Funny credit card behavior

[catleg]

OK, so the last credit card we (my wife and I) opened before our credit went way south was this little Juniper visa card with a $1200 limit. I've been paying it off frequently to keep the credit available. Today I try to use it at Dunkin Donuts and it's DECLINED. So I call them up, they ran our credit and closed the account.

What's funny is the account balance at the time was a little over $1000 bucks, so their exposure to us was less than $200 additional. Now, of course, I have no motivation at all to pay off that $1000. So here's a case where I had every intent of paying them, even though I am technically insolvent, but because of their pulling the trigger now they won't get paid (and naturally they'll pat themselves on the back for making the right decision). Another victory for credit scoring and credit reporting.

[optimistic1]

Its not really "funny behavior" at all, banks do this all the time. They estimate you as a risk, and assume you won't pay them, so they stop you before you can rack up even more free money.

No offense but, is there a reason you don't have cash to buy stuff at Dunkin Donuts of all places?

[Trixie007]

I have to second Optimistic1's opinion... but I hear what you're saying. DH had a Cabela's Visa that we always paid off every month and hoped would last thru filing BK. It had a 6k limit and I don't think we ever had more than 7-800 bucks charged on it... they closed it out as soon as our credit scores started slipping and we never had a late payment to them. Oh, well!

[magyar123]

Juniper did not close my account but reduced my credit limit from $1000 to $850 with an explanation about my card usage and and the types of transactions that I perform (ed). NO other reason.
Used the card seven times since I received it in late 2007.
Once for a leadfoot speeding ticket - for which I paid with one of those convenience checks.
Three online cigarettes purchases.
Three tickets to NFL football games.
WTF was it about these purchases that triggered these idiots to say "based upon your spending habits/account usage?

[catleg]

Its not really "funny behavior" at all, banks do this all the time. They estimate you as a risk, and assume you won't pay them, so they stop you before you can rack up even more free money.

No offense but, is there a reason you don't have cash to buy stuff at Dunkin Donuts of all places?

Strictly convenience. I hate getting change (coins) so I tend to use plastic whenever possible.

I am aware that banks do this all the time, I just wish that they gave more weight to their own experience with the account.

My point is, a lot of insolvent borrowers incur debt with the intent and even the capacity to pay it. Yet when the creditor terminates the line, the default of the account becomes a self-fulfilling prophecy.

[hnhlvr]

Isn't little purchases like Dunkin Donuts what add up over time and lead to $1,000 balances? I understand you wanting to rebuild your credit, but you already racked up an additional $1K. Seems that your cycle could start all over.

Just a thought!

Maybe try a secured card to rebuild your credit.

[catleg]

It's a long story, but believe me, dunkin donuts did not get me where I am today!

Everyone deep in debt has their own sad story, but I think what hasn't been addressed nearly enough in the media is how reckless the automated administration of credit card lending has become.

For example, when my mother in law died, living in subsidized housing in NYC on $800 a month in social security, I discovered she had a visa card with a $25k credit line. I guess without any debts she had a great credit score, and lived in a wealthy zip code, even though she was not.

Granted Juniper might maybe have made the correct decision, in the long run, but in the short run they just caused me to stop paying on a balance that I otherwise was enthusiastic about paying. I have a personal vendetta against stupid corporate behavior, and I think this qualifies.

You know, if they had just reduced the line to a dollar more than my balance, I would still have an incentive to pay. But closed? C'mon seriously.

[rockyroad]

HA! I used my AMEX everywhere! Taco Bell, a movie rental, a pack of gum, and yes even Dunkin Donuts!
For me, I was earning those points for every dollar spent and I had a receipt to track every single purchase.
Sometimes I felt silly for using a credit card for a buck purchase, but it was the only way for me to account for each and every dollar spent.
Anytime I ended up with cash, I could never actually remember what happened to it or where it went.
And no, these everyday purchases did not get me to where I am today...it was personally guaranteeing business credit.
Even after I file, I will only use a debit card. I'm just not a cash type of person.