Warning: You may get a Bank of America credit limit decrease for absolutely no valid reason. Today I received this letter in the mail from B of A, chopping my credit limit from over $16,000 to $8,500 on my Financial Rewards Visa Platinum card:

Dear [NAME REMOVED]

Thank you for being a valued customer. We appreciate the opportunity to serve you.

We periodically review out customers’ accounts to ensure we are offering each cardholder the most appropriate credit line. In some cases, we discover we have extended customers more credit than they are likely to use or need. Given the size of your credit line and the way you have historically used your account, we have adjusted the credit line on your card to $8,500.

It’s a good idea to review your credit reports periodically. Our decision was based in part on information provided by the following credit reporting agency. You may obtain a copy of your credit report by contacting TransUnion, Consumer Relations – East P.O. Box 1000, 2 Baldwin Place, Chester, PA 19022, or you may call them at 1.800.888.4213.

If you have any questions or need assistance with your account, please call 1.800.726.5628, Monday through Friday from 8 a.m. to 5 p.m. Eastern. You may also manage your account online at www.bankofamerica.com

Again, thank you for allowing us to serve you. We look forward to continuing to meet your credit needs.

Sincerely,

Card Services

This account has been used regularly, but never carries a balance. Apparently they will only allow you to keep your high credit limit if you carry a balance (and pay them boatloads of interest).

It looks like B of A’s billions in bailout money is really loosening up the credit markets! [yeah, right]

2012 Update: Is BofA still decreasing credit limits? I haven’t heard much about them doing it during the last couple quarters of 2011.

Originally written May 2009. Last updated January 1, 2012.