How Low Will Your Credit Limit Go?

As many more changes involving your credit card seem evident before the Credit CARD Act is fully implemented, it seems that the amount of people seeing their credit limits decrease are around the numbers that many experts have expected. That is according to an article entitled "Banks Slash Credit Limit for 58M Cardholders in One Year", which stated around one-third of all cardholders saw their limits slashed between April 2008 and April 2009.

As with the other changes that credit cardholders have seen within the past months, these changes in limits have been made regardless of their credit scores. In fact, more than half of those affected have what is considered "good credit" within the financial industry, and lacked the risk factors that are generally associated with having ones’ limit reduced. The rest of those affected fit the more conventional profiles, which include high credit balances and late payments that issuers typically look at to determine the need of a credit line reduction.

Although the number of consumers who have seen the decrease is surprising to some, a number of industry experts still believe that cardholders will continue to see limit cuts until the middle of 2010. In fact some banking analysts believe that credit lines could decline by as much as forty-five percent for many cardholders before all is said and done.