Watch Your Credit Card Statements!

It is more important than ever to pay attention to your credit card statments and any correspondence from your credit card companies. Because of new laws affecting credit cards (look for my previous blog post) the banks are getting very aggressive with consumer and business credit card accounts.

Consider this article -

One-Third of Credit Card Holders' Limits Cut

"Credit card companies reduced limits for 58 million cardholders w/ little regard to their credit scores" http://bit.ly/JB2y9

And from American Banker yesterday (a subscription publication):

"Credit card lines nationwide are set to be cut by another $1.5 trillion before the economy bottoms, on top of a $1.2 trillion cut from the peak, the analyst Meredith Whitney predicted Monday.

Unless credit loosens up dramatically for Main Street, small businesses will stymie a recovery, she wrote in a report to clients.

Credit cards are a particular source of concern, as roughly four out of five use them as vital portion of their overall funding, Whitney wrote."

So watch your personal and business credit card statements and correspondence and don't be blind-sided by increasing interest rates, reduction of credit lines or cancellation of accounts and the worst, in my opinion, the increase of the minimum payment percentage.

No comments: