Has Your Credit Card(s) CL Been Reduced, Closed, or Frozen? If So, Please Explain!

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Originally Posted by eugene66

I felt exactly like you a few months ago when gemb cld my account for no good reason so i closed all three of them (took a small not big hit to my surprise) but i recovered quickly and got a Citi card in the process.I am through with gemb products and even though hsbc is tight with cli, even they have shown me some luv on two of my account with them.

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I can't believe all the craziness going on with GEMB. They are really burning their bridges wit all their current customers. And the sad part is; didnt they also get a bail-out from the gov? These companies are going to lose all their customers if they dont change their ways soon....

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Originally Posted by Brian23

I can't believe all the craziness going on with GEMB. They are really burning their bridges wit all their current customers. And the sad part is; didnt they also get a bail-out from the gov? These companies are going to lose all their customers if they dont change their ways soon....

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The problem i read last year was that GE tried to sell off their credit division but there were no takers so they took a look at Amex and went that route (cld's) to keep the loses to a minimum but in the process penalizing good paying customers.They cld my chevron card because as i used the card,I would pay the balance off before the statement cut so they must considered me what i heard in other places a " deadbeat customer" but even thought when chevron ran their own card(higher minimun payment with a higher balance)at least they were very generous with cli every couple of months.

That is when they were giving me my cli's. As soon as GEMB took over, cli's is nearly impossible.

My Lowes was completly closed, how long I don't no, Just checked a few minutes ago. I am so glad I did not carry a balance with them. I really don't no how to feel, maybe I am in shock. This is so crazy, I guess they will close my Pennys without my knowledge too.:scared: I am glad HSN got away from them.

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Originally Posted by sg2416

I am glad HSN got away from them.

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I remember that name, just don't know what they are all about. Remind me.:embarrassed:

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Originally Posted by Meya

I remember that name, just don't know what they are all about. Remind me.:embarrassed:

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Meya,

Home Shopping Network......Like QVC, GEMB had already cld my Dillards, Gap and Old Navy.I am still shocked about them closing my Lowes. It's s good thing I did not try to use it. I did not receive any correspondence indicating they were going to CLD or close them. Now I am scared to use my Pennys and Walmart card, which they gave me a cli on walmart in Jan. They don't give you that much credit line to begin with.

Sg, did GEMB close your Lowe's account for inactivity? Keep in mind that GEMB is a subprime lender and they do not issue large initial CL's.

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Originally Posted by hjm331

Sg, did GEMB close your Lowe's account for inactivity? Keep in mind that GEMB is a subprime lender and they do not issue large initial CL's.

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HJM,

The last time i used Lowes was in Feb. for 49.00. The credit line was for 500.00, Old Navy and Gap cl was 500.00 as well, they did not close those two just reduced the cl. I used old navy and gap last month before the cld. I guess they will come after my JCP and Walmart in which I pay in full each time I used them.

I've heard accounts getting closed as early as 3 months. How did you find out that your account was closed? Did you receive a letter from GEMB stating the reason as to why they closed your account?

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Originally Posted by hjm331

I've heard accounts getting closed as early as 3 months. How did you find out that your account was closed? Did you receive a letter from GEMB stating the reason as to why they closed your account?

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Since other GEMB card holders have mentioned they have gotten cld I decided to start monitor my accounts. I have yet to receive letters indicating as to why. I wanted so badly to re-build my credit but I am now afraid to even charge things. I have not given up on my goals, it's just going to take longer now.

Sg, just because GEMB reduced your CL's doesn't mean that you're not building credit. As long as the account is open and reporting your account as current every month, you are building credit and payment history is the most important aspect of your credit scores/reports.

Many consumers make the mistake of closing their accounts when their CL is reduced. They don't realize that they're better off the account open and building history rather than having the account closed.

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Originally Posted by hjm331

Sg, just because GEMB reduced your CL's doesn't mean that you're not building credit. As long as the account is open and reporting your account as current every month, you are building credit and payment history is the most important aspect of your credit scores/reports.

Many consumers make the mistake of closing their accounts when their CL is reduced. They don't realize that they're better off the account open and building history rather than having the account closed.

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HJM, understand and agree with you, I am just a little upset with GEMB for closing my LOWES they could have just lowered it. I will just put my old navy, gap, and dillards in the sock drawer for future usage. I hope they will forget I have a walmart (they gave me cli in Jan.) and JCPENNYS. Thank you for helping me stay focus.

I can clearly understand the frustrations and for closing an account that has left you with under $100 to charge with. History or no history, they would have to go. What about those whose cards they are decreasing, and their util was not high? Well with the cld, that is going to lower their scores and chances at cli's with their other creditors. I refuse to hold on to a card like that. I have been with GEMB for a long time, and the moment they hit my cards by slashing them down to a limit that is lower than my feet, they can go too. The less, the better, and since I am not out card-hopping, the scores drops will only hurt slightly and my others will bring it right back up.

I agree Meya. How is it going to look on my CR when I have a card with a $100 cl when I have one with another store for $6000 cl. Their gone, I'm finished with GEMB I don't care what it does to my scores.

