Never late, paying down my cards=reduced limits every month. HELP!

[jkokes]

Hi!
I'm writing this on behalf of my dad, so forgive me if I get a few details wrong. My dad is a business owner who has been in business for 20 years. 7 years ago, he began construction on a new building for his business and expanded into retail. The business did well for a few years until the economy tanked. At first, we thought it might just be one bad fall season and that sales would rebound in the spring, so he used his personal credit cards to finance the business through the winter. We're still waiting for that rebound, so he's been maxed out on his personal cards for about 2 years. He's never missed a payment or been late for over 20 years. His credit score went from about 770 to 630. This year, we've been able to make some cuts and he's been able to gradually pay off some of his balances. But, instead of this improving his score, the creditors are just reducing his limit EVERY MONTH he makes a payment! So basically, he can't get his score to improve because his available credit is low, and they are continuing to keep it low even though he is paying on time. Does anyone have any suggestions on the best way to handle this? He says he has tried calling the companies, and he is told that his limit is being decreased because of credit scores. When he asks how he can improve his score if they keep lowering his limit, he is told "it's not my decision, it's company policy". He asked to talk to a supervisor, and the person told him that they are not allowed to give out supervisors names or transfer calls to them. Any and all advice will be appreciated!

[freedomwon]

I am a business owner myself & need to float about 14k every other month. Each time I would charge the money, I would usually pay it back in about 3 weeks. I also started getting my credit limits decreased on my cards with a 820 credit score. That is truly unjust! I did just as your father did, called my credit card companies & got a complete run around. I did beat them at their own game for about a year. In order to do that, I had to wait longer to pay my 14k, then I would turn around & charge it again 5 days later. It was the only way I could keep them from decreasing my limit. All it took was once for me to miss that cycle I had created & boom my credit decreased. I eventually lost interest in "playing the game".

[TomEason]

I can relate to this vicious catch 22 credit card bankster game, having experienced it myself. My advice to jkokes. Don't you or your dad waste time on the phone with your banks. A more efficacious way to communicate is with upper management by letter. That will save time, and will get your appeal to the right level (one high enough to make a decision). You may still not achieve your desired result, but not for having tried. Contacting the senior management officer in the appropriate channel at the bank is your best hope.

[Calli09]

Sorry to say, the banks have been doing this to everyone for quite awhile. What will eventually happen, or is likely to happen, is when he gets closer to paying them off, they will close them. I had the same situation happen to me, due to the economy, and I finally got tired of the endless fees, games, limit reductions even though I had paid on time, etc....and filed Chapter 7. Now they are getting zero $, and I am getting a fresh start! That is only my experience, not a suggestion by no means. Just was "forced" into this due to the economy. They do this to people and it makes an ok situation bad, and by reducing your limit they report it that way to the credit bureaus, and it looks as though you have gone over your limit, even if you never did.......what a sham! More people are going to get tired and throw in the towel like I had to, and perhaps then, when they have no $ coming in, they will consider treating people like they should!