Live Help 888-200-2366 from 9-5pm EST

ray ban deals you can still manage your payments so that they are healthy. One of the few things you can do to fight back and protect your credit score is to make payments to keep your balances down.

Posted on: July 6th, 2015 by chris No Comments

Credit Card Companies Reducing Credit Limit

What Prompted Credit Companies to Reduce Credit Limits?

When credit card companies reducing credit limits becomes the norm, consumers can’t help but raise their collective voices to ponder the reason behind the madness. It used to be that if you were late on your payments or generally delinquent in handling your account you could expect your credit card balance to get cut as a result, but even the worst credit card users may have previously escaped slashed access to credit.

Some argue that it is precisely this relaxed attitude to credit worthiness that is to blame for the current drastic measures credit issuers are now taking to cut backs. The easy access to credit that was once the main driver of the finance industry’s profits has ironically also become the main factor in its undoing. The entire credit industry has come under fire for granting lines of credit to those who were realistically unable to repay. This has forced a serious and widespread reaction from credit issuers, which has manifested in the reduction of credit limits on a cross section of clients. Of course, this action was not taken out of some overwhelming sense that something must be done to reverse the negative effects felt by millions across the US, but as a way to rethink the profit equation and make the credit business once again a vibrant industry.

Reduced Credit Limits and You

Credit card companies are reducing credit limits in droves, which means that even if you are a shining example of perfect credit and your account has never been hit with a late fee or an over the limit charge, you may not be safe. Before new financial regulations came into effect in July 2010, several credit card companies were guilty of lowering limits to levels that were below the outstanding balance on the card and then unscrupulously slapping on an over the limit charge without prior notification to the client. Thanks to more stringent consumer protection laws that have been put in place the credit card company must give the account holder at least 45 days notice before reducing their limit, which can at least take the element of surprise away from the card issuer.

Since many people run small businesses using credit cards as a way to fund working capital, a reduced credit limit can mean a severe cut on their short term financing, which in turn negatively affects profit levels and productivity. In addition to this harsh reality, credit rating agencies use a debt utilization ratio in their calculation of credit scores. A reduction in your credit limit can mean a dramatic rise in your debt utilization ratio because you appear to be using all or most of your available credit overnight. This can have a terrible effect on your credit score, which is a number that most people try to guard against all odds.

Although you may no longer have much control over your credit limit, you can still manage your payments so that they are healthy. One of the few things you can do to fight back and protect your credit score is to make payments to keep your balances down.

ray ban rb2140
ray bans wayfarer
ray bans wayfarer cheap
ray ban cheap
ray ban sale uk
blue ray ban sunglasses
ray ban wayfarer blue
ray ban 8301
ray ban official
ray bans aviators
ray bans cheap
clubmaster ray bans
ray ban lenses
ray ban clear lens
childrens ray bans
ray ban 3364
ray ban 8307
ray ban junior sunglasses
ray bans aviators cheap
ray ban junior
mens ray ban sunglasses
ray bans womens
ray ban clubmaster sunglasses cheap
ladies ray bans
vision express ray ban
ray ban wayfarer prescription
ray ban prescription glasses uk
ray ban sunglasses repair
ray ban 5121
ray ban polarised sunglasses
ray ban uk store
ray ban sunglasses price
ray ban gold aviators
ray ban 8305
mens ray ban sunglasses
ray ban 4147
ray ban aviator sale
ray ban new wayfarer
cheap ray ban wayfarer uk
ebay ray ban
ray ban online sale
discount ray bans uk
ray bans uk
junior ray bans
cheap ray bans outlet
ray ban polarised
ray ban uk store
cheap ray ban wayfarer
ray ban clubmaster glasses
ray ban glasses boots


Leave a Reply