It doesn't pay to pay your credit cards

[rssfndly 14]

WTF

I have been paying more than the minimum payment on all my cards and they keep increasing my interest rate and lowering my credit limits. I have nothing past due and nothing in collection and a clean credit history. My Credit score is 662 with equifax and I check it every 3 months.

 

Today I found out that one of my creditors lowered my credit limit by $1500. Now the card is over the limit by $30 and I have to pay an over the limit fee. I called them and canceled the card.

 

Has anyone else had this shit happen.

 

Sorry just venting

[gtnichols 51]

Dude, it's happening all over the place,..

I have had happen to me and have heard tell of multiple accounts of ,...

Amex offering $300 to anyone who pays off their card (within a short given amount of time,..) and Interest rates going up, and Credit limits sharply reduced ,...

ACROSS THE BOARD,

 

Makes me think the credit card companies know something we don't

[rssfndly 14]

I know I am not the only one this is happening too but it just doesn't make sense.

[evildog 20]

It happpened to me on a couple of cards and i told them i would be paying them off and ending my business with them.

FUCKERS!!!! More to come i'm sure.

[rssfndly 14]

This is the second card for me as well. I told them the same thing.

[Wotan1105 7]

Saw some little story on the news tonight about how banks were fucking good customers over. Apparently a popular thing for them to do now is look at "other factors" to determine your borrowing power. For example, you use those credit cards a lot at the upscale grocery store, then decide money is tight and switch to say Walmart for groceries. That look at that as "bad" for your credit. Say you're up to date on your mortgage, always have been, always will be. But your neighborhood has a number of foreclosures, or the bank sees your neighborhood as a bad area, that's now "bad" for your credit. God only knows what other bullshit schemes they are coming up with to screw us all over.

[read_the_wall 614]

Makes me think the credit card companies know something we don't

 

I hope not, but who knows......

[rssfndly 14]

I think this is a sign that something bad is on it's way for the economy. The banks are setting us up to fail. Paying your bills on time is no longer good enough. If you use your cards then thats bad and if you don't thats a negative too us as well.

 

If everyone paid there cards off at the same time I bet the banks would go bankrupt due to the lack of money they would be getting in interest from our debt. A lot of these creditors are in debt to the feds so they are know taking it out on us.

 

While writing this I got a call from American express and the offered me a $400 credit if I paid down the card to under $1000 in the next 3 weeks and then they will reduce my credit limit and not reduce it again.

 

Take a guess at what I told them.

[sudaevpps43 31]

WTF

I have been paying more than the minimum payment on all my cards and they keep increasing my interest rate and lowering my credit limits. I have nothing past due and nothing in collection and a clean credit history. My Credit score is 662 with equifax and I check it every 3 months.

 

Today I found out that one of my creditors lowered my credit limit by $1500. Now the card is over the limit by $30 and I have to pay an over the limit fee. I called them and canceled the card.

 

Has anyone else had this shit happen.

 

Sorry just venting

 

 

Yeah I heard about this happening. I read an article a month or so ago that credit card companies have been doing this to cut costs and increase revenues. Like all greedy corporations are claiming these days their excuse is the economy, and that since it is so bad right now that they 'have to' lower credit limits. What's worse is that in addition to lowering credit limits, they are also just flat out closing some credit card accounts without warning to the card-holder. These are cards where the card holder always paid on time and the card wasn't being used much. Just like their BS excuse on lowering credit limits, the credit card companies have claimed that in this economy it just isn't 'economical' for them to keep such accounts open (they never get to make any money from late charges on these card accounts you see). Card holders of these cards literally without warning just get a note in the mail from the card company saying the card has been canceled and the card account closed. If the card holder is lucky they get the note before they next try to use the card, otherwise they don't find out until they try to make a purchase with it.

Edited March 4, 2009 by Frogfoot

[RealRedbaron 3]

I hope noone takes this as rude or crass but...

 

Is anyone really surprised?

 

What I mean is, did you not see all the TARP money that was just lent to banks to stop them from going under?

 

662 is not a good credit score, sorry to say. 700 is an acceptable credit score these days.

