Credit Crisis: What Your Creditor Is Doing Behind Your Back!

Credit card users: You may get a surprise the next time you pull out the plastic to make a purchase.... ..you may get declined!

That's because credit companies are lowering your limit and not even letting you know before they do.

They're also raising interest rates for customers, whether you've paid your bill on time or not.

Some creditors say this is way to off-set record delinquencies and rising charge offs.

We talked to one woman who found at the hard way about her credit limit,when her card was denied.

"I think they should let people know, I mean, it's their credit so I guess they can do what they want to do with it, I think they should at least let people know." says Brittany Jones of Cove City.

The best advice to give you here, is read the fine print on your credit card statement.

You may get a notice in the mail about your interest rate, but not your limit.

There is an opt-out clause if you don't agree with the rate increase, but that could mean you'll have to close your account all together.

There are more tips on how to fight back for your credit on the link below. You can also get free credit counseling from a local center in your area, if you're drowning in debt.


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Comments are posted from viewers like you and do not always reflect the views of this station.
  • by charlie Location: greenville on Mar 19, 2009 at 02:05 AM
    and everybody wonders why i don't have a credit card. if you have to charge it , then you can't afford it.
  • by Tracey Location: eastern NC on Mar 17, 2009 at 03:33 PM
    Not all the plastic they see is acredit card either. Alot of folks use their debit cards like credit cards. I have a credit card, but try not to use it anymore than I absolutely have to. Especially now. Besides, they way I look at it, credit card companies are legal loansharks.
  • by Dwayne Location: Greenville on Mar 17, 2009 at 11:35 AM
    The fleecing of America.
  • by Ginny Location: V'town on Mar 17, 2009 at 10:49 AM
    Hey citizen!... I agree. We use our credit card at the gas pump(for convenience), eating out, daily purchases, and then pay the entire balance each month. It's just way more convenient than writing checks all month long and costs a lot less. I never knew there were people "judging us", thinking we were too poor to eat out like "anonymous" in Greenville. By the way, we eat out a lot in G-Vegas, too, so we may run into you sometime, but we are helping the economy when we spend!!! Also, we are responsible credit card holders. We only have one card. Please don't judge others. You don't know how they manage the small personal details. Credit should only be used by those disciplined enough to not overcharge what they can pay in one billing cycle. This makes it work for you, instead of you working for them!
  • by Tony on Mar 17, 2009 at 09:34 AM
    Watch what is coming next, the credit card companies will demand full payment of all account balances to generate positive cash flow. Those with high balances will more than likely default on their card payment. The credit world is tightening its grips, only in a different way that is not favorable to anyone but themselves. Pay it off and cut up those un-needed cards now!
  • by citizen on Mar 17, 2009 at 07:24 AM
    hey anonymous...some people such as myself use credit cards for EVERYTHING because you get rewards back. SMART people do this because they pay in full every month. So whil you are paying cash and getting NOTHING back, some of us are getting cash back, and other rewards because we pull out our plastic...
  • by Anonymous Location: Greenville on Mar 17, 2009 at 06:13 AM
    Some of us have pushed the credit card to the limit. It makes me sick when I see some one at a fast food place and pay for their lunch with a credit card.What is wton with these people. If I could not afford to pay for my lunch, I would be eating a peanut butter sandwitch or jelly or something. So lets not grip about the limit being cut. Ready your statement--it show right on the top right hand side.Or better yet use it for emergencys ONLY!!!
  • by Appalled Location: Vanceboro on Mar 17, 2009 at 06:11 AM
    We always paid on time and more than the minimum and when the stock market went to pot two of our credit card companies raised the rate and dropped the limit. I raised sand with them and they returned the rate but the limit drop was non-negotiable. When they do that, they shorten the distance between your balances and you limit, thus skewing you score. This decreases the liklihood of you obtaining more favorable credit besides what you already have with this company. Its all a gimick. And, if they give you the opt out on the rate increase, be careful. Some require you to close the account to take advantage of the opt out thus, closing the account with an active balance. In some instances this turns your R1 account to an R5 so be weary of what they tell you. We are currently in process of paying ours off. We have too many and are going to go back to one only, and it will be the one with the most ammenities!
  • by Mike Location: Edenton on Mar 17, 2009 at 02:50 AM
    If I maxed out my credit cards I'd be in deep trouble. Too many people carry too much debt. It's their own fault. That's a big part of the county's trouble today. There is something to be said for taking some personal responsibility. That seems to be a thing of the past. But I do agree the credit card companies should have disclosure. Available credit is on my statements. Read yours!
  • by Jeremy Location: Havelock on Mar 16, 2009 at 07:24 PM
    Post of the day nominee for Millie. LOL
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