It looks like credit card companies are cracking down hard on unused credit. As I had blogged about previously, Citi had began charging an annual fee for inactivity. I actually called in this past weekend and inquired about switching to a different account with no fees. Unfortunately the customer service rep told me that it didn’t really matter which account I switched to, I’d be getting a similar letter soon afterwards telling me about the inactivity fee. I ended up closing that account. I believe I had about $6,000 in credit limit on that card.
Today I received a letter from American Express stating:
We’re writing today because we noticed that you’ve only been using a small portion of your available credit limit. To more closely match your spending history, we have adjusted the credit limit on your account to $6,500.00 The cash advance limit is $1,3000.00. If this new credit limit is not sufficient for your business, please call us at 1-800-660-2454 between the hours of 8:00am and midnight Eastern Time, Monday to Friday.
I believe my previous credit limit on this card was either $10k or $11k, so basically reducing it in half. Technically, I only put about $100/mo on this card, and mostly for gasoline purchases since it gives me 3% back instantly.
Banks must be hurting.