NationStates Jolt Archive

And maybe even cancel the damn thing!

Card Companies slash credit limits without notifying customers! (http://finance.yahoo.com/banking-budgeting/article/106716/How-to-Blow-Your-Credit-Limit-Without-Spending)

If you haven't had the credit limit cut on your credit card recently, count yourself lucky. Risk-averse card issuers are getting slash happy. And while many cardholders gripe that such cuts slice razor-close to their balance amounts, for an unfortunate few the cuts go far deeper: below what they currently owe.

Under different circumstances, David Chaplin-Loebell wouldn't have minded that American Express cut his unlimited credit line to just $5,000. Except that when AmEx reduced his line in October, he had an outstanding balance of $10,000. "I found out by having a business purchase declined," he says. Repeated calls to AmEx failed to yield an answer about why the cut was made. Chaplin-Loebell, who lives in Philadelphia, is now paying the balance under his regular card terms, and presumes the line will free up for new purchases once he's below the limit. "For now, they've essentially frozen the account," he says, leaving him to juggle business expenses on his personal cards. American Express did not respond to requests for comment.

The article is much longer but I can't be buggered to pull all the crap out to post it all.
Oh did I mention this is perfectly legal? This is exactly what we need!
I for one am even more glad I don't use credit now. I think the customers of these unscrupelous companies should drop them by the waysaide and let them fucking die!

Well this makes me damn happy I used my income tax to pay off two of my three credit cards and pay off half of the other. I feel for those who are about to get totally screwed though.

Credit cards are a bad thing to have. They don't work for you and are programmed to work against you(ie late once interest boosted to 29-32%

If you have one that you keep in reserve and the bank says they will close it. Either argue to keep it open or you close it. The fact they closed it shows up as a bad warning flag on your credit.

As to the article Amex are fucknuts. All that friendly we are here for you is a bunch of BS. I know somebody who works in the debt management stuff and he says AMEX are complete assholes when trying to work with them when a person enters a debt program. Visa and Mastercard for the most part are willing to work with people.

Big lesson. Go cash.

This isn't new. I used to work for Barcalycard and they started doing it in 2006.

Plenty of people had £10,000 limits slashed to as low as £250.

That's one of the reasons I'm so pissed about about the current financial problems around the globe, the banks knew it was coming years back but did nothing about it.

This isn't new. I used to work for Barcalycard and they started doing it in 2006.

Plenty of people had £10,000 limits slashed to as low as £250.

That's one of the reasons I'm so pissed about about the current financial problems around the globe, the banks knew it was coming years back but did nothing about it.

That's no joke. In fact if you look at the whole credit system and realize it is inherently flawed. Hopefully and I stress the word hope is that we come out of this whole mess better for it. However I think I may be just to optimistic.

I am on the fence on the issue.

On the one hand, it's handy when you have a large of sum of money to pay for something, such as tuition and you don't want to carry cash with you. It's tempting on the other to use it for little things. It's the little things that add up and really come back to bite you in the ass.

My credit card is well below its limits, and I'm almost paid up. Once I get my tax refund my debt will be cleared, which is nice. My debt comes from tuition, which is more of an investment, since I am getting something out of my education. It is a necessary evil.

I put $500 on today and I have $300 left to pay off - likely to go on before the due date. So I'll avoid the 18%/a on my MC.

Debt is perfectly manageable when you use credit responsibly, and only in small doses; i.e.: be able to pay it back entirely within one to two paycheques. Then again, 'responsibly' is the kicker. Some people are unable to grasp that concept and are unable to spend within their means. They believe that the limit means they have that money to spend and that they will be able to pay it back, unable to realise that the interest will make up a large amount of what they are paying back as their debt accumulates.

It's a fine tool in the hands of someone who is able to handle it; in the hands of someone who is a consumerist, it is an extreme liability.

Cash is good when needed for small, everyday items. It's not a good idea in my view to carry a lot of cash. It's an equally as big risk because you could be the victim of theft or be liable to do something foolish if its burning a hole in your pocket.

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Cash is good when needed for small, everyday items. It's not a good idea in my view to carry a lot of cash. It's an equally as big risk because you could be the victim of theft or be liable to do something foolish if its burning a hole in your pocket.

This is why we have debit cards. I have been in nations that still operate on cash economies. Things seem a lot more relaxed there even though they dont have new cars and a big screen tv in every home. I say falling back into the old days isnt so bad for the west.

Cash is good when needed for small, everyday items. It's not a good idea in my view to carry a lot of cash. It's an equally as big risk because you could be the victim of theft or be liable to do something foolish if its burning a hole in your pocket.

Do American banks not issue debit cards?

Edit: I guess my question has been answered.

I am on the fence on the issue.

On the one hand, it's handy when you have a large of sum of money to pay for something, such as tuition and you don't want to carry cash with you. It's tempting on the other to use it for little things. It's the little things that add up and really come back to bite you in the ass.

