Talk about a “perfect storm”. In April last year I got a letter from CITI that our “credit facility” or commercial line of credit was being frozen. We had a limit of $240K and we were currently using 23K of this. We were prohibited from writing more checks and our credit limit was reduced to outstanding balance. Pretty simple stuff.
What i never would have never believed is the effect this had on my credit score. When we had 23K on 240K limit we were using 10% of available…suddenly we were using 100% of a 23K limit. In two months i lost 35 points and went below 700 FICO…the first time in 22 years. This in turn made my personal cc’s reset from 6.9% to 19.9% and over doubled my payments.
We have gotten the line of credit down to 9K and my personal cc’s to 12K but I am very upset. These credit companies acted legally but their actions had unintended consequences for me.
I am thinking of telling my credit card companies to stick it…either reset my old rate or kiss off. I am livid.
Anyone else have any experience in this kind of thing?
Frustrated…and to make matters worse my 19 year old has a 45 point HIGHER FICO score! OMG I think of this as force fed humility LOL