment while I was on an overses trip, called and harassed my wife, later apologized for not having posted a $1,500 payment properly. When I got back to the uSA, I cancelled their card.
Would not do business with them EVER again.
Three years later, a rep called and wanted me to open an account, and was shocked when I told him I’d rather vote Democrat!


20 posted on 03/15/2009 12:24:32 PM PDT by madrastex
[ Post Reply | Private Reply | To 5 | View Replies]

To: Virginia Ridgerunner

My Visa accounts are through my credit union. Much more favorable terms. And they don’t treat me like I have herpes.


21 posted on 03/15/2009 12:30:06 PM PDT by ChildOfThe60s (If you can remember the 60s........you weren't really there)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Virginia Ridgerunner

The guy carrying a balance is a credit risk!


22 posted on 03/15/2009 12:35:50 PM PDT by dalereed
[ Post Reply | Private Reply | To 1 | View Replies]

To: Virginia Ridgerunner
Chaplin-Loebell wouldn't have minded that American Express cut his unlimited credit line to just $5,000. Except that when AmEx reduced his line in October, he had an outstanding balance of $10,000...AmEx is the worst - had one of their cards years and years ago - supposedly had two months to pay the balance, but after one month would receive damning letters from them implying I was some sort of irresponsible deadbeat - finally cancelled the card and wouldn't have one again for anything, even though I'm always getting mail offering one at terrific bargain rates - eat your card, AmEx......
23 posted on 03/15/2009 12:42:39 PM PDT by Intolerant in NJ
[ Post Reply | Private Reply | To 1 | View Replies]

To: Virginia Ridgerunner
Paul Pensabene of Saratoga Springs, N.Y., received a statement from HSBC on Dec. 8 that said he had a $359.99 balance and remaining available credit of $8,640. But when he went online to pay the bill several days later, his online account showed that same balance put him over his newly-reduced credit line of $300. And that didn't include the $35 over-limit fee. Pensabene grappled with customer service until they agreed to remove the fee, and then paid the balance in full. "All I could think was, 'Good lord, what if this is happening to someone that couldn't pay their balance off in one shot?'" he says. "They'd end up in default with these fees piling up."

HSBC are crooks and should be out out of business (the market should do that, not government)

24 posted on 03/15/2009 12:42:56 PM PDT by 2banana (My common ground with terrorists - they want to die for islam and we want to kill them)
[ Post Reply | Private Reply | To 1 | View Replies]

To: dalereed

Such a shame as that was the original intent. The Cash/Credit price is starting to come back.


25 posted on 03/15/2009 12:46:32 PM PDT by eyedigress
[ Post Reply | Private Reply | To 22 | View Replies]

To: Virginia Ridgerunner

It’s not happening to me, so it can’t be true!


26 posted on 03/15/2009 12:50:17 PM PDT by Revolting cat! (Let us prey!)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Steely Tom
I use the credit card offers to augment heating in my house. They burn nicely in the fire place. Free fuel, delived by the postman.
27 posted on 03/15/2009 1:03:01 PM PDT by Myrddin
[ Post Reply | Private Reply | To 3 | View Replies]

To: ken5050
My four credit card bills ( Discover, MC, 2 Visa) all arrived within the last week ). I always pay them off in full every month. Have never had a finance charge. Oddly, this month ALL four sent me notices that they were INCREASING my credit line..Go figure..

As long as you keep paying, you'll likely see the limits raised often. It's not necessarily a good thing. A little identity theft or an irresponsible family member can put you in a world of hurt very quickly. Lower limits aren't necessarily bad.

28 posted on 03/15/2009 1:05:46 PM PDT by Myrddin
[ Post Reply | Private Reply | To 10 | View Replies]

To: Virginia Ridgerunner
which seems hell-bent on chasing all of its best customers away

No, they want to chase their highest risk customers away. They did pretty well before they became a credit card company.

29 posted on 03/15/2009 1:06:12 PM PDT by PAR35
[ Post Reply | Private Reply | To 1 | View Replies]

Comment #30 Removed by Moderator

To: 2banana
There is a time when a limited credit line can be a pain in the butt. The specific case is a corporate credit card and a never ending series of business trips. It's fairly easy for the credit card balance to get ahead of the line of credit when the processing of expense reports and postal mail delivery of receipts is too slow. If you're sitting in a foreign country or simply a long distance from home, it's a very bad thing to suddenly have no monetary resources.
31 posted on 03/15/2009 1:09:31 PM PDT by Myrddin
[ Post Reply | Private Reply | To 24 | View Replies]

To: eyedigress

“Such a shame as that was the original intent”

No way!

It’s a convience card, if you don’t have the money in the bank don’t use it!


32 posted on 03/15/2009 1:09:56 PM PDT by dalereed
[ Post Reply | Private Reply | To 25 | View Replies]

To: Virginia Ridgerunner
Under different circumstances, David Chaplin-Loebell wouldn't have minded..

Pick a %$@!#ing name,lady...
33 posted on 03/15/2009 1:17:53 PM PDT by Freedom4US (l)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Virginia Ridgerunner

This is less the “evil” credit card companies than them being caught between a rock an a hard place. The exception is AMEX, which is in very deep trouble because of its *banking* activities, and may fold because of them.

