Hi there, long time lurker, but few posts. So I was out to eat the other night, and had my "trusty" GM Mastercard of about 6 mos that I planned to use to pay for dinner. Long story short, the card came back NSF, which, needless to say, caused me a small amount of embarrassment (fortunately I had my trusty debit card to bail me out!). I was carrying about a $2100 balance with a $2500 limit, so I thought I was fine. I called GM when I got home, and the CS rep told me that the "account management" department lowered my credit limit to $2205, and speculated that it was because I charged too high a balance too quickly (approx $1000 of it was a balance transfer). I called the "account management" department the next morning, and they weren't able to tell me much. They insist they sent me a letter explaining what happened, but I haven't seen a thing. Background: I applied for the card with approx a 684 beacon score (pretty similar across all three bureaus). My FICO is now around 691, and that is the ONLY card I currently carry a balance on. I am currently building a house, but I don't close until next month and don't see where that would have any bearing on things. I have never missed a payment on the card (am always early), and have every time but once far exceeded the minimum due. It just seems weird to me that they would lower a credit limit when I've always paid promptly and my credit is BETTER than it was when I got the card! My first inclination is to pay the balance off and close the account (or simply not use it again). Citi, in timely fashion, pre-approved me for 0% BT on a Platinum Select with a lower APR anyhow, and the offer is good until 2 days after I close on the house (can't apply for credit until that's done!). Has anyone ever seen anything like this, or able to think why it might have happened? Advice? Thanks so much!
Tell them to put the credit limit back were they found it!!! If they say NO...SOCK DRAWER IT AND PAY IT IN FULL A.S.A.P. Use it once every 6 months for ONE TANK OF GAS and nothing else!!! THEY BITE YOU~~~YOU BITE BACK
Thanks George. That will be the plan - just made a $600 payment today. I'll call them tomorrow morning and see if they want to play nice.
Re: Re: GM lowers CL?! (longish) THEY GAVE YOU A CREDIT LIMIT OF $2,500...BUT YOU CAN'T USE IT??? WHY DIDN'T THEY JUST GIVE YOU THE $2,205 IN THE FIRST PLACE??? "I was given a credit limit of $2,500 and I used it and then you decide to cut it because I used it??? THAT IS A FRIVOLOUS REASON" FRIVOLOUS~~Copyright © EQUIFAX, TRANS UNION, and EXPERIAN
Re: Re: GM lowers CL?! (longish) I also posted this on PFB, though I doubt it'll do any good. Man, this really burns me. Anyhow, anyone have anything good to say about Citi, likely my NEW Mastercard Co.?
Re: Re: GM lowers CL?! (longish) I have GM Card for over two years and I don't use it over $20 a month. I knew that Household Bank like Providian blocked your account when you use too much. Get Citibank offer, go apply. Citibank is a lot better than Household. Pay it off, close the account. By the way, I heard a lot of bad things about them including credit limit increase fee. Ron.
Re: Re: GM lowers CL?! (longish) I close GM last week after onl 4- 5 months because they would not give me anymore credit.
Re: Re: GM lowers CL?! (longish) This worries me- my husband just opened up $5500 in CLs with Household earlier this week. We thought about just using the GM card for regular "expenses" and then paying it off each month but if they see it maxed within the first 30 days are they going to shut it down? Maybe if I send weekly payments? Jeez- it's a reward card, People are GOING to use it. I've also heard of someone on another board who bought something off of ebay, used paypal to transfer the money w/ her GM card and then got a notice a few weeks later that they were jacking her APR up to something like 24%! Their reasoning? The ebay members username was "blackjack" so they thought it was related to gambling. And I was so happy a few days ago when he got approved. Now I'm afraid to use it!
Re: Re: Re: GM lowers CL?! (longish) Update: Finally received the mysterious "letter" today. It almost looks like a credit denial letter! Anyhow, it cites the reasons for the decrease as follows: - Available credit on your account - Payments are low compared to your balance owed Well, the available credit thing is just silly - like George said, why give the limit if I can't use it?! The low payments thing is weird, too. I've at least doubled the minimum due every time but once, and have typically sent two such payments each month. Oh well, thank goodness for Citi!
Re: Re: Re: Re: GM lowers CL?! (longish) If they ask for a MINIMUM PAYMENT of $50.00 and you send $100.00 or more...WHAT DO THEY WANT??? If they want $200.00 MINIMUM PAYMENT...they better ask for it!!!
Re: Re: Re: Re: GM lowers CL?! (longish) HOUSEHOLD better buy AMEX (charge division) so they can DENY any sale for REASON or NO REASON!!!
Re: Re: Re: Re: GM lowers CL?! (longish) Fat chance of Household buying out AMEX charge division. Then again, I knew you were kidding
Re: Re: Re: Re: GM lowers CL?! (longish) Final update: Called the number on the letter and spoke with a very friendly rep. Explained the situation to her, she put me on hold for maybe 30 seconds, and put my credit limit back where they found it. I didn't expect this one to have a happy ending, but all is well. Thanks again to George for the advice!
think why it might have happened? The Mike ===================== To lower your score. The END ************************* LB 59
Re: Re: Re: Re: GM lowers CL?! (longish) Their reasoning? The ebay members username was "blackjack" so they thought it was related to gambling. smontoya5 ========================== Just an excuse to get the 24 % not a reason. The END ************************* LB 59
