These new guidelines on issuing credit and whatnot are so arbitrarily interpreted by various lenders. To give some background, we have a lot of debt compared to income, but obviously don't take on debt we can't handle, as evidenced by never having a late payment on anything ever. We had paid our couple of loans way down, but then just accrued a huge amount of debt due to the house needing to be replumbed and the furnace needing replacing within one month. The value of these things gets added to the house value in the long run of course, but until we sell the house (not planning to do this) or refinance it (likely will do this), it looks like we just have a lot of unsecured debt.
One of my credit cards, which has a small balance, sends me a letter every month telling me they've decreased the credit limit to just above my balance, due to their new stricter credit standards. OK, fine with me, but do you really need to waste your time and energy and money ensuring that customers who never miss a payment don't use available credit to pay more interest and fees to your business?
When we got the loan to do the work on the house, the plumbing and mechanical company's financial person tried various companies and types of loans, and I inquired about the open lines of credit that I have but haven't used. One bank *cough*BankofAmerica*cough* wouldn't give us a thing, and the inquiry prompted them to close the unused line of credit I have, due to my current status as a high-risk customer. Right. Other banks, like Wells Fargo, gave us a shit-ton of credit at really good rates, saying that we had excellent credit history and were obviously people who pay our bills.
Once the loan showed up on our credit reports, one of the banks *cough*BankofAmerica*cough* sent me a letter saying they'd reduced the limit on my (paid off every month) card with them, because I've taken out debt I obviously don't have the means to pay off. Similarly, except totally not, Wainwright Bank sent me a letter saying that upon reviewing recent changes to my credit report, they've substantially increased the credit limit on my account and offered me a great balance transfer or cash advance rate.
(And now of course, just as happens every time I talk about money, my blog is going to show google ads for payday loans and sketchy "credit repair" places. Oh well, maybe a Bank of America ad will show up and tons of people will click through so they can go get rejected for loans, and then Bank of America will pay me and I can use the money to pay lenders who aren't them!)