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Personal Finances / Credit Cards and Consumer Debt


Subject:  Re: E-fund w/ Debt Balance Date:  8/28/2012  10:37 AM
Author:  vkg Number:  305823 of 312949

Credit limits aren't guaranteed. When credit card companies see a change in usage pattern, they can reduce credit limits, Also, they can reduce credit limits because they decide that they want to reduce risks in specific accounts.

I don't know if it is still true, at one time some companies were monitoring for a change in shopping habits from higher cost stores to WalMart. Given account history, it is fairly easy to identify pattern changes that are associated with job loss.

With the housing crash, HELOCs limits were being reduced because of perceived risk, and not current value of the property.
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