My credit card is well below its limits, and I'm almost paid up. Once I get my tax refund my debt will be cleared, which is nice. My debt comes from tuition, which is more of an investment, since I am getting something out of my education. It is a necessary evil.

I put $500 on today and I have $300 left to pay off - likely to go on before the due date. So I'll avoid the 18%/a on my MC.

Debt is perfectly manageable when you use credit responsibly, and only in small doses; i.e.: be able to pay it back entirely within one to two paycheques. Then again, 'responsibly' is the kicker. Some people are unable to grasp that concept and are unable to spend within their means. They believe that the limit means they have that money to spend and that they will be able to pay it back, unable to realise that the interest will make up a large amount of what they are paying back as their debt accumulates.

It's a fine tool in the hands of someone who is able to handle it; in the hands of someone who is a consumerist, it is an extreme liability.

Cash is good when needed for small, everyday items. It's not a good idea in my view to carry a lot of cash. It's an equally as big risk because you could be the victim of theft or be liable to do something foolish if its burning a hole in your pocket.

What about debit and cash cards? I often use my debit card since its the best of both worlds. I don't use the credit feature ever; if I withdraw from an ATM my bank reimburses me the cost, I get 3% of all the money I spend returned every month (yeah its not a lot but hey). Its also a credit card, but it only rings as credit when I have no balance and carries a limit of $100. I think the most I ever spent credit was $5...

The thing here though Kryz is even responsible card users are being screwed by this; people with $10,000 limits have a $300 balance only to discover they now have a $250 limit and fees out the ass; turning that $300 into 4, 5, 6, $700.... Its not right.

Do American banks not issue debit cards?

Lol, of course they do. Where do you think they came from.

The thing here though Kryz is even responsible card users are being screwed by this; people with $10,000 limits have a $300 balance only to discover they now have a $250 limit and fees out the ass; turning that $300 into 4, 5, 6, $700.... Its not right.

I didn't know of a UK credit card issuer that lowered a limit below the current balance and I'm pretty sure it's not legal over here.

Do American banks not issue debit cards?

Edit: I guess my question has been answered.

They do. But some are giving out ATM cards as replacements. Chase took out washington mutal and we got an ATM card instead of a debit card.

Kryo mentioned its easy to spend cash but that's if you are a "consumerist"

It's better to not have a credit card.

I didn't know of a UK credit card issuer that lowered a limit below the current balance and I'm pretty sure it's not legal over here.

What I am hearing here in the US is that banks are shutting down credit that isnt being used. Therefore limiting what you can borrow now vs 6 mo's or a year ago.

What I am hearing here in the US is that banks are shutting down credit that isnt being used. Therefore limiting what you can borrow now vs 6 mo's or a year ago.

It's true. An associate told me three banks sent him notices they were going to do that. He wrote back and sent them the cut up cards.

I didn't know of a UK credit card issuer that lowered a limit below the current balance and I'm pretty sure it's not legal over here.

Its not there, but it is here... until 2010

What about debit and cash cards? I often use my debit card since its the best of both worlds. I don't use the credit feature ever; if I withdraw from an ATM my bank reimburses me the cost, I get 3% of all the money I spend returned every month (yeah its not a lot but hey). Its also a credit card, but it only rings as credit when I have no balance and carries a limit of $100. I think the most I ever spent credit was $5...


Wow, you're banks still charge for ATMs. They gave up doing that years ago over here.

I don;t have a credit card (I have an overdraft but I've not been in that since I was finishing up my Masters). I do keep meaning to get one however to give more security for internet ordering but in this case I would set it up so it gets automatically paid off every month - also to build up a decent credit history for when I need a morgage. I don't think you should ever use a credit card to spend more than you have or can reasonably expect to get in at next pay check. They do however have advantages such as extra online security and being more likley to be usable abroad.

Lol, of course they do. Where do you think they came from.

Well mine came from the Royal Bank of Scotland, I don't know about yours.:p

They do. But some are giving out ATM cards as replacements. Chase took out washington mutal and we got an ATM card instead of a debit card.

Kryo mentioned its easy to spend cash but that's if you are a "consumerist"

It's better to not have a credit card.

Again, I'm not sure about the setup in the US but in the UK you have to pass a credit rating check to get a debit card due to offline transactions and shop floor limits.

If the system is the same then maybe the US banks are just getting stricted on the credit checks. It wouldn't surprise me in the current climate.

Wow, you're banks still charge for ATMs. They gave up doing that years ago over here.

I don;t have a credit card (I have an overdraft but I've not been in that since I was finishing up my Masters). I do keep meaning to get one however to give more security for internet ordering but in this case I would set it up so it gets automatically paid off every month - also to build up a decent credit history for when I need a morgage. I don't think you should ever use a credit card to spend more than you have or can reasonably expect to get in at next pay check. They do however have advantages such as extra online security and being more likley to be usable abroad.

