If that is how GEMB functions, then I think they are just plumped crazy. Why reduce a limit until you find out why you reduced it? It seems to me that they should reduce it because of how well you have been handling your overall credit with them and others (through soft pulls). So if they find out if the consumer has low limits, or no baddies, do they put the amount back?

Psssss, you know what? Duuhh, I don't even know why I asked that question because I have not heard anyone here say they had their original credit line reinstated.

When GEMB CLD's an account, they reduce it to a certain limit so they can verify why they reduced the limit. Each limit represents a different CLD reason but $124 seems to be a popular limit nowadays.

i had my gap card (gemb) limit reduced from 500 to 124. i never received notice in writing. i just noticed it on my transunion report today.

i hadn't used the card since feb 08. i'm not entirely surprised. although this is the first time i've seen a limit that doesn't end in 00

other than that, all my accounts have been intact.

5/11/2009

Hi skeeewee08, we are so glad you found us. HJM is correct, GEMB has been slicing and dicing a lot of peoples credit, I just sit back and bite my fingers as I always do, because I know any day now I will be next. That is how much they have me scared, I have a ton of GEMB cards.

Thanks for sharing that piece of info. It's good to hear that he has a credit card through a CU with a very nice limit. You also did a good job of helping him get a signature loan and that adds diversity onto your credit reports so that will get you some points.

I have heard of other members on this site call-in and have their annual fee waived. Have you tried doing that? It's definitely worth trying since you don't have anything to lose.

If you have other questions or thoughts that you would like to share, please don't hesitate. Everyone is down to earth here and will make you feel at home.

Hello hjm331

Yes he does have a Visa $5,000 limit threw the Credit Union; and he has an Orchard Card $300.00 he got back in 2006. It is paid in full since he has the Visa with the CU. But it did help him in his rebuilding process but it has an annual fee, and he wanted to close the Orchard Card but I explained to him to keep it open until he get's above the 700 mark:cheesing:. That is our goal.

I really enjoy this site.

Welcome to FG Skeewee! I'm glad that you're helping your husband rebuild his credit. When you have a chance, browse through the forum and you will find many topics with very useful info.

GEMB has been reducing a lot of CL's including the Dilliard's card. If he has no use for it and hasn't had it for a long time, he should close the account.

Also, do you have any bank cards such as Visa, MC, AMEX, or Discover?

First I want start by saying that I am a newbie, and that I am glad I found this site.

I am currently working on rebuilding my husband's credit, he has been doing very well the last year. I work at a Credit Union so I was able to get him a Credit Card here and a signature loan to help in the rebuilding process.

March 2008- TU Credit Score 590 December 2008-647. So in June of 2008 we decided to apply for him a Dillards, Target & JCP card he got approve with 150.00 from Dillards & $200.00 from Target & $100.00 JCP. Since then Dillards lowered his limit to $100.00 and Target incresed it to $500.00 & JCP $600.00. Go figure.

The Future of Lending and FICO Scoring

For the past week, I've been thinking about how lenders can limit their exposure without losing business in the future when the economy starts seeing daylight.

Let's say I have a BoA credit card with a $5,000 limit and my monthly spending average is about $3,000 and I pay in full. Thinking how consumers live now, I would request an increase to at least $6,000 to decrease my utilization from 60% to 50% since it would hurt my scores if I were to a carry a balance for a month or two. But, what if Fair Isaac changed their scoring system and did something about utilization. If utilization didn't make-up a large portion of my FICO score, I wouldn't be worried about my FICO scores decreasing if I were to carry a balance. Also, BoA would be able to see that the $5,000 CL they have issued me is sufficient for my expenses and that would limit their exposure to consumers who are racking up charges and aren't able to pay it back.

If Fair Isaac is able to make that change, banks would not be be struggling and would profit from merchant fees. We also wouldn't have to worry about experiencing another recession in the future. Banks have to stricken their underwriting and do the math. If they become conservative, everyone will be happy. Sure, consumers won't be happy because they have limited spending power but it's a matter of getting used to it.

A good example is AMEX and Discover. The reason why AMEX is struggling and reducing CL's left and right is because they issued CL's far more than the consumer's income. They overextended their exposure and now they're doing something about it. If they had a solid plan from the start, they wouldn't be in this mess right now and would be competing against Discover. Discover on the other hand has always been a conservative lender and that's why they are in a good shape. Chase is also in a good shape because it's their policy to pull the consumer's report when they are asked to increase a CL. The fact that they pull your report for a CLI makes the consumer think twice about asking for a CLI in the future.

If Fair Isaac changed the way they score credit reports, consumers wouldn't have a need or desire for large credit lines. Consumers are so worried about how utilization will impact their credit scores especially when they're going to buy a car or home. I know for a fact that it's possible for Fair Isaac to make this change since they tailor their scores to the banks' underwriting specifics as long as the banks take this into consideration.

I agree Meya. How is it going to look on my CR when I have a card with a $100 cl when I have one with another store for $6000 cl. Their gone, I'm finished with GEMB I don't care what it does to my scores.

I can clearly understand the frustrations and for closing an account that has left you with under $100 to charge with. History or no history, they would have to go. What about those whose cards they are decreasing, and their util was not high? Well with the cld, that is going to lower their scores and chances at cli's with their other creditors. I refuse to hold on to a card like that. I have been with GEMB for a long time, and the moment they hit my cards by slashing them down to a limit that is lower than my feet, they can go too. The less, the better, and since I am not out card-hopping, the scores drops will only hurt slightly and my others will bring it right back up.

Sg, just because GEMB reduced your CL's doesn't mean that you're not building credit. As long as the account is open and reporting your account as current every month, you are building credit and payment history is the most important aspect of your credit scores/reports.

Many consumers make the mistake of closing their accounts when their CL is reduced. They don't realize that they're better off the account open and building history rather than having the account closed.

HJM, understand and agree with you, I am just a little upset with GEMB for closing my LOWES they could have just lowered it. I will just put my old navy, gap, and dillards in the sock drawer for future usage. I hope they will forget I have a walmart (they gave me cli in Jan.) and JCPENNYS. Thank you for helping me stay focus.

Sg, just because GEMB reduced your CL's doesn't mean that you're not building credit. As long as the account is open and reporting your account as current every month, you are building credit and payment history is the most important aspect of your credit scores/reports.

Many consumers make the mistake of closing their accounts when their CL is reduced. They don't realize that they're better off the account open and building history rather than having the account closed.

I've heard accounts getting closed as early as 3 months. How did you find out that your account was closed? Did you receive a letter from GEMB stating the reason as to why they closed your account?

Since other GEMB card holders have mentioned they have gotten cld I decided to start monitor my accounts. I have yet to receive letters indicating as to why. I wanted so badly to re-build my credit but I am now afraid to even charge things. I have not given up on my goals, it's just going to take longer now.