What can I do about bank slashing credit limit ?

Submitted by rekall1900 on Thu, 04/30/2009 - 17:12
Forums
Credit repair

Have good credit {720-780} so I tried a balance transfer advertised by BOA for special promo rate of .99% AND THEY THAN DRASTICALLY CUT MY CREDIT LIMIT! This will now damage my credit - Is that legal? What can I do about it?

GarySnober

HI, Your credit score is very good and i dont see why they would do this. How much balance did you transfer? Is this your normal bank?

Thu, 04/30/2009 - 18:02 Permalink
rekall1900

Had a savings account for 25 yrs. and credit with them for 10yrs. They kept raising credit limit even though I NEVER ASKED THEM TO and in all this time they never asked my income! When I applied for the balance transfer {$3000} they asked my income and said it wasn't high enough and slashed my credit line from 13,000 to 3,000! When I told them this was taxable income only they weren't interested unless I could show them liquid assets. Always paid on time and never owed them more than 2000 so why should my credit have to suffer because of them?

Thu, 04/30/2009 - 18:39 Permalink
scott

Hi Rekall
So far the banks and the credit card companies considered only the credit score for determining the credit limit. But after the recession, banks are also considering the income of the customers before offering the credit limit in order to avoid the risk.

Fri, 05/01/2009 - 11:11 Permalink
GarySnober

Yes scott this is very true in this economy. The scores have been bumped up and the banks have really tightened up requirements on getting credit cards through banks.

Mon, 05/04/2009 - 07:30 Permalink
Daniel

HI rekall,

Welcome to our forum.

You have a best credit score.

So far the banks and the credit card companies considered only the credit score for determining the credit limit. But after the recession, banks are also considering the income of the customers before offering the credit limit in order to avoid the risk.

Yes i agree with you on your opinion . Banks always use your credit score to determine your credit limit. & as you say bank also considering the customers annual income before giving the big credit limit to avoid risk. Bank is right & legal they never like give trouble to customers. They avoids violation issue. If they do any action on you. There is some reasons responsible for that.

You can contact to your BOA ( Bank Of America ) To know about reasons which responsible for your credit limit reduction.

Thanks & Regards.
:lol: :lol: :lol:

Mon, 05/04/2009 - 07:51 Permalink