Banks have to give you a 45 day notice of interest changes or credit limits cut. So for the last few days banks have been pulling surprises of all of us.
Boy it is very embarassing when my husband and I went into a store to make a purchase. My husband thought that we could rack up a few points for a future car rebate. And guess what, we were denied the purchase.
Perfect credit but the credit company reduced without telling us the limit from 17,000 to 2,000. My husband looked at me like did you pay the bills? I just laughed. So we racked up a few point for frequent flyer miles. But you never know, they may take that benefit away as well.
Word of warning. If you get your card limits cut and you have a balance on the card you are just opening up the door for being maxed out of your limit and your credit scores will drop.
On the same token if you have a borrower pre-approved and there is lag time from when the credit report was pulled you may find that when they update credit their score may have dropped if their cards are maximum due to card limits being reduced. You may have a borrower that has a lower score now and that may change the the clients whole situation.
Just a heads up. Buyer beware and agent beware of the possibilities.
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