We tend to be uber capitolists. Fees for everything. Hell they even charge you for using overdraft. I tried to cancel mine and they would not do it. They would loose the $30 fees.

It's a double edge sword on the credit history. You are told you need credit cards for getting autoloans and mortgages. When you try for a mortgage; they automattically consider your cards maxed out.

The banks are assholes over here. I noticed that mine would sit on certain transactions with the hope of forcing overlimit fees and over draft fees. I verified this by keep a large balance in the checking for a few months. In time transactions went in and out when they happened. I reduced the balance and stuff started to get held again.

Wow, you're banks still charge for ATMs. They gave up doing that years ago over here.



Mine doesn't charge and it refunds me other banks atm transactions including those overseas.

Again, I'm not sure about the setup in the US but in the UK you have to pass a credit rating check to get a debit card due to offline transactions and shop floor limits.

If the system is the same then maybe the US banks are just getting stricted on the credit checks. It wouldn't surprise me in the current climate.

They may do that here but of course if you have a good track record with a debit card; it's not counted......

Mine doesn't charge and it refunds me other banks atm transactions including those overseas.

Which bank?

My average monthly credit card bill is under $40.

So this doesnt affect me.

They may do that here but of course if you have a good track record with a debit card; it's not counted......

Doesn't your bank report it to the credit reference agencies when you exceed your overdraft limit?

My average monthly credit card bill is under $40.

So this doesnt affect me.

I don't have a credit card so It doesn't bother me. :p

This is why we have debit cards. I have been in nations that still operate on cash economies. Things seem a lot more relaxed there even though they dont have new cars and a big screen tv in every home. I say falling back into the old days isnt so bad for the west.

Do American banks not issue debit cards?

Edit: I guess my question has been answered.

Most western banks do issue interac cards (debit/ATM cards); sorry if my post didn't make that clear.

Interac is on par with cash in my view. The only difference is you do get a mild sense of security with it, as even if your card is stolen, you still have the pin. Unless of course the thief is smart and gets you at the machine and forces you to withdraw.

What about debit and cash cards? I often use my debit card since its the best of both worlds. I don't use the credit feature ever; if I withdraw from an ATM my bank reimburses me the cost, I get 3% of all the money I spend returned every month (yeah its not a lot but hey). Its also a credit card, but it only rings as credit when I have no balance and carries a limit of $100. I think the most I ever spent credit was $5...

Sure, those are always an option, if you're not at the mercy of an overly corrupt charter Canadian bank. If I go over my limited number of transactions per month, BMO charges me. Pretty much like every other corruption to boot charter Canadian bank. They all run the same financial scam that charges you a token fee to keep an account. Then they tell you that it's overdrafted when you haven't used it in a year because you took all your money out. Real scummy.

The thing here though Kryz is even responsible card users are being screwed by this; people with $10,000 limits have a $300 balance only to discover they now have a $250 limit and fees out the ass; turning that $300 into 4, 5, 6, $700.... Its not right.

That's because there is no accountability, in my view. They've been allowed to run amok for years and now people are getting screwed. Capitalism is just lovely when the economy is imploding on itself (ok, slight exaggeration).

Wow, you're banks still charge for ATMs. They gave up doing that years ago over here.


Mine doesn't, however many do (or they charge you for not charging you) and my bank reimburses me whatever other banks charge.

Doesn't your bank report it to the credit reference agencies when you exceed your overdraft limit?

Only if it's a line of credit.

Then again. I am not sure on overdraft today as they don't require of line of credit as they did in the past.

You know I am not sure now. So put a big question mark on my statement.

I don't have a credit card so It doesn't bother me. :p

I only have it for the purpose of online purchasing.

Im much more comfortable giving a credit card number out online then my debit card number.

That's because there is no accountability, in my view. They've been allowed to run amok for years and now people are getting screwed. Capitalism is just lovely when the economy is imploding on itself (ok, slight exaggeration).

Financial institutions keep playing these little games and it will.

Most western banks do issue interac cards (debit/ATM cards); sorry if my post didn't make that clear.

Interac is on par with cash in my view. The only difference is you do get a mild sense of security with it, as even if your card is stolen, you still have the pin. Unless of course the thief is smart and gets you at the machine and forces you to withdraw.

You guys need to chip and pin up.

Much more secure. I hate having to sign for transactions when I'm out of the country, it makes me feel all exposed.

I only have it for the purpose of online purchasing.

Im much more comfortable giving a credit card number out online then my debit card number.

Well my old one had a mastercard symbol so purchases were supposed to be backed like a credit purchase. In fact the odd thing about them is that if you did a debit purchase and ran into issues, they would fight you over returning the money. If it was a credit purchase, they had no problem......

