http://blog.wesabe.com/2008/12/08/the-great-customers-are-the-first-to-go/ The Wesabe blog Mon, 02 Aug 2010 17:03:02 +0000 hourly 1 http://wordpress.com/ http://blog.wesabe.com/2008/12/08/the-great-customers-are-the-first-to-go/#comment-4515 Gator Thu, 18 Dec 2008 17:54:04 +0000 http://blog.wesabe.com/2008/12/08/the-great-customers-are-the-first-to-go/#comment-4515 My credit card limits haven't been decreased, but my Home Equity Line of Credit took a big hit. When I opened the account two years ago my credit limit was $120K. Earlier this year I received a notice from my lender WAMU, that my limit was being decreased to $90K due to the decline in home prices in my area. I'm okay with that, it makes sense to me. What irritates the heck out of me is they decreased my credit limit again and I don't think I was notified. I probably was, but I don't recall seeing anything on paper. Anyway, my limit is now $49,100. I still have room to borrow if necessary, but my utilization is now over 50% and that can have a negative impact on my credit score. My credit card limits haven’t been decreased, but my Home Equity Line of Credit took a big hit. When I opened the account two years ago my credit limit was $120K. Earlier this year I received a notice from my lender WAMU, that my limit was being decreased to $90K due to the decline in home prices in my area. I’m okay with that, it makes sense to me. What irritates the heck out of me is they decreased my credit limit again and I don’t think I was notified. I probably was, but I don’t recall seeing anything on paper. Anyway, my limit is now $49,100. I still have room to borrow if necessary, but my utilization is now over 50% and that can have a negative impact on my credit score.

]]> http://blog.wesabe.com/2008/12/08/the-great-customers-are-the-first-to-go/#comment-4514 TFB Wed, 10 Dec 2008 07:35:04 +0000 http://blog.wesabe.com/2008/12/08/the-great-customers-are-the-first-to-go/#comment-4514 The credit card companies do make money from so-called deadbeats even if they don't carry any balance, are never late or over the limit. They make money from the merchant fees. Not as much as they do from revolvers for sure, but not unprofitable, just less profitable. I agree with Ben. Credit limits are too high to begin with. On two of my cards, I usually use less than 10% of the limit. If they cut it in half, it won't affect my ability to make purchases. So far they haven't done anything yet. The credit card companies do make money from so-called deadbeats even if they don’t carry any balance, are never late or over the limit. They make money from the merchant fees. Not as much as they do from revolvers for sure, but not unprofitable, just less profitable. I agree with Ben. Credit limits are too high to begin with. On two of my cards, I usually use less than 10% of the limit. If they cut it in half, it won’t affect my ability to make purchases. So far they haven’t done anything yet.

]]> http://blog.wesabe.com/2008/12/08/the-great-customers-are-the-first-to-go/#comment-4513 Renee Tue, 09 Dec 2008 16:46:11 +0000 http://blog.wesabe.com/2008/12/08/the-great-customers-are-the-first-to-go/#comment-4513 Actually, I carry (ied) a balance on all three of my Amex cards and my credit limits were reduced to just $100 above my balances. I had three late payments in my 9 year history with them- (which is why I also now have a 26% Apr) so they did get some fees and are making money from me. I had a great credit score (well over their 700 threshold they are now claiming you need- I pulled my report right after I got off the phone since they claimed it my Experian report- I wonder if Experian knows they are lying about them- but then again Experian is making a ton of money from all the new reports being pulled so then they are in colusion) but I also shopped at Costco which was my downfall. So between Saks and Costco, I am clearly not their ideal customer. I cancelled all my cards and will never use Amex again no matter how much crap they send me in the mail. They are unethical and they lie. And since they really want deadbeats- I am not going to pay them the rest of my balance- I will let them negotiate with me for about 50% of what I owe- since they have now dinged my score with their false credit to limit ratio. SELL AXP stock and let them burn! Actually, I carry (ied) a balance on all three of my Amex cards and my credit limits were reduced to just $100 above my balances. I had three late payments in my 9 year history with them- (which is why I also now have a 26% Apr) so they did get some fees and are making money from me. I had a great credit score (well over their 700 threshold they are now claiming you need- I pulled my report right after I got off the phone since they claimed it my Experian report- I wonder if Experian knows they are lying about them- but then again Experian is making a ton of money from all the new reports being pulled so then they are in colusion) but I also shopped at Costco which was my downfall. So between Saks and Costco, I am clearly not their ideal customer. I cancelled all my cards and will never use Amex again no matter how much crap they send me in the mail. They are unethical and they lie. And since they really want deadbeats- I am not going to pay them the rest of my balance- I will let them negotiate with me for about 50% of what I owe- since they have now dinged my score with their false credit to limit ratio. SELL AXP stock and let them burn!

]]> http://blog.wesabe.com/2008/12/08/the-great-customers-are-the-first-to-go/#comment-4516 Ben Tue, 09 Dec 2008 12:30:19 +0000 http://blog.wesabe.com/2008/12/08/the-great-customers-are-the-first-to-go/#comment-4516 While it's true that credit card companies make their money of customers who are late and maintain balances, keep in mind the sheer amount of credit available. I've had aggregate credit limit increased by almost $20,000 over the last few years by non-consultative credit increases. Never asked, just saw a new, higher credit limit! This is as much a reflection of the customer base from which credit card companies make their money as it is the surplus of consumer credit. While it’s true that credit card companies make their money of customers who are late and maintain balances, keep in mind the sheer amount of credit available. I’ve had aggregate credit limit increased by almost $20,000 over the last few years by non-consultative credit increases. Never asked, just saw a new, higher credit limit! This is as much a reflection of the customer base from which credit card companies make their money as it is the surplus of consumer credit.

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