Credit Lines Cut on Inactive Cards?

We've heard about banks reducing credit lines and canceling credit cards for a while now.

The reasons seem a bit fuzzy. The banks say they're cutting credit limits on borrowers who seem to be riskier based on the data. However, you can find plenty of people who claim to have excellent credit but their borrowing ability got slashed anyway.

When your credit line gets cut or your card gets canceled, your credit score can suffer. Without doing anything, you suddenly appear to be using a greater percentage of your total available credit - and that scares lenders.

One theory is that inactive cards are more likely to be affected. My Money Blog has a process you can go through to try and reduce the likelihood of your cards getting canceled.

What about you? Have your limits gone up, down, or away? Tell us about it in the comments.

Further reading:

• What is Credit?
• How Credit Scores Work