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Hooters dropped CL After $600 Payment


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I had a $1900 CL, and the balance was $1894 (never late, never over limit). Had the card for over two years and this was the highest balance yet. This week I got my Christmas Bonus of $500. I paid that, and an addtional $100 for a total of $600 to Hooters. The next day my limit was reduced by $600! My new balance is now my CL, and I have zero credit available. Hooters says it was due to 'high utilization', and indicated that it may drop more as I pay it down and there was no way to tell.

Now I am at my credit limit, and any interest on this cycle (mine ends the 22nd)will push me over my 'new' limit resulting in an overlimit fee and a potential rate increase. They asked if I wanted to make an addtional payment (above the $600 that I made Friday) to insure that I do not go over my limit ???? WTF?????

At this point at 25% interest I am paying it off over the next few months and giving Hooters the boot. I will never use this card again, nor will I ever spend a cent at a Hooters establishment.

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OMG< I am with you, WTF is the problem? I have heard of other people doing this as well, I wonder if it is just credit challenged people? I just got approved by citibank for a shell plat mc for 6g's I bet they will lower mine once they give it to me, but i will close it! That is crazy I didn't think they reserve the right to lower it only when people are default or breaking the agreement in someway, I think it is a "lets get em back" thing for paying a big amount at one time! Very weird, I have even heard of people on here with LOWER limits and still get the lowered CL, I don't think it is right! Write to the CEO if you have too, that seems to work!

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Guys, I don't mean to be a party pooper, but I've had my Merrick card since 2003, and it started at $1000 or $1200 and is now $2500. Every time I get a big chunk of money together and pay the card off, they raise the limit. In fact, I think they raise the limit regularly regardless of whether it's paid off/down or not, but I've noticed limit raises especially after I make big payments. I have no idea why people have had different experiences, but I wanted to stick up for Merrick. Not that I particularly like them - but they've never lowered my limit.

They did raise my rate, and I don't know when it was, and when I called to ask they acted like they had no idea when or why it was. I asked if it was a "punishment" for paying late once or twice (I didn't go 30 days but paid after the due date a few times, because I remember calling to get them to reverse the late and/or overlimit fees, that can be successful the first time but generally not thereafter, or they'll extend that courtesy once per year or whatever) and they said it was not a punishment. But my rate is about 33.20%!!!!! It never was low, but it didn't start out that high!

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