Don’t you just love form letters? I received one in the mail a few days ago from Citibank. Apparently, they’re thrilled to let me know about my new credit limit!

We’re pleased to inform you that your new credit limit is $20,000!

Yeah, I bet you’re pleased. What they failed to mention was that my former credit limit on that card was $65,000. Geez, and I was just about to go buy a new BMW with that card … yeah, right, after all I’ve been through ^[2].

Since I don’t use it, it really was no big deal and I’m not worried about my credit score ^[3] because, like I mentioned a couple of days ago, I don’t plan to use credit in the future ^[4], at least not the type of credit generally put on a credit card.

What about credit utilization?

That’s really only one component of your score and ZERO divided by 65,000 is the same as ZERO divided by 20,000. Again, I’m not worried.

My question is this: what genius thinks that anyone needs a credit card with a $65,000 limit? I never asked to have my limit raised that high and I’ve never even been close to the card’s original limit.

What would have happened if I HAD charged up $65,000 and was making regular payments and being a good little customer for Citibank? Right now I would be getting hit with over limit fees. I would be paying a boatload of interest, and I would be up to my eyeballs in debt. No thanks.

What gets me is that Citibank and dozens of other banks and card issuers around the country are pulling this same stunt on millions of people. After a trip to the mailbox, others are getting those “new credit limit” letters and finding themselves in hot water because their new limit is less than their current balance. Just remember, credit card companies are not your friends ^[5].

Hey, Citibank, I tell you what. Let’s just go ahead and cancel that account. I’ll be mailing the card back. My credit report and my credit score ^[3] aren’t dependent on your “generosity” and it’s one less way I can become a victim of identity theft.

I know who my real friends ^[6] are, anyway.

About the author

Ron has written 1083 articles on The Wisdom Journal.

The founder and editor of The Wisdom Journal ^[7] in 2007, Ron has worked in banking, distribution, retail, and upper management for companies ranging in size from small startups to multi-billion dollar corporations. He graduated Suma Cum Laude from a top MBA program and currently is a partner in a national building materials company.

If you enjoyed what you just read and would like to get FREE email updates with the freshest articles from The Wisdom Journal ^[7] delivered right to your inbox, subscribe today ^[8]! It's ridiculously easy and you can unsubscribe at any time. Since your email address is never sold or abused, you can subscribe with confidence, PLUS you'll get free reports/guides/eBooks, subscriber only benefits, and other perks.

• Blog ^[7]
• Twitter ^[9]
• Facebook ^[10]

_{»crosslinked« ^[11]}