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

Poll: Do you find this thread helpful in your situation?

Yes
30 71.4%
No
3 7.1%
Does not apply to me, but interesting
7 16.7%
Applies to me, but in a different way. (If checked, please post your story)
2 4.8%
Total number of voters: 4 ( FrankN, mocapino, Egghead, Finance Globe )
Only registered users can participate to this poll
  • Meya
  • Meya's Avatar Topic Author
  • Offline
  • Finance Commander
  • Finance Commander
  • Posts: 4522

Replied by Meya on topic Re: Has Your Credit Card(s) CL Been Reduced, Closed, or Frozen? If So, Please Ex

:shocked: :shocked: :shocked: Wow! Sorry to hear that.
14 years 3 months ago #46
  • Posts: 648

Replied by smcc on topic Re: Has Your Credit Card(s) CL Been Reduced, Closed, or Frozen? If So, Please Ex

Found out today that BOA will reduce my credit limit on one of my Visa Signatures by $20K. From $31K to $10K.

The reason given was I had too much credit. Never late on any bill, credit balances on all my credit cards, highest utilization on any card at any time 10 percent.
14 years 3 months ago #47
  • Posts: 44

Replied by rlee1918 on topic Re: Has Your Credit Card(s) CL Been Reduced, Closed, or Frozen? If So, Please Ex

Kay Jewelers isn't a GE Money Bank product is it? As far as Care Credit, how long has it been since you have used the card? As I said in another response to you a few weeks ago, if you do not use a card often enough, the credit grantor may reduce the credit line or close the account. GEMB is notorious for this. They have some very (in)famous $124 and $224 credit lines on dormant accounts.

Did you get a letter from Kay stating that they closed the account due to an "error" on your application?

If you owe money on a closed account, yes, it can look bad because it lowers your open to buy (the ratio of debt vs. credit available). The closed account no longer has any available credit. But this is temporary.

Also, as I have said in a previous posting, you have too many random credit cards. You need to chill out and let your major cards (Cap 1 and HSBC) age and gain CLI's. Having too many cards will end up biting you in the long run. Patience is everything.


I never got any letters, and I was mistaken on the GE carecredit one, I looked at balance instead of credit limit, but I called Kay's and they said they checked my with my work and they said I no longer worked there or something.. I'm not sure.. yeah I'm done for a while
14 years 3 months ago #48
  • Posts: 1257

Replied by ColoNative on topic Re: Has Your Credit Card(s) CL Been Reduced, Closed, or Frozen? If So, Please Ex

Actually my care credit limit wasn't removed I look at it wrong it was the balance, so only my kay kewelers!



Kay Jewelers isn't a GE Money Bank product is it? As far as Care Credit, how long has it been since you have used the card? As I said in another response to you a few weeks ago, if you do not use a card often enough, the credit grantor may reduce the credit line or close the account. GEMB is notorious for this. They have some very (in)famous $124 and $224 credit lines on dormant accounts.

Did you get a letter from Kay stating that they closed the account due to an "error" on your application?

If you owe money on a closed account, yes, it can look bad because it lowers your open to buy (the ratio of debt vs. credit available). The closed account no longer has any available credit. But this is temporary.

Also, as I have said in a previous posting, you have too many random credit cards. You need to chill out and let your major cards (Cap 1 and HSBC) age and gain CLI's. Having too many cards will end up biting you in the long run. Patience is everything.
14 years 3 months ago #49
  • Posts: 44

Replied by rlee1918 on topic Re: Has Your Credit Card(s) CL Been Reduced, Closed, or Frozen? If So, Please Ex

Actually my care credit limit wasn't removed I look at it wrong it was the balance, so only my kay kewelers!
14 years 4 months ago #50
  • Posts: 44

Replied by rlee1918 on topic So GE bank canceled my cards, what next?

Okay, so I lied on my application and said I was working at so and so, but I got laid off a few months ago, I guess they called like a month after I got the cards and verified I no longer worked there, so Identify Guard notfies me of changes to my credit report..


CareCredit was $1000 now is $0

Kay Jewelers was $3000 now is $0

I also have a walmart $800, Gap $300 and paypal buyer credit $900, do you think they will all get canceled, and what happens do I just owe any money I have on them? It's funny because it's just the cards I haven't used.. It's been almost 2 months now since I've had them all.

Can you count unemployment as actually pay?? I have over 2 years of unemployment left, so I thought it would be better to say.. since any other cards I've had never verified any job information..

I wonder if any new cards I've got will check now, and will GE money bank every accept me back, if so, just only when I got a job?

The only one I've used was my Walmart card, spent over 250$ and paid it all off within 20 days, I logged in on my other accounts and the accounts are open with the credit showing.. I'm scared of losing all my ge accounts, It just pisses me off because I paid all my balances in full, yet there worried about me not paying them..

I think I have a jcpenny too which is ge..

I don't want to you [Edited] at me if you think I'm wrong, but I wasn't trying to screw them over or anything just build my credit after BK which is now almost 7 years.. I have 3 major cards, Capital one, a $300 + $750 and a HSBC $400 I've had these for 3 years.. Could they ever close them or doubtfuly because I've had and used and paid them?

Thanks again
14 years 4 months ago #51
  • Posts: 1257

Replied by ColoNative on topic Re: Has Your Credit Card(s) CL Been Reduced, Closed, or Frozen? If So, Please Ex

This makes a whole lot of sense! Can't argue this one......the game....the game....the game!


I hear ya. :cool:
14 years 4 months ago #52
  • Posts: 648

Replied by smcc on topic Re: Has Your Credit Card(s) CL Been Reduced, Closed, or Frozen? If So, Please Ex

This question needs to be asked based on Wanderer's data, If you have multiple cards with the same lender and card (a) has a high limit and card (b) and (c) have small limits, by spreading the limit from card (a) to card (b) and (c) where all three cards have equal limits do you miss the knife ? And for us AMEX lovers, will the applications for the Charge Cards go up now that the possibility of a CLD (and I know some of us have already experienced a CLD through them) on your current Amex CC looms overhead ?
14 years 4 months ago #53
  • Posts: 1265

Replied by Wanderer on topic Re: Has Your Credit Card(s) CL Been Reduced, Closed, or Frozen? If So, Please Ex

For all you credit card news hounds, the following information became available on "BankRate.com"

credit cards
National credit card rate averages
By This email address is being protected from spambots. You need JavaScript enabled to view it. • Bankrate.com


Here's a look at the state of interest rates on five common consumer banking products and the latest rates from Bankrate.com's weekly national survey of large banks and thrifts conducted Nov. 10, 2009.
Credit Cards
Rates]-- Leslie McFadden[/I]

As always the news just keeps on a 'comin'
14 years 4 months ago #54
  • Meya
  • Meya's Avatar Topic Author
  • Offline
  • Finance Commander
  • Finance Commander
  • Posts: 4522

Replied by Meya on topic Re: Has Your Credit Card(s) CL Been Reduced, Closed, or Frozen? If So, Please Ex

This makes a whole lot of sense! Can't argue this one......the game....the game....the game!
:white-flag:
14 years 4 months ago #55
  • Posts: 1257

Replied by ColoNative on topic Re: Has Your Credit Card(s) CL Been Reduced, Closed, or Frozen? If So, Please Ex

Now see, here are some more good comments coming in, I see some darn good points in here, and after listening to wanderer and Colo, I am now starting to think....."Is technology the reason why many positive consumers are being sliced?" From what I am thinking, after reviewing the two post, high Apr's have been around for quiet some time, but were they really making any money from it? Banks can increase an APR to 50% if they want, but does it really mean that consumers will bite? If we think old school (like Colo and wanderer mentioned), were there any month to month balances allowed? By Amex being the oldest creditor around, and they are known for restricting customers to paying off their balances within 30 days, did other creditors see positive cash flow by allowing customers to carry a balance, and raise (or introduce) annual fees, to earn higher profits?

