I have a credit card that gave me a credit limit of $5,500 and my current balance is $3,200. I got a letter in the mail stating that my credit limit is being reduced to $3,400 due to excessive delinquency. I pay at least the minimum payment due on the card each month. My mom owes $18,000 in credit card debt and she never gets reduced credit limits. In the letter it states I can contact a credit bureau regarding this. Since I pay the minimum due each month shouldn't my account be in good standing or is it possible that something illegal is going on with my credit that I don't know about? If I contact a credit bureau will they give me a free credit report? If you were me what would you do about getting a letter about delinquency that you don't know about except for the $3,200 in debt I have on one credit card?
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You can know in 2 minutes if your account is delinquent. Go to the credit card website and review your activity. What you are experiencing is due to increased delinquency by thousands of card-holders. Everyone is having their limit lowered; even if they are current. Wall Street Journal had an article about how this has negatively affected business owners who relied on the card instead of going to a bank for a business loan. People who had $50,000 limits now have $3,000 limits.
There are a wave of defaults going to hit the credit cards in the first 6 months of 2009. The Secretary of the Treasury says it is as bad as the subprime mortgage mess.
If you only pay the minimum amount due on a credit card, it can take you close to 30 years to pay it off! Do you really want to pay for last night's dinner out 30 years from now? And are you paying it before the due date? If not, it's delinquent.
Banks are reducing credit limits, especially for those who run close to their limit, only pay minimums, have bad credit elsewhere, etc. These people are risky -- these are all signs of people living on the edge, preparing to file bankruptcy, etc.
Pay at least TRIPLE the minimum payment every month if you want to get out of debt.
To check your credit reports, the "big 3" are required to give you one free report per year. They set up a special website to meet the requirements of this law: www.annualcreditreport.com. Do NOT buy "credit monitoring" or anything, just get your reports and investigate carefully.
maximum mastercard agencies are re-assessing charges ensuing in decrease limits, more beneficial pastime, and frequently times, closed charges. you've a constrained credit heritage and GM could have determined those 2 $5K credit strains were too a lot in accordance for your heritage -- score isn't each thing. in spite of everything, they have the right to diminish the reduce or maybe close the cardboard for really no reason in any respect.
You should be routinely checking your credit reports annually: http://www.annualcreditreport.com./
As for lowering your credit limit, that is the card issuer's option.