Released: November 16, 2008

Firms cut credit card limits to reduce risk

Source: Nancy Trejos, Washington Post (Free Registration)

Cecil Bello has stumbled into a new corner of the credit squeeze. The 32-year-old management consultant has had the limits reduced on three of her credit cards.

In September, U.S. Bank notified the Fairfax County resident that she no longer had a $14,500 limit on a card that had a balance of about $5,000. Her new limit left her just $500 from being maxed out, she said.

Then came an Oct. 26 letter from American Express that said she now had a limit of $14,000, down from $22,000. That letter said her “total debt is too high relative to your payment history with us and other creditors.”

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