Posted on 11/16/2009 3:18:55 PM PST by jessduntno
To whom it may concern;
If I reduce my credit-card balance, American Express will cut my credit limit to a much lower “comfort limit.” If I don’t make a big payment, my card will be suspended. If I DO make the big, unexpected and unannounced payment on demand, my “comfort level” may be capriciously dropped anyway, leaving me both without operating capital and without a reserve.
My “utilization rate” is a key factor in determining my credit scores, and the bank has crashed my credit rating. I am a small business owner and as a result of the usurious and unfathomable actions taken against me by my own banks, my credit score has continued to drop over the past 13 months. As a result, my interest rates on all of my cards have gone up, and minimum payments are almost doubling because it now looks like I’ve maxed out my cards, as a result of the limit cut-backs.
Some of the cards we have had for years have now gone to 30%
Card issuers and banks have fattened their accounts against a coming storm at the expense of those of taxpayers and those of us who have paid on time for years. They literally hold all the cards, and are acting like the Soprano family, raising or lowering rates for no cause. American Express, Citigroup Inc., JPMorgan Chase & Co., have all cut credit limits to guard against risk and prevent delinquency and charge-off rates.
If I can not borrow to purchase equipment and supplies for resale, I can NOT stay in business. I know I am not alone in this. I have paid in full and on-time for the last 20 years. I am careful to keep my balances at half of my limit, but reduced credit limits on my cards have made that impossible. I’m angry; I’ve always been proud of my credit history and now it’s gone, not because of something I’ve done, but because of the “new banking policies.” The banks and card companies have brought me and many countless other small business owners to the brink. I will make arrangements to pay this debt, but will no longer be held captive. I will cut costs, lay off two more employees, reduce inventory and move to a cash only basis. This means a drastic reduction in the size (and net worth) of myself and my business, less income and permanent unemployment for laid off workers. Sounds like the overall economy; the “jobless recovery” we keep hearing about, doesn’t it?
Now, let’s handle this new charge off you have created.
They don’t care about you, me or anyone else in America. They have their eyes on China. They have raped the country, and stolen our worth, and now must move on to greener pastures.
Our good credit is also ruined by “new banking policies.” Hubby’s job has been cut by 2/3 by them and Cuomo’s new FHA policies. I am SO thankful that I am still working. Praise the Good Lord.
Nothing’s happening to my credit cards. I pay them in full every month, and the balance at any given time is a small fraction of my credit line.
My limits are the same as they were two years ago, including my Amex. Could there be another reason for their actions, other than just arbitrary meanness?
“My limits are the same as they were two years ago, including my Amex. Could there be another reason for their actions, other than just arbitrary meanness?”
Other than keeping the money? We still have the exact same spending patterns and monthly charges...no new vendors, no new purchases...nothing has changed...the “comfort levels” dropped from 90K to 40K literally overnight...along with a demand for the balance to keep the account active, even though the new payment was not due til 12/4. Up until last week, I could have written exactly what you just did...
Are the cards in your name/SSN or those of the business? I know my business cards have had their limits cut in half, even though I rarely got above 35% of the credit limit, and would pay it off each month. Now it looks like I regularly push 50-70% of my credit limit, and my business’ credit score took a hit.
At least my Bank of China credit card account is fine, and adds a little more limit each month!
Never fear: Obama will stick it to those greedy bastards.
I have not commented on these posts yet, but in truth nothing has happened to mine, either. But I started my business small and part time thirteen years ago on a cash basis, and only have a 5% credit utilization rate, so it is not like I have a lot of employees or any fast expansion plans anyway. I am one weevil in their silo, and pretty invisible I guess.
We will see what happens in the ensuing months as their pre-legislation feeding frenzy gets rolling.
I don’t mean to sound cavalier, but, find a need and fill it.
Apparently we needs some reasonable credit card companies right now.
“Now it looks like I regularly push 50-70% of my credit limit, and my business’ credit score took a hit.”
That is where you get nailed...the utilization rate...take a 100,000 limit with 45,000 on it and you look good...drop the limit to 50,000, then adjust the rate...what a racket... F-YOU, pay me...The Bank of Soprano...the local banks and the big ones have all squeezed us...
Maybe it’s a business vs. personal thing. Mine are personal.
I’m hearing about reduced limits, new fees, etc on personal accounts but I haven’t experienced it yet.
Citibank jumped my personal MasterCard rate to 29% for no apparent reason. They sent along a notice basically saying I could, “accept the higher rate, or opt out.” Opting out means that they revoke my credit card account at the annual renewal period.
I checked my credit report thinking that I might be getting gigged for something that I did, or perhaps a mistake. Nothing. My credit report is at the top of the scale.
You are witnessing the unintended consequences of stupid liberal impulses on display once again.
“I don’t mean to sound cavalier, but, find a need and fill it.”
Easy to find a lower rate, but with a correspondingly lower limit...the problem is, needing to change from carrying inventory to ordering as needed and pay as you go...increased costs, decreased turnover...loss of business and less personnel needed, smaller size, less leverage, downward spiral...it’s inevitable, but OK if you don’t mind getting smaller and smaller...it’s the “L shaped” recovery...
No, what I mean to say is, start a credit card company.
Easier said than done, I know, but someone could make some money.
“We will see what happens in the ensuing months as their pre-legislation feeding frenzy gets rolling.”
That is what we are doing...getting smaller but staying in business...
Thanks...
In most businesses (even in C Corps) the two are entwined..
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.