A recent study published by Fair Isaac, developer of the FICO credit score, confirms that credit companies were cutting credit limits last year. What's more, even borrowers with strong credit suffered.
There was plenty of anecdotal evidence, but now we have some numbers.
The study is well summarized at Credit.com. One of the most interesting pieces is the part about good borrowers:
11% of the US population suffered a credit limit cut "for a reason other than risky credit activity such as making payments late, having accounts go to collections, or having a negative public record added to their credit report during the study time frame."
This number is not astronomical, but it's high enough to affect plenty of good borrowers. As a result, it reinforces the idea that you probably shouldn't count on your credit limits as an emergency buffer - especially now. [via Consumerist]
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