Banks Canceling Credit Cards, Cutting Limits

If you haven’t used a card in awhile, make a small purchase with it to keep it open. It’s good for your credit score.

(Image credit: Gary Burchell)

Banks are pulling back on their risk exposure by cutting credit card limits or canceling cards altogether, says Ted Rossman, industry analyst at As a benchmark, consider that during the Great Recession, the October 2008 Fed Senior Loan Officer Survey found 20% of card companies cut credit lines for customers with good credit scores and 60% reduced lines for subprime cardholders.

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