. I bet my last nickle that this is going to happen to those who are applying for bank accounts on-line. Instead of using chex-systems, they are going to be pulling credit reports also. But if you were to walk into a bank with $100k, do you really think a branch officer will turn you down? Pssss, they would probably call on the manager to help them assist with over-riding your account with chex-system. If I did it with $2k, I know darn well someone with $100k will be forgiven.

Help me out someone, feedback, feedback, rah rah rah


Well, keep in mind too that the '80's had very high inflation. Watch any 1980's car commercial and the announcer would say that "you may qualify for our special 11.9% (or higher) financing." So interest rates for everything was pretty astronomical (mortgages, car loans and credit cards). That may have something to do it with it.

As far as someone going to a bank or online to open an account, the banks have to pull a bureau anyway thanks to the Patriot Act of 2001. The banks of course, love this because they can use that as an excuse to see what kind of a risk the applicant is and to see if they can sell additional products. My bank did this to me, I wanted to open a checking and savings account and ended up walking out with a Visa and a line of credit.

And in terms of the CLD's done by the bigger banks; well, it is because of the economy. This was no ordinary recession. In order to lend the money to us, they have to have the money. So they had less to lend and therefore a lot of credit lines were reduced. It is also an excuse to shore up any possible losses and of course, that lovely CARD Act that is coming in February, the banks want to make all the changes they can now while they still can.
14 years 4 months ago #56
  • Posts: 1257

Replied by ColoNative on topic Re: Has Your Credit Card(s) CL Been Reduced, Closed, or Frozen? If So, Please Ex

Following on ColoNative's comments... I obtained my first Bank America (Bank of America today) Visa Bank Card in 1973 with a $300 CL... they increased the CL to $500 then $700 and then $1000 with an 18% apr. Also I got a Northwestern National Bank NA (Wells Fargo Bank today) Master Card with a CL of $1000 and got it increased to $2000 with an 18% apr. Both were no AF. Now this was 1973. Many banks came and went after that such as (sampling of major card issuers) Continental Illinois National Bank, First Banks, Michigan National Bank, Twin City Federal Savings & Loan, Chemical Bank, First National Bank of Wilmington, Commerica Bank, First National Bank of Omaha, Household Bank, Wacovia National Bank, CitiBank, to name but a few. Today most of these banks has been absorbed or changed by others. As ColoNative stated the rates and AF's were common and higher than even today, it was the norm. He went on to mention that we rode a fifteen year high! Amend


Wow, you were one of those BankAmericard people eh? I still have my dad's 1986 Discover Card, pretty cool to have a relic like that around. I remember as a kid hearing my mom ask all the clerks if they took Discover.

I truely believe that First USA's Visa Platinum circa 1994ish is what really changed credit cards. They introduced huge credit limits and low fixed 9.9% APR to the industry. Everybody else had to follow suit, and because economic times were better, it really took off. Look at any Canadian bank's (Bank of Montreal, Royal Bank of Canada, Citibank Canada etc) website for their credit cards and it is like going back into time. They still have Gold cards as the top choice, annual fees and higher APR's.

As for me, I say Credit Unions are the way to go for the future.
14 years 4 months ago #57
  • Meya
  • Meya's Avatar Topic Author
  • Offline
  • Finance Commander
  • Finance Commander
  • Posts: 4522

Replied by Meya on topic Re: Has Your Credit Card(s) CL Been Reduced, Closed, or Frozen? If So, Please Ex

Now see, here are some more good comments coming in, I see some darn good points in here, and after listening to wanderer and Colo, I am now starting to think....."Is technology the reason why many positive consumers are being sliced?" From what I am thinking, after reviewing the two post, high Apr's have been around for quiet some time, but were they really making any money from it? Banks can increase an APR to 50% if they want, but does it really mean that consumers will bite? If we think old school (like Colo and wanderer mentioned), were there any month to month balances allowed? By Amex being the oldest creditor around, and they are known for restricting customers to paying off their balances within 30 days, did other creditors see positive cash flow by allowing customers to carry a balance, and raise (or introduce) annual fees, to earn higher profits?

