How to Blow Your Credit Limit -- Without Spending

**Jason** · 03-16-2009, 08:02 PM

If you haven't had the credit limit cut on your credit card recently, count yourself lucky. Risk-averse card issuers are getting slash happy. And while many cardholders gripe that such cuts slice razor-close to their balance amounts, for an unfortunate few the cuts go far deeper: below what they currently owe.

Under different circumstances, David Chaplin-Loebell wouldn't have minded that American Express cut his unlimited credit line to just $5,000. Except that when AmEx reduced his line in October, he had an outstanding balance of $10,000. "I found out by having a business purchase declined," he says. Repeated calls to AmEx failed to yield an answer about why the cut was made. Chaplin-Loebell, who lives in Philadelphia, is now paying the balance under his regular card terms, and presumes the line will free up for new purchases once he's below the limit. "For now, they've essentially frozen the account," he says, leaving him to juggle business expenses on his personal cards. American Express did not respond to requests for comment.

http://finance.yahoo.com/banking-bud...thout-Spending

yustr · 03-16-2009, 09:16 PM

I wonder how many people are now paying an inflated "penalty" interest rate because of this?

**SABL** · 03-17-2009, 11:21 AM

I will not ever have a CC again.... haven't had one for 10yrs.

If I don't have the funds I am just SOL.... but I won't be strapped by insane interest rates.

**kinbard** · 03-17-2009, 01:41 PM

Quote:

Originally Posted by SABL

I will not ever have a CC again.... haven't had one for 10yrs.

If I don't have the funds I am just SOL.... but I won't be strapped by insane interest rates.

If I could only get my wife to agree...

yustr · 03-17-2009, 04:24 PM

Quote:

Originally Posted by SABL

I will not ever have a CC again.... haven't had one for 10yrs.

If I don't have the funds I am just SOL.... but I won't be strapped by insane interest rates.

And all this time I thought you were a good patriotic American.

03-16-2009, 08:02 PM	#1 (permalink)
Jason Faugh a ballagh Join Date: Dec 2001 Location: Pasco, FL Posts: 8,476 OS: Windows Vista My System Blog Entries: 2	How to Blow Your Credit Limit -- Without Spending If you haven't had the credit limit cut on your credit card recently, count yourself lucky. Risk-averse card issuers are getting slash happy. And while many cardholders gripe that such cuts slice razor-close to their balance amounts, for an unfortunate few the cuts go far deeper: below what they currently owe. Under different circumstances, David Chaplin-Loebell wouldn't have minded that American Express cut his unlimited credit line to just $5,000. Except that when AmEx reduced his line in October, he had an outstanding balance of $10,000. "I found out by having a business purchase declined," he says. Repeated calls to AmEx failed to yield an answer about why the cut was made. Chaplin-Loebell, who lives in Philadelphia, is now paying the balance under his regular card terms, and presumes the line will free up for new purchases once he's below the limit. "For now, they've essentially frozen the account," he says, leaving him to juggle business expenses on his personal cards. American Express did not respond to requests for comment. http://finance.yahoo.com/banking-bud...thout-Spending __________________ Posting Tips \| Advice for New People \| Common Fixes \| Agus na damnaithe fágtha gan focal Glaoigh ormsa i measc na naomh

03-16-2009, 09:16 PM	#2 (permalink)
yustr Asst. Manager, The Conversation Pit Join Date: Sep 2004 Location: Connecticut shore Posts: 6,050 OS: XP Pro My System	Re: How to Blow Your Credit Limit -- Without Spending I wonder how many people are now paying an inflated "penalty" interest rate because of this? __________________ If there are lawyers or politicians involved, logic may be a very poor tool for reaching a conclusion.

03-17-2009, 11:21 AM	#3 (permalink)
SABL Moderator Relaxation Room Join Date: Jul 2008 Location: Galena, Ohio Posts: 1,229 OS: WinXP SP3	Re: How to Blow Your Credit Limit -- Without Spending I will not ever have a CC again.... haven't had one for 10yrs. If I don't have the funds I am just SOL.... but I won't be strapped by insane interest rates. Last edited by SABL; 03-17-2009 at 11:23 AM.