Personal Finance

anyone had their Sears MasterCard limit decreased this year?

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  • Jun 21st, 2010 11:43 pm
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Sr. Member
Aug 30, 2007
960 posts
15 upvotes

anyone had their Sears MasterCard limit decreased this year?

I got the card Dec, 2008 with a limit of $5000, throughout the year used it frequently also paid it on time, most of the time in full. I had my credit decreased to $3900 Feb 2009, and yesterday I got my bill and found out its been decreased to $600!!?? Just the previous month I used it for $3500 and paid it in full.

my creditscore have not changed much, and I have not missed any payment with other cards, or did I get any new cards throughout the year.

I only have two cards which I got right after school
capital one card - $750 which the agents said they won't be increasing anyones limit
Sears card - $600 limit

Should I cancel these two cards and apply for a card like mbna which increase limits fast? or is there a company that increase limits faster then mbna?
27 replies
Deal Addict
Dec 31, 2009
1568 posts
130 upvotes
I don't have that card myself, but I find it interesting what has happened to you. Is the Sears Mastercard issued by Chase?

I wonder...did you get a cash advance on this card? Just asking because the young guy who does work for me told me that his Citi MC dropped his credit limit within a week after he got a cash advance. I think he said he had the card about 4 years, his limit was raised a couple times over that period to $5k, then something happened and he needed $800 fast. So he got a cash advance on it somehow. Next thing he knows they dropped his limit to $1500 or something like that. (I don't know how honest that is. That's just what he told me.)
Sr. Member
Jul 29, 2009
895 posts
14 upvotes
I wouldn't cancel the cards unless you're paying fees on them. Having them still reporting to the credit bureau will help your rating.

I've found CIBC to be pretty good about giving credit to people with little or poor history. They approved me for $1,000 in Dec '08. I asked for an increase to $5,000 in July '09, and a few days ago I received a letter from them offering to increase again to $7,500.
Deal Fanatic
Apr 15, 2004
5428 posts
66 upvotes
Toronto
Cancel them if you don't need them. More cards equals more chances of identity theft.
Deal Addict
Feb 7, 2002
1444 posts
78 upvotes
Scarborough
I have a citi card I have used in 2 years, my limit dropped from $28K to $1K, not sure when since I don't get statements when I don't use it, I was going to cancel it, but I get it with no annual fee... new customers have to pay $60/yr or something...
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Jr. Member
Nov 11, 2006
147 posts
27 upvotes
chen0289 wrote:
May 14th, 2010 11:18 am
I got the card Dec, 2008 with a limit of $5000, throughout the year used it frequently also paid it on time, most of the time in full. I had my credit decreased to $3900 Feb 2009, and yesterday I got my bill and found out its been decreased to $600!!?? Just the previous month I used it for $3500 and paid it in full.

my creditscore have not changed much, and I have not missed any payment with other cards, or did I get any new cards throughout the year.

I only have two cards which I got right after school
capital one card - $750 which the agents said they won't be increasing anyones limit
Sears card - $600 limit

Should I cancel these two cards and apply for a card like mbna which increase limits fast? or is there a company that increase limits faster then mbna?

They did the same thing to me , limit from 2000,00 to 300$ , Called them , they said that it was a protection against the financial crysis , Didnt used my limit in the last 2 years , so they protected themself by lowering my limit ..Afraid of bankruptcy from many customer..Having the card for over 15 years with a great credit score .... I cancelled the card right away.. Too bad sears ..you so *****
[OP]
Sr. Member
Aug 30, 2007
960 posts
15 upvotes
godrack wrote:
May 14th, 2010 2:24 pm
They did the same thing to me , limit from 2000,00 to 300$ , Called them , they said that it was a protection against the financial crysis , Didnt used my limit in the last 2 years , so they protected themself by lowering my limit ..Afraid of bankruptcy from many customer..Having the card for over 15 years with a great credit score .... I cancelled the card right away.. Too bad sears ..you so *****
yeah the card is issued by CHASE.... Have done one cash advance month after I got the card and never since, wtf I can see them doing it to bad credit ppl, or people's score thats been decreasing overtime. But gezz whats the point of the credit scores or past payment history if their doing this to EVERYONE... Theres no fee to this card so I will just leave it and hope they increase it backup soon....

