Why are banks lowering credit when you have good credit?The banks have lowered my credit even tho I have not missed a payment and and my credit rating is good. Does anyone know why this is happening. BoA did this and now Chase. |
Why are banks lowering credit when you have good credit?The banks have lowered my credit even tho I have not missed a payment and and my credit rating is good. Does anyone know why this is happening. BoA did this and now Chase. |
Because they obviously had set limits that were far too high for people that are not creditworthy for those amounts. You may have a good credit rating, but whether you really qualify for that level of credit is an entirely different story. We all get pissed off when banks lose money and need to be bailed out. So I support them entirely in their quest to reduce exposures to the deadwood in order to get their house in order. In addition, the credit lines were often stupidly high. It made no sense for people like you with low to average income to be running up that amount of debt. I think we're all on the same page here, good luck to you my friend!
It's happening to many people. I think in general the Credit Card companies are getting ready for the new legislation coming into effect later this month. Also, even though you have good credit, there could be something in your Credit Report that makes them think you are or will very shortly be at high risk of defaulting.
This is what happened to me in 2008; my credit was good at the time, but anyone scrutinizing my Credit Report in detail would have surmised that I would shortly be at high risk of defaulting (and oh how right the were!) And once the first Credit Card company cut my limit, "Universal Default" kicked in and the dominoes started falling; one by one, my Credit Card limits were cut, even for those I had an excellent history with!