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Denied credit? Yes me too. Thursday the 20th is the day that .......

By
Mortgage and Lending with Mortgage Resource Plus NMLS LO#138228

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.

 

Comments (3)

Karen Fiddler, Broker/Owner
Karen Parsons-Fiddler, Broker 949-510-2395 - Mission Viejo, CA
Orange County & Lake Arrowhead, CA (949)510-2395

Crazy isn't it? I just had my Dell Premium account change my interest rate from 7.9% to 24%....yep, not going to accept that. So I just paid them off and closed the account. Ugly.

Aug 19, 2009 06:43 AM
Edward & Celia Maddox
The Celtic Connection Realty - Queen Creek, AZ
EXPERIENCE & INTEGRITY - WE TAKE THE HIGH ROAD

Those crazy credit card companies plan games all the time with us.

Aug 19, 2009 06:51 AM
Mick Michaud
Distinctly Texas Lifestyle Properties, LLC Office:682/498-3107 - Granbury, TX
Your Texas Lifestyle is Here!

I've been the BIG victim of that little scam.  Before I was in the 700's with a utilization rate of around 25% across the board.  Then the companies all dropped the limits to just over what I owed.  Bam! My utilization rate when to 95% and my score was SLAMMED.  Not a derogatory on there, but my score tanked.

 

Oct 10, 2009 08:38 PM