Well my old one had a mastercard symbol so purchases were supposed to be backed like a credit purchase. In fact the odd thing about them is that if you did a debit purchase and ran into issues, they would fight you over returning the money. If it was a credit purchase, they had no problem......

i always found the service better with credit. the check card debit card thing is too new and hasn't been fully regulated yet. Where as credit card is used fraudulently the most i can legally be charged is 50 dollars. A debit still doesn't have that protection.

i always found the service better with credit. the check card debit card thing is too new and hasn't been fully regulated yet. Where as credit card is used fraudulently the most i can legally be charged is 50 dollars. A debit still doesn't have that protection.

I had no issues clearing up my fraudulent charges on my debit card (some $3,000) and I never payed a red cent. Maybe its because I am careful about what banks I go to I dunno...

i always found the service better with credit. the check card debit card thing is too new and hasn't been fully regulated yet. Where as credit card is used fraudulently the most i can legally be charged is 50 dollars. A debit still doesn't have that protection.

I find it surprising you still have to pay anytihng in the case of fraud. In the UK the only time your liable for anything in the case of fraud is if you've given the person your pin number and you're daft enough to admit it.

Debit cards have the same protection.

I had no issues clearing up my fraudulent charges on my debit card (some $3,000) and I never payed a red cent. Maybe its because I am careful about what banks I go to I dunno...

ive never had fraud. issues.
just was mention about the law in a news report. id rather have legally can not be held liable to just depends at the whims of the bank any day of the week.

And maybe even cancel the damn thing!

Card Companies slash credit limits without notifying customers! (http://finance.yahoo.com/banking-budgeting/article/106716/How-to-Blow-Your-Credit-Limit-Without-Spending)



The article is much longer but I can't be buggered to pull all the crap out to post it all.
Oh did I mention this is perfectly legal? This is exactly what we need!
I for one am even more glad I don't use credit now. I think the customers of these unscrupelous companies should drop them by the waysaide and let them fucking die!
Whoa, Amex did that to a business's card?? Fuck those scumbags.

I gave up using credit cards a long time ago because they're fucking crooks, but geez shit, that is outrageous. Doing that to a business account?? :mad:

I predict that one group that will soon start benefitting from the economic crisis will be lawyers as people start suing all these assholes for damages from this shit.

This is why we have debit cards. I have been in nations that still operate on cash economies. Things seem a lot more relaxed there even though they dont have new cars and a big screen tv in every home. I say falling back into the old days isnt so bad for the west.
I use my debit card for everything. As it is issued for my bank by Mastercard, I can use it in place of a credit card as well, plus it can be used in any ATM/cash machine in most of the world. All the convenience and most of the protection of plastic, with none of the debt. The only inconvenience is that if I want to make a purchase over, I think, $1000 in one go (the amount might be higher, but I don't remember), it won't go through unless I have notified the bank that I will be using it that way in advance -- fraud protection. But I can always write a paper check to pay cash for a new laptop.

Whoa, Amex did that to a business's card?? Fuck those scumbags.

I gave up using credit cards a long time ago because they're fucking crooks, but geez shit, that is outrageous. Doing that to a business account?? :mad:

I predict that one group that will soon start benefitting from the economic crisis will be lawyers as people start suing all these assholes for damages from this shit.

Yep, isn't it comforting to know that in an attempt to save themselves these companies are cutting people's legs off at the knees, the very same people that keep them going?

The thing here though Kryz is even responsible card users are being screwed by this; people with $10,000 limits have a $300 balance only to discover they now have a $250 limit and fees out the ass; turning that $300 into 4, 5, 6, $700.... Its not right.
It's theft, outright, as far as I'm concerned.

We tend to be uber capitolists. Fees for everything. Hell they even charge you for using overdraft. I tried to cancel mine and they would not do it. They would loose the $30 fees.

It's a double edge sword on the credit history. You are told you need credit cards for getting autoloans and mortgages. When you try for a mortgage; they automattically consider your cards maxed out.

The banks are assholes over here. I noticed that mine would sit on certain transactions with the hope of forcing overlimit fees and over draft fees. I verified this by keep a large balance in the checking for a few months. In time transactions went in and out when they happened. I reduced the balance and stuff started to get held again.
That's illegal, btw. You could report them to your state government for that. Check with the consumer affairs office of your Attorney General's office. Lots of banks do it, especially the big ones, because most people don't notice it, or if they do, they don't know their rights. Or they just move to another bank. That's what my mom did when she found out that a bank was not completing the deposit on her direct deposit paychecks sometimes up to 10 days. She just switched banks, but I thought she should have reported it.

It's theft, outright, as far as I'm concerned.

I'm in total agreeance. If you do ever go in business form a responsible credit company :)

It's theft, outright, as far as I'm concerned.

for that insult the banks have declared your savings/checking account to have a limit. and they give the overage to me.

My credit card company gives me a larger limit than I would ever want to use. It's about half what I earn in a year.

