Following the subprime mortgage meltdown, many banks and credit card issuers, including American Express, have been decreasing credit limits on the accounts of their cardholders.
This is understandable, as the creditors have been burned by customers defaulting on loans and credit accounts. Although, it might seem unfair to some who end up with a lower credit limit, despite their perfect credit history.
Some companies are casting the wide net across their customers and reducing most limits to some extent. Others are being more selective.
While this might seem painful to some cardholders in the short-term, tighter limits on credit will lead to a stronger economy in the long-term.