The problem lies in the fact that while the CC companies make a few billion dollars a year profit, that amount is tiny compared to the many billions of dollars they need to *borrow* to cover their cardholders debt.

They do this by issuing bonds. And they issue a lot of bonds. But right now, this puts them in competition with everybody else who wants investment dollars, especially the US government Treasury bills.

And because the government is on a spending spree, for the first time in a long time, something odd happened. The CC companies issued a bond, and nobody bought it. A bond failure. Instantly, this meant that the CC companies were in deep trouble.

What we are seeing right now is their reaction to just that *one* bond failure. Canceling inactive cards, and lowering credit limits. The CC companies trying to reduce their exposure, so they will be able to cover bondholder debt.

Importantly, they are also cutting those who always pay their bills on time, because they make very little profit for the CC companies compared to those that have some debt. And because card holders are lumped into “classes”, even if you are a good customer, if you are in a bad class, you can get cut as well.

But this shows a major threat in the future. Unless the US government stops spending money at a furious rate, more CC bond issues may fail, and with them, many people will lose their credit cards entirely. Since millions of Americans are dependent on their credit cards to meet their monthly expenses, they will be unable to pay rent or make other purchases.

The CC companies have little latitude in this, because even their profits can only cover a fraction of cardholder debt. They may even be forced into “card holidays”, where for the last few days of the month, suddenly nobody’s credit card works.


34 posted on 03/15/2009 1:18:52 PM PDT by yefragetuwrabrumuy
[ Post Reply | Private Reply | To 1 | View Replies]

To: Virginia Ridgerunner

With the possible, but not definite, exception of a mortgage — I’ll never borrow another nickel. It is somewhat freeing ... and I couldn’t care less what my credit report says.

I am as anti-regulation as any conservative — but it is truly time to crack down on credit card companies. I fail to see how it is legal to unilaterally alter the contractual terms on money already lent. Once the money is lent and the purchase is made, the contract should be locked — no changing limits, repayment terms, interest rates, etc. without the written authorization of the borrower.

SnakeDoc


35 posted on 03/15/2009 1:21:23 PM PDT by SnakeDoctor (Proud Charter Member of the Republican Resistance.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Virginia Ridgerunner
And while many cardholders gripe that such cuts slice razor-close to their balance amounts, for an unfortunate few the cuts go far deeper: below what they currently owe.

What is this "balance amount"?

36 posted on 03/15/2009 1:23:27 PM PDT by meyer (Obama is to the USA as Mugabe is to Zimbabwe.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Virginia Ridgerunner

American Express and Citi may be the worse card companies to deal with.

Years ago I conducted focus groups in the meeting rooms of nice restaurants 3-4 evenings a week. The monthly bills for the dinners were often in the 5 figure range which were paid in full each month when I received the bill.

One time I had refund from one of the restaurants for an error on their part re my billing, and they credited AMX. The credit was received by AMX a couple of weeks before my bill was sent out by AMX.

I received the bill and the credit had not been applied. So I contacted them and subtracted the amount of the uncredited refund and paid the full bill, again over 5 figures.

AMX ended up charging me interest for the full amount as they said I hadn’t paid my bill in full. It took a couple of months for the credit to finally be entered by AMX. That cost me money that I didn’t owe them. My CPA said to over pay the next bill by 13.33 and never use the card again. She said that billing had to cost them a nice sum. That was my first experience dealing with someone in India on the phone. I never got an apology nor a refund for the insult and basic unarmed robbery on their part.


37 posted on 03/15/2009 1:28:31 PM PDT by Grampa Dave (Does Zer0 have any friends, who are not criminals, foriegn/domestic terrorists, or tax evaders?)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Virginia Ridgerunner

Someone called Rush last week and commented that his interest rates on his credit cards were jacked up even though he was paying his bills regularly (I presume not paying the whole amount but enough to cover the minimum).

Rush’s answer was that they were sending the caller a message to close the account.

I had two accounts with Citibank with rates of 7.9% and 4.9%. I was gradually transferring money from the higher card to the lower card when, suddenly in January, they rose each card by 9% while asking Congress for bailout money.

I was able to move the money I had in these accounts without a great deal of damage but I feel sorry for the people who had no fallback strategy. I’ve gradually pared down a $15,000 debt to below $6,000 and I hope to have it whittled down to zero within two years unless the Democrats further tank the economy.


38 posted on 03/15/2009 1:40:53 PM PDT by OrangeHoof (YES WE CAN have a Depression.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Grampa Dave

We’ve also had problems with AMEX. My husband’s employer has them use AMEX for expense account items. He is supposed to submit his expense account monthly and the payment goes directly to AMEX. He made the mistake of getting behind on his in-house paperwork and paid the AMEX bill from our personal funds before submitting his expenses for approval. When he submitted the corporate expenses, they also paid AMEX, so now AMEX has approximately $3,000 in overpayment on his account. He has tried repeatedly to get reimbursement from AMEX for the overpayment, and every time he talks to them, they seem unable to process the English language. Unlike you, he’s not talking to someone in India. He’s been talking to someone in Philadelphia. In his case, it appears to be a series of Affirmative Action hires who don’t know much and aren’t very willing. I’ve been bugging him about it, and now that I’m hearing rumblings (above) that AMEX may be in trouble, I’ll really insist on it.


