Debt Negotiation Zone » available credit http://debtnegotiationzone.com Debt Negotiation Fri, 19 Aug 2011 22:59:35 +0000 en hourly 1 http://wordpress.org/?v=3.2.1 Why Did My Credit Card Company Lower My Available Credit? http://debtnegotiationzone.com/why-did-my-credit-card-company-lower-my-available-credit/ http://debtnegotiationzone.com/why-did-my-credit-card-company-lower-my-available-credit/#comments Thu, 20 Nov 2008 23:10:53 +0000 admin http://debtnegotiationzone.com/?p=398 Your credit card company may have lowered your available credit, but why?  If you have been watching the news lately, most of the major headlines revolve around the credit crunch and foreclosures.  Banks and lenders do not want to leave themselves exposed to unecessary losses.  A few months ago Washingotn Mutual lowered my home equity line over 75%.  I had never even used the thing.  The banks are worried that when times get tough, people are going to tap into their equity lines and then default.  The bank just wants to hedge their bet and cover their losses by removing excess credit from people.  This is done in the form of closing credit cards, cancelling home equity lines and lower available credit for credit cards.

The next wave of the credit crisis is predicted to be with credit cards.  As people loose their jobs and do not have extra money, the credit cards are usually the first thing to go into default.  This will be then followed by the car and lastly the house.

]]> http://debtnegotiationzone.com/why-did-my-credit-card-company-lower-my-available-credit/feed/ 0