Has Your Credit Limit Gone Down?
Filed Under (Credit Cards Blog) by creditblogger on 19-11-2008
If you have been in credit forums, you have probably heard the complaints that many card holders are making about their limits being cut in half or third. Credit companies are feeling the crunch, and they are getting more diligent with their numbers. If you have had a bad record in your credit history, there is a very good chance that you will feel the crunch first. But credit companies don’t necessarily need that to cut your limit.
Credit companies are now using your debt to payment ratio to figure out whether you are deserving of your limits. LA Times running a story about this very issue. The fact is, credit card companies don’t need a very good reason to cut your limits. If you have read your card agreement, you probably know that credit card issuers use a lot of wiggle room to cut your limits or do all kinds of crazy stuff, which is why you should:
- read your terms and conditions carefully!
- limit your credit use if you can. Times are tough and you never know what’s around the corner.
