credit limit SLASHED !!

[nomadbkr]

man I'm PO'd .. this is perhaps a bit off topic, but might mean a lot to some of y'all and is about what BOA just did to me .. 
..
.. I found out that it's happening nation wide if not world wide .. peoples c-card limits are being SLASHED regardless of payment history or FICO score ..
.. folks with even a 700 or higher score are being kicked to the curb ..
.. here's my story as short as I can make it ..
.. not about buying a bike, but it could be ..
.. consider it fair warning and what I determined is the best way to avoid it ..
..
.. ok .. I'm rednek trailer trash I guess .. I freely admit it .. LMAO ..
.. my landlord all of a sudden offered me this mobile home I'm renting for the redicuously cheap price of 10 grand .. he just wanted out ..
... no palace .. but good enuff for me and real property on it's own land, an addition that doubles the living sq. ft., a 12'x24' shed, a big overhang as a garage and a carport to boot ..
.. worth two and a half times that to the tax man and with a bit of roofing and paint, more when the economy rebounds ...
.. did the math, and with homestead exemption my housing payments financed with a credit card have gone down to about $220 or less per month to start, and unlike a mortgage, payments would go down as I paid it down ..
.. cheap living .. cheaper than my current rent ..
..  "more $ left over for the bike and traveling", I thought  .. 
.. so .. I called 'bout the offers I keep getting on c-cards I already have .. because it was all the same bank, I could have just done a balance transfer into my checking and from there get a cashiers check to close on the property ..
.. figured I'd just finanace the thing on the cards cuz they won't do a mortgage on a mobile home this old anyways and it woulda been cheaper skating around all up front fees involved in a mortgage ..
.. cheaper than renting and I liked the idea of the payments going down as I paid it down ..
.. little did I know what those offers are all about ..
.. it's an excuse for them to single people out and cut credit card limits .. I found out the hard way, that applying for the balance transfer gives them the power to do a "credit review" ..
.. from there, they look into two major things .. where you live and your income to debt ..
.. payment history apparently means nothing ..
.. from there, they decide how much they're gonna take away from your credit limit ..
.. I do all my banking with this "slasher" bank .. they know my history ..
.. mine is perfect and electronic .. all my other cards also have a perfect payment history and are paid through this same bank that just slashed me ..
.. living in a mobile home is another bad mark because statistally mobile home owners are a bigger risk ..
..
.. I fell into their trap .. ..
.. I started out with BOA with a little $3500 card I didn't ask for, 'bout 6 years ago and over time, without my asking, they gave me more and more credit ..
.. between the two cards, Friday morning I had a 39 grand limit with under 10 grand balance ..
.. after their "review", regardless of my perfect payment history, by Friday afternoon I was slashed to $11,500 credit limit between both cards ..
.. I owe just under 10 grand on the 2 cards and as I said, a perfect payment history .. never missed .. never late .. never asked for a limit increase or anything of the sort .. just kept up my end faithfully paying every month and more than minimum when I could .. sometimes triple the min ..
.. thought I was in good shape to do the transfer ..
.. when approached by the landlord, I went to the bank to discuss my options and a loan officer at the local branch looked me up and agreed that I'm in good shape to to it with c-cards .. 29 grand left .. I needed 10 ..
.. nothing had changed with my living status and my income was slightly higher since day one with them about 6 years ago ..
.. by all right .. this shouldn't have happened ..
.. instead of getting the deal they offered me, they SLASHED my credit limit to just over what I owe ..
.. with a click of the mouse, some pimple face moron drastically cut my credit limit leaving me little more than a grand on top of what I owe ..
..
.. no explanation .. no apology ..
.. 3 hours on the phone and a half dozen people at that bank couldn't or wouldn't tell me why .. a couple were damned rude as if they hear it all the time ..
,, I was left to guess that it must be due to the economy ..
.. so .. after I calmed down a bit, I did a search and found out there is a nation wide campain to do this to anyone they can .. it's huge ..
.. there's even webpages up with people blogging about it ..
.. I won't put up the links, but you can just search the bank name and sucks ..
.. the number of pages filled with customer complaints is astounding ..

