Banks Siphon Off Credit Lines From Unsuspecting Consumers

If you have not been a victim yet it seems it may only be a matter of time! In a recent article from smartmoney.com it was revealed that Banks are Lowering Consumers' Credit-Card Limits for the most minute reason and sometimes without a real valid reason at all.

According to smartmoney.com "IT’S NOT JUST YOUR PORTFOLIO that may be shrinking during these turbulent times. The spending limit on your credit card may be heading south as well. Credit-card issuers, including American Express (AXP: 24.06*, -0.66, -2.66%), have been decreasing credit limits in the wake of the subprime meltdown."




The banks’ concern is that consumers have access to credit limits that they can no longer repay, says Scott Bilker, founder of DebtSmart.com Folks with good credit scores and solid credit histories are now getting caught in the fray. "Most banks are cutting their credit limits," says Carol Kaplan, spokeswoman for the American Bankers Association. "People with credit scores of at least 720…are not immune. They're doing it to everyone."…



This is all the more reason a person should INVEST unused credit lines into some type of recession proof recession proof residual income business to create cash flow. Once the credit is gone it is gone for good! I have always been an advocate of using other peoples money to create cash flow and it seems now more than ever consumers should consider using unused credit lines to do just that. If you are not sure how to do this consider subscribing to the Elements To Wealth Creation Newsletter.