But I've only carried a balance to the next month once and I've only paid late (by a week) once. I can see where someone might run into trouble if they're using their card for business expenses and all this, but otherwise, why should it be so hard to keep spending low?

My credit card company gives me a larger limit than I would ever want to use. It's about half what I earn in a year.

But I've only carried a balance to the next month once and I've only paid late (by a week) once. I can see where someone might run into trouble if they're using their card for business expenses and all this, but otherwise, why should it be so hard to keep spending low?

There are definitly problems with how people spend, but even considering that the companies are cutting lines of credit to small percentages of what people's previous lines of credit were and penalizing them for it. This isn't about irresponsible spenders screwing themselves this is about companies like American Express going out of thier way to harm people who spend responsibly and well within thier limit; all in the name of the almighty dollar.

My credit card company gives me a larger limit than I would ever want to use. It's about half what I earn in a year.

But I've only carried a balance to the next month once and I've only paid late (by a week) once. I can see where someone might run into trouble if they're using their card for business expenses and all this, but otherwise, why should it be so hard to keep spending low?
A lot of people can't discipline their spending if they have high credit limits. Many financial advisors tell people with spending problems to instruct their credit providers to cut their credit lines.

However, many other people use their credit cards responsibly and run into one of two major problems:

1) They get hit with a big unexpected expense -- they lose an apartment and have to incur the costs of a move, or they get hit with medical expenses that their insurer refuses to cover, etc. Due to the circumstances, they have to use the credit card to pay those expenses, and if they don't earn enough to at least double or more your monthly payments to pay that down fast, then, between the balance, interest and financing fees, you can end up burdened by it for years. That happened to me. I was struggling to pay down a balance that I incurred due to a necessary but unplanned move followed by the loss/damage of a good chunk of my possessions that had to be in storage for almost a year. If I had not inherited a share in a property that was sold, I would still be carrying the balance from paying for the move and then replacing my lost property.

2) Their credit card provider decides they are not earning enough money off them in interest and fees, so they just decide to cancel their account on them.

You guys need to chip and pin up.

Much more secure. I hate having to sign for transactions when I'm out of the country, it makes me feel all exposed.

Some credit cards already have it. I just got the new version of my bank's interac card because my last one became demagnetized.

After being the typical college freshman idiot with cards and getting into a lot of trouble with them (Which I'm sure is still on my credit score) I got rid of the whole kit and caboodle of them except for one card, which I use for making purchases over the Internet and sometimes at stores when I'm back at home. I find that after my scare with the cards I had during my time at university and given how hard it is to move money back to the states to make payments, I'm much more responsible with the card. Of course, I'm also limited on using my card over here as Japan is still very much a cash based society and even if you are in an area that uses credit cards, a good chunk of the time they won't accept cards issued overseas. It keeps me out of trouble.

Except when I go home and have to readjust to using plastic because tellers give you damn odd looks at stores if you try to pay in cash. :p

Paid. It's not a rope.

Anyway. Yah, everyone is getting their lines slashed - more or less. But it shouldn't matter if you are solvent and all that.

In the future the whole FICO thing will be as stupid as the credit ratings.

What a racket.

You can't get a good credit rating unless you regularly use (and regularly pay off) a credit card

but the regs are set up to let the credit companies abuse you any way they can.

What a racket.

You can't get a good credit rating unless you regularly use (and regularly pay off) a credit card

but the regs are set up to let the credit companies abuse you any way they can.

Indeed. For example, your credit score takes a ding if you go past 1/2 of your limit.....

*is once again glad he has no credit cards*

by all means cancil the damd thing. the use of them is not free, and most people don't realize how much their paying through the nose to use them. and learn to live without what you can't afford and instead of trying to impress everyone, which gratifies nothing anyway, and set a good example for others by doing so.

governments made the mistake of setting this example of defficit spending a long time ago and over the years it has become easier for ordinary individuals to fallow that unfortunate example. i know the idea was to stimulate the production of goods, but look what has actually happened. people waste credit on useless crap to impress each other and on services like fast food, they'd be healthier and often more gratified to do for themselves.

again there is too much emphasis on the circulation of SYMBOLIC value, instead of any sort of real value for it to represent. i'm not objecting to governments barrowing against their own future to keep people from starving and to maintain useful tangible public infrastructure like clean energy and public transportation, but when too much is driven by trying to impress each other, instead of the real gratifications of creating and exploring, what we are left with is all hallow smoke and mirrors, and sometimes the smoke blows away and the mirrors break and then the reality check starts bouncing like its doing in the whole world illusion of economy based on symbolic value.

For the love of Christ, do NOT just cancel your credit cards, especially if you ever plan on getting a loan to buy a home or a car. One of the main components of your credit score is what is called Credit Utilization. This is essentially a ratio of your used credit versus your available credit. The more credit you have, and the less of it you're using, the better.

