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Cardholders Squeezed As Issuers Cut Credit Limits

Besides cutting credit limits, credit card companies are raising rates and fees and suspending offers such as no-interest balance transfers, according to Nancy Trejos' story. They are also making rewards programs less rewarding and shutting down inactive accounts.

According to a Federal Reserve survey, 20% of domestic banks have cut credit limits for existing prime, or very creditworthy, borrowers. About 60% have cut limits for existing nonprime borrowers, and none report raising lines for those clients.

Read the whole story at Los Angeles Times »

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