Don’t Need Your Credit Limit? Prepare To Give It Up.
Filed Under (Credit Cards Blog) by creditblogger on 14-12-2008
If there was any indication a few months ago whether our economy was struggling or strong, there is no question now. We are half way through our way to a depression, and credit companies are affected by the state of economy as well. The volume of bad debt has put the squeeze on major credit card companies, and many are firing a few of their employees to cut cost.
But credit card employees are not the only ones who are getting the end of the stick from credit cards. Honest, good folks who have been paying their bills on time are also suffering. A few credit card companies have taken the initiative to reduce the credit limits of folks who are getting the most out of their cards. Let’s say you have a card that comes with $4,000 limit. If you are averaging only $1,500 a month on that card, you are going to have to expect to lose your credit limit soon. The argument here is that “you are not using your credit limit to it’s fullest,” and I guess that’s a valid argument. But that still counts as a penalty in my eyes.
Your take: is it fair for credit companies to reduce their best customers’ limits?
