It's no secret that financial companies are feeling the squeeze. With banks and card companies (and, soon, taxpayers) shouldering an enormous burden of bad debt, many lenders are lowering the credit limits on customers' cards. It makes sense from a business perspective, but that doesn't make it any easier to swallow.
If you're worried about your own credit limits, follow these tips from the Wall Street Journal:
1. Reduce your debt. If your cards are running at near capacity, you should pay down that debt as soon as possible. Card holders with the most debt face the highest risk of having their limits lowered. Banks simply don't want to risk large amounts of default.
2. Check your mail. You will be notified in writing when your card company changes your credit limit, so pay attention to any letters you receive. Also, ask your credit card company if they offer online alerts to inform customers of changes taking place.
3. Watch your credit report. It's more important now than ever before to make sure your report is accurate. Report any errors immediately to get them removed.
4. Play the field. If your limits do get lowered, shop around for cards that offer you a better deal.
Remember: if you've been a good customer with a track record of timely payments, you might even manage to negotiate a higher limit with your current card company. It never hurts to try.
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