Credit limits are melting…melting…melting
The credit industry’s generous attitude toward lending is in the process of correcting itself … big time. According to a recent post by The Consumerist, a recent Consumer Action survey shows up to 75 percent of banks are lowering credit limits to protect themselves from risk.
Banks, credit card companies and mortgage lenders gave away generous offers like candy to people who, more often than not, had terrible credit and horrendous spending habits. Now, we are experiencing the subprime fallout. People like Len Bryan, quoted in a report by a Los Angeles ABC News affiliate, are paying the price. Bryan, an on-time payer who had not made any purchases on his card, saw his credit limit run out when the company slashed it by 90 percent.
If this happens to you, know that it could affect you financially in a couple of ways:
Not to be a doomsayer, but this is important news to know so you can keep an eye on those credit card notices you receive in the mail … you know, the ones you normally toss aside. Check online credit card records too for more timely updates.
September 24th, 2007 at 4:33 pm
[…] unknown wrote an interesting post today onHere’s a quick excerptAccording to a recent post by The Consumerist, a recent Consumer Action survey shows up to 75 percent of banks are lowering credit limits to protect themselves from risk. Banks, credit card companies and mortgage lenders gave away … […]