10-12-2008 12:01 PM
10-12-2008 07:54 PM
Many credit card companies are doing this. It is part of the credit cruch we are experiencing.
The credit card companies are afraid that people will get into trouble and will use their available credit for day to day expenses and then default.
AMEX stated last month that 50% of their customers would experience declines in their credit limits. Of course, how they choose who gets a decrease, they did not say.
To see more about this, just go to Google and click NEWS, then type in CREDIT LIMIT DECREASE. There should be lots of stories for you to look at.
Many homeowners who had home equity lines of credit also saw decreases in their credit limits, or outright closure of their accounts.
I have also seen stories about auto dealers hurting because they cannot get loans for their customers, so they cannot sell cars.
A year ago, a 650 credit score may have been acceptable to a lot of lenders, but now many of them want to see scores of 720+.
I have hope that things will get better, but at least for now, the days of easy credit appear to be over.
Less is the new more. 720 is the new 650. 20% down is the new 10% down.
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