Fingerhut FAKE Increases Without Permission to DAMAGE Credit LONGTERM St Cloud MN

They have been doing the same thing to me for 2 years now.  Started my account after BK and was given a 200.00 limit.  They gave me an increase to 500 in 6 mos. then ever other month after that, temporary increases started showing on my account and credit score.   One time I actually made a purchase for a large item and the increase stayed.  But 4 times in 2 years fingerhut gives me a Temp raise in limit and I don't need anything so I don't spend and then they take the increase away.  Last time was this past december 31.  An increase of 2200.00 up from my 1250.00 limit.  Increased my score by 25 points but didn't want or spend anything of it. 

They took away the increase and as son as it hit the big 3 my score dropped 40 pts. because of avail credit amount and usages that was 25% was increased to 55%.   There has to be a law regarding this.  I am doing some research and will post more information when I get it.

If someone knows anything about Credit, you keep cards under 30% as that accounts for 30% of your Credit Scoring on each account and 30% totals on all combined accounts, 30% of your overall Credit Score.  And that is REGARDLESS of your Credit Score.  People understanding the basics of Credit adhere to how the system works in order to get the best score possible. 

At time 10 points is important (Mortgage for instance), sometimes not as much.  But ALWAYS worth protecting if you have any sense whatsoever. Rate increases = Good, Decreases = Bad.  100% of the time.  Anyone not understanging the basics of the system.  Look it up.

Notice the actual complaint which deals with Raising the Credit Score (short term) then lowering it longterm wasn't really addressed.  So, anyone saying they don't understand FICO and how it works read carefully.  When ANY account has its Limit Raised and is reported to the Reporting agency.  Your Score automatically rises because

(1) you pay on time and earned the increase, and

(2) you credit ratio (debt vs limit) is reduced.  That's a good thing.  But if a company DECREASES your Credit Line, each of those same two factors are calculated against you. And if anyone has any real expereince with the Reporting agencies they know for a fact the negative total is ALWAYS greater then the positive.  That really is Cresit 101 for beginners. SO, my choice was BUY something for $800 on a temporary FAKE increase by June 30th OR have my Credit Line decreased on July 1st, Leading to a reduction in Credit Score for using my Credit RESPONSIBLY.  Now if some genius thinks that's a good choice and wants to play the game while obviously not understanding the process to learn a very bad lesson.  Raise your little hand.  

For those that understand, and especially for those that don't.  Here's the text from the e-mail.

Make my payments every two weeks and have had no decrease in my FICO score because I PAY them. So what is the real reason you wrote this report when you state you payed on time every time?? These "fake" credit increases is just asking you to spend more money. IF you do not then hey, no big deal. SO what is the real story?

He basically said Fingerhut could care less what you do in regard to Consumer Credit.
- They are right...just like every other credit card. They don't care what the affect on your credit score is by their actions.

Good dodge so I asked him where in the Terms and Conditions for Fingerhut these FAKE increases appear? And where it says Fingerhut is allowed to impose them? He said, "well it doesn't actually say that." Ya think??
- Typical Strawman Argument. Of course it doesn't state that they can put in a "fake" increase. The credit increase was real, you could use the extra $800 if you chose to.  Your score increase is based on the increased credit line causing your credit utilization to go down.   Once they reduce your credit line, your utilization is based on your new lines.  If you haven't paid your balances down your utilization increases causing your score to decrease.

But the customer service agent was wrong. The Terms do actually allow them increase or decrease your credit limit at THEIR option and for any reason.  They could close your account out or reduce your credit line to $100 tommorow if they wanted to.  They are the ones taking the risk on extending you credit with their money, and they can change that amount at any time.  Oh..and this is what you agreed to when you opened the account.

If you are worrying about a 10 point change in your FICO your credit must really be in the toilet. Unless your FICO is around 620 or less a 10 point change is insignicant. Of course if your score is in that range that explains why you are with a Sub-Prime Creditor and worrying about a 10 point change.

There is nothing unique here, this is how ALL credit cards work.

* If you don't know what a Strawman argument is...go look it up