Credit scores hit by card limits - Yahoo! News
Card companies are reducing borrowing limits for tens of thousands of consumers, which then can lead to lower credit scores. Those facing this predicament might not even know it until they apply for a loan or another credit card, and then get denied because their credit score has dropped.
Banks and other card lenders are trying to better protect themselves from more massive losses like those they've seen from subprime mortgages.
According to the Comptroller of the Currency, one of the government agencies that regulate U.S. banks, companies must notify cardholders at least 15 days in advance before making changes in the terms of their account, such as lowering the credit limit. But they don't have to explain how that could change an individual's credit score.
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