 

Credit Card companies are doing something now, they should have done 5-10 years ago, which is look at risk factors. If someone works as a consultant, in marketing, or owns their own business, I'm lowering the limit, and encouraging to pay the account off. Why? Risk is the answer. Sure the original poster may make his payments, but as we're finding out, he is the minority. The majority of people are over-extended, waaay over-extended for that matter.

 

Right now, as I sit here today and type this, it does not pay to be an upstanding member of society. The government with this bailout is showing us that is behooves you to not pay your mortgage, not pay your credit cards, and not plan for your future.

 

This is why companies went from pensions to 401k with matching, to now 401k no matching, and soon to follow is 401k and social security tied together and tied to the stock market. This is why Mortgage lenders are "renegotiating" principle, rates and any other terms on your house loan. Credit card companies are getting burned left and right by people who were living off their credit card.

 

The people who like myself, the original poster and many others on this very board who can't remember what a 40hr work week feels like cause 55+ hrs per week is the norm. People who see their co-workers more then their family, people who have to cut out extras to make ends meet. We, my friends are getting the shaft.

 

Should we not pay our mortgages, car notes or credit cards? No, and the reason is because we have integrity, because our parents brought us up better then that, because we will raise our own children better then that.

 

But most of all.. because we remember what it means to be an Proud American Citizen. (regardless of creed,color,religion or sexual preference)

[rssfndly 14]

I hope noone takes this as rude or crass but...

 

Is anyone really surprised?

 

What I mean is, did you not see all the TARP money that was just lent to banks to stop them from going under?

 

662 is not a good credit score, sorry to say. 700 is an acceptable credit score these days.

 

Credit Card companies are doing something now, they should have done 5-10 years ago, which is look at risk factors. If someone works as a consultant, in marketing, or owns their own business, I'm lowering the limit, and encouraging to pay the account off. Why? Risk is the answer. Sure the original poster may make his payments, but as we're finding out, he is the minority. The majority of people are over-extended, waaay over-extended for that matter.

 

Right now, as I sit here today and type this, it does not pay to be an upstanding member of society. The government with this bailout is showing us that is behooves you to not pay your mortgage, not pay your credit cards, and not plan for your future.

 

This is why companies went from pensions to 401k with matching, to now 401k no matching, and soon to follow is 401k and social security tied together and tied to the stock market. This is why Mortgage lenders are "renegotiating" principle, rates and any other terms on your house loan. Credit card companies are getting burned left and right by people who were living off their credit card.

 

The people who like myself, the original poster and many others on this very board who can't remember what a 40hr work week feels like cause 55+ hrs per week is the norm. People who see their co-workers more then their family, people who have to cut out extras to make ends meet. We, my friends are getting the shaft.

 

Should we not pay our mortgages, car notes or credit cards? No, and the reason is because we have integrity, because our parents brought us up better then that, because we will raise our own children better then that.

 

But most of all.. because we remember what it means to be an Proud American Citizen. (regardless of creed,color,religion or sexual preference)

 

 

Well I never said I was surprised or that I would stop paying my debts. I did mention the Government bail out for these banks blows. They have to pay that money back so they will by getting it from their card holders.

 

I am a small FFL business owner and have been for over 3 years as well as a full time Nissan Master Tech so I know what it like to work hard. I also know from working in the auto industry for 15 years that a 662 score was stellar at one point but your right, now days people with a 700+ score can't get financed for a new car.

 

I guess by paying more than my minimum payment every month and never being late on my payments means they aren't making enough money off me. By reducing my credit limits it also drops my credit score as far as credit to debt ratio. It seems to be a loose loose situation.

[Twinsen 86]

The bailouts and the nationalization are the most obvious signs that banks are in bed with the government. The fact that they can get away with however much they want to take out for themselves completes the puzzle. That's exactly how politicians screw the rest of us over too.

[Koliadko 207]

I just use my debit card. I used to have 4 credit cards before I got divorced. Used each one for something different. Paid them all off each month. I guess they wouldn't like me too much now.

[Juggernaut 11,054]

our card is 1/4 below prime... we just got a notice that the new terms state that if there is one late payment... it goes up to 28%....

