Two years after bankruptcy, I got a Citibank card with a $1000 limit. That was fine with me. Over the next two years, they gradually raised my limit, to $7000. I did not ask for any of these limit raises.

I just got a letter telling me they were lowering my limit to $4000, no reason given.

Frankly, I think they’re just upset that I pay off my balance every month, and I have never carried a balance in the two years I’ve had the card, although I’ve used the card nearly every month. (So they’re really not making any money off of me, except what they ’skim’ off the merchants I use my card at – the transaction fee.) I’m not sure what my highest balance has been in those two years, but probably less than $2000 at a time. So, it’s not like I needed the $7000 limit, and $4000 is probably just fine….but I’m simply angry that this is now (I assume) a black mark on my credit. It feels like they set me up and sucker-punched me, and frankly, THAT should be illegal.

I have a story for you. But first let me make a few points. The credit card companies have been sending me checks through the years trying to get me to cash a check and put it in the bank or use one for vacation or transfer monies from another card on to theirs. I have never done so.

They have been increasing my lines over the years without checking to see if I can make the payments. All this is of their own doing and now they lower my credit limit ( I have no problem with that) but THEY are the ones at fault, I did not ask for these increases, I did not ask them to send me checks and give me ideas on how to use them. I mean really who is at fault. I pay my bills on time and more than the minimum. When are we going to point fingers or I should say when is the president going to shame those banks that got themselves in this mess. Now my credit score will be lowered, it was in the 800’s but thanks to the banks I have now got to find a way to fix this mess and it may take years.
Oh well, I hope others feel the same way I do and do something about it like write to your congressmen and to the pr
esident himself.
Thank You,

Donna

http://apps.facebook.com/causes/289806

Your card issuer is a lender, and once you pay off your loan, your account is reset. It wouldn’t be correct to assess risk on your overall card usage for the month, as that might make you look riskier. Other lenders, especially installment lenders, see your behavior of paying off frequently as great, i.e. low risk of default. So, keep up this strategy.

I think the reps you talked to may be grasping at straws a bit. I’ve never heard a negative view [re your comment on "suspicious"] on making so many payments. This strategy has worked for me for years.

The easy habit in all this, is to pay your card off every week. That’s a habit you can keep for life and will reward your credit.

I have a AMEX credit card and its credit limit was reduced to an unbelievable $500 from an original $2000 – AMEX has basically found any possible reason to reduce my credit limit and my pleas with the company has fallen on deaf ears even with a perfect payment history with them.

I used the AMEX Delta Reserve card to get rewards on the Delta Airlines Skymiles (frequent flier) program.

I though I would be get smart with AMEX by charging my card for a purchase then immediately paying off the charge as soon as I see the charge appear online in my AMEX account. So even with an $500 credit limit, I sometimes have an activity of about $1,200 to $1,400 each billing cycle. The card is paid off even before the bill comes to my house. But after I saw your video on Credit Utilization Ratios I got a bit confused – is the Credit Utilization Ratio based on the balance at the end of the monthly billing cycle or is it based on the over all charges vs. the credit limit for each billing period regardless if the amount is already paid off before end of the billing cycle? And do I get a good credit history by employing such a payment tactic?

One AMEX agent thought I was prepaying my card – which is not true because I make payments after the charge appears in my account. Another AMEX agent told me it looks suspicious when so many payments are made – Am I going into uncharted territory?

http://www.whitehouse.gov/contact/