Depreciation of Your Credit Line

It’s been happening to many cardholders, because of the financial crisis and in recession credit companies are decreasing consumers line of credit. Most companies are not notifying the cardholders of any changes toward their credit; pay close attention to your monthly statements.
Not only are card issuers reducing the line of credit, but they are closing accounts, too. The card issuers are not making enough money from the cardholders by buying in small amounts leaving no room to pay interest on the credit card. Card issuers are losing money, but very smart from the cardholder. 
It wouldn’t matter if you paid on time or not, but if you are close to your credit limit or are maxed out you are most likely at risk for a credit decrease or your account maybe closed.
I have a few tips that you can follow it’s not set in stones, but give it a try. 

  1.  Ask to speak to your banks supervisor or someone in charge this will probably increase the chances of resolving the issue by stating if they can review your account and reconsider their decision.
  2. If your credit limit has been reduced leaving you less than your current balance with over the limit fees and your terms of agreement were modify. New over the limit fees should not be apply towards your new line of credit. You can dispute it with the bank and to Federal Reserve Consumer.
  3. I don’t really suggest this solution, but if you have no other choice try to transfer from one card to another, if you have more than one card.

  4. Use no more than half or below your availabe credit lines.

  5. Review your credit report for resolved accounts, which are still there or for any invalid information.

  6. Check your credit score. If your credit score has been effected by the above situation, try to fix your credit scroe; once you noticed its stable or up to your standards; request another review to your credit card company.

     Return My Line of Credit, American Express    

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