A USA Today story cites a Fair Isaac (FICO score creator) study that says credit scores tumbled between October 2008 and April 2009 when their credit limits were lowered by an average of $5,100.
USA Today talked to John Ulzheimer, president of consumer education for Credit.com, on the matter:
“The fact that 8.5 million consumers have seen their scores reduced because of no fault of their own over the past six months is problematic,” says Ulzheimer, “especially when you take into account that these people could have seen their limits reduced prior to the study and might see” limits cut further.
The effect of lenders’ overall actions, he adds, “is going to be much more than 20 points.”
Hope you weren’t too attached to that glistening credit score of yours.
Consumers’ credit scores can fall when card issuers cut limits [USA Today]