.... I found out the hard way ..
.. calling to take them up on their offers just puts you to the front of the line to be "reviewed" and slashed ...
.. my advise to anyone thinking bout those offers that keep coming in the mail .. is to let sleeping dogs lie ..
.. I unkowingly fell into their trap ..
.. had I not fell for their 0% for 6 months offers and used the cards for simple strait up purchases instead, I'd still have my 39 grand to play with ..

.. so I'm still stuck being a renter, and had to explain to the landlord why I can't buy the place ..
.. I have a real estate sales contract in hand man .. we had an appointment at the title office next week .. I would have had the deed free and clear with nuthing but a pissant c-card payment ..

.. I have other cards with enough room to try again .. but I'd have to float it through the same bank that slashed me ..
.. that ain't happenin .. .. they will never get any of my biz again .. ever .. for anything ..
.. I'm just gonna pay down the 2 slashed cards to zero, and close out evey account I have with them once I pay it off .. everything I do with that bank is going to stop .. they no longer have my faith or trust ..
.. a chrome plated engraved apology won't change that ..

.. SO .. beware of those balance transfer c-card offers .. !! ..
.. unless you don't need'em, they're useless ..
.. in my mind, c-cards are good for nothing but purchases ..
.. maybe plucking down this plastic for a $20,000 bike purchase even mighta worked with no snags, but it sure didn't work for my quest to become a home owner with their "balance transfer" offers ..

.. needless to say; I'm done with BOA ..
.. I kept up my end, and in the end they screwed me ..
.. gonna just pay these damn cards to zero, and be done with'em ..

.. searching for a new place to do my banking ..
.. and I don't think it'll be a bank ..
.. seriously considering a local credit union instead of a bank ..

.. any comments or suggestions are welcome ..

nomad

[NETacomaFatboy]

Well, go apply for a different credit card then.   Then see if you can take the money.   Apply for a United airline Visa and get mileage points (15,000 points).  Then use the card to get your $10k and now you have enough for a domestic flight....

[nomadbkr]

Takoma ..
.. no .. I'm done with the c-card game I think ..
.. I never asked for the damned things to begin with ..
.. they gave me the 1st when I opened a checking .. the 2nd came without my asking ..

.. I paid them faithfully, on time and without fail ..
..  they screwed me in the end .. I won't forget it

.. thanks for your .02

nomad

[DenverBagger]

> A local credit union is the way to go - I have had one for 25 years - they tend to be more conservative
> Credit limits are a gift - especially with no history at a bank; credit rating is what you have earned
> It is risky to use credit cards for long-term payments; a high average-daily-balance on a cc is not good
   Better to have taken out a loan or mortgage
> Any other time in history, your plan would have worked
> Reload, tell your landlord you are pursuing other financing options...

[nomadbkr]

DenverBagger ..
.. yea .. I plan to "re-group" and pursue other ways to finance this thing ..
.. it's no palace .. but it works for me, and I've gotten use to it .. feels like home ..

.. I am under the gun a bit time wize though, cuz if I don't close by the end of December, I'm faced with a year of full property tax without a homestead exemption ..

.. I've all but given up on meeting that deadline .. but I suppose it's still possible if I can pull a rabbit outa the hat ..
.. a bit leery at this point .. the c-card plan would have turned into really cheap living quickly .. I might have had it paid off in less than 5 years and then been near totatlly free of housing expense ..
.. the short sighted jerk making that decision didn't see that though ..
.. perhaps I shouldn't have been so honest 'bout what I was doing with the money ..
.. saying that I was purchasing a mobile home I found out is not a plus in their eyes ..
.. but it would have been a big plus for me ..
.. I would have left the title office with deed in hand free and clear .. 

.. this months rent I just paid .. the owner wanting to sell had waived it and put my deposit up as earnest $ to boot .. but at this point, it looks like I'm worse off than square one and don't see making it happen before the end of the year ..

.. as far as your statement that "credit limits are a gift" ..
.. gotta dissagree .. 'taint no gift man .. like you said .. "it's earned" ..
.. well .. I earned it .. and they renigged on their own offer ..
.. I have no sympathy .. they make their money big time and on the backs of those that pay their bills .. the CO's laugh 'bout it on the golf course I'm sure .. their bonuses could feed a country ..
.. it's the small accounts paying the worst interest that lines their pockets ...
..  @ min payents, no more than loan shark rates .. ya end up paying at least double if not triple back ..

