Damn Best Buy, Damn Credit Crunch.

[Yoni]

So I found out today that Best Buy decreased my BB credit card limit from $1100 to $605 I found this out when I tried to buy some DVD's and games but my card was declined. I call BB credit card services and they can't tell me anything other than they will send me a letter in the next 30 days as to why this happened. I had never been late on a payment in 2 years, I've paid the thing off twice and often pay more than the minimum amount. This really sucks since I was planning on buying a PS3 in a few weeks. Now it will wait it till my birthday and then I'm closing my account.

[pchilson]

Don't close your account, just pay it off and quit using it. Closing accounts can affect your credit rating.

[Mr.Reed]

Why does you credit limit have to be above $1000? That's just absurd for a place like Best Buy... if you are spending more than half your limit on a card you might want to step back and evaluate spending.

[Yoni]

Originally Posted by pchilson

Don't close your account, just pay it off and quit using it. Closing accounts can affect your credit rating.

that's the current plan actually.

[Yoni]

Originally Posted by Mr.Reed

Why does you credit limit have to be above $1000? That's just absurd for a place like Best Buy... if you are spending more than half your limit on a card you might want to step back and evaluate spending.

It didn't. I've never gone up to that limit. Best Buy increased it a few months ago.

[TDPRI]

You're 26 and when I was your age I didn't know either -- but they're doing you a favor. If you can't buy that stuff without going into debt, you are better off with out it.

Do as you please, but here's a suggestion, don't buy anything with any credit card that you aren't capable of paying cash for right then -- and hence expecting to pay off at the end of the month when you get your bill. In other words, using a credit card for convenience of payment, not for adding to your overall debt.

Credit cards and credit have their place and are useful financial tools. But going into debt to buy some DVDs or a PS3?

[HOBBSTER01]

Originally Posted by TDPRI

You're 26 and when I was your age I didn't know either -- but they're doing you a favor. If you can't buy that stuff without going into debt, you are better off with out it.

Do as you please, but here's a suggestion, don't buy anything with any credit card that you aren't capable of paying cash for right then -- and hence expecting to pay off at the end of the month when you get your bill. In other words, using a credit card for convenience of payment, not for adding to your overall debt.

Credit cards and credit have their place and are useful financial tools. But going into debt to buy some DVDs or a PS3?

Written by a very wise man.
Take heed.

[Colo Springs E]

Originally Posted by pchilson

Don't close your account, just pay it off and quit using it. Closing accounts can affect your credit rating.

Yep you're correct. One little side note is, even if it's Best Buy who closes it, it also negatively impacts your rating.

And, them lowering his available credit from $1000 to $600 also likely hit his credit score.

Nice, huh?

[Mr.Reed]

Originally Posted by Colo Springs E

Yep you're correct. One little side note is, even if it's Best Buy who closes it, it also negatively impacts your rating.

And, them lowering his available credit from $1000 to $600 also likely hit his credit score.

Nice, huh?

It's a choice to play the game... best know the rules when you start.

[Colo Springs E]

Originally Posted by Mr.Reed

It's a choice to play the game... best know the rules when you start.

LOL whatever!

I could not even have the job I have without a credit card (I travel on business and it's not all direct-billed). Kinda hard to know all the rules when there are so many, they're all in small print, and by they way they're constantly changing. Add to that it's corporate attorneys writing the rules and I think it's pretty fair to say there's something of a competitive disadvantage the "little guy" is at.

[prawnik]

Originally Posted by Colo Springs E

LOL whatever!

I could not even have the job I have without a credit card (I travel on business and it's not all direct-billed). Kinda hard to know all the rules when there are so many, they're all in small print, and by they way they're constantly changing. Add to that it's corporate attorneys writing the rules and I think it's pretty fair to say there's something of a competitive disadvantage the "little guy" is at.

OK, fair enough. If the deck is stacked against you and you have to play, use your card as little as possible and only for business if that can be accomplished.

Otherwise, if you play a game you (know you) cannot win, you are asking to get rooked.

Spoken by a corporate attorney.

[tomringg]

Having open, unused credit cards/accounts may also hurt your rating & ability to get further credit if you need it. If you want to get a car loan, but have a considerable amount of potential debt through available credit cards/lines, the potential loan source may decline your loan or charge a higher rate. Seems like you are darned if you do & darned if you don't. The best advice I've heard is to have one or two credit cards, charge a little per month, pay it off in full every month.

[squeezebox]

Originally Posted by Mr.Reed

It's a choice to play the game... best know the rules when you start.

Actually, best to know there are NO rules that the CC companies have to live by, only the consumer trying to live by an ever changing set of rules.

Remember, with Usury, Loansharks get to change the rules whenever they want.

The only rule that actually matters here is THE Golden Rule...."He who has the Gold makes the rules".

GBA

[stantheman]

Originally Posted by Yoni

So I found out today that Best Buy decreased my BB credit card limit from $1100 to $605 I found this out when I tried to buy some DVD's and games but my card was declined. I call BB credit card services and they can't tell me anything other than they will send me a letter in the next 30 days as to why this happened. I had never been late on a payment in 2 years, I've paid the thing off twice and often pay more than the minimum amount. This really sucks since I was planning on buying a PS3 in a few weeks. Now it will wait it till my birthday and then I'm closing my account.

Heck Yoni - that ain't nuthin' Brother.
Dig this, Yours Truly got zapped down from 4K to 300 bucks!!!

I guess when stantheman's name comes up for credit score Ben Stein goes into cardiac arrest!!!

FWIW - I just lost a judgement to another big "credit syndicate" and I still ain't paying the bums a dime - the way I figure it using "The Bernie Madoff Scale" (stealing over a half a trillion dollars) my "sentence" comes to; putting the cuffs on and taking them off.
Or maybe shaking a finger at me.

[Yoni]

Originally Posted by stantheman

Heck Yoni - that ain't nuthin' Brother.
Dig this, Yours Truly got zapped down from 4K to 300 bucks!!!

Damn!!! That's not a pretty thought.