Cricket Posted December 13, 2012 Share Posted December 13, 2012 We have worked diligently to pay off debt over the last 5 years. We don't have much extra but I've always managed to send more than the minimum due on all accounts and I haven't been late on a payment in 5 years. Today I got a notice that our paid-off Sears account was closed. It's been paid off for quite a while and we haven't used it which I think was a factor. The notice said that our proportion of loan balances to loan amounts is too high and the ratio of revolving balances to credit limits is too high. The frustrating thing is that when I do pay off a card or pay a card down, the credit card company lowers my credit limit. I had a card with a $1200 limit. Once I got down to below $500 owing, the company lowered my credit limit to $500 which of course makes my proportion of loan balance to loan amounts too high!!! On paper I alway look tapped out. And it looks bad to have creditors closing my accounts or lowering my balances I'm sure. It's is so discouraging! My credit score hasn't moved in years. It really makes you want to say forget it and file bankruptcy. I've already paid back the money I've borrowed and then some because of all the interest I've paid. Anyone BTDT with any advice or empathy? Quote Link to comment Share on other sites More sharing options...
Parrothead Posted December 13, 2012 Share Posted December 13, 2012 We have worked diligently to pay off debt over the last 5 years. We don't have much extra but I've always managed to send more than the minimum due on all accounts and I haven't been late on a payment in 5 years. Today I got a notice that our paid-off Sears account was closed. It's been paid off for quite a while and we haven't used it which I think was a factor. The notice said that our proportion of loan balances to loan amounts is too high and the ratio of revolving balances to credit limits is too high. The frustrating thing is that when I do pay off a card or pay a card down, the credit card company lowers my credit limit. I had a card with a $1200 limit. Once I got down to below $500 owing, the company lowered my credit limit to $500 which of course makes my proportion of loan balance to loan amounts too high!!! On paper I alway look tapped out. And it looks bad to have creditors closing my accounts or lowering my balances I'm sure. It's is so discouraging! My credit score hasn't moved in years. It really makes you want to say forget it and file bankruptcy. I've already paid back the money I've borrowed and then some because of all the interest I've paid. Anyone BTDT with any advice or empathy? There is a term for that lowing your limit BS. Well, other than BS. I forgot what it is. But it is crappy. I"m planning on paying all mind off in January and am just waiting for the same notices to start arriving. Quote Link to comment Share on other sites More sharing options...
PentecostalMom Posted December 13, 2012 Share Posted December 13, 2012 We have worked diligently to pay off debt over the last 5 years. We don't have much extra but I've always managed to send more than the minimum due on all accounts and I haven't been late on a payment in 5 years. Today I got a notice that our paid-off Sears account was closed. It's been paid off for quite a while and we haven't used it which I think was a factor. The notice said that our proportion of loan balances to loan amounts is too high and the ratio of revolving balances to credit limits is too high. The frustrating thing is that when I do pay off a card or pay a card down, the credit card company lowers my credit limit. I had a card with a $1200 limit. Once I got down to below $500 owing, the company lowered my credit limit to $500 which of course makes my proportion of loan balance to loan amounts too high!!! On paper I alway look tapped out. And it looks bad to have creditors closing my accounts or lowering my balances I'm sure. It's is so discouraging! My credit score hasn't moved in years. It really makes you want to say forget it and file bankruptcy. I've already paid back the money I've borrowed and then some because of all the interest I've paid. Anyone BTDT with any advice or empathy? I don't have advice, but I do have empathy. We have had the same thing happen. It is so discouraging! Quote Link to comment Share on other sites More sharing options...
Cricket Posted December 13, 2012 Author Share Posted December 13, 2012 At least I'm not alone. :thumbdown: When I pay them off I think I'll start calling them and closing them. I think that looks better on your report if the card is closed at the request of the customer anyway. They can take their credit and stick it! :D Quote Link to comment Share on other sites More sharing options...
cjzimmer1 Posted December 13, 2012 Share Posted December 13, 2012 We have worked diligently to pay off debt over the last 5 years. We don't have much extra but I've always managed to send more than the minimum due on all accounts and I haven't been late on a payment in 5 years. Today I got a notice that our paid-off Sears account was closed. It's been paid off for quite a while and we haven't used it which I think was a factor. The notice said that our proportion of loan balances to loan amounts is too high and the ratio of revolving balances to credit limits is too high. The frustrating thing is that when I do pay off a card or pay a card down, the credit card company lowers my credit limit. I had a card with a $1200 limit. Once I got down to below $500 owing, the company lowered my credit limit to $500 which of course makes my proportion of loan balance to loan amounts too high!!! On paper I alway look tapped out. And it looks bad to have creditors closing my accounts or lowering my balances I'm sure. It's is so discouraging! My credit score hasn't moved in years. It really makes you want to say forget it and file bankruptcy. I've already paid back the money I've borrowed and then some because of all the interest I've paid. Anyone BTDT with any advice or empathy? My husband and I have very high credit scores (not bragging just so you have context) but every credit card we have ever owned (open or closed) came back with those "explanations" on our most recent credit score (and I have paid off every credit card bill in full every month for over 20 years so we found it baffling as to how we can have those issues). We were refinancing our house and after we finishes the closing we asked the loan officer about those. Basically what she said is the credit companies NEVER will give out a perfect score, however, government regulations require a "reason" as to why a perfect score wasn't given and those are the default "excuses" as to why a perfect score wasn't obtained for that account. She says loan officers know it doesn't really mean anything and it really doesn't affect your overall credit score anyways. As far as them lowering the limit, I've never had that happen so I'm not sure why they do that but according to our loan officer the other stuff is almost a nonissue for credit scores. Quote Link to comment Share on other sites More sharing options...
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