Closed credit lines

[JHayesLS1]

I payed off about 3k worth of debt last year and had no credit card debt. Recently I bought a new PC for my parents with an account I had with dell. I went to pay my payment and it said my account was closed due to lenders request. So what gives? Im pissed because my available credit just went way down because of that and I'm afraid that on my credit report now its going to show a over the limit balance.

[shady milkman]

I payed off about 3k worth of debt last year and had no credit card debt. Recently I bought a new PC for my parents with an account I had with dell. I went to pay my payment and it said my account was closed due to lenders request. So what gives? Im pissed because my available credit just went way down because of that and I'm afraid that on my credit report now its going to show a over the limit balance.

hmmm i dont know..get a credit report and make sure you dont have any open cases

[astyles]

i had the same thing happen a couple of times too......they are all shutting down inactive or at risk accounts because of the new rules that ar now in affect

[JHayesLS1]

This is only the second time I used it. I thought it was because it was such a big limit for a 21 year old and it seemed risky. I've never been late on anything before either so it baffled me. What new rules are in effect now Astyles?

[chiller2484]

I've got a few cards where once i got the amount paid down some, the limit dropped to just above what my balance was. (Ex. paid down a $1200 limit to $845 and they dropped the limit to $860 without my knowledge) That sucks for my debt to income ratio as it seems no matter how much I pay, the % keeps going up.

[JHayesLS1]

My guess is that they gave us too much credit and now they want it to bring it down. So now it just looks bad on us. It just pisses me off I didn't get a letter or anything stating this until I called them.

[0rion]

that's the trend right now. Lenders are closing accounts to reduce their risk. They're doing the same thing with equity lines of homes too. I saw that financial guru chick on TV talking about this the other day. She said she changed her stance on the credit or savings issue. She used to tell people to pay cards off then start saving and now she's saying to save first and pay the absolute minimum on cards because when you pay the card off that card is mostly likely going to get closed by the lender. I have a card now with a zero balance and they've yet to close mine but I'm not holding my breath. It's a chase card and if they close it I won't be bothered too much with it anyhow. It's a higher percent than my other card.

[JHayesLS1]

I could care less but these bastards are messing up my credit score. Each time that limit lowers and my percentage goes up thats more interest on my house I want to buy.

[chiller2484]

yeah i've been trying to refinance my car through my credit union to get a lower rate and they said my debt:income ratio was still too high. started looking into it and that's when i found my credit limits had been lowered.

[gwballin]

yeah i've been trying to refinance my car through my credit union to get a lower rate and they said my debt:income ratio was still too high. started looking into it and that's when i found my credit limits had been lowered.

Since you brought it up twice…

Your debt to income ratio is calculated using two variables, your debt and your income. While having your available credit go down is detrimental to your credit score, it does nothing to your debt to income ratio.

[SMWS6TA]

Since you brought it up twice…

Your debt to income ratio is calculated using two variables, your debt and your income. While having your available credit go down is detrimental to your credit score, it does nothing to your debt to income ratio.

That is not what has been reported on all the financial shows in the past few months. All have been stating that if you close your accounts or they are closed for you it WILL effect your credit and your debt to income ratio

[astyles]

This is only the second time I used it. I thought it was because it was such a big limit for a 21 year old and it seemed risky. I've never been late on anything before either so it baffled me. What new rules are in effect now Astyles?

it is some new gov. regulation that keep them from inceasing rates randomly and some other things too......i read about it some weeks back,but i dont remember all the details

[gwballin]

That is not what has been reported on all the financial shows in the past few months. All have been stating that if you close your accounts or they are closed for you it WILL effect your credit and your debt to income ratio

I already acknowledged that if will be detrimental to your credit score since the amount of available credit is reduced.

However, available credit is not taken into account in your debt to income ratio. It is right there in the name, “debt” and “income” are taken into account when calculating your debt to income ratio. Since available credit is neither “debt” nor “income” it does not affect your debt to income ratio.

[JHayesLS1]

For instance I had a $2k dell account open. Bought my PC and they closed the account. I'm afraid that on my credit report its going to show $850/0 instead of $850/2000. According to every financial things i've read me loosing that 2k credit is going to hurt my credit score. I need to pull my report to see what happened now that this happened.

[chiller2484]

... Since available credit is neither “debt” nor “income” it does not affect your debt to income ratio.

This is true, thanks for clarifying for me. Though, wouldn't the % of debt on my credit cards be less if they hadn't have changed the limit?

ex- $1000 limit with a $200 balance is only 20%, but a $400 limit with a $200 balance is 50%.

Would that not affect my debt ratio, even though my income stays the same?

[chiller2484]

fyi, this is from my bank's website:

You have the right to receive a free credit report from each of the three major credit bureaus- Experian, TransUnion, and Equifax- once a year through the Annual Credit Report Request Service at www.annualcreditreport.com. The free reports do not include credit scores. You may request your score for a fee at the time of ordering the free reports if you choose to do so. Contact information is included at the end of this document.

You can get one free credit report from each of those credit bureaus once a year. I got one from Experian back in March, and I'm waiting until maybe July to get the next one. Then probably October to get the last one. You might want to take a look at what it says for you.

[astyles]

http://www.creditcardreform.org/pdf/...ummary-509.pdf

[KahanaReef]

As already stated... seems to be the new trend. I've excellent credit and several credit cards. I have had three closed by the lender for 'inactivity' and, I"ve also had a 22,000 credit card line cut down to 13,000 because BofA decided that was all I needed since I've have no balance on the account in years

It is true that the amount of available credit you have affects your overall credit score. So, it's kind of messed up that they can do that if you have no late payments, always paid more than the min payment and did everything right...

A sign of the times.