Frugal Village Forums banner

1 - 19 of 19 Posts

·
Registered
Joined
·
3,244 Posts
Discussion Starter #1
Ok, so I've nearly paid off the line of credit. There is about $500 left on it. So today, I get a letter in the mail. They've increased the line of credit to be 5500 more.

Don't they get it? Don't they see that everything with them isn't increasing but decreasing?? So they extend more credit..lol. Dummies.
 

·
Premium Member
Joined
·
9,446 Posts
Isn't it funny how desperate they are?
Our van is due to be paid off in less than 4 months. Just yesterday in the mail we got something from the dealership where we bought the van...offering us a pre-approved vehicle loan for up to ...get this $47,000 :eek:

Yeah. I don't think so :thud:
 

·
Registered
Joined
·
1,158 Posts
Wow Heather, you could be cruisin in a sports car! j/k It's funny when you don't want credit, they're desperate to give you higher limits.
 

·
Registered
Joined
·
579 Posts
I always like getting those offers. That means I am a good credit risk.....lol. I have paid my bills.....yeahhhhhhhhhh
 

·
Registered
Joined
·
1,416 Posts
In today's mail I got an offer to "consolidate high interest debt." They wanted to loan me up to $25,000. Our only debt is the mortgage! I shredded the offer. Don't want it, don't need it.
 

·
Registered
Joined
·
9,412 Posts
I agree they are very desperate, I paid off my CC that had a $3,300 limit, next month I see my credit limit went to $7,300, like do they think giving me $4000 more credit is going to make me spend more? I think not! :)
 

·
Technical Support Sleuth
Joined
·
6,481 Posts
I wouldn't agree that this makes them desperate---it's their job. The jobs of banks/credit cards are to turn a profit off the interest made on loans, credit cards, etc., as well as the fees charged on their services.

Many credit cards companies and banks do this in an attempt to earn more interest money. The trick is to not fall for their tricks.
 

·
Registered
Joined
·
966 Posts
I remember a funny part in one of Dave Ramsey's books... something about a bank being the only place where a person has to beg to become a customer by proving he doesn't need their product :crackup:

Isn't it true though, now they see you don't need them, they start BEGGING you to borrow money!!!
 

·
Registered
Joined
·
491 Posts
We get those types of offers and limit raises all the time. It's so ridiculous. My favorite is when consolidation companies call me and argue about whether or not I have debt to consolidate. I tell them I don't, they won't believe me. "You must have something...a credit card, a car loan..." No! We do not borrow money! We have a mortgage, that is all, and that's going away as quickly as I can make it go away.

It's kind of sad that in today's world, those of us who don't believe in owing anyone anything are the odd ones out.
 

·
Registered
Joined
·
8,935 Posts
Its true. They want to make it feel like they are REWARDING you with a higher limit now that you've paid the first balance off - um no thanks. Im not a dummy. I dont need no stinking youngin calling me non stop to ask for payments (if they're late) NOR do I want them calling me to OFFER me credit. I just flat out told them thats great, do no raise my credit limit or I will report you to your mgr (of course after I was pre-approved for an increase) but that when I DO need more credit, give it to me then. The poor kid had no clue what I was going on and on about. :laugh:
 

·
Registered
Joined
·
9,412 Posts
I also get those your approved for yadda amount of dollars for a new car, home refinancing, blah blah blah... I know it's how they make money but I haven't responded to the first 50 they sent, and I am not replying to the next 50 either. They just keep wasting paper and the cost of postage sending that to me.
 

·
Registered
Joined
·
261 Posts
We get those, too... We're actually talking about calling and having them reduced because in a few years we want to get a house...and your credit lines count against you when you go for a loan (whether you have charges on them or not). (Dh is an Accounting major...he was shocked to find this out!).
 

·
Registered
Joined
·
264 Posts
Our bank did the same thing. They bumped it up 3,000 after we've been paying it down for months. I've never used the max on it to begin with and I'm certainly not going to do it now!
 

·
Registered
Joined
·
2,079 Posts
ive been paying down my bank of america and they raised my limit by 8000. um people im a partime working SAHM so my limit is now like 7000 more than i make a year LOL. but i just ignore it and keep paying it down
 

·
Registered
Joined
·
2,811 Posts
I think they are just terrible........ They gave my exhusband a target visa with a credit line of 5000. He didn't have a job and hadn't worked in 12 years.... He maxed it out. He finely got a job and ended up paying close to 9000....... Stupid you never use something you can't pay back.
Fern
 

·
Registered
Joined
·
301 Posts
Yeah... our bank has done the same thing. It's usually around the time when we get taxes back and pay most of the card off. But i has helped a lot... especially last year when my mom died and we had to pay for tickets from RI to Hawaii, hotel, car, food... it was hell... but we paid a lot of it off this year and they raised out limit by $1500. Since I paid them most of what we owe I expect to get something in the mail telling us "Congratulations!" ...it's raised again.


:screwy:
 

·
Registered
Joined
·
9,412 Posts
We get those, too... We're actually talking about calling and having them reduced because in a few years we want to get a house...and your credit lines count against you when you go for a loan (whether you have charges on them or not). (Dh is an Accounting major...he was shocked to find this out!).
Can you explain exactly what you mean? I have quite a few open account all with a $0 balance but with a total of over $40,000 total credit available to me (counting all credit limits into 1). I want to close more account but dont want it to effect my credit score (I have 779). TIA!
 

·
Premium Member
Joined
·
9,446 Posts
When banks evaluate your finances before allowing you to get a mortgage with them, the take into account not only your credit score but also how much "open credit" you have available to you. Sure, you may have $40,000 in open credit & zero balances...but the bank looks at it from the perspective of: that's just $40,000 you can put yourself in the hole very very easily ;)

So having open credit doesn't hurt your credit score, but it does make the bank scrutinize (sp) you a bit more when you go for a loan.

HTH
 

·
Registered
Joined
·
966 Posts
Tracy, if you have a credit score of 779, I wouldn't worry about it.

I was told that a when your score is that high, mortgage underwriters feel that you are smart enough with your money that you won't take on more debt than you can handle. It's something to be proud of!

The last time I checked, mine was 710. I never take on more debt than I can pay, but I do hope to see the score go up as the debt ratio goes down.
 
1 - 19 of 19 Posts
Top