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Old 02-13-2008, 02:43 PM   #1
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Default Can credit card companies do this?

I had a visa card with a limit of $1,000-- which is exactly where I like it. I use it only for gas and small purchases so I don't need a limit over 1k. I check my bill today, and the limit was raised to $5,000! That hurts your credit. Can credit card companies just change your limit like that without asking you?
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Old 02-13-2008, 03:07 PM   #2
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Yeah, all of our cards have been raised 2-3 times before. Actually a higher limit helps your credit from what I had read. That'* because if you have a balance on it, a higher limit makes your balance a smaller percentage of your available credit which looks better.

At any rate, all you have to do is call the card company to lower it. My parents have called to have their'* lowered before, and I've been thinking about it as well. It'* a little scary to have a $20K limit.
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Old 02-13-2008, 03:37 PM   #3
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They've jacked mine several times too and they can. Read the fine print. Just call them and have it reduced and tell them they can't increase it without your authorization.

And, having a higher limit is actually bad when you apply for a loan. Because it'* credit extended to you, even though you're not using it. So, you're a potential risk.
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Old 02-13-2008, 03:47 PM   #4
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speaking to a friend whom is a loan officer at a car dealer...
as long as you do not have over 1/2 of the credit line used it is a positive impact on credit, if you have a balance over half the credit line it negatively affects you
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Old 02-13-2008, 05:41 PM   #5
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Yep they can. One card I had went from 2,500 to 15,000 and recently my 1000 limit wamu card went to 10,000...I allready own my house and 2 cars so I am not worried about the effect on my credit score right now.
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Old 02-13-2008, 08:37 PM   #6
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Raising your credit limit does not lower your credit rating, as Aaron mentioned. The less you use vs. credit allowed actually raises your credit score.

Don't forget, its not YOUR credit card, they can do whatever they want, legally.
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Old 02-13-2008, 08:47 PM   #7
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Yeah my card company allows me to write them and ask for a reduction. Mines at 1k, and I typically never have a balance over $75.00. I'm a student. I use it for walmart runs and gas, and O2 sensors lol.
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Old 02-13-2008, 10:25 PM   #8
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Back when I got mine, it started at $300, then jumped to $3000 after my first year. I had them lower it down to $1000.

After I get it paid off (much less than half, maybe $3xx is all I owe), I'm cancelling the account, and opening up another account with a lower interest rate, and something that either gives me frequent flier miles or something cool.

I will be using the card for work only, and work pay'* all of my expenses for travel. So... I use my card, give them the expense report, they give me the cash, I pay my bill, and rack up points for flying miles, or a trip, or a tv, or whatever the hell they advertise.

That'* actually what they recommeded I do, Seriously!
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Old 02-13-2008, 11:26 PM   #9
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I've always been told that canceling a credit card hurts your credit. I've done a bit of research on how to establish credit... being that I am 18 years old (19 in two hrs). I've always been told either cut the card up, or just don't use it again.
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Old 02-13-2008, 11:26 PM   #10
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FYI, I don't know if you have to be a National City bank customer, but I just got a new card from them that is supposed to pay back 4% on gas purchases, 3% on I think restaurants, 2% on some other category, and I think 1% on everything else. I thought that was pretty good. Right now we have a State Farm card that pays 1% back toward our insurance premiums.
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