August 22 is when new credit card rules could be put into place. To make these new rules possible, banks and credit card companies have been working to cut credit limits, rates and fees on all their cards. Many of the time when the economy is down so far, credit limits are cut like this. But cardholders’ credit scores get hurt by it, through no fault of their own. But you will find steps credit card users can take if they want to preserve their current credit limits, or even boost their credit limits.
Credit card limits slashed across the board
During the recession, most credit card companies are harder on their consumers. . Bankrate.com reports that even cardholders with good credit scores are getting their credit card limits slashed. Dennis C. Moroney, research director of bank cards at TowerGroup, told Bankrate that credit card companies are reducing credit lines and closing accounts. Numerous individuals are having a difficult time borrowing money, even those with high credit score between 720 and 750.
Credit scores drop with credit limit
More than 60 million cardholders have had their credit limit slashed over the past few years. Credit Card Guide reports that numerous people hit by credit limit cuts haven’t committed any of the typical “risk triggers” banks use to assess credit worthiness, like regular late payments or high credit card balances. Having your credit limit cut just an inconvenience for people. It also hurts many credit scores of cardholders who have had outstanding balances on their cards. With the debt-to-credit ratio weighing in second among the most essential factors contributing to credit scores, credit line cuts are no small concern.
Making sure you don’t get your credit card limits cut
Anyone trying to keep their credit limits from going down or help their credit go up should listen to advice given at Credit Card Guide by Eva Norlyk Smith. You are able to always call and ask. Once a year most credit card accounts can get a credit limit increase. Your balances should be paid off every single month. Don’t use more than 50 percent of the credit line, although you should use it a lot. Always send in the payment on time. Don’t ask credit card companies to pull your credit report, don’t get any new credit cards, and don’t cancel any cards. A credit check is just as bad as applying for a new card.
Discover more details on this subject
Bankrate
bankrate.com/finance/credit-cards/credit-card-issuers-slash-credit-limits-1.aspx
Credit Card guide
creditcardguide.com/creditcards/credit-card-tips/higher-credit-limit-6-dos-donts-342/
