- Report: #338584
Report - Rebuttal - Arbitrate
Complaint Review: JCPenney Credit Management Department
JCPenney Credit Management Departmentwww.jcpenney.com Nationwide U.S.A.
JCPenney - JCPenney Credit Management Department JCPENNY HORRIFIC OUTCOME ON HOW IT WILL AFFECT HOW YOU ARE VIEWED BY OTHER CREDITORS Nationwide
*Consumer Suggestion: ITS ACTUALLY GE MONEY BANK NOT JC PENNEY
If you have a good credit rating with a good FICO score you better be careful with your limits. If you just got a JC Penney card youd better be careful. They probably gave you a credit limit above 500 as with other credit card companies. If youre a person who is credit conscious and wants to take care of your credit and especially if you are working on building your credit or you plan to purchase a home.
KEEP THE CARD AND IMMEDIATELY CUT IT UP AND THROW IT AWAY.
This will show a credit limit and they will not cut you down when you are trying to make the first time homeowner purchase.
I have a good credit rating; well at least I had one till this company caused a domino affect by dropping my credit limits.
How a credit rating works and updates from time to time.
Your credit is based on how you manage your balances, how you spend and repay your accounts and all this will affect your FICO score. Nowadays everything is based on your score and if you are looking into keeping a good score you have to be careful of what you spend and how you maintain your accounts.
You are seen as a good credit risk if you keep your balances in control verses your limits. When your credit balance start to get close to your credit limits you become a credit risk to all creditors. Or should I say you are now a high risk do to the fact that your credit balance to credit limits ratios are high.
You have a credit card with a 5000.00 limit and you maintain it at about 2500.00.
You are at a high limit of 50% limit to balance ratio. The lower the better it is for you if you are building credit for lets say to purchase your first home, get a loan, purchase a car etc.
OUTCOME AND LOOK OUT SAM!
Original Credit limits 5000.00 with balance of 2500.00. Then your creditor all of a sudden dropped your limit to 2800.00. (Which they do to keep you just above the balance) You are now a credit high credit risk. You are at a 90% debt ratio, and you are now in big trouble. UNLESS you have all that money sitting in the bank to pay yourself back down to at least 50% of the balance you will be stuck.
Your creditor can now raise your interest rates, so if you had a low rate its now in risk of being raised. If you get 1 day behind on the payment, you have no negotiating power anymore. You are now a HIGH RISK FACTOR.
This will set off all the bells and whistles with all you other creditors when they do their periodic credit check on your account. You are going to get letters from all your creditors lowering your credit limits in a matter of weeks. COUNT ON IT.
I hope this does not happen to anyone who reads this article and take the warnings.
PROBLEM NOW FACED WITH:
I WAS, and I say WAS keeping a close eye on my credit limit and balances since I was building it up to purchase my first home.
Now that I finally found my home and saved up some funds for a down payment and waited for the right rates to come up I get a surprise from the mortgage broker.
Your purchasing power and negotiation power is all based on your time on the job, income, debt ratio and MOST IMPORTANT FICO SCORE.
Well thanks to this creditor and the others that jumped on the band wagon, my FICO score went down.
My negotiating power went to the fish.
The good lenders with low home mortgage rates ran for the hills.
I now have to deal in a different playing field of lenders, once who take risks.
When I went to put in an application for credit with the mortgage company, I was hit with the surprise, the interest rates that I was planning on getting and my negotiating power went out the window with the birds.
My mortgage lender told me:
Your credit is good BUT, you have a high balance on a few of your credit cards. You are almost maxed out on them and the lenders will look at this as a credit risk, it shows that you tend to keep a high limit on your credit cards.
Your FICO score has also gone down, we see it a few months ago but now its lower.
Lenders take the current standing and when you go to closing they will do a final view and to see how your credit is and it can affect you then too.
Not to mention, Now that I am buying a home, I will pay higher rates (could of gotten a 5.75% but went to 6.75% rate for my home) for it and what about the credit to purchase materials to work on the home. Those low rate promotions are gone, that new car at 0% is going to be harder to get, and so on.
YOU DO THE MATH AND SEE WHY IM SO UPSET AT MY LOSES.
Since my creditors have put me in this dilemma, I am going to be more than happy to tell all my friends, and everyone I know how this creditor helped me and how satisfied I am with the extra problems Ive been having and will have.
I AM GOING TO POST THIS ON EVERY FORUM I CAN FIND FOR EACH OF THE CREDITOR THAT CAUSED THIS PROBLEM Look for it, and cancel your cards with them. If you have a balance, cut it up and pay off the balance as you can and dont use that card anymore. Lets see how long they will be happy especially with these economical problems we are already going through.
WE CONSUMERS ALL READY HAVE PROBLEMS, LOW PAYING JOBS, HOME PRICES DROPPPING, HIGHER COST OF LIVING, HIGHER FUEL PRICES, HIGHER TRAVELING COST, AND HIGHER RATES FOR INSURANCES, ETC. ETC. ETC. AND NOW WE HAVE TO DEAL WITH THESE CREDITORS.
I have just purchased a brand new $350.00 CASH! shredder for one single purpose, to shred these cards that I have. I have 28 credit cards and 17 are going through the shredder.
My personal credit is good, I pay the bills on time, I have other cards that immediately returned my credit limits after I spoke with them, and I thank them for being understandable with their consumers. If all creditors were that understanding and able to re-evaluate each consumer on a one on one basis, this wouldnt cause such a problem for all those consumers out there.
To name some of my creditors that understood and went the extra mile to help me.
I have all these and others. If you have them and they did the same to your credit standing, they will work with you, they did with me, they say the ripple affect that their system caught and when it did the automatic re-evaluation and they worked with me.
Some didnt put the credit limit back to its original limits, but also didnt put me in a outrageous debt ratio with credit limits. The most they left me was at 58% ratio which is good for a single card.
These creditors really worked with me and I believe they will work with you.
(((competitors' names redacted)))
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This report was posted on Ripoff Report on 06/09/2008 03:33 PM and is a permanent record located here: http://www.ripoffreport.com/r/JCPenney-Credit-Management-Department/nationwide/JCPenney-JCPenney-Credit-Management-Department-JCPENNY-HORRIFIC-OUTCOME-ON-HOW-IT-WILL-A-338584. The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year.
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