The slow domino effect...

[gavin]

I just received a letter from a bank I have a credit card with, telling me that my credit limit has been reduced. Reduced right down to around the amount I owe on the card, which ends up raising my interest rate, and of course it raises my debt to credit ratio, which of course lowers my credit score (this particular company has already closed two

Comments

[trackeroc]

I have lots of debt, but none on credit cards at the moment, and my CC hasn't changed. I'm in a credit union luckily, so the terms are pretty good.

I stopped getting new credit card offers when I started ripping up the applications and sending them back in the postage pre-paid envelope. :3

[gavin]

I used to send the applications that had extremely high interest rates back in those envelopes, with the rate circled in red marker, and the phrase "just how stupid do you think I am?" written at the top, with an arrow pointing to the interest rate.

[steven]

Motherfuckers

[gavin]

Funnily enough, Citibank is the one lender I have credit cards with that has never(at least not yet)lowered my credit limit. in fact, they have raised it, and lowered my interest rate. I expect that to change soon.

[sabin]

I'm confused how your interest rate is increased by simply having a lower amount of available credit

[gavin]

For the interest rate, I probably should have been more clear...I've had creditors raise my interest rate before when the balance is near the credit limit, and I fully expect this creditor (Chase) to do the same. Although I always pay more than the minimum balance, it sometimes isn't by much. They're making money off of me, just not enough for their liking, I guess.

As for my FICO score, yeah, I know it takes a bit of time for the score to drop (one of the reasons for the title of my entry...it'll take a while, but other creditors will follow suit). My credit score already dropped from the cards that were closed, causing my debt to credit ratio to rise.

Much of this boils down to being my own fault. After all, I didn't need to use those credit cards, or even open them, other than for work travel/expenses, and there really isn't any excuse for me to not pay them off completely as my company reimburses me.