Has your Credit Card taken a Hit?
The phrase “credit crunch” is used day after day on the news, online, and in the newspaper. For consumers this means a number of things. How has the credit crunch affected you? If your credit card has taken a hit this is just one way. Many credit card companies are making changes and even if you have yet to see them there is a good chance that this could happen to you in the near future.
What does it mean for your credit card to take a hit? For one, this can mean that your credit card company lowers your limit for no reason whatsoever. Believe it or not, some companies are lowering limits even if the consumer has a flawless payment history. This may not be fair but it is all part of the credit crunch.
In addition to lowering limits some consumers are receiving notification that there APR is being increased. Again, this is far from fair but it is something that many people, regardless of their situation, are dealing with.
If your credit card limit has been decreased or your APR increased you need to think long and hard about what you are doing. Are you going to continue to use this credit card after all the changes? Will you begin to search for a new card? These are questions you need to ask if your card has taken a hit.
All in all, don’t feel like you are alone if your credit card company is making changes. Many consumers are dealing with this and you could be next; even if you have always kept your account in good standing.
