unipolarbear Posted July 16, 2009 Share Posted July 16, 2009 So I applied for another card from an offer I got in the mail. They rejected my application because, get this, my current credit cards are too close to the limit. OMG! I make regular payments and have been doing that for years. I am close to the limit, but I don't go over and I usually pay $100 a bill (not just the minimums). Just had to vent. Anyone else experience bad treatment from the credit card companies? Link to comment Share on other sites More sharing options...
celestia Posted July 16, 2009 Share Posted July 16, 2009 There is the whole debt:income ratio. Besides, if you're paying minimum payments on the cards you have, you really don't need more debt. Your money will be better spent paying the current cards down. Signed, Learned the Hardway Link to comment Share on other sites More sharing options...
withing Posted July 16, 2009 Share Posted July 16, 2009 Heh, I cut up all of my credit cards years ago. I'm actually glad that they're tightening things up because this country needs to stop giving people so much credit - it's how so many people get into the trouble I'm in with debt. That's my humble opinion anyway... Link to comment Share on other sites More sharing options...
Artemisia Posted July 16, 2009 Share Posted July 16, 2009 Yeah, credit cards can be a life saver, but they can also screw you up quite nastily. In my opinion, anyway, it's easier to negotiate a reduced bill with, say, a hospital than with a credit card company... Link to comment Share on other sites More sharing options...
olga Posted July 17, 2009 Share Posted July 17, 2009 I just got a new credit card this week. I wanted to buy something from LLBean, and they said it would be free shipping if I applied for their Visa card and used it for the purchase. I figured, why not? I can always cut it up and never use it. I was approved in about 60 seconds. But I don't carry balances. My only debt is my mortgage, so that's probably why they didn't want to give you a card. I agree with the other people: pay down your balances, and then only use the cards for amounts that you can pay off every month. It's the only way to use credit cards safely. (Barring emergencies, of course). olga Link to comment Share on other sites More sharing options...
AirMarshall Posted July 17, 2009 Share Posted July 17, 2009 I hate to be a kill joy, but I agree that you should not obtain another credit card if you can't easily pay off your other balances. Every month's finance charges are money you are throwing away. Work at chipping away at those balances and you'll have breathing room. I view credit cards as intended for either convenience, where you pay them off quickly, or for emergencies. They are an expensive way to borrow money. good luck! a.m. Link to comment Share on other sites More sharing options...
reddog Posted July 18, 2009 Share Posted July 18, 2009 if your cards are too close to the limit, it's considered an indicator that you *may* be carrying more debt than you could handle, say if you lost your job. it's based on past statistical trends/analysis that tell them that people who are close to the limit have problems down the road. i used to work at one, so i'm fairly familiar with how they think. it's not necessarily 'logical' the way we would think. Link to comment Share on other sites More sharing options...
observer Posted August 23, 2009 Share Posted August 23, 2009 There is also the issue that has already been brought up in this thread: The credit card companies are tightening standards, not only because of the economy but changes in the law and rules which are putting a damper on past credit card practices to make things more "consumer friendly". These changes have added risk to credit portfolios that the companies have not accounted for (and found a way to profit from) so they are cutting back on business, even to the point of cancelling the accounts of GOOD customers who pay in full every month (not just those close to the limits). [A story covering this last point from the Wall Street Journal online: http://online.wsj.co...1012053966.html ] Here are a few links to information about these new FDIC rules: http://lawprofessors...st-20-2009.html http://www.fdic.gov/...9/fil09044.html (There is a link to a .pdf about the changes on the page from the primary source, the FDIC.) http://www.marketwat...8-18?link=kiosk Link to comment Share on other sites More sharing options...
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