Bank of AmericaSo all of this talk on the news about people losing their credit has finally hit home.

Apparently, based on the date of this notice I received from Bank of America, I was financially assaulted on April 24.

Seems that they held off on mailing the notice out, though, as I just received this on Thursday or Friday (and I only opened it this morning.)

Notice from Bank of America regarding my account.

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 $14,000.

Looking back on my last Credit Card Roll Call from December 2008, my credit limit on this particular card was $27,400.

A ridiculous limit — no question. But they cut it in half?!

I’m not really upset as I haven’t carried that card in my wallet since 2005, though I’ve still put my monthly cable bill on it since that time just to make it appear to be an “Active” account to the credit card company.

I do feel slightly violated though. I mean, back in 2004, I carried a $16,000 balance on this exact card. For months…

Historically speaking, I’d say that proves that I do indeed need a higher credit line than the one they’ve “adjusted” me to.

And they claim that the decision was based in part on a credit report that they pulled. I find that a little upsetting too.

First, the fact that the pulled a credit report — not to offer me something but to take something away that they’d already given me. Sorry, that rubs me the wrong way.

And though this was probably just a soft pull and won’t affected my credit score at all, the lowering of my limit by so much most certainly will.

It also baffles me a bit because I’ve seen my credit report and what I saw shouldn’t have resulted in this.

According to Experian, I have 17 open accounts, all in good standing, and not a single account with a late payment. They also listed that I’m a pro at carrying HUGE balances.

Listed alphabetically, my BMW Financial Services account was right up top. How many people do you know that can afford not to carry a huge balance on a BMW ? I’m certainly not one of them.

Though most my accounts were holding steady at $0 when I last pulled it, the credit report also listed when and what the high water mark was for each account — and it wasn’t that long ago that nearly all of them were well over 5-figures.

Basically, between 2004 and 2006, I was pretty deep. “Historically” speaking, that wasn’t a very long time ago.

Of course, though, the notice from Bank of America states that they based the information on an Equifax credit report.

They’re the only agency that I haven’t seen my credit report for because, well, their website sucks.

Figures…

18 COMMENTS

  1. Remember one thing, your credit report doesn’t show your income. Years ago, I managed to juggle cards in a way that I was given credit totaling twice my annual income. Now, I only carry two cards and they both are paid in full each month. So long as you keep the amount borrowed below about 30% of the credit line. That’s where that lower limit will hurt you, along with the domino effect.

    BTW – Pack the hospital bag, if you haven’t already done that. My daughter was 5 weeks early!

  2. I wouldn’t let it bother me too much Smurf. You see, to BoA it looks real bad to have all this available credit floating around on the books. So to most quickly cut out a lot of risk, they need to cut available credit.

    The easiest way to do that is to cut credit to those who don’t use it. Namely you and me. I’ve got a $20,000+ line of credit, but to be frank, I only need about $4k of that, and that balance generally gets paid off before the statement hits the inbox.

    Not that this explanation makes you feel any better, but I wouldn’t let it chap your hide too bad.

    For me, I’m pulling all but a few dollars out of my BoA accounts and moving it all to USAA Financial. BoA’s interest rates have been the lowest in the region, and there’s no good reason for me to keep more than $30,000 in cash in a bank that is going to need billions from Uncle Sam just to stay afloat.

    If they can’t manage their business any better than that, they can’t hold my money.

    -Grant

  3. Got the same exact letter…. with an added paragraph stating that I will still enjoy benefits of 24 fraud monitoring and zero liability for fraudulent charges (whatever). Slashed mine in half as well. Guess it was good enough for me when they felt I might screw up and spend it. Needless to say, I will be calling them this week. Not that I expect much positive to come from it.

  4. Oh, Brainy, we have too much in common with our credit cards. We seem to be the first to be hit by any changes. They halved my credit line last month as well, from $24K to $12K. I don’t really have a problem with this – it never should have been $24K in the first place. This is a much better approach to protecting themselves from customer defaults than Citibank’s idiotic rate game.

  5. I recently received a letter from BoA informing me that they are closing two of credit card accounts. As for the still open accounts,they halved my credit line last month from $30K to $15K. My credit history rating is between very good and excellent.I think the bank is in serious need of some capital. But in the process, they are going to loose a
    bunch of good customers.

  6. I just got a letter today cutting my credit line from $33,500 to $15,000. I called and complained and he took my information and added $5000 back.. It was not exactly what I wanted to hear but was better than nothing.

  7. Hi All,,,,
    Yur numbers are quite high… I had a Credit line of $4000.00 only ….started the card as a Secured Card the First from BofA and yesterday I saw my account ….credit limit is reduced to $500.00

    This is just Bullshit……not even a letter informing..I cant believe….
    I dont use the card a lot but just sometimes to keep it active…
    Hell with it…
    I am not going to use it….

    What’s the worse ….they will reduce it to $50.00 LOL

    Just another reason they want Uncle Sam’s and our Tax Dollars while wont even let anyone have an opportunity to use the money…

    They are forgetting…they make money from the people who use the CC and keep balances & not the people who pay it off….

    This whole Credit card thing is going out of hand with VISA & MC increasing the INTERCHANGE FEES to the Business and in turn the Business increase the Prices….
    Who gets to loose..US.

    Time to roll back to the Golden days of Green Dollars….

