I don’t know what to do now. I am a small business owner and have or had a good credit. Banks were dying to lend me money. The economy were good back then and my business was doing pretty good. So, I got offers from my business and personal credit cards with 0 interest rates. I admit I took out some loans and line of credit to hire employees and expand my business but I was good at paying bills on time.
All of the sudden, I am not a good risk anymore. First bank of america decreased my credit limit to the balance owed then other banks followed. Now, I look like I max out on my credit cards and business line of credit and worse the banks use that as a reason to hike up my interest rate from 9% to 24.99.
This is like a vicious cycle. I didn’t max out my cards and before my limit were decreased I had plenty of cushion.
This is sick. Banks lower my limit to make me look like I maxed out on my loans and they use this reason to hike up my interest rates.
I have to let go 3 employees just to pay the banks. Now, the future looks pretty doom for my business and family.
If you have a decent relationship with your bank, talk to them about a loan. Credit cards are never a good way to finance a business. A good banker can custom-tailor terms to your business. Local banks are better than big banks for this purpose.
Can you say the "Real World" part 2009 & so forth?
They are azzholes.
welcome to america
Fight it.
The more you call because they raised your rates, the better your chances…. Don’t give up.
Vicious cycle it is! It’s called "Universal Default" and it sucks. Once one Creditor reduces your limit, the dominoes start to fall as the other Creditors notice and start to do the same! Not only does this reduce your cushion, but it raises your debt utilization ratio, which reduces your Credit Rating, which makes you more of a risk, so more dominoes start to fall . . .
Your scenario is exactly what happened to me but there’s no business involved on my end. The first domino fell in late 2008, and then the sh** hit the fan in early 2009 as my cushion was gone and I started to default on my Credit Card accounts. 2009 was NOT fun for us!