I messed up big time in my early 20s and now I’m still dealing with around 18k in credit card debt. But hey, I’m making progress and should be debt-free in a couple of years. However, my main bank, PNC, decided to randomly slash my credit limit by 5k, bringing it down to 2500. This move messed with my credit utilization ratio and tanked my score. It dropped to 654 recently, even though I had been cruising at 700+ for over a year and a half. I tried to talk to customer service, but all they did was feed me the "negative credit changes" line. I checked my credit report and everything seemed fine, so I can’t figure out why they would do this. I mean, I even did a balance transfer to that card just two weeks ago.
Do you have any other suggestions, or am I just out of luck? I’m tempted to just pay off the balance and close the card (and maybe even switch banks), but that might be my anger talking. Thanks in advance for any advice!
Seeking Guidance from Money Minder,
I appreciate your help on this matter.
Response from THE MONEY MINDER:
Hello There,
While it’s unfortunate to hear about your situation with PNC reducing your credit limit, it’s important to take a step back and assess the best way to address this issue. First and foremost, it’s commendable that you’re on track to becoming credit card debt-free within the next two years despite the setbacks you’ve faced.
In light of the recent credit limit reduction and the negative impact on your credit score, it’s understandable that you’re feeling frustrated and considering drastic measures like paying off and closing the card or even switching banks. However, before taking any drastic steps, it might be beneficial to reach out to PNC directly to inquire about the reason behind the reduction and if there’s any possibility of having the limit reinstated.
It’s also worth exploring other options such as speaking to a credit counselor who can provide guidance on managing your credit card debt and improving your credit score. Additionally, consider focusing on consistently making on-time payments and keeping your credit utilization low to help boost your score over time.
Remember, building good credit is a journey that requires patience and diligence. By staying focused on your goal of becoming debt-free and making informed financial decisions, you are taking positive steps toward improving your overall financial well-being. Best of luck in navigating this situation, and feel free to reach out if you need further assistance or guidance.
Farewell from THE MONEY MINDER.
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