 

I canceled it and paid it off.......

[rssfndly 14]

I did some research online about credit cards and credit scores.

 

If you have credit cards and don't use them that can be a negative due to inactivity and the CC company can charge you an inactivity fee, lower your credit line, cancel your card and it doesn't build credit history.

 

People who use there credit card all month long then pay them off each month can have a negative as well. The CC company usually only reports the high amount owed which then effects your credit to debt ratio. So it looks like you always have credit debt.

 

It seems like a good idea to cancel a paid off card but that effects credit history as well as credit to debt ratios.

 

If you have no credit at all it's almost impossible to even get any type of credit these days. I was always told no credit is better than bad credit. Still true but you got to start some where.

 

Employers can run a credit report (if it's mentioned in the fine print of your application and you sign it) before they higher someone and use that information as basis of what type of employee you might be.

 

We are living in a country that bases so much on our credit reports. I think that is a bit frightening.

 

I did hear that a bill was passed and will take effect as a law next year so the feds will have more control of the CC company's usury laws to protect the card holders. So if that is for real, I bet the CC company's are going to take advantage of debtors as much as possible for as long as they can.

[rssfndly 14]

our card is 1/4 below prime... we just got a notice that the new terms state that if there is one late payment... it goes up to 28%....

 

I canceled it and paid it off.......

 

I have seen that as well with promotional cc rates. One late payment = full interest.

 

I had one card that started at 9% then after 2 years it would have gone up too 34%.

[22_Shooter 1,560]

I just use my debit card.

 

Same here.

 

Some say I'm dumb not to have any credit cards, but hey, I don't owe anyone any money.

[dnp 1]

"Neither A Lender Nor A Borrower Be"

 

Noticed on a card application several years ago that they reserve the right to change terms at any time for any reason.

 

Blew it off. A debit card from CU works quite nicely.

[Wheel 0]

This is how they roll. When my wife lost her job and we could no longer afford our house, we tried to sell it and downsize. My credit score was 740+, everything was always current and on-time. We kept low balances on all our cards although we'd use them for EVERYTHING. Huge payments every month. It was just easier to send a couple CC payments, than try to keep track of a billion little debit-card transactions on the checking account.

 

Well, when we found our home was $300k upside down in equity (close to 60% loss) from when we purchsed in 2005, and learned that we weren't going to be able to sell it, we were screwed. Eventually our savings ran out and we could no longer make that payment. Replacing a 6 figure salary in this economy especially in the business my wife and I are in is well.. impossible. Almost immediately, the CC complanies raised the interest on our ACCOUNTS IN GOOD STANDING to 28.9%. The balaces totalled close to $25k. With the loss of job and all, the interest payments alone became impossible to keep up with.

 

So instead of leaving us alone and letting me pay off the cards over the course of a few months, they helped force me into bankruptcy. Now, they get nothing. Morons.

[bayonet lug 1]

I just use my debit card.

 

Same here.

 

Some say I'm dumb not to have any credit cards, but hey, I don't owe anyone any money.

+1 35% Is crazy. The mafia charges less!

[rssfndly 14]

I just use my debit card.

 

Same here.

 

Some say I'm dumb not to have any credit cards, but hey, I don't owe anyone any money.

 

Credit cards are not our friend. It's states in the bible, owe no man anything. Thats my goal.

[rssfndly 14]

This is how they roll. When my wife lost her job and we could no longer afford our house, we tried to sell it and downsize. My credit score was 740+, everything was always current and on-time. We kept low balances on all our cards although we'd use them for EVERYTHING. Huge payments every month. It was just easier to send a couple CC payments, than try to keep track of a billion little debit-card transactions on the checking account.

 

Well, when we found our home was $300k upside down in equity (close to 60% loss) from when we purchsed in 2005, and learned that we weren't going to be able to sell it, we were screwed. Eventually our savings ran out and we could no longer make that payment. Replacing a 6 figure salary in this economy especially in the business my wife and I are in is well.. impossible. Almost immediately, the CC complanies raised the interest on our ACCOUNTS IN GOOD STANDING to 28.9%. The balaces totalled close to $25k. With the loss of job and all, the interest payments alone became impossible to keep up with.