39 posted on 03/15/2009 1:43:02 PM PDT by Think free or die (The problem with socialism is that you eventually run out of other people's money - M.Thatcher)
[ Post Reply | Private Reply | To 37 | View Replies]

To: Think free or die
..... every time he talks to them, they seem unable to process the English language. Unlike you, he’s not talking to someone in India. He’s been talking to someone in Philadelphia

What makes you they speak English in Philadelphia?


40 posted on 03/15/2009 2:00:49 PM PDT by Polybius
[ Post Reply | Private Reply | To 39 | View Replies]

To: Myrddin
I use the credit card offers to augment heating in my house. They burn nicely in the fire place. Free fuel, delived by the postman.

I've often thought that an enterprising person could get himself on so many junk mailing lists that he could have his winter fuel delivered for free all winter long. Those big, free catalogs make a very cheery, and long lasting flame.

41 posted on 03/15/2009 2:01:27 PM PDT by lafroste (gravity is not a force. See my profile to read my novel absolutely free (I know, beyond shameless))
[ Post Reply | Private Reply | To 27 | View Replies]

To: CaptainAmiigaf
Various Credit Card Companies are really the unsuspected causes of GLOBAL WARMING. All this paper must be SHREDDED in shredders that consume increasing amounts of electricity etc etc etc.

I know you are joking about global warming, but it's really a problem. I can't remember where I did it, but I did get myself removed from the mailing list for unsolicited loan and credit car offers, which cut some of my junk mail, but I still get other junk by the boxful every week. If we can prosecute spammers (I can delete spam), why can't we get off the list for grocery ads, local coupons, and catalogs? I'm not an eco-nut, but that can't be good for trees.

42 posted on 03/15/2009 2:06:35 PM PDT by conservative cat (America, you have been PWNED!)
[ Post Reply | Private Reply | To 11 | View Replies]

To: sarah4life
Credit card companies are scum.

Don't insult scum like that.

43 posted on 03/15/2009 2:10:17 PM PDT by dfwgator (1996 2006 2008 - Good Things Come in Threes)
[ Post Reply | Private Reply | To 30 | View Replies]

To: Virginia Ridgerunner
Under different circumstances, David Chaplin-Loebell wouldn't have minded that American Express cut his unlimited credit line to just $5,000.

He should have all of his credit cut off for having a hyphenated name.

44 posted on 03/15/2009 2:21:53 PM PDT by TigersEye (Cloward-Piven Strategy)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Steely Tom
Amex sends me pretty much one piece of junk mail every day. I trash every bit of it.

Here's how to stop that.

45 posted on 03/15/2009 2:33:13 PM PDT by antiRepublicrat (Sacred cows make the best hamburger.)
[ Post Reply | Private Reply | To 3 | View Replies]

To: lafroste
"I've often thought that an enterprising person could get himself on so many junk mailing lists that he could have his winter fuel delivered for free all winter long. Those big, free catalogs make a very cheery, and long lasting flame. "

In our community we have "Recycle Bank". Our recyclable trash gets weighed, and we receive electronic credit by the pound. As we accumulate points, they can be redeemed for coupons, such as 25% off a $20 purchase at our local drug store. I've been less motivated to get off of junk mail lists since we went on the point program, and when I see empty glass bottles and jars, I bring them home to put in my trash!

46 posted on 03/15/2009 4:11:12 PM PDT by Think free or die (The problem with socialism is that you eventually run out of other people's money - M.Thatcher)
[ Post Reply | Private Reply | To 41 | View Replies]

Comment #47 Removed by Moderator

To: antiRepublicrat

I did the opt out of credit card mailings. I now have several hundred less pieces of junk mail per year.

Love it.


48 posted on 03/15/2009 5:22:19 PM PDT by listenhillary (Rahm Emmanuel slip - A crisis is a terrible thing to waste.)
[ Post Reply | Private Reply | To 45 | View Replies]

To: Virginia Ridgerunner

Cut them up, cut them off....ASAP!!


49 posted on 03/15/2009 5:32:50 PM PDT by cookcounty ("The Borrower is servant to the Lender." Proverbs 22:7)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Think free or die
"In our community we have "Recycle Bank". Our recyclable trash gets weighed, and we receive electronic credit by the pound. As we accumulate points, they can be redeemed for coupons, such as 25% off a $20 purchase at our local drug store. I've been less motivated to get off of junk mail lists since we went on the point program,....

The Law of Unintended Consequences strikes again. Sign up for more junk mail!! Get rewarded with more Recycle Points!!

50 posted on 03/15/2009 5:40:08 PM PDT by cookcounty ("The Borrower is servant to the Lender." Proverbs 22:7)
[ Post Reply | Private Reply | To 46 | View Replies]


Navigation: use the links below to view more comments.
first 1-5051-56 next last

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson