BiggerPockets

I have spent the last several months on the verge of a stress induced stroke and a couple of weeks ago I decided "&^%* it, its out of MY control".

Here is the summary. I own 4 different small businesses. A construction company, a staging company, a property management company & a property investment company. I am actively making profits in each small business.

Especially in the construction company we rely heavily on credit cards to tide us over until project completion & customer pay off. Since the first credit card we had I have put everything in the business name with MY personal credit used as a guarantee. I was paying between 0% and 9% and the rates on the "high" cards were plummeting down to 5, 1.5% because of my credit.....I had roughly 125k available in credit to use......(Also I am a member of one of the identity protection companies that put fraud alerts on your CR)

One of the banks that I used (i won't mention any names here) apparently ran out of cash and deemed my company "unstable", and "there is a fraud alert on my CR" and "my credit score" and slashed my line of credit. I had the fraud alert on my CR's WHEN I GOT APPROVED for the CL in the first place. I checked my credit scores business and personal and everything looked a-ok to me....two weeks later I hear that the whole industry is in turmoil and certain banks that i use are going under and WILL go under if they don't get the bailout. Why cant they just send the letter and say "Hey, were out of money to loan you, sorry"

Then I take notice that my interest rates from my other credit lines were skyrocketing because the ONE bank had cut my credit line. I went from LOW, LOW interest rates to 32.18% OVERNIGHT. I called them all and they all tell me the same thing now. I am considered a high risk because other banks have cut my credit lines (which throws off the DTIR) and started this downward spiral....

I have no problem paying them off but I am frustrated to NO end because I pay on time EVERY MONTH. The banks that are jacking up MY rates are getting bailouts with MY tax money and believe me, I already pay dearly. So I am getting hammered by the BANKS for more money!!! ????

Is anyone else HERE going through this? I have read complaints all over the net about this and its hitting home with small businesses including mine. I am not angry about it anymore but it does make me sick.

My credit score NOW is actually BETTER than it was when i started all these accounts over the years.

My plan is this: I am going to borrow from my savings and PAY MYSELF back WITH INTEREST (tax free by the way because its already MY INCOME that has already been taxed) and all you banks and CC company's can sit around and wonder where all your customers went.

Anyone care to share?

I think the people that run these credit card companies are IDIOTS! More specifically, I think the people at American Express are total MORONS, which largely explains why the company had to become a bank holding company in order to obtain a government bailout!

I, too, have a story to tell about American Express. For many years, I had an American Express card which I paid off EVERY MONTH. I have always had spotless credit and have never been late on a payment of anything.

About 5 ago, my wife had a life-threatening medical problem and required major surgery. She was in the hospital nearly a month! (she's fine now) Needless to say, the medical bills were numberous and tremendously high. We had insurance and paid every penny of the thousands of dollars we owed, without being late on a single payment. As anyone that deals with these insurance companies knows, they screw up early and often. There were many bills that were screwed up and my wife worked with the hospital and the insurance company to get them all straightened out. Well, to make a long story short, the idiots at the hospital sent us to collection over 3 bills totalling less than $300 - BILLS THAT WE DIDN'T EVEN OWE AND HAD NEVER BEEN BILLED FOR! American Express immediately lowered the credit limit on that card from $15,000 to $300!!! I called them to explain the mistake, but it didn't matter. It was like talking to a crack addict - they didn't have a clue. Even a casual observer could have determined that we had always paid every bill on time our entire lives and that this was just a mistake by the hospital, but American Express wasn't that smart. I immediately cancelled my American Express card and will never have one again.

Mike

Why don't we get together start our own CC company run it as it should be ran and treat people fairly with reasonable limits & interest rates?

Would anyone be interested in at the very least looking into something like that?

The way I see it we would own the company lend ourselves money and make profits on both ends!

Let's just kick it around!

Richard,

I was thinking about the changing business environment last night so I am glad that you brought it up. How can we, as investors/small business owners, adjust to the evolving climate that our businesses/personal finances are facing right now?

Not everyone can borrow from their dwindling 401(K) plans. I LOVE my idea of borrowing from myself and paying myself back with reasonable interest but I realize that not everyone is able to do that, especially starting out. (I have been there myself)

Anyone have some other ideas? Should we get together and lobby some government entity that the reliable payers should not be paying for the folks who didn't take personal accountability with their finances and just filed for bankruptcy or let their houses go into foreclosure?

Personally i am willing to speak up but I am just one person.....anyone else?

With all of this happening and these companies (banks, cc's) doing this to small businesses (even the ones with good credit) it could seriously exacerbate the current economic situation.

I have a question. Has anyone had a line of credit that was good until you wrote a check, and they cancelled it when deposited ? Would they not have to give advanced notice that the line was no longer valid ?

Jenny,

Well to tell you the truth I havent the slightest idea what starting a CC company would entail, but given the interest I will look into it!

MikeOH,

I was not really considering it for the general public more of a BP qualified members platform.

I think that the majority of individuals on this site would benefit greatly from working together to such an end. More of an of us for us by us kind of company.

I'll let you guys know what I find out. If anyone has any ideas I'm reading!

Don't be ashamed folks! Let it all out!

I was embarrassed when i got my first line cut! I panicked, ranted, raved, drove hubby nuts, immediately check all my credit reports & his...made sure there wasn't a fraud or i missed something or forgot to pay something.... My initial response what "WHat did I do? Did I miss something?" and went from that to "Why one earth would they cut MY credit line? Im PAYING THEM!!" Then came the anger....and then the phone calls to them asking them WTH!? the denial, resentment...all of the stages of dealing with a loss...(which is when i realized that I will be a-ok but friends may be going out of business soon)...

I am not a victim really, (im sorry if i sound like one) its the principle of the matter. These are delicate matters that could send the American economy further down the road to complete economic collapse.

They get a bailout with my tax money and I don't even get a sample tube of K-Y to ease the pain.....(to be straight forward about it). My small business wont be hiring anyone new this year since i now have to evolve into relying completely on myself to fund my small business needs.

Has anyone heard about the "Bank on Yourself" programs out there? Anyone use this strategy to finance their businesses/investments?

I had the same thing with Amex..
when things turn around for banks, don't think I will forget how they've treated their good customers.

I will never deal with them and they better not solicit me for business.