I am furious. They cut my limit from 5,000 to 2,000 without reason. I found out about it when I used WK and saw the lower amount. Then I went to the Target website, logged in, and confirmed I only have a 2,000 limit. I have no idea if my apr. was upped. PS, My credit has been in good standing these last few years and I have never given Target any cause to do this to me. I may cancel the account. Has anyone else had this done to them?
Many lenders are reducing their credit exposure right now. The economy isn't doing so well, and they are covering themselves by cutting unused or risky credit limits. Most likely, you never used the full $5000, so they're cutting it back to a level that makes them feel comfortable.
Radio Shack did the same thing to me, except they reduced my credit limit from $2500 to $0. The reason: I've not used the card in 18 months. I called and escalated a couple of levels, and they reactivated my account. The first- and second-tier customer service reps were not going (or simply didn't have the power) to do it, however the manager with whom I finally spoke reactivated without a problem. My concern is that I want an account to read "closed by consumer" if I'm going to give it up. This would be a good time to either use or close some of my smaller accounts (while keeping an eye on how that impacts my utilization ratio and length of history vis-a-vis FICO). Doc
My highest balance on the card was $1,700. It is currently at about $600. The $5,000 was an important part of my overall limits. I will appeal. What do you guys suggest I say when I call. I really don't want to threaten to cancel the card as I need it even if the limit is only $2,000. Also, obviously I wouldn't be here at creditnet if my credit was unblemished. Actually I got lucky finding out about creditnet from a friend who used to have bad credit but got it straightened out with help from creditnet. What should I say to Target?
That's a toughie. Keep in mind that they don't have to change it back. (Heck, they don't have to extend credit at all, lol.) However, your reasons run something like this: 1) You were surprised to hear that your credit limit was decreased. Although you've not used your card much so far, that wasn't your long-term intention. 2) You don't remember seeing anything in the Card Terms that said anything about credit limit reduction for seldom used cards. 3) You're aware that your utilization ratio (used credit divided by total available credit) is a significant credit scoring factor, and this unexpected reduction has negatively impacted your rating at a very bad time for you (if indeed it's a very bad time -- intended mortgage application soon or car purchase within the year, etc.). 4) You certainly understand their position, and could you please speak with the next-level supervisor? Doc P.S. You can escalate in a number of ways -- telephone call, letter to the credit department, letter to the administrative staff, PlanetFeedback.com, etc. At some point, this may not be worth your time -- depending upon the scoring impact and your imminent needs.
Thank you Doc. I will call tomorrow after I cool down. I really don't want to say the wrong thing and make matters worse. It would be interesting if no one else here at creditnet reports that their limit was reduced. By reading the older Target messages, it appears to me that a lot of folks here have a Target card.
I don´t think that was the reason to reduce your limit. My Target card has a $12000 limit and my highest utilization for this card is around $400 from 16 months ago.
Surprise, surprise. there was a letter waiting for me today from RNB. My credit limit was cut due to too high utilization of my cards. I guess it is "use it and lose it".
Well there you go -- the opposite reason. If you don't use your card ever (like my Radio Shack card), then you lose it. If you use the bulk of your aggregate credit lines too much, then some creditor may become concerned you're overextended, and you lose it. That old 5-50% utilization guideline Fair Isaac finally published in 2001 after consumers fought for at least a glimmer of explanation suddenly seems to provide not only scoring guidance but also USAGE guidance. Of course this begs the question -- what's a $10,000 credit line really signify if you can only safely use half of it? Are the published full lines of credit really just marketing bluster as far as some creditors are concerned? Doc
Re: over utilization? Hiya, Just wanted to clarify.....I am seeing many posts about rates being jacked and cl being slashed for "over utilization"..... I am aware of the "don't charge over 50%" rule of thumb....are these people in general carrying over a 50% balance on one or more cards so cumulatively the rest get nervous and take action?? Maybe the creditors think it signifies a potential financial problem with someone maybe living beyond their means. How many times are creditors reducing cl's and jacking rates because of the economy and not anything the consumer did? Rarely? (I hope!)
Re: over utilization? My limit was reduced on Saturday from $8000 to $4900...and my balance is at $4800. I AM FURIOUS!!! Their reasoning was that they pulled my report and the score was lower than previously(bullshit, score was the same)...talk about low score. Since the limit cut, my score has dropped 15 points. I am appealing and will take this as high as I can.
Re: Re: over utilization? I sympathise. Believe me I do. My idea is to wait to call Target after I have paid off my balance in full in 2 weeks. My scores are also dropping due to the ratio's going less favorable.
Re: Re: over utilization? Well I can't pay the balance in full anytime soon...just a student you see, no real job, yet anyway, I am graduating in July. Targethasn't replied to my PFB or my emails on the account management site. I can't imagine why they would do this now. My balances on all my cards are high and have been for a few months. None of my other cards have done this, and I pray they don't. I really want to get a Citibank card with 0% balance transfer for 12 months and close this damn Target crap. They were my highest limit though. I am so pissed!
Re: Re: over utilization? I want to tell you guys that after I paid my Target bill off in full, I called them from in-store. I complained and the rep boosted me back to $3000 from $2000. She said that I had been 3 days late paying my bill in January ( like big deal ). Account reviews are automatic every 6 months by the Target computer. I doubt I will ever see my prior limit again.
Re: Re: over utilization? IF TARGET DOES NOT WANT TO BE "EXPOSED" WITH TOO MUCH CREDIT OUTSTANDING...THEY CAN JUST PULL OUT 100%...THEY TAKE VISA/MC/AMEX/DISCOVERCARD!!! I WOULD CUT THEM OFF~~BUT THAT IS ME!!!
Re: Re: Re: over utilization? AR'S ARE ALSO FOR AUTOMATIC INCREASES!!! HAS ANYBODY EVER GOT ONE??? NO!!!!!!!!!!!
They did the same thing to me. Might not have been so bad but I had some course tuition that had tried to put on the card (i ened up using another card) but I knew I would have the money for it cause I'm getting help with that. They cut it to just above what my ballance was. I will have that card paid off within the next couple of months, and after that I am not sure if I will cancel or not. The annoying thing is, I just checked my credit report, and now due to the limit being reduced, it looks like I had once been over the limit (which I wasn't).
I tried to have my $500 target card moved from the store to the visa. They turned me down. In 7 months I have never missed a payment and pay in full each money and I use the card alot since I am a target freak. Needless to say I am a little pissed now.
Re: Re: Target just cut my credit limit Looks like a pattern. If you use the card, the Target computer gets scared and cuts the limit to just above what you charged. Doesn't make much sense but then that's Target.
Re: Re: Target just cut my credit limit Looks like a pattern. If you use the card, the Target computer gets scared and cuts the limit to just above what you charged. Doesn't make much sense but then that's Target.