when I called Sears or Chase the agent said it was due to combination of things that the limit was decreased from credit score, financial situation, payment history.....
Deal Addict
Dec 31, 2009
1568 posts
130 upvotes
chen0289 wrote:
May 14th, 2010 2:32 pm
when I called Sears or Chase the agent said it was due to combination of things that the limit was decreased from credit score, financial situation, payment history.....
Well, I know I would be pissed if one of the issuers ever did that to me. So I feel badly for you.

I hope Canada is not going to go thru what they did in the USA in the last year or so (and maybe they're still doing). Most issuers were decreasing credit limits like wildfire, even to their best customers.
Member
Dec 21, 2007
389 posts
8 upvotes
Hamilton
Ours has been left the same and we just got cheques to use in the mail. With it they even offered to UP our amount.
Deal Fanatic
Aug 27, 2004
6341 posts
92 upvotes
Toronto, ON
Same thing happened to my very very very rarely used card. Went from $5000 to $400. I feel dirty and insulted, so I'll probably call them to cancel the thing at some point...
Deal Fanatic
User avatar
Jan 11, 2008
7023 posts
662 upvotes
GTA
I got an upset call from my mother as the same thing happened to my her. She's had a Sears card probably for 20 years or more (however the issuer likely changed during the time she had it).

Sears called her to renew her warranties on her Sears appliances (no sense talking to her about warranties as she thinks they are a good idea). So she agreed to renew them and they tried to put the charge on her Sears card but it was declined as her limit had gone from $5,000 to $300. My mother has always paid her balance off in full each month and never had a late payment on that card or any other. She was upset and was told this was because of the economy they were lowering limits for many people.
Deal Addict
User avatar
Aug 14, 2001
2259 posts
412 upvotes
Yesva Scotia
When will sears stop shooting themselves in the foot?
Deal Fanatic
Feb 21, 2006
5148 posts
97 upvotes
My daughter got an hbc store card (Bay - Zellers etc.) in 2007. She had no credit history and no job. In 2008 they decided to automatically convert all of those store cards to hbc Mastercard (issued by GE Capital), and she was automatically given a $10,000 limit. No credit history. No credit checks. Good grief, what were they thinking?!

They haven't reduced her credit limit since. She's still a student with no job. Maybe you should look for other cards issued by GE Capital if you need easy credit!

On the other hand, my mother, who has a 6-figure investment income and owns her own $million home with no mortgage, has a lifetime perfect independent credit history, has been turned down for new credit cards since she retired because she doesn't have a job. Go figure.

So it's not just Sears. The credit card issuers are all insane, apparently swinging wildly between blind optimism and idiotic panic.
Deal Fanatic
Aug 27, 2004
6341 posts
92 upvotes
Toronto, ON
Aske001 wrote:
May 16th, 2010 12:05 pm
My daughter got an hbc store card (Bay - Zellers etc.) in 2007. She had no credit history and no job. In 2008 they decided to automatically convert all of those store cards to hbc Mastercard (issued by GE Capital), and she was automatically given a $10,000 limit. No credit history. No credit checks. Good grief, what were they thinking?!
Hmmm... they've only switched some HBC cards. Mine didn't get switched to the HBC MC. They did switch my Sears one to this Sears MC that I'm about to cancel...
Deal Addict
Dec 31, 2009
1568 posts
130 upvotes
I have an HBC in-store card and I think I would reject being upgraded to the MC version. Having an in-store account (i.e. non-Visa/MC/Amex) on your report shows diversity, therefore helping your score a bit and is looked up fabourably by potential lenders. That's the only reason I have one.

Besides, I don't think they can do that any more without your prior permission. Not since the new law went into effect.
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