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Never missing a payment and having the credit card for long periods are not enough. If you have been carrying a large balance for a long period, you are considered a higher risk. Credit card companies are looking to limit their exposure. The bailout money was suppose to stablize the banking industry so that fewer banks would go belly up. It was meant to ease the credit crunch. The banks got themselves in that squeeze by handing out big lines of credit and mortgages to people who really didn't have the income to handle those loans.

Source(s)

BD

by bdancer222

4 weeks ago

Asker's Rating: 

All the major issuers, Chase, CITI, Bank of America, US Bank to mention a few have been hacking credit card limits to reduce the amount of money they need to keep to cover those cards, They are required to keep enough money on hand to cover their loans, which means if you have a card with a 10-k limit even thou you only run a hundred-bucks thru it every month, they still have to account for the 10-k you have available to use, BoA hacked 45-k off my old MBNA card from 53-k to 8, and when I called to get it put back, they flat out told me I wasn't charging anywhere near the limit ergo I did not need that much of a limit, They've also been rate-jacking to non-delinquent accounts to 30% to discourage people from charging, So far my credit union cards haven't been hacked, or rate jacked,

by drive_55_not- 4 weeks ago

It makes it easier for you to go over your limit so they can charge you a $40 over the limit fee. they are also changing the due dates on people to charge late fees. Not to mention the annual fees they are starting to charge.

by heybulldog- 4 weeks ago

New credit card law will restrict credit card companies to lower the limit after it gets into effect. That's why companies are lowering the limit before hand.

by Cash- 4 weeks ago

Credit card companies are trying to reduce their risk on unsecured loans so that they can keep as much of the bail out money as possible and not lose it to bad loans. Credit card companies are currently under the old law. They can do anything they want to their customers for any reason without fear of a lawsuit. They are raising interest rates, lowering limits, instituting annual fees and using other tactics to get as much money as possible from customers before the restrictions become law. When they get all the money they can from their customers, then the companies can pay back the bailout money.

by Dan B- 4 weeks ago

Banks are getting nervous. Old assumptions such as housing prices will not decline through out the country at the same time and credit card defaults among people with good credit will remain low has been proven wrong. Capital One's default rate rose to 9.73% in June from 9.41% in May. JP Morgan Chase default rate declined to 8.04% in June from 8.36% in May. Discover's default rate fell to 8.75% from 8.91%. American Express default rate fell slightly from 10.0% in May to 9.9% in June. Citigroup default rate remained unchanged at 10.5%

by Mike- 4 weeks ago

bad loans got them in trouble in the first place. Trying to prevent more bad loans (that all credit cards are, loans). Also, the government is requiring the banks to hold more money in reserve in case of emergencies.

by NYC_Since_the_90s- 4 weeks ago