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Credit Limits

creditman said: "Question for you guys: Scenario: I have a credit card with a department store. When I bought this product, I thought it was 12 months 0% internet, no payments. So when the bill came in, I didnt do anything about it....just left it on the counter. Well after the second month, they called me and ask for payment. I explained the misunderstanding and paid them from that point on. Well, I pulled my credit and noticed that my credit limit way under the balance. For example, Balance = $3000, Credit Limit = $1000. So it shows up as me being 300% over my credit limit....which is killing my credit score. I have looked all over the internet to find out if that is legal or not. First off, it doesnt sound right, and second another credit card company told me that they couldn't do it because it is illegal....but also that lady didnt sound too bright.....so I dont know. I really didnt pay too much attention to this card and really should have....you learn from your mistakes. :) What do you guys think?"

pryan67 said: "they can raise or lower you limits at their sole discretion... however...if they do so, and they did it because of something on your credit report, the FCRA comes into play and they have to notify you of it. have you contacted them and asked them why?"

Ally said: "You want to be sure to read your bills. :) That way you can avoid misunderstandings. I have a couple "same as cash" deals right now, and there is still a minimum amount due, despite being on this payment plan. You also want to be sure to pay the entire thing off before it is due. Otherwise you pay interest on the entire amount financed, not just whatever is left."

anchorbob said: "The whole trick is paying it off before the due date. I do it easy. I take the total amount due and divide into 10 payments. That way I finish a month or so early."

Ally said: "Have you contacted the company at all to see what is up?"

Montana44 said: "Sounds like you might need to re-read the terms and conditions :) . I found out I was better prepared to fix my card problems after reading everything (again). They make is soooo easy to sign up, but by doing so you agree to a whole lot. Call them, find out the story, and work it out now. [URL=http://www.ihatecreditcards.com]I Hate Credit Cards[/URL]"

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