A study from Fair Isaac confirms that even the best borrowers are seeing their credit lines slashed as banks move to boost profitability during the recession. 16% of Americans have seen their credit lines reduced by an average of $2,200, and of them, 11% had no late payments or negative marks on their credit report.

That may come as a surprise to those consumers because they pay off their balances every month and are careful with their credit, says John Ulzheimer of Credit.com. But at the same time, those customers are also generally less profitable for lenders, he says.

Typically, credit scores tend to remain relatively stable over time, in part because there are a number of factors that go into calculating one’s score. In fact, the banks’ tightening may have spurred some consumers to pay down balances more quickly. Among Fair Isaac’s findings: About 6% of consumers saw their scores jump by 40 points or more (about 4% saw their scores drop by 40 points or more).

So there you have it, straight from the source. It’s not your fault, and you did nothing wrong. You were just too unprofitable for the banks, just the way you should be.

Credit Cuts Befall Even Top Scorers [The Wall Street Journal]
(Photo: yksin)

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