HSBC’s “business decisions” not helping consumers

I thought I’d post a blog since I’m on vacation and actually have time to do so. Perhaps I’ll post another about the week’s festivities if you’re lucky, but this one is about credit cards and the timely topic of creditors and their lending practices. I thought the whole point of the stimulus package and moving the economy forward was to get creditors to lend MORE credit, not cut it back further. Let’s examine a case study of HSBC, a creditor with which I have two credit cards. The situation: HSBC reduced my available credit from $2,000 to only $300 for no apparent reason other than they had made a widespread “business decision.”
Essential information: I have had this account for at least two years, if not longer, and have never been late on a payment.
The dirty details: I screwed up my credit in college, and that’s why I got some higher risk cards–to improve my credit. I have been paying down my debt since, and I in doing quite well considering where I was. I have to say I am disappointed with HSBC because I am so much better of a candidate for credit than I was when they gave me the card.
Why it matters: for those of you who don’t know, it is bad to use more than 50% of  any one card’s credit or more than 50% of you total available credit on all cards put together. This is called your debt-to-credit ratio. Your credit score is all a game, and many factors can screw it up.
Now, this credit card generally carries no balance, save for work purchases or a plane ticket now and then, but now I can hardly use it at all because anything I buy that I would use a credit card for could be more than the credit limit, much less 50% of it. What really steams my clams is that I have $1,700 less in credit to factor into my ratio. I am still paying off debt, so the more available credit I have that I don’t use, the better it is for me. This change is a serious negative factor, and I have nothing to do with it. So, after all of my loyal customer service and credit history, and after all of my logical explanations to them of why I needed it restored, I am left in this pickle sandwich. I have no choice but to publish negative press about then on here because I feel it is unjust. FYI: another card did this to me too, but they actually went out of business, so how can I fight that? The bottom line is, be cautious of your creditors, especially HSBC, in this economy. They may not be as reliable for emergencies as you think.

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One Response to HSBC’s “business decisions” not helping consumers

  1. Allison says:

    Also you and your readers should be aware of the Universal Default Clause. If a person is late on any credit card payment, any of their creditors have the right to increase their interest rates even if the late payment was not on the specific credit card. Congress is working on repealing this but currently it is still in existence.

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