My husband and I have a credit card through our joint bank account. Recently, we transferred a balance onto this card because there was a 15month 0% interest rate on balance transfers. I have excellent credit and my husband has okay credit. Never missed a payment and never late on a payment. We have been paying well over the minimum on our bank cc for the past several months in order to have it paid off by the time the 0% interest expires. Anyways we just got a letter that says they are decreasing our credit limit because of the following:
"Amount owed on revolving accs is too high"
"Proportion of balances to credit limits is too high on revolving accts"
"Length of time accts have been established"
I pay my cards off in full every month and have minimal (less than $1000 cc debt that is on another 0% interest card). My husband has higher balances but pays at least the min every month. Our balance is still less than our new credit limit, I dont want this to impact buying a house.|||Check into cash is basically a very fast loan that doesn't require credit checks or background checks. However, check into cash services should really only be used when you literally have no other options available to you. Check into cash advances are not supposed to be used frequently; rather, check into cash should be utilized as a one time or merely occasional transaction designed to get you or your family out of a tight spot.
If you find yourself relying on check into cash services, this could signal a more pressing problem with your budget keeping. And if your check into cash transaction ends with a bounced check, you'll end up owing more money than you would have if you'd just been able to wait for your regular paycheck to arrive. Get all information about credit card problem at: http://www.credit-card-gallery.com/artic鈥?/a>|||First off, available credit does not equal debt, plus nowhere in the reasons for the decrease is it mentioned that the credit limits are to high or income to low.
Do not start closing cards. You would only hurt your scores in doing that by lowering your total utilization. Which could lead to more credit limit increases, rate jacking or closures of accounts by other credit card lenders.
On the first and second reasons in the listing they sent you, they are saying your balances are to high compared to your credit limits.
If the utilization is at 30%-50% or higher on each card, the one card of yours and on your husbands cards - that may be the reason.
I would do as the first poster recommended and call them about it. See if they will work with you on re-instating your original credit limit.
If they won't, pay off what you owe on it and throw it into a sock drawer until they start raising your limit back up.
Generally when someone gets a credit limit decrease and that person works on correcting the reason why, like in your case paying down your balances, you may see your limits start to rise back up within about 6 months.|||It sounds like the one of you who is only paying the minimum is affecting the credit card balance. Please, wait and just get the balance owed down, considerably. That will help with your credit card credit limit at that time, to be better. It sure looks like what they want you to do.The minimum payment per month, doesn't really pay off that much even towards the interest let alone the principal owed. Even though you have good credit, and pay every month a payment, it is best to get the credit card balance owed down, and keep it down. That is what will help for getting a house. I am to the point in my life where yes, credit cards are nice, and they have a purpose, however, I like the idea of having everything paid off, and one credit card-basically for emergency only. Honest. It is best to pay with a debit card, or check, or money orders. Besides, wouldn't you rather get these cards paid down, even paid off, and have that extra cash per month to do other things than just pay the bills? I wish you the best. Take care.|||Call them.|||Well, a credit card company will periodicaly pull your credit report and if they feel you have a large amount of revolving credit accounts they can do that. I had one do that to me as well and I call them and within a month they reaised it back. It is just a precautionary measure on their part. I would not get concerned with it!
Good Luck!|||It isn't about how much you currently owe on your credit cards, it about how much you COULD owe if you were to max out all your cards. You need to close out all but two or three so you don't have as much credit available, then your available balances will be better matched to your income.|||I think this is related to your income vs. all your credit. If your debts are increasing and your income stays the same, you will be more likely to default on your credit card debt. Plus, paying the minimum doesn't really amount to really good credit; paying the entire balance does. Paying the minimum sort of indicated that the minimum is the only amount you could afford to pay. If you still have this credit card debt and you are planning to buy a house, you better be sure that you can afford all of that.
To increase your credit limit, perhaps you can update your income records with your credit card issuer. If they know that you're earning more now than when you applied, they might increase your credit limit.|||The reason codes are generic, and the person you talk to won't have your credit report to look at. They will only have the reasons on your list to read back to you. The first 2 are saying that compared to your Credit Limits your balances are too high, usually %26gt;50%. The last reason is saying that your accounts are too young. These reason codes are very generic, and computer generated. It is very unlikely the CC company will increase your Credit Limit back to where it was. They will require a Credit Report pulled and an Inquiry and lower your Credit Score. When they perform this check if the information that sponsered the lowering is still there, nothing will be done. Even if you pay off your card each month, if the Statement balance is above 50% of the Credit Limit that can be interpreted as too high balances. This decrease of the Credit Limit shouldn't affect your ability to get a home loan. Credit Cards require much higher credit score than a Home Loan, because if you default on a Home Loan the Bank gets the Home back. If you default on a Credit Card they get nothing, Credit Cards are much higher risk for the lender. You can go to a Bank and talk to Loan Officer, and they will be able to tell you much more about this, many times without having to pull your credit, and a lot of banks will do this for free. So, you have nothing to lose.|||His credit and yours are now the same. When you apply for a card they will check BOTH of your credit. If your limit was reduced they took his debt into consideration and they probably consider him a risk for not paying them off. I would get it paid off as soon as possible-all of them and close as many as possible. Keep one or two just for reservations or emergencies. I would get the balances paid off before I went for a house.|||If you rely on credit cards for most of your purchases and then pay the balance in full (like using a card for just cash back bonuses), it can report month after month that you are carring a balance. If you get a bill every month that says you owe something, that gets reported to the credit bureaus as carrying a balance every month. Only after a month with a zero balance witll the credit bureau report a zero account balance (could actually upto 3 months). It is also possible that any of your husbands accounts that you are an authorized user for could also go against your utilized credit lines.|||The decrease relates to the credit limit on your card.
Do take heed though: Start looking for ways to increase your income so your reliance on credit is eliminated. Interest will bleed you.
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