Credit Card Limit Lowered Below Credit Limit! (cont'd.)
Guest: JaneiR36
Post subject: Credit Card Limit Lowered Below Credit Limit!
Credit Expert (100+ Posts)
Posted: Sat Mar 11, 2006 11:37 am
She can certainly pay it down... IF she has the money. I suspect she's in this situation to begin with because she doesn't have it. The CLI doesn't have to be significant. They chose an arbitrary number, anyway, just to indicate that they would not be extending her any more credit. Adjusting that amt by a couple hundred shouldn't be a big deal, IMO.
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Guest: credithelp
Credit Expert (100+ Posts)
Posted: Sat Mar 11, 2006 11:45 am
I would call mbna since that is bad business practice. I know amex has wording in their card agreements that state being able to lower credit limits even below current balances to protect them when payments are not made ontime.
If payments are being made ontime they can't lower the credit limits below the balance to incur fees. That goes against the cardmember agreement. They may get the limit close to the balance and then a $10 charge could put the account over the limit but an paid as agreed account should not be lowered below the balance.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: iceman
Posted: Sat Mar 11, 2006 12:04 pm
JaneiR36 wrote:
She can certainly pay it down... IF she has the money. I suspect she's in this situation to begin with because she doesn't have it. The CLI doesn't have to be significant. They chose an arbitrary number, anyway, just to indicate that they would not be extending her any more credit. Adjusting that amt by a couple hundred shouldn't be a big deal, IMO.
JaniR36
She is the situation where she can't pay it to get it down pass the new credit limit, but she is making the min monthly payment. I believe also her APR is high, I told her to apply with chase, and do a balance transfer. She was receiving pre-approved application with 0 balnce transfer and 0 APR for 1 year.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: iceman
Posted: Sat Mar 11, 2006 12:09 pm
credithelp wrote:
I would call mbna since that is bad business practice. I know amex has wording in their card agreements that state being able to lower credit limits even below current balances to protect them when payments are not made ontime.
If payments are being made ontime they can't lower the credit limits below the balance to incur fees. That goes against the cardmember agreement. They may get the limit close to the balance and then a $10 charge could put the account over the limit but an paid as agreed account should not be lowered below the balance.
Credithelp
Thanks, I will tell her to speak with mbna, I agree with you. This is bad business practice, it effect here credit to some degree. Because it looks as if she can't manage her finance. When that really is not the case. Other companies will think she always over her credit limit.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: JaneiR36
Credit Expert (100+ Posts)
Posted: Sat Mar 11, 2006 12:14 pm
iceman wrote:
She is the situation where she can't pay it to get it down pass the new credit limit, but she is making the min monthly payment. I believe also her APR is high, I told her to apply with chase, and do a balance transfer. She was receiving pre-approved application with 0 balnce transfer and 0 APR for 1 year.
This sounds like a plan! She should consider talking to MBNA still so that the universal default rate does not kick in (when you're late to one creditor, they report you to the CRAs and everyone else starts to jack your interest rate or deny you credit).
With the 0% cards, this happened with a friend of mine. They had high balances and a couple collection accounts and so I assumed they weren't getting 0% offers. When I told them to seek out such accounts and apply they told me they were actually getting the offers at home! When I had high balances all I ever got was secured card offers. Just goes to show you should never limit what credit options people have.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Post subject: Credit Card Limit Lowered Below Credit Limit!
Credit Expert (100+ Posts)
Posted: Sat Mar 11, 2006 11:37 am
She can certainly pay it down... IF she has the money. I suspect she's in this situation to begin with because she doesn't have it. The CLI doesn't have to be significant. They chose an arbitrary number, anyway, just to indicate that they would not be extending her any more credit. Adjusting that amt by a couple hundred shouldn't be a big deal, IMO.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: credithelp
Credit Expert (100+ Posts)
Posted: Sat Mar 11, 2006 11:45 am
I would call mbna since that is bad business practice. I know amex has wording in their card agreements that state being able to lower credit limits even below current balances to protect them when payments are not made ontime.
If payments are being made ontime they can't lower the credit limits below the balance to incur fees. That goes against the cardmember agreement. They may get the limit close to the balance and then a $10 charge could put the account over the limit but an paid as agreed account should not be lowered below the balance.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: iceman
Posted: Sat Mar 11, 2006 12:04 pm
JaneiR36 wrote:
She can certainly pay it down... IF she has the money. I suspect she's in this situation to begin with because she doesn't have it. The CLI doesn't have to be significant. They chose an arbitrary number, anyway, just to indicate that they would not be extending her any more credit. Adjusting that amt by a couple hundred shouldn't be a big deal, IMO.
JaniR36
She is the situation where she can't pay it to get it down pass the new credit limit, but she is making the min monthly payment. I believe also her APR is high, I told her to apply with chase, and do a balance transfer. She was receiving pre-approved application with 0 balnce transfer and 0 APR for 1 year.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: iceman
Posted: Sat Mar 11, 2006 12:09 pm
credithelp wrote:
I would call mbna since that is bad business practice. I know amex has wording in their card agreements that state being able to lower credit limits even below current balances to protect them when payments are not made ontime.
If payments are being made ontime they can't lower the credit limits below the balance to incur fees. That goes against the cardmember agreement. They may get the limit close to the balance and then a $10 charge could put the account over the limit but an paid as agreed account should not be lowered below the balance.
Credithelp
Thanks, I will tell her to speak with mbna, I agree with you. This is bad business practice, it effect here credit to some degree. Because it looks as if she can't manage her finance. When that really is not the case. Other companies will think she always over her credit limit.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: JaneiR36
Credit Expert (100+ Posts)
Posted: Sat Mar 11, 2006 12:14 pm
iceman wrote:
She is the situation where she can't pay it to get it down pass the new credit limit, but she is making the min monthly payment. I believe also her APR is high, I told her to apply with chase, and do a balance transfer. She was receiving pre-approved application with 0 balnce transfer and 0 APR for 1 year.
This sounds like a plan! She should consider talking to MBNA still so that the universal default rate does not kick in (when you're late to one creditor, they report you to the CRAs and everyone else starts to jack your interest rate or deny you credit).
With the 0% cards, this happened with a friend of mine. They had high balances and a couple collection accounts and so I assumed they weren't getting 0% offers. When I told them to seek out such accounts and apply they told me they were actually getting the offers at home! When I had high balances all I ever got was secured card offers. Just goes to show you should never limit what credit options people have.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
posted by CardRatings.com at 3:29 PM
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