The Future of Lending and FICO Scoring

For the past week, I've been thinking about how lenders can limit their exposure without losing business in the future when the economy starts seeing daylight.

Let's say I have a BoA credit card with a $5,000 limit and my monthly spending average is about $3,000 and I pay in full. Thinking how consumers live now, I would request an increase to at least $6,000 to decrease my utilization from 60% to 50% since it would hurt my scores if I were to a carry a balance for a month or two. But, what if Fair Isaac changed their scoring system and did something about utilization. If utilization didn't make-up a large portion of my FICO score, I wouldn't be worried about my FICO scores decreasing if I were to carry a balance. Also, BoA would be able to see that the $5,000 CL they have issued me is sufficient for my expenses and that would limit their exposure to consumers who are racking up charges and aren't able to pay it back.

If Fair Isaac is able to make that change, banks would not be be struggling and would profit from merchant fees. We also wouldn't have to worry about experiencing another recession in the future. Banks have to stricken their underwriting and do the math. If they become conservative, everyone will be happy. Sure, consumers won't be happy because they have limited spending power but it's a matter of getting used to it.

A good example is AMEX and Discover. The reason why AMEX is struggling and reducing CL's left and right is because they issued CL's far more than the consumer's income. They overextended their exposure and now they're doing something about it. If they had a solid plan from the start, they wouldn't be in this mess right now and would be competing against Discover. Discover on the other hand has always been a conservative lender and that's why they are in a good shape. Chase is also in a good shape because it's their policy to pull the consumer's report when they are asked to increase a CL. The fact that they pull your report for a CLI makes the consumer think twice about asking for a CLI in the future.

If Fair Isaac changed the way they score credit reports, consumers wouldn't have a need or desire for large credit lines. Consumers are so worried about how utilization will impact their credit scores especially when they're going to buy a car or home. I know for a fact that it's possible for Fair Isaac to make this change since they tailor their scores to the banks' underwriting specifics as long as the banks take this into consideration.

First I want start by saying that I am a newbie, and that I am glad I found this site. :cheesing:

I am currently working on rebuilding my husband's credit, he has been doing very well the last year. I work at a Credit Union so I was able to get him a Credit Card here and a signature loan to help in the rebuilding process.

March 2008- TU Credit Score 590 December 2008-647. So in June of 2008 we decided to apply for him a Dillards, Target & JCP card he got approve with 150.00 from Dillards & $200.00 from Target & $100.00 JCP. Since then Dillards lowered his limit to $100.00 and Target incresed it to $500.00 & JCP $600.00. Go figure.

Welcome to FG Skeewee! I'm glad that you're helping your husband rebuild his credit. When you have a chance, browse through the forum and you will find many topics with very useful info.

GEMB has been reducing a lot of CL's including the Dilliard's card. If he has no use for it and hasn't had it for a long time, he should close the account.

Also, do you have any bank cards such as Visa, MC, AMEX, or Discover?

Hello hjm331

Yes he does have a Visa $5,000 limit threw the Credit Union; and he has an Orchard Card $300.00 he got back in 2006. It is paid in full since he has the Visa with the CU. But it did help him in his rebuilding process but it has an annual fee, and he wanted to close the Orchard Card but I explained to him to keep it open until he get's above the 700 mark:cheesing:. That is our goal.

I really enjoy this site.

Thanks for sharing that piece of info. It's good to hear that he has a credit card through a CU with a very nice limit. You also did a good job of helping him get a signature loan and that adds diversity onto your credit reports so that will get you some points.

I have heard of other members on this site call-in and have their annual fee waived. Have you tried doing that? It's definitely worth trying since you don't have anything to lose.

If you have other questions or thoughts that you would like to share, please don't hesitate. Everyone is down to earth here and will make you feel at home.

Hi skeeewee08, we are so glad you found us. HJM is correct, GEMB has been slicing and dicing a lot of peoples credit, I just sit back and bite my fingers as I always do, because I know any day now I will be next. That is how much they have me scared, I have a ton of GEMB cards. :scared::scared:

5/11/2009

i had my gap card (gemb) limit reduced from 500 to 124. i never received notice in writing. i just noticed it on my transunion report today.

i hadn't used the card since feb 08. i'm not entirely surprised. although this is the first time i've seen a limit that doesn't end in 00 :laugh:

other than that, all my accounts have been intact.

When GEMB CLD's an account, they reduce it to a certain limit so they can verify why they reduced the limit. Each limit represents a different CLD reason but $124 seems to be a popular limit nowadays.

If that is how GEMB functions, then I think they are just plumped crazy. Why reduce a limit until you find out why you reduced it? It seems to me that they should reduce it because of how well you have been handling your overall credit with them and others (through soft pulls). So if they find out if the consumer has low limits, or no baddies, do they put the amount back?

Psssss, you know what? Duuhh, I don't even know why I asked that question because I have not heard anyone here say they had their original credit line reinstated. :laugh:

It is rare for Amex to reinstate your CL after you been CLDed. I have seen it happen on the credit board forums, but it is very rare. They have not given me and CLI's since a CLD. It's funny though, a few years ago (2 or 3 years ago), my Sears Mastercard was giving me CLI's left and right. Probably because it was my only card and I used it quite a bit.