    Maybee Merchants should advertise CASH ONLY DISCOUNTS….
    Like in Las Vegas @ Lee Discount Liquor and ARCO Gas Stations…

    MONY

  8. Seeing this website is the only good thing about this whole situation. I figured it wasn’t just MY limit they cut in half (through no fault of mine)….$19,000 to $10,000, but I feel a little better knowing there are other’s out there on the same boat. I have worked very dilligently over the years to retain a stellar credit report and keep my score over 800. To receive a letter like this from B of A was like a slap in the face…and, yes, I DID take it personally. The only reason I’ve kept this card active is that it is tied to a “Hawaiian Airlines” bonus point system and I have a free trip waiting for me. I got that trip by charging up over $35,000 while fixing up my home in 2005. I paid off that balance and have had a 0 balance for a while. This is how they rewarded me!!!??? Needless to say, I have closed my checking account with them and will not open any other accounts with B of A. P.S. Capital One is now raising my interest rate from 7% to 13% “just because”…..thought I’d let you all know.. That account also has a 0 balance.

  9. To Whoever started this Blog,

    THANK YOU!!!

    I am an attorney in Ca, and recently received
    notice that my accounts- 2 originally from MBNA-
    and 3 from BofA(at their initiation alone)were
    either cut by 90% AND one closed completely.Like
    all the folks above, my FICO score before this action
    was above 800 with NEVER an overlimit nor late pay
    ANYWHERE in my credit history. Bottom line: my total
    cumulative credit limit on these cards exceeded $100k
    went to $10K, and solely on this basis, my FICO went
    from 814 down to 620.
    As a member of the Ca Bar, I am a fiduciary. I explained this to a BoA Rep and her superior. No result: Obviously an MBNA(Who else would offer obviously erroneous legal principles to a lawyer?),basically told me that there was “Nothing I could do- take it or leave it”. Within a matter of days- without any other solicitation, I began receiving emails from “Bankruptcy” counseling firms, solely based on the dropin the FICO score caused by BoA’s actions. Can you believe it? Fifteen years average on each of 5 accounts,never a late payment nor overlimit, and largely faying in full each month- AND RECEIVING “BANKRUPTCY SOLICITATIONS” via EMAIL.

    PROPOSAL:
    It is clear to me that BoA has been spoiled by 20 yrs.+
    of GOP-induced greed and by hiring mentally challenged
    MBAs to do what they do best- take “revenge” on their
    customers when the gov’t gives them a long overdue
    “kick in the ass”.It is also clear from their responses
    to our similar concerns(above), that traditional customer
    satisfaction will not do anything to dissuade them- ie, they deem themselves as “too big to fail” and our disatis-
    faction will do NOTHING to dissuade them.
    Thus, I am considering what seems to be the only remedy
    availed me- ie, to initiate a Class Action suit. If they
    are correct in being “too big to fail”, then at very least
    we loyal customers should receive a judgment giving us a “%
    of their success”. Since $ seems to be their only motivator,
    let’s “hurt them” to the tune of our loss.

    If you agree or are as frustrated as I, let me know.I will soon be undertaking the Class suit, seeking both
    compensatory as well as punitive damages for their actions.
    At very least, we can “relieve” them enough of money and
    public reputation to the extent that they return to the established principle that customers are of some importance.

  10. This just happened to me as well. I had a credit limit of $4000 and had checked it a few days ago to pay bills. I was going to use the card a couple days later and the card was declined. I started to worry because I was sure there was $1700 available on it. I called and found out there was only $12 in available credit. I like to see things in front of me to better understand them and went to a BOA location. Found out that my credit line was now $2300 and a letter is in the mail to explain why it dropped. So within a few days the credit line changed. It gets me that there wasn’t a “in 30 days this will take affect” notice. But no…that would be too generous.

  11. Both my husband and I have received numerous letters over the past few days. They state that the credit limits were dropped either because of Serious Delinquency or Deliquency with other creditors. Show me who we ask. We have requested copies of our credit reports so we can go back to BOA and say prove it. What good will it do? Bet my credit limits not a thing. Really nice to know that us hard working people who pay their bills on time and are not getting a bail out are being screwed. Seriously thinking of looking for a new bank. BTW – When we called BOA they told us they sent the wrong letters.

  12. I’m astonished really. Firstly the original story. A card that barely has any money put on it for a few years – i’m imagining your bill is max a couple of hundred dollars a month… then you have your credit limit reduced to $14K – on a credit card!

    I work between NYC and London and never use that amount of credit a month. And if you are rolling over that amount of credit, I suggest a loan or simply saving up before you spend.

    You can’t have it both ways; crying about irresponsible home loans and people losing their houses – then be surprised when insecure, high interest lending like credit cards is reigned in.

    95% of credit cards should be cancelled all together. Saving before you spend and structured borrowing based on your income should be mandatory.

  13. Our BOA closed one of our cards that we owed nothing on and cut the limit on others more then half!now it looks like we have maxed out our cards and all my other cards are cutting the limits.we have never been late and always pay more then the minimum payment.they get the bail out on our tax dollars and we get the boot.I’m sure our credit score has dropped

  14. I have two credit cards with BOA one with a $5’000 limit and one with a $15’000 limit, that was until this morning. I would also like to mention that my credit rating according to all three credit bureaus is “Excellent”, never had a late payment (beyond 28 days) and no bankruptcy or anything bad.
    Here is my story: Two days ago, without my request, I got a letter from BOA congratulating to my excellent credit history with them and announcing that they just raised my line of credit on the main card to $19’500. However, since the interest rate they are charging me is still 15.99%, emboldened by this letter I figured I give them a call to see if I could negotiate that down by about 2 percentage points.
    Well talk about backfiring, the resolute credit manager by I was talking to not only refused to lower my percentage points but also went ahead and cut both my lines of credit in half. Since I owe $2’350 on the smaller card and $9’700 on the main one, this will now lower my overall credit rating since it will look like I am using up all the credit available to me. I will make me look like someone who does not have his finances under control.

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