You can't make this stuff up!

ctgoldwing · Apr 2, 2015

I wasn't sure which forum to post this in but since I always use a credit card for my purchases and even for the 'down payment' on equipment, here is my story.

So my son has been bugging me to get the 'new' 2% cash back credit card that's been advertised. I have a 1-1/2% cash back card now. I finally break down when he emails me the link to an application.

Ok it takes all of a couple of minutes & I'm approved. Now there is an issue. Its my understanding that your credit score is affected by the amount of AVAILABLE credit you have. I really don't want to cancel my original card (Capitol One) because I also understand that that can negatively affect your credit rating. So, what to do?

Simple, I'll just call Capitol One & ask them to LOWER my credit limit on that card. Imagine my surprise when the service rep tells me I've been DECLINED in LOWERING my credit limit. I'll get a letter in the mail in 7-10 days explaining why I've been declined.

You can't make this stuff up!

The Suburban Farmer · Apr 2, 2015

That is hilarious! What a problem to have -- you're TOO good of a customer!

I have worked in and around banking for the last 20 years, and even worked in a credit card company at one point. Actually, your credit score may be just fine. Another calculation in the credit score is "outstanding balances as a percentage of available credit" which is weighted even more than "available credit" in determining the FICO score. If you keep the balances at zero (or near zero) on one of the cards, your score may actually even go up.

What will likely happen is your score will go down a bit over the next 90 days or so, and then (assuming you pay your debts and keep the balance low on both cards) your score will likely go up to something even higher than it is today due to the "balance as a % of available credit" part of the FICO equation.

Industrial Toys · Apr 2, 2015

Same thing! I have a rather high limit on a VISA card. Pay my balances every month. But I wanted a low limit card to use with my Pay Pal account. No problem they said, here is the application. I am self employed, so I might compromise my high limit card so I said forget it. I spoke with the bank on the phone. They told me, no problem, make an appointment, come in and we will do it. Sat down, and she hands me the application form! I walked out, not before making a scene.

Then some guy approaches me in the super market to offer me a Master Card. I ask, can you cap the limit at 1K. No Problem. I get my card from some guy walking the supermarket isles, but my bank I have been dealing with for forty years treats me like a criminal despite a spotless record! And the kicker is, I am really trying to protect THEM against possible fraud.

Priceless!

PILOON · Apr 2, 2015

On the flip side,
I had a card with a $3000. limit as I like to do that occasional deal but not carry that kind of cash.
At Cosco I made a purchase a bit over $1000. and the card was declined. Very embarrassing to say the least.
The bank had reduced my limit to $1000. without notification claiming it was for 'my protection'.
My next visit to the bank was not a very nice one (for them).
NB, my balance was very healthy, like 5 digit.

Industrial Toys · Apr 2, 2015

I had bought a tank of fuel for a hundred plus dollars on my card. Went next door to A&W and my card is declined. Made quite a scene there too insisting it was there fault as I had used it moments earlier.

Turns out the bank had cancelled my card for security reasons. Nice of them to tell me! They would not tell me where the possible breach took place, so I can't even protect myself in future. Seems they don't dare violate the criminals privacy!

Now I had to wait for a new card and contact all my auto payment services.

I HATE BANKS!

Looking4new · Apr 2, 2015

You and me both. Scotia Bank suspended one of my visa cards last December, I called them and the immigrant I was talking to mumbled and spoke very broken English, I could hardly understand her so I told her to get the security people to call me and we would discuss it. Here it is into April and I still haven't gotten a call. The card is cancelled. Once the other one is paid off I am going to cancel it, too. American Express all the way baby!

rocketfish · Apr 2, 2015

What I hate is having a limit on a card that is sky high! But when I go to the gas station to fill up my diesel truck and the pump shuts off at $75 or $100 and still need a few more gallons!!! I always think to myself...I can take that card and buy a vehicle with it but I can't put gas in one!?!?! What is this world coming too???? Scratch my head????

chevy · Apr 2, 2015

rocketfish said:
What I hate is having a limit on a card that is sky high! But when I go to the gas station to fill up my diesel truck and the pump shuts off at $75 or $100 and still need a few more gallons!!! I always think to myself...I can take that card and buy a vehicle with it but I can't put gas in one!?!?! What is this world coming too???? Scratch my head????

