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  1. #1
    Green Member
    Join Date
    Aug 2010
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    2

    Default Why did my credit card limit go down?

    I just had my credit limit cut almost in half for absolutely no reason. Why did my credit limit go down? I have used the card occasionally but never more than 25% of my limit. When I called customer service at Bank of America they said the reason for the cut was because I didn't need the credit. I feel like it is a no win situation If I use too much of the credit limit they will cut it for being a higher risk. If I use too little they will cut it for not using it. I use the ideal amount and they STILL cut it! Is it possible for me to win?
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  2. #2
    Centurion Member
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    I've had some of my limits cut for what seems like no reason, too. It doesn't seem fair, but there is a reason for it. Any open line of credit is a potential liability (read risk) for the bank. If they can bring limits down they minimize their risk. While this might not have been all that important a few years ago (cc lines would seem to be a drop in the bucket compared with credit default swaps, etc.), it is now that banks are forced to undergo stress tests, sort of a check-up on their vulnerabilities.

    The only time I had my lines cut was when I did something to draw attention to myself. One time I called the bank to have a portion of one line reassigned to a different card at the same bank. They were happy to do it but in the process shaved about 20k off my combined limit. Another bank whacked a $54k limit almost in half when I opened another account with them. There's no way in the world I would have ever used that much credit, but it was kind of nice having it.
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  3. #3
    Centurion Member Mogul of Pineapples's Avatar
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    Jun 2008
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    Quote Originally Posted by jeffysdad View Post
    I've had some of my limits cut for what seems like no reason, too. It doesn't seem fair, but there is a reason for it. Any open line of credit is a potential liability (read risk) for the bank. If they can bring limits down they minimize their risk.
    I think that's why we are seeing the shift by banks to more Visa Signature and World MasterCards, since the credit limits are not pre-set.
    Disclosure: I am a moderator/paid staff of this site, which does have advertising relationships with some credit cards that are discussed and linked to. Regardless, anything I say is my honest opinion.

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