 

So instead of leaving us alone and letting me pay off the cards over the course of a few months, they helped force me into bankruptcy. Now, they get nothing. Morons.

 

I bought my house in 05 as well. Now that the housing market has plummeted I'm upside down in it. My wife and I have been downsizing as well and are hoping to sell the house in the next couple years. But that may be a long shot.

 

We got married in Dec of 08. I better check our combined score today, She didn't have very good credit and now it's our credit. I bet thats why this has started to happen too us.

 

I am sorry to hear you had to file bankruptcy that really sucks. I hope you and your wife are doing well.

God Bless

[jacknast76 2]

Yeah I just read the new crapObama help the homeowner plan which came out today.

 

It only works unless you have money to pay your bills, which I do BUT you can only be 5% underwater. WHAT BULLSHIT, Housing values dropped way more than 5%?

 

Here's a link to it

 

http://www.financialstability.gov/

[RealRedbaron 3]

This is how they roll. When my wife lost her job and we could no longer afford our house, we tried to sell it and downsize. My credit score was 740+, everything was always current and on-time. We kept low balances on all our cards although we'd use them for EVERYTHING. Huge payments every month. It was just easier to send a couple CC payments, than try to keep track of a billion little debit-card transactions on the checking account.

 

Well, when we found our home was $300k upside down in equity (close to 60% loss) from when we purchsed in 2005, and learned that we weren't going to be able to sell it, we were screwed. Eventually our savings ran out and we could no longer make that payment. Replacing a 6 figure salary in this economy especially in the business my wife and I are in is well.. impossible. Almost immediately, the CC complanies raised the interest on our ACCOUNTS IN GOOD STANDING to 28.9%. The balaces totalled close to $25k. With the loss of job and all, the interest payments alone became impossible to keep up with.

 

So instead of leaving us alone and letting me pay off the cards over the course of a few months, they helped force me into bankruptcy. Now, they get nothing. Morons.

 

#1- They were trying to make as much money of you while they could, because lets' be honest no matter what rate they charged, you were head to bankruptcy

#2 Common misconception with credit cards companies and bankruptcy-"The credit card gets $0"-that couldn't be farther from the truth. You're not the first or the last to go bankrupt, the credit card companies know that, they have "Bankruptcy Insurance", so they get paid regardless, but not only that they sell your account to outside collection agencies and get paid there also. So in this case you owed approx $25k, they prob sold that account for $7-$12k to a collection agency, and recouped the rest off insurance. Don't worry, you'll be getting those calls in a few years. You'll never end up paying financially, but you'll end up paying with your time, calling, faxing explaining that you already claimed bankruptcy.

 

#3 There are people whose sole job is risk management. (you might be able to guess what field I am in)

[rssfndly 14]

This is how they roll. When my wife lost her job and we could no longer afford our house, we tried to sell it and downsize. My credit score was 740+, everything was always current and on-time. We kept low balances on all our cards although we'd use them for EVERYTHING. Huge payments every month. It was just easier to send a couple CC payments, than try to keep track of a billion little debit-card transactions on the checking account.

 

Well, when we found our home was $300k upside down in equity (close to 60% loss) from when we purchsed in 2005, and learned that we weren't going to be able to sell it, we were screwed. Eventually our savings ran out and we could no longer make that payment. Replacing a 6 figure salary in this economy especially in the business my wife and I are in is well.. impossible. Almost immediately, the CC complanies raised the interest on our ACCOUNTS IN GOOD STANDING to 28.9%. The balaces totalled close to $25k. With the loss of job and all, the interest payments alone became impossible to keep up with.

 

So instead of leaving us alone and letting me pay off the cards over the course of a few months, they helped force me into bankruptcy. Now, they get nothing. Morons.

