WASHINGTON, D.C. (NBC) – Roughly 50 million Americans have had their credit card limits reduced or one or more cards closed in the past month without their knowledge. That’s about one in four cardholders, according to a new report by CompareCards.com.
Many consumers say they’re using their credit cards more than ever in the midst of the coronavirus pandemic. But more than 40% had no idea card issuers could cut limits or close cards without warning.
Lower limits or closed accounts can negatively impact credit scores.
Banks generally aren’t required to inform cardholders that their limits are being slashed, except in a few cases.
Something similar happened a decade ago when lenders slashed credit limits and closed card accounts at the outset of the great recession.
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