I pulled my credit report recently and noticed that one of my credit cards, which I thought had a $800 limit as I was told by a representative, was showing a $500 limit. I called the credit card company and they said that because I had been late on one payment they cut my credit limit by $300 I have never heard of this? Is this standard practice? I have never heard of a credit card company just cutting your limit and then not notifying you! The guy I spoke to you stated that legally they did not even have to notify me? WTF is this?
it's probably listed in your cardholder agreement, which is a document that they send with the card (like a pamphlet) that you more than likely threw away Also, if you missed a payment they can up your APR.
You can probably get that finance charge from the late payment knocked off. I'd also look around for other cards, with the same or little higher limit If the card is cosigned with someone else, tell that person you want to switch and look for the best deal.
i would kick those suckers to the curb! legally, if it was in the contract they got you, but you shouldnt have to put up with that - if that is how they are going to treat you than the hell with em, i say. you said you already have one card? transfer your funds onto that one or check your junk mail for the next week or so and see what kind of deals you can get for a new one. it sounds like you already spoke to customer service, but after you find some other card options call them back and try to 'negotiate' with them based on some of the offers you got from other compaines. but either way, mastercard and visa are owned by the same entities so they still get your $$$. CREDIT CARDS ARE EVIL!!!
The sooner you learn this, the happier you will be. I was once heavily possessed by Satan, five digits worth. I got it all paid off a couple of years ago. Now all I have is an American Express card that gets paid off every month. That and my mortgage are the only debt I have, and I love it. In the immortal words of Daniel Johnston..."Kick Satan out! Kick Satan out!" Revolving credit is Satan's lair. Be very very careful when you tread there.
Credit Cards are awesome. My credit card gives me 2% cash back on gas, grocery stores, and drug stores, 1% on everything else. Benefits: 1. I don't have to carry cash around (and never get back any dimes nickels or pennies on purchases) 2. I am earning interest in my money market while they are financing my transactions. 3. They give me a rebate on my purchases (usually about $500/year) 4. Unlike cash, if I lose my card, Im not responsible. 5. I get a monthly transaction report which helps me determine my monthly expenditures When used appropriately, they are the greatest thing ever for consumers.
Paying late is quite possibly the worst thing you can do when you have a credit card. In addition to cutting your limit and raising your APR, many CC companies are now subscribing to a method called "Universal Default". This allows ANY CC company you are a holder of to take adverse action when they see you are late on any other card. If you hold any other cards, you may want to check on those as well.
I paid late before. I forgot about the payment due date, made the payment and called them. They waived the late fee. Im sure it depends on your payment history with the company.
Three words that will set you free: Online. Bill. Pay. Get the bill. Schedule payment with your bank's online bill payment. Forget about it.
Totally agree. I have a Capital One CC. I don't give a frogs fat ass what the interest rate is because I pay it in full every month the same day I get the bill. I pay it on their website and they credit the payment the same day if I do it before 3pm. I've had it for 4 years and I've never paid a penny in interest or late fees. Using credit cards is like eating food. If you do it right, it's great. If you don't do it right, it's hell.
I'm aware of raising the APR that I get but just dropping your credit limit is somthing I had never heard of. FYI it's a Macy's card.
credit cards are great, if managed responsibly. but the issuing banks seem to be doing crazier and crazier things. have a friend who had a card go to default rate on him (from 10% to 29%) and they never could explain why other than one payment which was 2 days late. that's the kind of stuff the companies were getting hauled in front of congress for.
Washington Mutual (formerly Providian), from $1500 down to $300 last fall for a missed payment. Justified either by credit history or overly high debt-to-income ratio.
yes, but you pay anywhere from 9%-28% in interest. Minus the 2% cash back that would be 7%-26%. you can have the same effect with a debit card So your paying interest as you earn interest? but your probably paying more interest than your earning The average consumer spends 18% more when they use credit cards then when they use cash/debit cards If you use your debit card, press the credit button when you check out...it gives you the same insurance. Me too, I call it a budget. I also get a bank statement, but the Budget works much better the problem is that the Vast majority of consumers will never use credit cards "responsibly", you tend to buy more when you use them. As a society, we buy too much crap to begin with. We're a mass consumption society. Only in this country can I go to a house in 5th ward, and the guy living there has 2 satellite dishes, Cable with every movie channel, drive a BMW, and claim to be poor. Our buy it now, pay for it later mentality is killing this country fiscally, and it starts with Credit. The average household has almost $8,000 in credit card debt.
