Comments on: Credit Card Red Flags May Lower Your Credit Limit

By: Weekly Wisdom in Personal Finance - New Growth Edition | Debt Free Adventure!

Sat, 18 Jul 2009 20:46:17 +0000

[...] Credit Card Red Flags May Lower Your Credit Limit – by Mrs Micah This article is a great reminder that credit card companies are watching our spending habits! They are now using automated programs to monitor the types of places you use the card, and adjusting your credit accordingly. Another reason why I’m a fan of cold, hard, cash! [...]

By: plonkee

plonkee — Wed, 15 Jul 2009 07:43:48 +0000

I bet they're very interested in changes in consumption. If you regularly use your credit card in a bar, then it's probably not as bad (from a credit card point of view) as suddenly starting to - that either suggests that you've taken up the drink, or you can no longer afford to pay in cash. I'm experimenting with sticking to cash only (or almost only) for July and August. I'd prefer it if my credit card company didn't lower my limit, but it wouldn't be the end of the world. plonkee’s last blog post: money isn’t the same in my head

By: Aryn

Aryn — Tue, 14 Jul 2009 16:45:44 +0000

I had the limit on one of my cards cut in half, but that took the rate from "absurdly high" to merely "really high." It wasn't on a card I regularly use, though. It got used a few times a year for little purchases, so they cut it. Our heavily used card has maintained its absurdly high limit. Aryn’s last blog post: 5 Decisions to Make Before You Move

By: Miranda

Miranda — Mon, 13 Jul 2009 17:45:49 +0000

I heard that on NPR as well. The credit card companies look more and more like Big Brother daily. At any rate, I recently had one of my credit card limits cut. Which really annoyed me. Since I am (was) well below the limit, pay on time, and rarely buy anything using my credit cards. Miranda’s last blog post: Personal Finance Advice to My Past Self

By: Michael

Michael — Mon, 13 Jul 2009 17:29:16 +0000

Easiest way to not worry: apply for much less than your limit. Our limit is only a couple thousand dollars, so we can depend on its staying where it is.

We also have a fixed-rate card through a credit union. We have fewer problems resolving disputes.

By: Funny about Money

Funny about Money — Mon, 13 Jul 2009 16:11:41 +0000

Good article! I've stopped using my AMEX card in Walmart. And I wouldn't use it in a dollar store, a second-hand store, or any other downscale establishment. Instead, I use my Visa card. To charge gas at Costco you have to have an American Express card, and so I really don't want to lose that. But the Visa card? Meh. I don't use it much and so don't care if they lower the ceiling. Anything I'd put on the Visa I could pay for in cash, anyway--so if Visa doesn't like where I shop, the card can go away. LOL! You'd expect a person who could afford to get a massage or drink at a bar would be a good credit risk. Wouldn't you think they'd notice that people like me don't get those things because we can't afford to pay for them? Funny about Money’s last blog post: Money happens…

By: Dad

Dad — Mon, 13 Jul 2009 14:20:17 +0000

It is good to remember that the card company is trying to protect its money. It is not you individually that they are doing it too. You don’t see the number of customers in financial trouble who are behind on their payments. Many of them were also good customers before. That’s due to the times we are in. Also the banks are not making moral judgements on your spending. They are looking for things that with other customers have meant the change of your not paying them has increased. Your situation may be different but you may need to use cash or debit cards to change what the company sees.