Lenders Cut Credit for Reliable Clark County Property Borrowers
Lenders Cut Credit for Reliable Clark County Proeprty Borrowers
Lenders are cutting credit lines and pushing down credit limits on their best-paying customers, which ultimately can reduce these frugal customers’ abilities to get mortgages.
A new study by Fair Isaac says 11 percent of U.S. consumers had their access to credit trimmed during the six months ending last October, even though they pay their bills on time and have good credit scores. That’s more than double the 5 percent of consumers with poor credit whose access to credit was reduced in the same time frame.
People who pay on time aren’t very profitable for lenders, says John Ulzheimer, president of consumer education for Credit.com, because they don’t carry balances or pay late fees.
The affect of these cutbacks is cumulative, credit experts say. When lenders close accounts or cut limits, it can hurt consumers’ credit scores and make it harder for these good payers to get other loans, including mortgages.
Source: USA Today, Kathy Chu (04/03/2009)
via REALTOR® Magazine-Daily News-Lenders Cut Credit for Reliable Borrowers.
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