For example, pretend that you have five credit cards, all with a $3000 balance and a $5000 maximum. Your total credit utilization would be 60% ($15,000 / $25,000). That is, you're using 60% of your total available credit. Now say you transfer the balance and close one of those cards. Your credit utilization will go from 60% to 75% ($15,000 / $20,000). That is bad. You would be better off keeping that card open. Your credit score looks to see if you overuse your available credit, and closing credit cards shuts off some of your available credit.

If you absolutely must close your credit cards, start with the newest one first. Another thing banks look at for your credit score is your credit history. If you start closing down accounts you've had for a while, you're getting rid of your credit history. If you have had a card for a while, and it doesn't have a high interest rate or a huge balance, just cut the card up so you don't use it, but keep the account open. Having that credit history helps your credit score. Also, having that available balance helps your credit history.

Pretend like you don't need credit now, but unless you all plan on buying a house with cash, you're going to need your credit sooner or later.

For the love of Christ, do NOT just cancel your credit cards, especially if you ever plan on getting a loan to buy a home or a car. One of the main components of your credit score is what is called Credit Utilization. This is essentially a ratio of your used credit versus your available credit. The more credit you have, and the less of it you're using, the better.

For example, pretend that you have five credit cards, all with a $3000 balance and a $5000 maximum. Your total credit utilization would be 60% ($15,000 / $25,000). That is, you're using 60% of your total available credit. Now say you transfer the balance and close one of those cards. Your credit utilization will go from 60% to 75% ($15,000 / $20,000). That is bad. You would be better off keeping that card open. Your credit score looks to see if you overuse your available credit, and closing credit cards shuts off some of your available credit.

If you absolutely must close your credit cards, start with the newest one first. Another thing banks look at for your credit score is your credit history. If you start closing down accounts you've had for a while, you're getting rid of your credit history. If you have had a card for a while, and it doesn't have a high interest rate or a huge balance, just cut the card up so you don't use it, but keep the account open. Having that credit history helps your credit score. Also, having that available balance helps your credit history.

Pretend like you don't need credit now, but unless you all plan on buying a house with cash, you're going to need your credit sooner or later.

What about using my credit cards to pay off my credit cards ?? then getting more credit cards to pay those off. then switching that debt back to the original credit cards? then getting some more new credit cards?

What about using my credit cards to pay off my credit cards ?? then getting more credit cards to pay those off. then switching that debt back to the original credit cards? then getting some more new credit cards?

Since I find it impossible to tell if you are being sarcastic or not, no, this would be a very bad idea. Your credit score will track if you do this sort of thing, and it will hurt for it.

Since I find it impossible to tell if you are being sarcastic or not, no, this would be a very bad idea. Your credit score will track if you do this sort of thing, and it will hurt for it.

I hope I am being sarcastic.
*looks at credit card bills*
Yeah I hope
* proceeds to start 8AM binge drinking*


If by chance i wasn't kidding. and i had done that with out working for a few years and maybe owed a few hundred thousand dollars what should i Do?

I hope I am being sarcastic.
*looks at credit card bills*
Yeah I hope
* proceeds to start 8AM binge drinking*


If by chance i wasn't kidding. and i had done that with out working for a few years and maybe owed a few hundred thousand dollars what should i Do?

stop buying things you can't afford, get a job, and pay off your debt would seem like a logical starting point

stop buying things you can't afford, get a job, and pay off your debt would seem like a logical starting point

but i am allergic to work, I should get Stimulus money to cover my credit card bills.

If by chance i wasn't kidding. and i had done that with out working for a few years and maybe owed a few hundred thousand dollars what should i Do?
Depends on your income. If it's something like $10K a year, probably chapter 13.

For the love of Christ, do NOT just cancel your credit cards, especially if you ever plan on getting a loan to buy a home or a car. One of the main components of your credit score is what is called Credit Utilization. This is essentially a ratio of your used credit versus your available credit. The more credit you have, and the less of it you're using, the better.

For example, pretend that you have five credit cards, all with a $3000 balance and a $5000 maximum. Your total credit utilization would be 60% ($15,000 / $25,000). That is, you're using 60% of your total available credit. Now say you transfer the balance and close one of those cards. Your credit utilization will go from 60% to 75% ($15,000 / $20,000). That is bad. You would be better off keeping that card open. Your credit score looks to see if you overuse your available credit, and closing credit cards shuts off some of your available credit.

If you absolutely must close your credit cards, start with the newest one first. Another thing banks look at for your credit score is your credit history. If you start closing down accounts you've had for a while, you're getting rid of your credit history. If you have had a card for a while, and it doesn't have a high interest rate or a huge balance, just cut the card up so you don't use it, but keep the account open. Having that credit history helps your credit score. Also, having that available balance helps your credit history.

Pretend like you don't need credit now, but unless you all plan on buying a house with cash, you're going to need your credit sooner or later.