That limit is set by each gas station. It is a per transaction limit, to cut down on the stations losses if the card being used is stolen.
The part of this that makes no sense to me, is that you can do another transaction to finish filling up the fuel tank. I guess they figure a crook will not stick around to do another transaction.

Redneck in training · Apr 2, 2015

Even worse is to be stranded in foreign country. Happened to me several times. I flew to Venezuela few years back. When I went to rent a car my card was declined. So I called CITI to get it urgently enabled because the rental place was closing in less than an hour. They refused to enable my card because they couldn't get hold of my wife to verify that I am indeed in Venezuela. The kicker was that I charged the air ticket to the same card and the guy could see it. About over an hour later and after few hundred bucks of mobile charges I finally got my car (the lady at the rental was so nice to wait instead close and go home).
While traveling by a car from Chicago to Des Moines I stopped at a gas station about 10 miles outside Chicago. My card was declined, so I pulled another card and it was also declined. In fact all my card were declined. Fortunately short call to CITI fixed that. Their excuse was that the particular gas station was used as a test for stolen cards.

texasjohn · Apr 3, 2015

I've had the declined lower limit too, as well as gas station card refusal over $100. Only solution I can think of is concealed cash and carry!

terryknight · Apr 3, 2015

for the fuel issues you can always go inside and leave your card and ask them just to turn on the pump, kills the convenience of pay AT the pump.

cartod · Apr 3, 2015

I know the pumps that stop at $75 and I will drive by them to get the extra $25 worth of fuel.

Will_C · Apr 3, 2015

My brother and I were talking about things like this the other day. We both realized that were are contrarians- we carry more cash today than we did 10 years, and do more transactions with cash, although we both have cards with high limits.

I checked my credit a few months ago- while my score was excellent, it was compromised by lack of open accounts!

Will

terryknight · Apr 3, 2015

Will_C said:
My brother and I were talking about things like this the other day. We both realized that were are contrarians- we carry more cash today than we did 10 years, and do more transactions with cash, although we both have cards with high limits.

I checked my credit a few months ago- while my score was excellent, it was compromised by lack of open accounts!

Will

nothing wrong with that

chevy · Apr 3, 2015

terryknight said:
for the fuel issues you can always go inside and leave your card and ask them just to turn on the pump, kills the convenience of pay AT the pump.

I did that once & found out a few days later that it was not a good idea. I was traveling & needed fuel in my truck. The only diesel pump they had was a pay inside, prepay pump. I left my card with the clerk. I did not use that card again on my trip.
A few days later I got a call for the bank saying that they thought there where fraudulent charges on the card. There were several charges on the card that started shortly after I got fuel. While I was pumping fuel, the clerk must have written down all of the information from the credit card including the 3 digit code on the back.

What I was told to do in the future for prepay pumps was to have the clerk make a charge for more than you believe I will need to fill the tank. Then they make a credit for the over charge after the fill up.
That way they cannot get all of the card information.

Walkin Horse · Apr 3, 2015

For an industry that is trying to get us to go cashless, they sure make it hard on us.

Mike_Kanzer · Apr 3, 2015

You should check out Dave Ramsey - he is a financial guru who helps people deal with excessive debt issues. He has a program called Financial peace university and is very anti-credit card. He always says " Cash is King!"

like2wheel · Apr 4, 2015

Dave Ramsey is not anti-credit card, he is against carrying credit card debt.
"Cash Is King" as opposed to using credit to avoid interest

I listened to his show for a while. I agree with most of what he says, but soon grew tired of his seemingly self-serving oration.

I was not surprised when is saw this article:
Spies, Cash, and Fear: Inside Christian Money Guru Dave Ramsey