.. they dangle the carrot .. and if you bite, they friggin own ya ..
.. they offered me 15 months @ 0% and 9.99 after that .. that was the hook that made me call ..
..
.. could be that this is all a blessing in disguise .. it has put my sights on paying off what I owe to BOA and going back to cash where I can ..
.. I'll keep a card or two .. but not from BOA .. they betrayed my trust ..

thanks for the .02 and glimmer of hope that I might still pull it off in time .. but I don't see it happenin ..  lol ..

nomad

[nomadbkr]

btw ......
.. you might think, "that won't happen to me, I pay my bills"" ..

.. yea .. I heard on the news this chit was happing .. and I read it online ..

.. thought the same thing .. "won't happen to me" ..
.. well ... it's a nation wide phenomenon ..

.. go back and read my original post, and then compare it to a search ..

.. might save y'all some grief counting on funds you thought you had, but are no longer available to you ..

.. what your monthly bill sez you have as the limit might not be so ..

.. from what I've been reading .. recently ..
.. pay down your balance, and they cut your limit to match, or worse ..

.. way2go BOA .. great way to get the economy back on track ! ..

.. anything more I have to say is too graphic to post ..

nomad

[nomadbkr]

.. something just came to mind that perhaps I should add, just to put things in perspective ..

.. I've read it said that, "it's their money" ..

... no .. not really .. they borrow it strait from the federal reserve @ something like 1.5% interest ..
.. the potato is already there ..
.. the interest you and I pay is gravy to "them" ..

.. times that by the millions if not billions of customers ..

.. if nothing else; food for thought ..
.. "the rich get richer" .. lol ...

nomad

[chopper]

FWIW,
  I JUST pulled all of my accounts out of BOA!  I'd done biz with a small local bank for over 20 yrs.  Their service was GREAT!  Then they got bought out, and bought out again, and finally BOA bought em.  I gave them maybe 6 months.  Their service was NON existant.  Went to get in my safe deposit box and had to wait 20 minutes so they could figure out their "procedure".  Everytime I went in there, their service got worse.  Not ONCE did I get even remotley decent, competent service.
  I closed the accounts and went to the Credit Union down the street.

[autoworker]

Bank of America is bad news.I had a cc through MBNA that went to BoA and within two tears I dropped them.I don't carry a balance and started seeing their policy changes aimed at screwing as many people out of their money as possible no matter what.
The best anyone can do is pass the word about Bank of America and their "ways".

[autoworker]

Also,If you can find a way pay off your Bank of America account,all the better.There's no sense in giving them any more of your money if you don't have to.

[tomboyjr]

Here is another one to watch out for-Citi Mtg or Citi Corp. My mortgage has been bought out 4 times in 10 years, never had any problems til last year when Citi Mtg got it. Right away my monthly payment went up like $75, and yet there was no increase in taxes and a small increase in my HO ins. which I figured should have been $30-35 monthly. I called several times and got gibberish which I never could understand. When I called the tax office to see if the taxes had gone up, the lady said they had had many calls lately from people with Citi.

Then, a few months later I get a cancellation notice from my HO ins saying the premium wasnt paid. It gets paid thru my mortgage, its part of my payment. I was pissed cuz even though it got straightened out it took several phone calls and MY time wasted to do it, its not my job its theirs(Citi).  

I have excellent credit and I have been paying an extra $100 or more each month sicne I've had this house. I sure wish there was a way to have a voice in what bank ends up with my loan. This is BS.

The average consumer always seems to get the short end of the stick when it comes to these big corps. Its the banks and their people running them that got them in the trouble they are in, so why take it out on the people that have kept them in business?

Just like the city I work for, its been corrupt and poorly managed for years and years and years and the politicians just keep handing out jobs and bids to their buddies. Then when they get caught and the city is in financial trouble, its the employees that not only have to make sacrifices, we also get the blame.

[floatyguy]

Nomad

See if your landlord will carry the paper, You could work out a interest and monthly payment plan with him. He gets a monthly income and you get a house. It can get recorded at the tiltle company and it makes it a legal and binding contract. You and him could sit down and work out the details, interest amount/monthly payment/ and duration of the contract. This would give him a steady monthly income for the duration of the contract that might appeal to him. Then you become a homeowner. I did this with my house and its worked out great for us. ( i too live in a old mobile home)

BOA isn't the only one doing this, Citi Corp, WaMu, Orchard are doing this as well. I just had it done on one of mine. I too have not been late as well.

