The banking industry is making your job and mine much harder to do.
In order to move product and services (our job), people need money and/or access to money. Sadly, millions of Americans who once had access to money no longer do.
According to Los Angeles Times, credit card companies slashed limits for an estimated 58 million card holders in the 12 months ended in April, even though a high percentage had good credit scores when their limits were cut.
About 73 percent of the group, or 24 million, had credit limits cut despite no new negative information in their files. Lenders may have used information not in credit reports to decide whose credit limits to cut, FICO spokesman Craig Watts said while failing to mention what information exactly.
The average credit limit reduction from October through April was $5,100, more than double the cut for comparable consumers six months earlier, FICO said.
Bank of America, who holds the note to our house in Hilton Head, and extends us various other lines of credit, took 30 grand off the table via our Home Equity Line of Credit (HELOC). BofA more recently slashed the limit on a credit card I have with them. I’m sure they need the reduce their exposure. Who doesn’t? But both times, I had to say to no one in particular, “What did I do?”
I think it’s time Umpqua Bank and I got to know each other better.
