FOSTER CITY, Calif.--(BUSINESS WIRE)--Approximately 9% of credit card balances fell into delinquency over the last year according to Federal Reserve data. In response, credit card issuers are decreasing consumer credit limits to minimize risks.
Bad economic conditions coupled with consumer behaviors like overspending and late payments are the leading causes of these decreases.
CardRatings.com, a leading credit card review and comparison site, offers tips for how to minimize the impact of a potential credit line cut and discusses the potential impact this could have on consumers’ credit scores, in their article: How surging credit card delinquency rates can affect credit limits
“Not only could a credit line cut affect a consumer’s purchasing power, but it could also hurt their credit score,” says Jennifer Doss, executive editor and credit card analyst at CardRatings. “This is because a lower credit limit could result in a higher credit utilization ratio, which accounts for 30% of a consumer’s credit score. The good news is there are simple ways to help negate this, such as paying down existing balances on other accounts and lowering overall credit card spending.”
Doss is available to discuss credit limit decreases and tips for handling a potential cut.
About CardRatings
CardRatings is owned and operated by QuinStreet, Inc. (Nasdaq: QNST), a leader in providing performance marketplace technologies and services to the FinTech, financial services and home services industries. QuinStreet is a pioneer in delivering online marketplace solutions to match searchers with brands in digital media. The company is committed to providing consumers with the information and tools they need to research, find and select the products and brands that meet their needs. CardRatings is a member of QuinStreet’s expert research and publishing division.
CardRatings innovated online credit card ratings and has been offering independent ratings and reviews of credit card offers since 1998. The website collects and maintains data on more than 800 credit card offers and carefully compiles objective lists of the top credit cards by card type, making it easy for consumers to find the right card to fit their needs.