Just a thought!!-- good luck--Dave

[adayrider]

This won't happen to me. I don't owe no one any money but my mortgage.
Folks I hate to tell you this but WE have pushed this country as far and hard as we can on borrowed money. We have hit a brick wall. No money down mortgage, HELOC's, credit cards, brand new cars, motorcycles. I've said it before "The American way look good, drive shiny, eat out every day, wear $40 harley shirts everyday of the week, AND BE BROKE". Just your average "keep up with the Jones" kind of stuff. All sold to you by corp. america. And now you blame them. They were selling something and you bought it. Now they have the goverment on there side, why,  because they have all the money, OUR money. You know the saying "play with snakes you will get bitten" or "mess with bull get the horn".

Its coming down the pike folks you better get ready for it. Cause its going to be a long bumpy ride.

[wolf_59]

What I found out about those "Special Offers", let's say you all ready have 10,000 out on the card and you do another 10,000 on the " Special Deal. Any and all payments made will be put towards the lower intrest amount loan, leaving the high intrest accruing on your balance monthly with nothing that you can do about it until you pay off the lower intrest balance.
Personally I use my cc for almost every purchase I make it's easier to swipe the card than to write checks specially if your out of town and just write one check when the statement comes in to pay it off and not have to pay any intrest to the cc company

[adayrider]

What I found out about those "Special Offers", let's say you all ready have 10,000 out on the card and you do another 10,000 on the " Special Deal. Any and all payments made will be put towards the lower intrest amount loan, leaving the high intrest accruing on your balance monthly with nothing that you can do about it until you pay off the lower intrest balance.
Personally I use my cc for almost every purchase I make it's easier to swipe the card than to write checks specially if your out of town and just write one check when the statement comes in to pay it off and not have to pay any intrest to the cc company

This all sounds good, and it is good that you pay it off when you get the bill. And your right it is easier.
BUT studies show that you spend something like 20% more if you use plastic instead of cash.
Why do you think McDonald's takes plastic now?
Next time your going out of town take some Ben Franklin's with you and see if your emotions change when you have to hand 1 of those over. It does for me and as a result I do spend less.
I have less things (that I don't need) and when the bill comes I owe NOTHING because I already paid for it.

[apes]

adayrider.....EXACTLY right

[tireater]

My 2 Chase cards did this to me...I am now paying them off as fast as possible...

[zj1182]

Sorry to hear about your problems.  My thought is maybe it's better to have not put the sale on your CC because the banks also have all kinds of shady practices to jack your rate up after you have a balance.  At least you got screwed BEFORE you incurred the debt, not after when you couldn't get back out.

Those of us, like you, who have taken care with our finances and been faithful in payments will now of course have to haul the freight for those who haven't.  Through our taxes, and higher rates and fees on credit facilities, we'll be paying to keep the institutions that made bad loans afloat, and to keep folks who bought houses they couldn't afford or took out big home equity loans and are now in trouble in comfort.

Who else can our politicians put the weight on but those who worked and saved prudently?

And just watch where all the bailout money goes and for what, LOL!. It'll go where it will come back in the form of campaign contributions, etc. so our politicians can line their pockets some more.  Politics may be the only real growth industry left in the US before long.

zj

Sheesh!

zj

[Skullfork]

This won't happen to me. I don't owe no one any money but my mortgage.
Folks I hate to tell you this but WE have pushed this country as far and hard as we can on borrowed money. We have hit a brick wall. No money down mortgage, HELOC's, credit cards, brand new cars, motorcycles. I've said it before "The American way look good, drive shiny, eat out every day, wear $40 harley shirts everyday of the week, AND BE BROKE". Just your average "keep up with the Jones" kind of stuff. All sold to you by corp. america. And now you blame them. They were selling something and you bought it. Now they have the goverment on there side, why,  because they have all the money, OUR money. You know the saying "play with snakes you will get bitten" or "mess with bull get the horn".

Its coming down the pike folks you better get ready for it. Cause its going to be a long bumpy ride.

Agree 100% ...