Already have a house so there! :p

Depends on your income. If it's something like $10K a year, probably chapter 13.

well its 0. but, i got to figure out where to hide my stuff. Don't want them to take that.

Already have a house so there! :p

Plan on sending your kids to college? Buying a new car?

Plan on sending your kids to college? Buying a new car?

They are almost ready to give cars away and you assume college will be around when she is old enough. :p

well its 0. but, i got to figure out where to hide my stuff. Don't want them to take that.
They will.
Plan on sending your kids to college? Buying a new car?
I have a house, a car and pay my own tuition, never had a credit card. The only use I have come upon for them is renting a car or sometimes securing hotel reservations, but then I found ways around that.

well its 0. but, i got to figure out where to hide my stuff. Don't want them to take that.
Duh. You must have at least loose friends.

If it was real, it would be pretty easy to solve.

They will.

I have a house, a car and pay my own tuition, never had a credit card. The only use I have come upon for them is renting a car or sometimes securing hotel reservations, but then I found ways around that.

Yes, clearly your personal anecdotes completely contradicts what I said. Credit is entirely useless except for renting cars and securing hotel reservations.

Yes, clearly your personal anecdotes completely contradicts what I said. Credit is entirely useless except for renting cars and securing hotel reservations.

I'm just saying everyone doesn't need one. The idea that you can't possibly buy anything without credit card debt is bunk.

For the love of Christ, do NOT just cancel your credit cards, especially if you ever plan on getting a loan to buy a home or a car. One of the main components of your credit score is what is called Credit Utilization. This is essentially a ratio of your used credit versus your available credit. The more credit you have, and the less of it you're using, the better.

In non-moronic countries you are supposed to get rid of significant credits before you are even considered eligible for a mortgage. Unless your income is insanely high of course.

In non-moronic countries you are supposed to get rid of significant credits before you are even considered eligible for a mortgage. Unless your income is insanely high of course.

Love the flame.

Your credit utilization is an expression of your ability to spend responsibly. If you have a lot of credit, but are able to limit yourself to only using a small percentage of it, that is a Good Thing. Having an established, documented history of paying off your bills and outstanding debts encourages banks to loan you money, figuring you're a safe investment.

Tell me, though, how do they determine if you're a default risk in all these non-moronic countries?

I only use my credit card to build up my credit rating...I have a feeling creditors are going to be sharply conservative in lending for at least another five years and probably will remain selective for a decade or more, especially considering that the easy credit of the past 10-15 years or so was an aberration that needed to be corrected.

Your credit utilization is an expression of your ability to spend responsibly. If you have a lot of credit, but are able to limit yourself to only using a small percentage of it, that is a Good Thing. Having an established, documented history of paying off your bills and outstanding debts encourages banks to loan you money, figuring you're a safe investment.


If that was the case, why does bad information stay for 7 years and good information 6 months to a year?

Why is it they only measure bad information?

What is it when I got my fixed mortgage; the bank didn't care about my previous credit record since I had a down, zero debt and no cards?

If that was the case, why does bad information stay for 7 years and good information 6 months to a year?

Why is it they only measure bad information?

What is it when I got my fixed mortgage; the bank didn't care about my previous credit record since I had a down, zero debt and no cards?

1. Because they're looking for anything that might indicate a credit risk, in order to deny a loan.

2. They don't only measure bad information. I've already spoken on why having open credit cards for a long time is a good thing.

3. I don't know, I'm not you. Maybe because you got the mortgage during the banking industry's recent credit giveaway? Perhaps you've read about the present economic troubles that have resulted from such behaviour?

What is it when I got my fixed mortgage; the bank didn't care about my previous credit record since I had a down, zero debt and no cards?

Banks like lots of cash far more than they like good credit...cash is king for any business. The more you can make as a down payment, the greater chance you'll get approved for the remaining mortgage. So, if given the choice between a good credit score and a large down payment (with zero debt being a nice bonus), the latter is always going to make things move a lot more effectively.

Already have a house so there!
That doesn't mean you don't need a credit card and good credit rating.

Don't have a truckload of cards, rather put the majority on one or two high-end cards. Good credit cards can be extremely useful when traveling, they make sure you don't have that embarrassing situation with running out of money in a shop, they're not just a helpful tool, you're expected to have one in this society.

If you do it right, you won't be paying anything for using the card except for the annual fee, or, if doing everything really right, nothing at all. Except for the hidden fee from slightly lower APR on your deposit than you'd get if you chose the bank solely on the basis of APR. But that can be very little (under $100) and is well compensated by the perks you get. Granted, most are useless, but some come very handy once in a while. I personally find out that I actually save at least a few hundred a year by using credit cards.

1. Because they're looking for anything that might indicate a credit risk, in order to deny a loan.

Or charge you a higher interest rate.

2. They don't only measure bad information. I've already spoken on why having open credit cards for a long time is a good thing.

