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maybeamommy
Blessed beyond belief
Member since 10/07 17048 total posts
Name:
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Does this happen to anyone else? RE: credit cards - vicious cycle!
Just wondering if this is happening to anyone else.
I have a credit card with American Express - the Jetblue one. It's been really great since we live in CA - we basically get airline points through using the credit card.
Jetblue also gives us points for booking online (6 points for SAN -> JFK) and for flying with Jetblue (6 points SAN -> JFK) - so basically 1 roundtrip flight gives us 24 points + whatever points we get from using our credit card to pay for the flight (Oh and 100 points = free flight).
Anyhoo -
(*COMPLETELY MADE UP NUMBERS!*)
Let's say my credit limit was $10,000.
My balance was $7500.
I go to check my balance online and see that my available credit is $7700!
 I always try to say at least $2k away from my limit - but now I'm barely $200 away from my limit!
So, I pay $400, bringing my balance down to $7100.
Another month goes by. I pay another $200. Now my balance is $6900.
I get another notice saying my limit is now $7000.
What is this vicious cycle?
Everytime I pay money toward the card, are they going to keep lowering my limit??
WWYD?
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Posted 6/8/09 12:36 PM  |
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Long Island Weddings
Long Island's Largest Bridal Resource |
JenMarie
One day at a time
Member since 11/07 7397 total posts
Name:
Jennifer
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Re: Does this happen to anyone else? RE: credit cards - vicious cycle!
Bank of America did this to me. A lot of the credit card companies are lowering limits so you can't borrow as much anymore. I transferred the BoA balance first chance I had.
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| Posted 6/8/09 12:42 PM |
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Nifheim
allo
Member since 1/09 5476 total posts
Name:
Jennifer
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Re: Does this happen to anyone else? RE: credit cards - vicious cycle!
yea anyone that has a sizable amount of balance on a CC has getting their limits lowered because the new CC law and debt.
I am not sure how low they will go though - best bet is to call the CC and see how much they are going to lower your limit.
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| Posted 6/8/09 12:56 PM |
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Sassyz75
Turning a new page
Member since 5/05 9731 total posts
Name:
Dina
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Re: Does this happen to anyone else? RE: credit cards - vicious cycle!
they have been doing this to my father non stop.. every time he pays down a card, they lower his limit- so his debt to credit ratio stays terrible- negatively impacting his Fico..
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| Posted 6/8/09 1:12 PM |
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nicrae
He's here!
Member since 12/06 9289 total posts
Name:
Mommy
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Re: Does this happen to anyone else? RE: credit cards - vicious cycle!
This has happen to us with American Express too. We have a $19,000 credit limit. We paid $5000 off and then they lowered our limit to 15K. We then paid another 5K off and the lowered our limit to 10k.
Every time we pay off a good chuck they lower our limit so our debt/credit ratio is not improving 
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| Posted 6/8/09 1:32 PM |
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LoveyQ
Stalkers, get a life.
Member since 11/07 12820 total posts
Name:
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Re: Does this happen to anyone else? RE: credit cards - vicious cycle!
I haven't even checked my limits!!! Eek, maybe I should!
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| Posted 6/8/09 2:19 PM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: Does this happen to anyone else? RE: credit cards - vicious cycle!
I had major issues with Amex last month
they are getting really bad
I am so done with credit cards! now I just need to pay them off
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| Posted 6/8/09 2:23 PM |
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Blu-ize
Plan B is Now Plan A
Member since 7/05 32475 total posts
Name:
Susan
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Re: Does this happen to anyone else? RE: credit cards - vicious cycle!
Yep, Amex did that too to me and they disabled my flexible payment portion of my gold card.
I'm just paying them off now. Not using cards at all unless it's an emergency or a purchase I would need protection on.
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| Posted 6/8/09 2:39 PM |
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