You know that Visa in your wallet with the worn out strip? The issuing bank might reduce your card's limit one of these days and it may happen without warning. Companies have 30 days to notify customers of a change but often give notification after action has been taken, and the reductions can have a negative effect on customers' credit scores.
The actions prove that the loose credit of previous years is now tightening, and according to The New York Times banks that issue cards with big names like Visa, MasterCard, and American Express are aiming their limit reductions at customers living in areas suffering from the housing crisis, those who are self-employed with businesses in troubled industries, and customers that have large debts.
on Yahoo! |
My credit limit has always been way more than I would spend anyways, it wouldn't really affect me.