Can Credit Cards Lower Limits under the new laws?

[Kion10]

I was just wondering if CCs can still up and lower people's limits without warning now that the new laws are in effect. We are finally credit card debt free but I want to use my Disney Visa for as many of our monthly expenses as possible to earn the Disney rewards. (I am not ready to get another CC that gives higher rewards like a discover card) But I am concerned that they might drastically lower the limit in the middle of the month causing us to go over the limit, etc. (I read horror stories of them doing this to people last Fall)

Thanks!

 

[eliza61]

I was just wondering if CCs can still up and lower people's limits without warning now that the new laws are in effect. We are finally credit card debt free but I want to use my Disney Visa for as many of our monthly expenses as possible to earn the Disney rewards. (I am not ready to get another CC that gives higher rewards like a discover card) But I am concerned that they might drastically lower the limit in the middle of the month causing us to go over the limit, etc. (I read horror stories of them doing this to people last Fall)

Thanks!

The new regulations don't mention governing account limits so I would keep your limit in the back of your mind. I've found that if the credit card companies can find a loop hole they will.

The new regulation does state that credit card companies must allow you the chance to "opt-in" to over limit fees. Previously if you didn't have enough credit and you made a purchase the bank would approve the purchase and then sock you with a huge over the limit fee. They cannot do that any more.
If you don't accept the over the limit fee, the credit card company is required to deny any purchase where you don't have enough room on your card.

 

[SandrA9810]

I fought with my bank for a long time over that. When the account was originally opened, it would deny if there wasn't enough available. Then they started doing the over the limit fees.
I went through about 5 long conversations with a supervisor, and faxing a letter... to explain exactly how the bank account used to be. They finally took off the overdraft protection linking the savings with checking.

The only thing you still have to be cautious of is paying at the pump. When you swipe, it only pings your account for a 1$. If you pay by debit, it usually goes through that night, but if you pay by credit it can take up to three days before posting to your account. And because the transaction was already approved for (for a dollar), it will get taken out and hit you with over the limit fees if there's not enough to cover the full amount.

It is always always always best to pre pay inside. I know at race trac, if I prepay debit, and don't pump the full amount, they give me cash back. But if you pay by credit, then there will be a hold for the full amount till the transaction is posted.
And by prepaying inside, you probably have a lesser chance of getting hit by one of those CC skimmers.