[Skullfork]

...btw, my girlfriend had a BOA cc for quite a few years with a 9.99% fixed rate and never had a late/missed payment, EVER, and just recently received a letter from them saying her new adjusted rate was going up to 17.99%.  She called them and got nothing but a runaround, so we transferred the balance, which was less than $700 to my card and then canceled hers.  What a bunch of BS!!  I have a Juniper card with a fixed 8.99% and they seem like a pretty good company ...so far.

[egstandard]

Have you seen the news from Chicago about BOA. They get fed. bailout money to help grease the credit crisis, then refuse to hand it out. Forces closing of a window business.

[Ultrashovel]

Nationally, all of the financial sources are drying up. The lowering of credit limits is not uncommon. Banks are aware that some people may try to drive their cards up in the need for more cash just to get by. The newspapers tell us we are in a recession. A little bit more and we'll have bread lines, especially if the big three automakers bite the dust.

[Dennis The Menace]

Common practice you will soon see, if you dont already....higher rates and hidden fees for those customers who dont carry a balance.  If you pay off your balance every month, you are costing the card compnay money.  They know that and are now doing something about it.  Best to review the statements very carefully each month as they will notify you via the statement of the changes.  Some companies MIGHT send you a seperate letter to let you know..others wont be so kind.

It happens to you whether you have a 800+ score and never late, always on time payments and paid in full each month.  No reward for good behavior these days either.

menace

[tireater]

You are not really costing them unless you make no purchases...they get 3% from the seller...

[RKC03]

Gentlemen, I am not certain, but I believe if a person cancels a CC it hurts your credit score, but then again what your credit score is may not make a difference now or in the not so distant future. I have a "couple of cards"  and I always try to pay-up when bill arrives---exactly what they don't want. We are living in what will be remembered as one of the "worst of times".      RKC03

[truck]

I use my Harley Visa card for nearly every purchase and I pay my balance in full each month and I never heard them complain AND they give me a $25.00 check for every $2,500.00 I charge that I can use at a Harley dealer.
I hope none of that changes.

[Biscuit]

Nomad, I feel for you.  I still have hope that you can get this house another way.  I don't
do cc's anymore.  I do have one,  MBNA was bought out by BOA, so I have a BOA card.  I don't
use it though, cos I have a debit card.  I got in trouble with cc's when I was going through my divorce.                     I didn't want to let my 3 kids down at Christmastime and such, so I spent money I wasn't making.  I                  learned a valuable lesson 10 years ago and I will NEVER be a slave to cc's again.  Never. The day I wrote
them a check for $3,800.00 was my "freedom" day.  That was only the final check.  It took me some time
to wittle it down to that point. 

I live in a mobile home too.  No, it's not a fancy place and it's not a fancy neighborhood,, but the trailer and the 2 acres we live on is pd. for.  Noone can take my Harley either....I own it. 

[egstandard]

I have a 0 balance on my one and only card. It's going to stay that way because I'm not buying anything, period. I don't need anything or want anything that I would need the card for. Spend my money to help the economy you say? B.S. Why should I help the bottom line of the very people that sent all the jobs overseas! It's all Chinese crap anyway. Screw em'.

[One4Tone]

..what about getting the vendor to hold a 1st mortgage on the property, take out a 5 year at the going  bank rate amortized over 25 or 15 years...he will no longer be respossible for any upkeep, insurance..and you may be able to write off the interest..in time the situation will get better and you can refinance and give him the balance...you really have nothing to lose by asking....

[Skullfork]

On a positive note, Truck you mentioned the H-D Visa card and I'm sure you're aware of the sweepstakes they've been running this year where with every dollar spent using your card gives you a chance in a drawing for a new Harley, one given away each month for the year? Well anyway, my best friend Rodger won for the month of October and got a brand new '09 Fatboy!  We used my truck two weeks ago to go pick it up at Valley H-D in Belmont, OH ...and get this, Harley even paid the taxes for him, BUT ...he had to pay the $550 dealer set-up fee that Valley H-D charges which was total BS! (They're one of those dealers you want to avoid to begin with)

...Anyway, still not a bad deal for a new Fatboy, and BTW, he only uses his card once a month to pay his satellite radio bill and pays it in full when the bill arrives, and the odds of winning were like 1 in a 150 million ...lucky bastard!