Weird Credit Issues....

[SacredCow]

OK, I have what I think to be a pretty good credit score (hovers between 700 and 720). In the past few months, I've paid off a couple of things (a car loan, and a credit card balance)- They weren't negotiated down or anything, just paid in full. That's supposed to be a GOOD thing, right? Not long after they were paid off, I got an unrequested credit limit raise in my Capital One Visa (from $500 to $3000). I purposely keep the limit on that card low, as it's my "high-potential-risk" card (used for online purchases and such and paid in full every month, sometimes more often if I'm doing a lot of purchasing). I email Cap One to request the old limit be restored, and they promptly obliged.

Well, in the past couple of weeks two strange things have happened. First, I'm shopping online for a new laptop and for shits and giggles I apply for credit at HP's website (wasn't 100% sure I'd finance the purchase, but if they had a 90 days same as cash option, I might have considered that). And they flat REJECTED me!!! ( :wtf: )

Then, another credit card- for reasons they didn't elaborate on- drops my credit limit AND raises my APR to freakin' 29.99%!!!!!! But... this particular card was from WaMu, and was just purchased by Chase (and don't even get me started on them- they're made of pure evil, methinks). I had planned on closing this account when I heard Chase was taking over, and this was just the kick in the ass for me to do it.

[Kali]

1. they are raising rates and dropping limits on everybody, so it might not be related

but the act of lowering a limit plus and a rejection could have added to the problem - if that rejection was recent you have a right to find out why - get that and see if you need ot write to make corrections

some say carrying a partial balance is good, others say no (logic tells me credit card companies would rather have customers that carry a bit of balance and pay interest)

[SacredCow]

2. I had a moderate balance on the card....

It wasn't really all that close to the limit, at least. But there's no way in hell that I'm paying them THAT much interest! Especially considering the crap that Chase put me through some years back.

HP (or whoever does their financial end) says they will be sending me a letter with the reason, but I'm not concerned about it anymore. I checked my credit report, and all looks fine to me. Meantime, I bought a laptop somewhere else.

It just seems weird to have paid off accounts, AND be given a higher limit on one card, THEN all of a sudden- be rejected and get hit with a higher APR and a reduction in limit.

[Kali]

3. yeah - they get a bunch of $$$ and still need to screw everybody

I read they are doing this because they may get seriously restricted next year (don't ask for a link, I can't remember - I hate them all too)

[SacredCow]

4. Yeah... and I guess some are worse than others.

My checking/savings is with Capital One, and they're being OK so far as I know. But then again, I also have a retirement account with JP Morgan (part of Chase, IIRC). It's from a previous employer, and I've been considering rolling it into my current 401K.

[mwooldri]

5. About that ex Wa-Mu cards to Chase...

... yes sure they dropped your limit. Yes, they increased the APR.

Revenge is a dessert best served cold IMNSHO.

Pay it off, and get to know intimately the statement closing date. Make a small purchase on there. Only one a month and that's it. Enough to keep the card active. If you're in any e-statement program, unenroll out of it. Insist on paper statements. Use your bank's online billpay to pay them, don't mail checks because it's more cost for you. When they have to make pay by phone free, you can call them every month if you so desire, because next year they'll have to do this.

And *unless there's a membership fee* keep the account OPEN! Don't close it. Use it minimally, make it unprofitable for them but never ever ever miss a payment. Maybe stick a small recurring bill on there. Keeping it OPEN will actually help your credit score because it shows as available credit, keeping the balance low is great because it will show low utilization (good), and the longer it's open the better.

Contest the credit limit lowering in writing, do everything in writing, insist on this... and the APR increase too.

Oh, and double check your credit report anyway to make sure there are no discrepancies.

This advice comes to you for someone who works for a credit card company. Not as evil as Chase IMO but still... a credit card company.

All the best, Mark.