Ahh but the bad info is what interests them. Not simply risk measurement. For example a friend had problems in college. Six years later in a job get got after college and was making a hefty salary for 3 years; a bank said but you had bad info 6 years ago. Never mind the fact he had practically no income.

3. I don't know, I'm not you. Maybe because you got the mortgage during the banking industry's recent credit giveaway? Perhaps you've read about the present economic troubles that have resulted from such behaviour?

Ahhh there's that snotty factor we all come to love. Credit giveaway was the ARMs. Fixed rates were something they tried to make unattractive(5 years ago).

Credit cards are not the sole measurement tool. In fact they are a rather crappy tool to have.....

Banks like lots of cash far more than they like good credit...cash is king for any business. The more you can make as a down payment, the greater chance you'll get approved for the remaining mortgage. So, if given the choice between a good credit score and a large down payment (with zero debt being a nice bonus), the latter is always going to make things move a lot more effectively.

Indeed the loan officer was stunned that I had zero debt. She said it was a rare thing. Hmm rather prophetic for what is going on........

I haven't heard anything from my banks reducing my limits. I don't use the cards much anyway, usually only when credit card payment is the only/simplest way & I pay them off in full each month.

Yes, clearly your personal anecdotes completely contradicts what I said. Credit is entirely useless except for renting cars and securing hotel reservations.
*plans on not buying a house unless I'm paying cash* *doesn't know how to drive a car* *has been informed by admissions staff at two college that I am overqualified for most 4-year degree programs that might have been useful to me if I had taken them 20 years ago, before I learned all that stuff out on the street, for free, and that unless I really, really want the degree, the courses would be a waste of my time and money*

I understand your point about credit cards. For those who wish to do things that would require being eligible for sizable loans, like mortgages, proper use of credit cards is a good way to build a credit rating. But the fact remains, it is not necessary for modern life to use credit cards. You can have a perfectly good, modern, western, first world lifestyle on a strictly cash, pay-as-you-go basis. Frankly, it isn't even necessary to use cards to have a moderately decent credit rating, maybe not enough to get a mortgage on a big fat McMansion, but probably enough to get a usable personal or small business loan, if one ever needs one.

*plans on not buying a house unless I'm paying cash* *doesn't know how to drive a car* *has been informed by admissions staff at two college that I am overqualified for most 4-year degree programs that might have been useful to me if I had taken them 20 years ago, before I learned all that stuff out on the street, for free, and that unless I really, really want the degree, the courses would be a waste of my time and money*

I understand your point about credit cards. For those who wish to do things that would require being eligible for sizable loans, like mortgages, proper use of credit cards is a good way to build a credit rating. But the fact remains, it is not necessary for modern life to use credit cards. You can have a perfectly good, modern, western, first world lifestyle on a strictly cash, pay-as-you-go basis. Frankly, it isn't even necessary to use cards to have a moderately decent credit rating, maybe not enough to get a mortgage on a big fat McMansion, but probably enough to get a usable personal or small business loan, if one ever needs one.
If you pay all your bills on time and get a mortgage within your means you can get a mortgage without credit cards....note that I didn't say without credit. Not having a credit card doesn't mean you don't have credit.

Indeed the loan officer was stunned that I had zero debt. She said it was a rare thing. Hmm rather prophetic for what is going on........

Yeah, I've heard some banks are actually rewarding people for paying off their entire credit card bill, especially if they're only making minimum or low payments compared to the outstanding debt.

By the way, in re the OP, I have heard, but don't know where to look for more info about it, that Amex, the credit card company in the OP, has for a while now been trying to "buy back" credit cards from people, essentially offering them some small amount of money to settle their balances and cancel their accounts.

Originally, American Express was NOT a credit card company. They did not issue credit. They issued cash advances. Card holders had to pay their entire balances every month, no carrying a balance and paying interest. It is only relatively recently (for them, being, I think, the oldest card company) that they started issuing credit cards. I wonder if they are trying to get out of that business now.

I have a moderate debt on my credit card. But I pay it down at nearly 4 times my required payments. I use it to book flights home from my town to Brisbane, and for large purchases that layby is too short for. But I make sure it's paid off before I buy something new. I also have triple the amount of savings as my limit, so if it ever became absolutely necessary, I could simply pay the balance and still have an incredibly respectable savings account.

I have a moderate debt on my credit card. But I pay it down at nearly 4 times my required payments. I use it to book flights home from my town to Brisbane, and for large purchases that layby is too short for. But I make sure it's paid off before I buy something new. I also have triple the amount of savings as my limit, so if it ever became absolutely necessary, I could simply pay the balance and still have an incredibly respectable savings account.

I'm already getting screwed by the system (thank you mom, thank you dad) every which way I turn regardless of my better than average personal credit record.

Most credit cards aren't much better than loan sharking.

You really should minimize your exposure to unsecured lines of credit.