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.
Are you financially fit?
Are you sure?
You might not be quite as secure financially as you think, and without a proper evaluation of your current situation you won’t know for sure.
Debt consolidation might be a good idea for you. Or, there might be a better solution. Possibly you don’t need to take any action at all.
To obtain an assessment of your current financial health, visit the bills.com website and take their free billsIQ “check-up” to see if your finances are as healthy, or unhealthy, as you think they are. When I took the billsIQ check-up, I was pleasantly surprised with my score (92% - A!). However, I did still learn that I could save money by lowering my payments.
At bills.com, you simply answer a series of questions, anonymously of course, about your current credit and debt situation – such as whether or not you’re paying bills on time, questions about your budget, your current wealth, and your life plan – how you’re planning for the future.
After learning your billsIQ, you can then determine the best ways to raise your score – get expert tips to improve your financial stability, and how to best save money. You’ll receive personalized offers that help you save and cut your payments.
When it comes to finances, the best approach to improvement is to gather a full and accurate understanding of your current situation.
There are many credit cards offering “cash back” or “rebate” incentives. These offers can sometimes be very good deals for the card holder. But, don’t always assume that is always the case.
Be aware that credit cards with rebates, cash back, travel awards, or other perks may carry higher rates or fees. Just as with any agreement, read the fine print!