A piece in CNNMoney.com points to comments by bank industry trade group the American Bankers Association (ABA) which reveals that some credit card providers are reducing limits on their products by more than 50 per cent in a bid to reduce risk during the current financial downturn.
Carol Kaplan, a spokesperson from the ABA, reported that those people with a good credit rating are less likely to suffer an instant credit reduction, however she stated this trend is “happening everywhere, to everyone”.
As such, now could be an ideal time for consumers to request a copy of their credit report to help see if they could be affected by a credit limit cutback.
The publication also points to research by TransUnion LLC showing the percentage of people defaulting on credit card payments increased by 12 per cent from April to July in comparison to the same quarter in 2007.
You may also be interested to know that earlier this month American Express took steps to reduce the number of credit cards it issued in Florida.
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