Sliding economy raises questions about credit scores
March 6, 2009 | customers, industry | Comments (0)Kathy Chu reports in USA Today:
Banks and lenders are shoring up risks — closing a record number of credit card accounts and reducing millions of dollars in credit lines. As they clamp down, even some consumers with excellent credit and spotless payment records are seeing their credit scores reduced because of the diminished credit lines. That, in turn, can hamper consumers’ ability to get credit elsewhere.
…Bank officials say they’re aware of growing concerns about the effects credit-line reductions and account closures are having on credit scores. But as the economy worsens, they say, more consumers are struggling, so it’s only natural that institutions take steps to reduce risk before borrowers default.
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