No. of Recommendations: 0
As to the squeezing of inactive accounts, the mantra here and elsewhere has long been to not close inactive accounts because of the impact on your credit score. I have worked in banks where I have been told the cost of maintaining an inactive account is minimal - it exists only as a record in a database.

Plus the risk of fraud, reissuing cards and any other overhead. Estimates I have seen are $10-15 a year.

The mantra here has been not to change any credit before applying for major credit. Those in debt paydown need to make certain they don't have inactive accounts.

These indiscriminate actions taken by the banks do have real world implications and in a number of cases have pushed consumers who have been dealing with major issues such as reduced or loss of income, devalued mortgages and such, over the edge.

Banks should take action to protect themselves from those who are no longer credit worthy. Living off of credit is not a right. It may push someone into bankruptcy or foreclosure. More likely it will push them there sooner rather than just delaying it.

Fortunately my score was solid to start with so I did not have difficulty replacing the credit (which I did for reasons other than to lower my debt to credit ratio), but that also resulted in a ding to my credit score because of the opening of a new account.

How much did both change your credit score? Credit scores don't always drop when new accounts are opened. Since you score decreased with the loss of the previous credit limit, the new credit limit should have offset some of the change due to new credit.
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