Now wanderer, you lead me to believe that because manual credit pulling was much slower than today's method, could it be that banks are relying on technology to select the best customers, rather than examining their credit manually? My reason for bringing this up is because when I read members postings, I hear them speak about reconciliation, and how their credit was approved after a denial through on-line or ins store apps. I also noticed that through my denial stages, I would get a decline instant and a message stating "Unfortunately...we regret......will mail explanation or decision within 7-10 days......" but when you get the letter, it states that based upon Tu, Exp, or Eq...... if you feel this decision is wrong, or would like someone to review.... please write to Bank of Whatever, Po Box NV. 00123.

Now, the computer based a decision that totaled my inq's, baddies, history, util, and so on, but if I want more info of the denial, I need to write the bank. OK, if I was to write the bank which denied me, a senior acct manager reviews my denial, then manually takes a look at my credit background, then she base her decision on profitability and trust for the banks interest. If she see that i am somewhat a minimal risk, she then ask for additional information, and then approves me.

I may be ranting a little off because I am in a hurry to go with friends tonight, but it seems to me that these banks are too heavily dependent on technology, and maybe that is where things can be going wrong. They pay these senior reps big time dollars to approve and deny accounts, but if they can spend a couple of grand for a system that will do the work for them, they heck with manual reviews. I bet my last nickle that this is going to happen to those who are applying for bank accounts on-line. Instead of using chex-systems, they are going to be pulling credit reports also. But if you were to walk into a bank with $100k, do you really think a branch officer will turn you down? Pssss, they would probably call on the manager to help them assist with over-riding your account with chex-system. If I did it with $2k, I know darn well someone with $100k will be forgiven.

Help me out someone, feedback, feedback, rah rah rah!:white-flag:

Ps,...This is just one of my opinions, and a few experiences!
14 years 4 months ago #58
  • Posts: 1265

Replied by Wanderer on topic Re: Has Your Credit Card(s) CL Been Reduced, Closed, or Frozen? If So, Please Ex

Following on ColoNative's comments... I obtained my first Bank America (Bank of America today) Visa Bank Card in 1973 with a $300 CL... they increased the CL to $500 then $700 and then $1000 with an 18% apr. Also I got a Northwestern National Bank NA (Wells Fargo Bank today) Master Card with a CL of $1000 and got it increased to $2000 with an 18% apr. Both were no AF. Now this was 1973. Many banks came and went after that such as (sampling of major card issuers) Continental Illinois National Bank, First Banks, Michigan National Bank, Twin City Federal Savings & Loan, Chemical Bank, First National Bank of Wilmington, Commerica Bank, First National Bank of Omaha, Household Bank, Wacovia National Bank, CitiBank, to name but a few. Today most of these banks has been absorbed or changed by others. As ColoNative stated the rates and AF's were common and higher than even today, it was the norm. He went on to mention that we rode a fifteen year high! Amend :innocent: !!! This doesn't mean we have to like it but be aware... it is all about the game... the game... the game!!! One thing we didn't have back in the 1970's and the 1980's is the constantly updated credit bureaus. The reporting was manual and very slow if in fact nonexistent. Bankers could actually review accounts and give folks a break (or not). Credit scoring was primitive and slow do to the manual nature of it. Today it is all different. Yes, I lived long enought to see more than I want. Credit will go through the shake out cycle and then become grounded and start and up cycle. Patience is the key and good credit management. :white-flag:
14 years 4 months ago #59
  • Posts: 648

Replied by smcc on topic Re: Has Your Credit Card(s) CL Been Reduced, Closed, or Frozen? If So, Please Ex

I agree with the "spoiled" comment Cnative but the "spoiled" who still have these large limits who will weather this storm and not become a part of the CLD madness have done this because............? Meya had spoke about the "luck of the draw" and I'm hoping that their is more to it than that, because to be honest her comment to a point, my have some credibility.
14 years 4 months ago #60