What will happen to credit?

I read an article today on Yahoo about how many credit card companies are starting to lower their lending limits even on their best, most dependable customers. Even those who pay their credit card bill on time, send more than the minimum payment and have a good credit score are seeing lowered limits.

Credit card companies currently have the right to lower your limits even if you have done nothing wrong. Credit card companies examine risk factors to determine how much money they should loan customers. The risk factors include late payments, extreme cash advances, unemployment, check bouncing and even having a mortgage in an area where home values have decreased.  However, lately credit card companies have also targeted customers with small balances or inactivity on their accounts.

Banks and credit card companies are getting very nervous and extremely picky on who they lend money too. I can’t say I blame them for not wanting to lose money or run a successful business, but it seems unfair for those who pay bills on time, and are responsible with their finances to not enjoy the benefits of credit.