Doesn't it have more to do with what kind of shape the issuing bank is in? Say for example, Orchard, which is obviously has never had a history of being generous, but has closed its doors even further? I would think that a bank that is on it's way down the tubes or almost out the door has to start cutting limits regardless of how great of a customer the card holder has been. This is all just my speculation though. Maybe we should poll out of the people who have seen a CLD/closure, which issuing banks it has come from? There might be a trend there. And perhaps I am just totally off LOL.

Orchard is owned by HSBC. HSBC is a UK based company and a lot of their share holders are not happy that HSBC bought Household Bank (a former US company). So HSBC is being very strict with their credit lines to avoid meltdown. HSBC is one of the healhiest banks in the world because they are conservative. I read an article on Cardweb about how cards were issued in the '80's. $20 annual fees, 19.8% APR and credit lines of $2,000 were considered average. We have been spoiled in the past 15 years or so with easy credit and huge credit lines. With the CARD Act coming in February it will be interesting to see how new cards are issued at the banks.

The person who has the gold rules (credit). We can like it or not, we sign up for the credit and we must play by the issuers rules which are ever changing.

I wave with you

The person who has the gold rules (credit). We can like it or not, we sign up for the credit and we must play by the issuers rules which are ever changing.

You joke Meya but I'm sure that tactic is probably being used by some lenders. I was thinking that the people who have shown responsible usage and have historic low utilization (5% and under) get screened more infrequently than others while their other non revolving accts are current and haven't been late within a window of time. Has to be some formula that is being used to choose who escapes and who gets nabbed

I always joke, it keeps me smiling even through the bad times of credit. But anyways, I don't think we will ever know how they statistically target individuals. I don't think it is much of a formula, I think it is all in the risk of the bank itself. I have heard more people depressed (or upset) from this site because their cc was decreased for no reason at all, by a bank whom they done business with for years and have good credit (no lates or anything else). Whatever categories banks are utilizing in their formula, seems like it is not going to benefit them in the future. Their results are unfair, and is driving long term customers away.

OK, it is quite understandable to decrease someone's limit because they see that they are only paying min balances, util is pretty high (again, which is why I think I am next), lates, over limits, or any mis-usage of account(s), but let's think logically here, banks are out to make money right? They claim, "If it doesn't make money, then it doesn't makes sense!" Shutting excellent consumers limits does not guarantee a future investment, but keeping those with high utilization and balance carriers is where the money is at (this is why I think they are loving me). I think that the probability is..............they are using some type of measurements that weighs nothing but money, I believe they are training their senior credit dept to constantly perform soft pulls and :
1. Get rid of those who they are making no money from such as, those who pay the balance off before statement closes
2. Keep a darn good eye on those who are starting to show a struggle
3. Red flag those who are cash advancing
4. Get close to the ones who are paying bills with their credit cards (when is usually done with a debit card, cash or check
6. Slow down cli's so they can "Prey" on the newbies to see what they are working with

I really don't think they would come out with a "true" formula since they have no idea when a person is going to fail. Only through recessions, may they get some type of "Some What" positive results, and that will only be temporary.

This is my theory, and I will love to hear someone else's! ***With a joke and a cool smile to go with it****

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>: laugh :: cool:

BoA is a big powerful bank, yes, but they're under that lawsuit so maybe their new annual fees are because of that?

Like your idea Wanderer and your opinion too Mizu but let me ask you both this, How do you not alienate the consumer whose credit is, and has been pristine for time immortal ? Banks can impose fees and increase rates but it still comes down to keeping and increasing your customer base no matter if your BOA or the Hooterville Savings and Trust. Even with increased cost that will be imposed by financial institutions across the U.S., some will not feel anything. It won't just be your large depositers that won't feel the pinch but their will be everyday people who make up this community that will not see the increased fees that Wanderer speaks about or have to worry about the financial soundness that Mizu alluded to.

