The financial crisis caused major changes in the credit card industry. If you didn’t receive a letter already saying your credit limit dropped or your interest rate increased, you just may soon.
Card companies are arbitrarily closing lines of credit, lowering credit limits and scores are dropping because of it.
The credit ratings are already a highly-complicated formula, so when you lower the amount of your available credit, your score automatically drops. The score starts to drop when you hit 10 percent of your available credit and it seriously impacts the score at 35 percent or more.
CNN reports, you need to check your report at least once a year, many say twice a year so you can catch any problems early. Keep a tab on your balances and try to pay them down and just know employers look at scores to decide whether you show good money management skills.
The problem is, with millions of people in the country without jobs, people are relying heavily on their credit cards. It's impossible to know how the recession will impact millions of credit scores when the air clears..
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