 

#1- They were trying to make as much money of you while they could, because lets' be honest no matter what rate they charged, you were head to bankruptcy

#2 Common misconception with credit cards companies and bankruptcy-"The credit card gets $0"-that couldn't be farther from the truth. You're not the first or the last to go bankrupt, the credit card companies know that, they have "Bankruptcy Insurance", so they get paid regardless, but not only that they sell your account to outside collection agencies and get paid there also. So in this case you owed approx $25k, they prob sold that account for $7-$12k to a collection agency, and recouped the rest off insurance. Don't worry, you'll be getting those calls in a few years. You'll never end up paying financially, but you'll end up paying with your time, calling, faxing explaining that you already claimed bankruptcy.

 

#3 There are people whose sole job is risk management. (you might be able to guess what field I am in)

 

 

That doesn't surprise me at all. Banks sell loans all the time. It even happens with the student loans that my wife has.

 

When I bought my house I did an 80% 1st mortgage and 20% 2nd mortgage so I didn't have too pay for a year of PMI. The 2nd was at a terrible interest rate of 18% but on a very low amount, and was financed with the same company. Within 2 or 3 months they sold the 2nd to another company. Then after a year the value of my house went up and I refinanced the 2nd with my bank and they cut the interest in half which is still not good at all.

 

Now my bank (which holds my personal and business checking accounts) has offered to refinance to a lower rate but I am upside down in the house and I told them right off the bat the my credit to debt ratio is high and they immediately drop the idea at that point.

 

I know this is't the same as bad credit debt but you are correct, they do get their money.

[RalphXL 9]

I got a letter yesterday similar to the original posters, the exception being that I was not over the new lower limit.

 

What I think happened to Ripper1 is that they lowered the credit limit, he made some charges and then received the letter about the credit reduction. My letter came a couple weeks after my latest statement, which had the reduction on there but I did not see it.

 

There reasoning was "We recently completed a loss mitigation review on our Platinum Mastercard® accounts. As a result of the class of accounts into which you account fell, the credit limit on your Platinum Mastercard® Account has been reduced to"

 

I like Ripper1 was never late on my credit card accounts.

 

RalphXL

[Juggernaut 11,054]

Usury laws????

[Twinsen 86]

I just use my debit card.

 

Same here.

 

Some say I'm dumb not to have any credit cards, but hey, I don't owe anyone any money.

 

Another +1. It's not worth it, and nobody gets that. Don't spend more than you have, unless it's real estate.

 

Investing, earning 2-3% somewhere, but paying 9% on a credit card at the same time makes no sense.

[hobbyshooter 59]

Investing, earning 2-3% somewhere, but paying 9% on a credit card at the same time makes no sense.

 

This has been my thought process also. I used credit cards for my wedding last year, but they are both very low, fixed interest cards and now have less than $600 each on them. I have no car loan, and only $2400 on my school loan.

 

I do have 2 mortgages though (my only real debt) and am upside down about 5-9k on the house (obviously the house is only worth what someone would spend, and right now nobody is spending). The plan all along was to pay the cards/wedding off, then focus on knocking down the mortgage. Then upgrade to a better house this or next summer. My house is ridiculously small and right on the edge of some ghetto so every time the idiot kid comes booming down my street I want to get the F out of there! At least the shootings and helicopter searches have reduced (2007 was a REALLY rough year in my neighborhood).

 

With the way things are getting I'm starting to think that I'd be better off just paying a little over the standard payments, and keeping my money instead of trying to beat back the mortgage. My company is up for sale, and who knows what I'm going to be doing by the end of the year. If I'm collecting unemployment I damn sure wont be upgrading houses...

[rssfndly 14]

Usury laws????

Usury

Definition: Usury is defined as the act of lending money at an unreasonably high interest rate, this rate is defined at the state level. Repayment of loans at a usurious rate makes repayment excessively difficult to impossible for borrowers. This is also called "loan sharking" or "predatory lending".

 

The usury laws, predatory lending, and loan sharking rules apply more to local banks. Since the passing of a federal law stating that the state usury laws do not apply to banks that label themselves with the words "national", these banks have been able to offer loans above the state usury limit. These "national" banks are allowed to apply interest rates a number of points higher than the Federal Reserve Discount Rate. The Federal Reserve Discount Rate is the rate banks get when borrowing directly from the Federal Reserve Bank for short term funds.

 

 

 

 

http://www.usurylaw.com/