Reducing Line Of Credit

I have had a considerable amount of credit from a major store and when i went to use it it shown that i was declined. I have paid off the balance the previous month and went to Christmas shopping and it would not let me use the limit for which I was trying to purchase. I called the card company and they told me that they have reviewed my current credit which was at 710 and at the time they issued it it was @ 530. I have never been late with any of my creditors. Since they reduced my credit and I tried to use they counted it as an overcharge and it tanked my score. I need some input from others because i am going nuts. I feel that someone should pay and it shouldn't be me
The credit report that they used was 2 years old, I have no debt except 1 other card. The card I used had no balance.
Diane I have been doing that for the last 3 years.

I need a defined answer to my question.
i want to here all aspects.
I am like everybody else but have zero debt across the board and have real estate.

Jeffrey is right.... they can lower your credit limit for no apparent reason.

It is written into the fine print of your credit card contract.

You didn't do anything wrong... but they are running so scared right now that they are slashing credit limits everywhere. Even people with decent credit and that paid off their accounts every month are seeing their limits decreased.

Always check your monthly statement... it will show when they decrease your limit. Not until July 2010 will they be required to give you a 45 day notice in writing when they intend to make changes to your credit limit or APR.

Sorry.... but the SOB's are very scared of the new changes coming next year and are trying to do what they can before the laws are blocking them from their abusive business practices.

2009-03-15 12:47:20 by Herman

A business line of credit is important for businesses that need to protect cash flow. Learn about business lines of credit from a registered ...

Yes, its never happened to me so far, but I've heard they've been doing that a lot with the way the economy is right now.

2008-11-15 17:49:13 by Ron R

Price: $49.99 $16.99

Item 2: Universal Phone Stand: Credit Card Size Flexible and Adjustable Phone Stand that fits in your wallet.
NOTE: This stand is a free item and might come in different colors and drawing patterns on it.
Headset provides clear communication while taking calls and enhanced sound quality when listening. Comfortable noise-isolating ear gels for maximum sound quality.

Hi ALL,
I wanted to ask 2 questions on (non-secured) Line of Credits.
Hope that's OK and someone here has the knowledge or experience to answer:
1. Line of Credit use and FICO score: my understanding is if I use 75% or less of the line of credit limit it does NOT affect my credit score(?) what if I use say 80%, how does it work - my new score is adjusted like within a few weeks. Also, if say after 2 months again I am below 75%, does it bring my score back to the previous value within a few weeks? Also, approximately by how much does it affect your score (I understand this will just be an estimate). say I have 720 now $25,000 LOC and use 80% - does it reduce the score by around 10 point to 710 or like 50 points to 670?
2. Line of Credit Limit Reduction: is there anything I can do to prevent the bank from asking me to pay back a LOC/reduce my line of credit limit? For example, which of the 2 will reduce the chance of the bank reducing my LOC LIMIT:
- Not using the account at all or
- Moving 75% to another account or actually using the amount for investment purposes so the bank can not "touch" that amount/money.
What confuses me is that on one hand when I am not using the account at all, the bank sees a good credit handling/score and should not worry about me paying back. on the other hand this makes it very easy for the bank, technically, to just reduce the amount (in theory without even telling me) because the amount is already "there", meaning account not used(?)
THANKS.
Regards, Neil

You're going to hate my answer.
But the best way is not go carry a balance.
Suze Ormond said the best thing is not to allow your monthly balance to go above 20% of your credit limit and pay in full monthly.

2008-10-02 11:55:48 by Independent_guy

Price: $49.99 $16.99

Item 2: Universal Phone Stand: Credit Card Size Flexible and Adjustable Phone Stand that fits in your wallet.
NOTE: This stand is a free item and might come in different colors and drawing patterns on it.
Headset provides clear communication while taking calls and enhanced sound quality when listening. Comfortable noise-isolating ear gels for maximum sound quality.

We pay off our credit card balance off in full every month. They just reduced our credit line by half - 'for non-usage'. I know that this affects the credit score negatively. What can one do in this case?
Our credit score is excellent right now and we don't have any debt other than our mortgage and car payments (which we never miss). So I am not looking to repair my credit. The question is how can we prevent our credit score from dropping due to the card reducing our limit.

It might effect it negatively for a few months, not much you can do unless you call and see if they will reconsider. The worst is yet to come with the credit card industry. The stupid part is that those with excellent credit will be the ones to hurt.

Edited to add most of what Knotty is saying never shows up on the credit report like you paying it off each month.

2009-06-17 06:36:44 by moneysmart

My credit score is 702 and I pay off my credit cards every month. I called VISA to see if I can get an increase in my credit limit and they denied me. They said the reason for the decline was ACCOUNT ULTILIZATION. Does anyone know what that means.

Actually, that usually means you are using too much of your credit line.

Paying it off each month does not reduce your chance to get a credit line increase.... it's very good to do that.

2007-08-19 19:04:58 by Moe C