Hey sis Dillards reduced my limit from 350.00 (which i was building up) down to 1something (cant remember) now im back up to 300.00 and i haven't asked for a credit increase either because im afraid of another decrease instead of a increase :scared::white-flag:

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Originally Posted by hjm331

When GEMB CLD's an account, they reduce it to a certain limit so they can verify why they reduced the limit. Each limit represents a different CLD reason but $124 seems to be a popular limit nowadays.

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That is such a random number. Why not $125 or $120? What is this $4 dollar stuff? Crazy.

I am working on GEMB before I start closing anyone. Now I see they have the YoYo limit syndrome with sis, and Colo you just reminded me of how they do me with the Avenue, they got me at an odd number instead of the whole number.....lol. I don't clearly see where the $124 can come from either. maybe its a code....lolz!

Speaking of the Avenue, I think it is time I called in for a cli with them, I don't think I had asked for one in quite some time. They may not give it to me since I have not shopped their store in a while. ohhh welll, they should have never changed their line of clothing over to something my mom would be ashamed to walk outside in.:laugh:

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Originally Posted by Meya

I am working on GEMB before I start closing anyone. Now I see they have the YoYo limit syndrome with sis, and Colo you just reminded me of how they do me with the Avenue, they got me at an odd number instead of the whole number.....lol. I don't clearly see where the $124 can come from either. maybe its a code....lolz!

Speaking of the Avenue, I think it is time I called in for a cli with them, I don't think I had asked for one in quite some time. They may not give it to me since I have not shopped their store in a while. ohhh welll, they should have never changed their line of clothing over to something my mom would be ashamed to walk outside in.:laugh:

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I know, I wonder if it is some sort of algorithm or something. Or they are bored and messing with us LOL.

Last week, I applied for the Linux Foundation Visa offered by UMB (United Missouri Bank) because it was a nice hidden tradeline. I received the card in the mail today and I was approved for $4,500. I was so shocked that I almost fell to the floor.

As for the Nordstrom's Visa, I called CS today and they told me I had been denied and they didn't even bother approving me for a store card. :upset:

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Originally Posted by hjm331

Last week, I applied for the Linux Foundation Visa offered by UMB (United Missouri Bank) because it was a nice hidden tradeline. I received the card in the mail today and I was approved for $4,500. I was so shocked that I almost fell to the floor.

As for the Nordstrom's Visa, I called CS today and they told me I had been denied and they didn't even bother approving me for a store card. :upset:

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Sorry to hear about Nordstrom. Do you have UMB Banks in California? We have a few, and I mean a few, here in Denver. Also, what do you mean by Hidden Trade Line? It does not report to the bureaus?

No, they don't have any locations in California, but they have a few throughout Colorado as you mentioned.

Yes, this card doesn't report to the CB's so I won't lose points for new account/util.

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Originally Posted by hjm331

No, they don't have any locations in California, but they have a few throughout Colorado as you mentioned.

Yes, this card doesn't report to the CB's so I won't lose points for new account/util.

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Excellent. I wonder why it does not report? I wouldn't mind that at all.

I'm definitely going to use it for big purchases in the future since they don't report and gave me a year without interest charges promo.

Cough, cough....Flat Screen!:laugh:

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Originally Posted by Meya

Cough, cough....Flat Screen!:laugh:

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Flat screen!!!!!!!! I would be in the electrics department buying sound surround, new blue-ray player, one of those mini computers (my daughter has one lucky shiiiiiit) a flat screen for my bedroom (daughter has one of those and we have one in the living room) and the list goes on and on!!!!!!

Great im drooling right now at the stuff i would be buying!!!!!!!!!!!:scared::scared:

:laugh::laugh::laugh::white-flag:

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Originally Posted by hjm331

Last week, I applied for the Linux Foundation Visa offered by UMB (United Missouri Bank) because it was a nice hidden tradeline. I received the card in the mail today and I was approved for $4,500. I was so shocked that I almost fell to the floor.

As for the Nordstrom's Visa, I called CS today and they told me I had been denied and they didn't even bother approving me for a store card. :upset:

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Those heathens LOL! But you got yourself a real nice Visa card my brother :white-flag:

Macy's decreased my credit line by $400, because I was late (not 30 days), so you guys be aware. I didn't expect it from Macy's, but I think I read somewhere that they were decreasing credit lines. Not to mention, they didn't send me a letter or anything. I closed the account and I don't want to hear about how I shouldn't have from you guys. I refuse to deal with banks like that. I didn't mind the decrease, its the not informing me, that bothered me, not to mention, I rarely use this card except during the Christmas season.

:relieved:
Well, I will be a hypocrite to. I closed Travelocity and Lowe's. I don't care how my scores got hit, I am the one who has to pay the high Apr's etc. I don't even shop at Lowe's anymore like I used to, it is because they are GEMB. I am working hard to get rid of GEMB because I KNOW they are coming my way soon with all this high util I got. I am not better than the rest, I know they are coming my way.

Way to go..................But why did it have to be Macy's ooohhh looorrrd:suicide: