Stop your credit card limit from dropping

August 22 is when new credit card rules could be put into place. To make these new rules possible, banks and credit card companies are working to cut credit limits, rates and fees on all their cards. The majority 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. You will find opportunities for people who want to either stop their credit limit from going down or even make it go up. Article source – Keep your credit card limit from being slashed without warning by Personal Money Store.

Dropping credit card limits

Credit card companies are cracking down on cardholders during the recession and its aftermath. Credit card-issuing banks are trying to get as little risk as possible before new credit card rules come into play. There are numerous people getting their good credit scores hurt because of slashed credit card limits, reports Bankrate.com. 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 hard time borrowing money, even those with high credit score between 720 and 750.

Credit limit cuts hurt credit scores

Credit limit hurt for 60 million cardholders in just the few years past. ”Risk trigger” are what they call things like regular late payments or high credit card balances, which Credit Card Guide explains some of these individuals having their limits cut haven’t even done. It isn’t really just inconvenient to have your credit card limit cut. It also hurts numerous credit scores of cardholders who have had outstanding balances on their cards. With the debt-to-credit ratio weighing in second among the most important factors contributing to credit scores, credit line cuts are no small concern.

Protecting your credit card limits

For cardholders who want to keep their current credit limit and maybe even get a credit line increase, Eva Norlyk Smith at Credit Card Guide offers tips. First of all, simply call and ask. Once a year most credit card accounts can get a credit limit increase. Your balances should be paid off each and every single month. Don’t use more than 50 percent of the credit line, although you need to use it a lot. Pay balances on time. Don’t cancel any credit cards, don’t apply for any new credit cards and never ask a credit card company to pull your credit report. A credit check is just as bad as applying for a new card.

Additional reading

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/