I guess we will have to wait until the country is back on its feet again and then bring this matter up and see how they (the consumers who were not affected by CLD's or rate increases) weathered the storm

The game the game... Orchard Bank is part of HSBC Bank which also has Household Bank and others... It is possible they reduce credit lines due to their own economic conditions but, I am more suspicious that they use opportunities from time to time to reposture their position and extract more money from the consumers. With this new credit card bill of February 22, 2010 coming in, they are raising interest rates and adding annual fees. Hmmm... isn't that interesting. Actually annual fees and high interest rates (above 15%) were the norm in the 1970's and '80s. It is all a game to take advanage of the time and make more money. We believe we will be protected by this new credit card bill... What really changed is the banks had an opportunity under the umbrella of the new bill to universally raise rates and add back annual fees at the same time and make more money. Hmm... As always the consumer didn't really win... the consumer will lose. Some info indicates that persons under 21 years old will not be able to get credit cards. Oh well... when I was young you didn't get anything until you were 21 and old enough to contract. Life goes on and we adjust. The game the game the game...!!!

Doesn't it have more to do with what kind of shape the issuing bank is in? Say for example, Orchard, which is obviously has never had a history of being generous, but has closed its doors even further? I would think that a bank that is on it's way down the tubes or almost out the door has to start cutting limits regardless of how great of a customer the card holder has been. This is all just my speculation though. Maybe we should poll out of the people who have seen a CLD/closure, which issuing banks it has come from? There might be a trend there. And perhaps I am just totally off LOL.

You joke Meya but I'm sure that tactic is probably being used by some lenders. I was thinking that the people who have shown responsible usage and have historic low utilization (5% and under) get screened more infrequently than others while their other non revolving accts are current and haven't been late within a window of time. Has to be some formula that is being used to choose who escapes and who gets nabbed

Mines is luck, I am ranting my brains and pockets to pay down my cards. I know that one of them are going to come through my mailbox soon. Hopefully, now that they see I am paying debt down (along with closing), maybe they are just saying, huuuum, let's go to the next person and come back to see what she is doing. We are going to get her sooner or later. I don't even ask for cli's, I am to scared they are going to find something they over looked, ME....lolz!

I'm sure young man that luck has played its part for some, but for others there has to be a definitive reason why, i.e., never late on anything, credit to debt ratio on all cards under 1%, etc.. Some will come through this unscathed and wouldn't we all like to know how they did it ? Nobody wants a CLD and if their is an antidote maybe it could be shared..........

Smcc, maybe it has something to do with luck?

Everyone has talked about how their line(s) of credit has been decreased. For those who haven't experienced a CLD can you explain or give a reason for not experiencing this scenario ? Just curious..............

Citi Cards is closing many of their co-branded gas cards. Best part, giving customers 2 days notice! Try this article from Bankrate.com]Citi cancels gas cards[/B]

By Leslie McFadden • Bankrate.com


Wednesday, Oct. 21
Posted 8 a.m. EST
Bankrate reporter Leslie McFadden contributed this entry.
Imagine trying to use your credit card only to find out the card has been canceled by the bank. Some unlucky consumers with gas cards issued by Citi are facing this exact predicament.
Citi told the Associated Press it "decided to close a limited number of oil partner co-branded MasterCard accounts." Impacted accounts include Shell, ExxonMobil, Citgo and Phillips 66-Conoco cards.
According to the article, Citi didn't provide a reason for the account closures.
Affected customers didn't exactly get much time to process the news. The AP reported that letters were mailed two days before the effective date of the closure. Nice.

Well it just keeps on coming!!!

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All cc companies are trying to CTA before the new laws hit. It's going to get worse and AF's are going to start rolling out, especially for those who never carry a balance. You don't honestly think cc companies treasure pif people. They will make their money one way or another.

It will return to the credit market of the 70's and 80's....higher apr's and af's for all.

Citi Cards is closing many of their co-branded gas cards. Best part, giving customers 2 days notice! Try this article from Bankrate.com: :

Citi cancels gas cards

By Leslie McFadden • Bankrate.com


Wednesday, Oct. 21
Posted 8 a.m. EST
Bankrate reporter Leslie McFadden contributed this entry.
Imagine trying to use your credit card only to find out the card has been canceled by the bank. Some unlucky consumers with gas cards issued by Citi are facing this exact predicament.
Citi told the Associated Press it "decided to close a limited number of oil partner co-branded MasterCard accounts." Impacted accounts include Shell, ExxonMobil, Citgo and Phillips 66-Conoco cards.
According to the article, Citi didn't provide a reason for the account closures.
Affected customers didn't exactly get much time to process the news. The AP reported that letters were mailed two days before the effective date of the closure. Nice.

Well it just keeps on coming!!!