Thursday, March 26, 2009

Watch for Shrinking Credit Cards

My credit card company pulled some interesting shenanigans the other day, which slightly inconvenienced me and hopefully didn't affect my credit score.

Like the average American, I am in the process of paying down some credit card debt. I have one card with a revolving balance equal to about 35% of the total card limit.

A few weeks back I had to make a semi-large purchase that would be reimbursed later, so I figured I'd just use my credit card. The purchase was much less than my 65% available credit, but during the transaction my card was declined. Fortunately, I had another form payment.

When I got home, I looked up my credit card status online, and found that my credit card company had lowered my card limit by almost 50%. Now, instead of my revolving balance occupying only 35%, it's practically maxed out. I felt somewhat cheated, since I'm a good customer and make my payments on time.

Normally I would call the credit card company and make a fuss, but I am planning to pay off the card in full this month with my tax return.

About a week later, I got a letter from the credit card company stating they were going to lower my limit. The letter didn't really have clear explanation of why. I can only assume that it's repercussions from the economy.

Keep an eye on your credit card company, they can be a sneaky bunch of buggers.

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