Background: I have an approx. 10 year old Bank of America credit card account with a $6500 limit. This card (like my others) has been maxed out for the past couple years because life, so as you can imagine, my credit rating wasn’t the best (~ 600).
Well, I had a plan in place to do something about it: use my first work bonus (which I’d been waiting 2 years for) to pay off a big chunk of my CC debts, thereby decreasing CC utilization + debt/credit ratio and boosting my credit.
Or so I thought.
After making the planned big chunk payments last month, my credit utilization fell from 103% to approx. 50%, and my credit score jumped 40-50 points. Great right? Well, BOA rewarded these positive steps by reducing my credit limit to $2500, which completely negates my credit utilization.
What the actual you know what? Had I known, I would’ve kept the $4000 for an emergency fund, since we’re living paycheck to paycheck, and I have a wife that can’t work due to health issues, and a 2 year old. Part of my reasoning for making these moves is also to move to a better neighborhood for our child, before they start school.
How are people supposed to get ahead in today’s economy with credit card tactics like these? I understand my credit history isn’t the best, but why on earth punish me for making moves to improve it? How is this legal? I feel so defeated; it just isn’t right.
Has anyone also experienced this? I know I can appeal and ask for my old limit to be reinstated, but does anyone have any tips in that regard or otherwise?
Thank you all in advance.
original posted by WannabeIntelectual to r/personalfinance on Fri, 01 Mar 2024 19:59:13 GMT.