Decreased Credit limit

My BOA card sent me a letter recently saying that they are decreasing my credit limit from $8000 to $1800 based on a review of my credit report (I think the issus is that I added DH to the card to try to raise his credit score and he has not so great credit- mine is average- not bad, not wonderful) The card was recently almost maxed out, but I had paid off all but $1900 the day before I received the letter- so now I am over my limit.

Can they do this? Is there anything I can do about it? I will be making a payment that puts me under the limit this month- but then my debt/credit ratio is still terrible.

I'm so peeved.

Re: Decreased Credit limit

That happened to me on my AMex and I was ******! I called and complained and they told me its because I dont use that big of a credit line....ok but what if I needed it?

Re: Decreased Credit limit

Chase did that to me, i called and complained and threatened cancellation and they put it back to what it was. $8,000 to $1,800 is a crazy decrease! They probably did it because you were almost at limit but you just paid off most of it, i would call and complain about that and try and reverse the cecision, you can appeal it! I hate when they screw with my stuff...

Message edited 3/15/2011 10:57:00 AM.

Re: Decreased Credit limit

Boa did this to me last year. I went from a 10,000 limit to like $2500. Never late, paid off balances each month. They said it was lowered because I had "too much credit". None of my cards were maxed, all bills paid etc. I was so angry that I paid off the balance since them lowering put me at the max. They have since sent me offerings to reopen my account at the original limit. Screw that

Unfortunately there is nothing you can do,sucks big time.

Re: Decreased Credit limit

that happened to me with chase - went from 18k to 2k. when i called, i was told it was due to the fact that i don't use the credit limit. I have it for emergencies - it's a GOOD THING i haven't used my credit limit

Re: Decreased Credit limit

My DH has excellent credit, almost perfect credit. They decreased his limit because they saw he wasn't using the card that much.

Re: Decreased Credit limit

Banks have been doing this for sometime to protect themeselves. More and more people are getting laid off and are using credit to get by, unfortunately they can't always pay it back, so the banks are cutting the potential losses by lowering credit.

Re: Decreased Credit limit

there really is nothing you can do about it.. but if I were you, I'd run a full free credit report on yourself and DH.

To me it sounds like just adding DH to your CC shouldn't be enough for them to "limit their exposure" (which is what they call this).

I would be prepared as well for them to decrease your limit every single time you pay down the balance...

This has happened to my father- he started off w/ a BoA card that had a 30k limit with a balance of say 25k for his biz- every time he paid it down, they'd decrease his line of credit- not only does it s u c k to run a business with basically no line of credit available (he has others, but still) it has significantly killed his FICO score b/c of his debt to credit ratio.

Because his debt to credit ratio changed, the other cards started raising his % rates..

it is a terrible vicious cycle. IF they want to get you, they will- this is how they make money... do yourself a favor- pay off all your debt asap, and then just use your CC for small purchases you pay off monthly..

this will raise your FICO and will help you out in the long haul.

I hate CC companies.

edited to say- don't feel bad- I have an almost perfect FICO score and BoA lowered by available credit by 50% the minute I made one medically related purchase on it that I paid off the next month.

they are slimers.

Message edited 3/15/2011 11:52:40 AM.