Perhaps if I were in the top .07% my credit limits would not have been cut!?!?
I hate banks! Here's one small part of the reason why:
I was recently sent letters by two of the banks that I have credit cards from. One of them informed me that because I "haven't used (my) Platinum Edition Visa Card in some time" they were "adding a low annual fee of $75 to (my) account". The other letter informed me that "due to the inactivity on your Account and other credit data, we have made the difficult decision to decrease the credit limit on your account." My credit limit was slashed by 60%.
Both letters stated that their "decision was based in whole or in part on information provided by a consumer-reporting agency". Hmm, that's interesting. Let's take a look at the facts here:
1. I have NEVER missed a payment! Never...on anything!
2. I have NEVER EVEN BEEN LATE on a payment!!! I am one of those sick people who actually enjoy tracking my spending, budgeting and paying bills early.
3. My income has increased every year since I first began working.
4. My wife and I have paid off huge amounts of debt over the last 10 years - $40,000 worth of student loans, $30,000 in mortgage principle, and a $20,000 home equity line of credit. Though we use credit cards in order to earn points/rebates, we ALWAYS pay off the balance in full every month and, therefore, NEVER carry a balance.
5. All of this has led to a sterling credit score. In fact, I went online to check it shortly after I received these two letters. To be exact, my credit score ranks me above 99.92% of consumers. That's right, when it comes to credit there are only (approximately) 200,000 people in the entire country with a better credit score (assuming that there are about 250,000,000 people in this country with a credit score).
Based on this information, these two banks thought it would be prudent to lose me as a customer (I immediately cancelled the cared that wanted to charge me a fee) and cut my credit line by 60%.
These were the same banks that couldn't raise my credit limit fast enough from 2000-2008. At one point in time, I could have rung up charges on my credit cards that were equal to 3X my annual income!
In the end, I don't really care that I had to close one account and had my credit limit reduced on the other. I still have a scary amount of credit at my disposal. I realize these decisions were made more from the fact that I had not used these cards in a long time. It just makes me wonder...if they're adding fees and reducing credit to someone who ranks in the top .08%, what are they doing to everyone else? And these actions are somehow supposed to spur consumer spending...when 10% of the country is unemployed...and another 10-15% are underemployed??? That sounds about right! Doesn't it?!?