<p>ChicagoBear - thanks for all of that info. I did some research online today and found out, as you wrote, that credit card issuers are not required to give advance notice of a credit limit decrease. I have never had a late payment - not on this card or on any other account. I did just apply for a Parent Plus loan in the past few days - do you think that triggered it - a harbinger of more debt to come? I have had the same credit limit on that Chase VISA for years.</p>
<p>ChicagoBear-My husband is the king of churning and manufactured spending. I know just what pharmacy and card you’re referring to!</p>
<p>parentofpeople - they did give me a reason, it was in that letter they sent. I’d rather not say what it was but it sort of made sense, I guess. I didn’t call as the last time I called any credit card company I got a very young sounding man on the phone and it was a real turn-off speaking to someone about your credit card who sounds like he should be raking your front yard. I’m just planning to close the account asap. In fact is there any way to close an account and continue to make payments until it’s paid off? I would do that with this account, that’s how much I hate them.</p>
<p>PhotoOp, could you just transfer the balance to a different card? Then you’d be done with them.</p>
<p>PhotoOp - I also came across a concept called “chasing the balance” - where a customer has a balance on the card and is labelled an increasing risk. The card issuer reduces the limit to just above the balance so that the customer cannot incur more debt. The customer pays the balance down, and the card issuer reduces the limit again - so they are constantly reducing the credit limit as the balance drops. I may have been subject to this or maybe it was the credit inquiry for the Parent Plus loan. Either way, I hate that Chase did this to me and that I am now up against the credit limit on this card, which I know is so detrimental to my credit score.</p>
<p>Consolation - I totally agree that reducing the credit line of a good customer without advanced notice is not customer friendly. Fortunately my institution doesn’t issue many cards and is more a wealth management / relationship-type of bank. I’m sure my bank either call the customer and say “effective immediately…” to avoid overlimit situations or if they can’t be reached, refund any nuisance fees. If a bank charged an overline fee in such an instance, I would complain and if not refunded file a compliant with the regulators - for most large card issuers that is the new Consumer Financial Protection Bureau.</p>
<p>Rockvillemom - you are definitely not the only person to apply for a Parent Plus loan, so that in and of itself is probably not sole reason. Maybe that application, combined with whatever other debt you have or are listed in your credit report, may have caused them to see increased risk and trigger the reduction. </p>
<p>I hope you get a straight answer from them.</p>
<p>EDIT - unfortunately, this is a prime example of why it is good to carry at least two credit cards from different banks.</p>
<p>Agree - and I do have other credit cards. I’m just angry at being treated in this manner, but perhaps they have done me a favor in the long run.</p>
<p>So, I finally rcvd the letter from Chase, and their explanation was that my ratio of credit card balance to credit limit was too high, so they reduced my limit! So, they made the problem much worse! I am sure my credit score will fall as a result, and am waiting to see if I get credit limit reductions on other credit cards, causing the cycle to continue to worsen. I know that having credit card debt is not optimal, but life happens. I have never had a late payment on any credit card and always pay more than the minimum payment, so it seems very unfair. </p>