Of course every one is blaming the ECONOMIC DOWNTIME. Banks have cut credit limits to reduce there risk in this recession. While this maybe true, you may want to take a look at your own credit payment history to figure out the real reason why YOUR personal credit limit has been cut. Your PAYMENT HISTORY plays a major role in the credit limit you are given. A few late payments on overdrafts and credit cards, which were overlooked before, aren't over looked now. You are now looked at as a potential risk because credit cards are loans with no assets as collateral or what we call an unsecured loan. HAVING TOO MANY OF THESE UNSECURED LOANS or credit cards also makes you a potential risk to the bank. If more then 40% of your salary is going towards loans you will raise the red flag for your bank. KEEPING UP WITH ALL YOUR PAYMENTS is essential now-a-days to keeping your bank happy. Now banks , more then ever, are checking to see if you are keeping up with your payments at other banks or financial institutions. Banks are given portfolio reviews of you on a monthly basis. A portfolio review gives information about a credit card holders relationship with multiple lenders. Its a tool the bank uses to see exactly how many loans you have, if there are any defaults, and if there are defaults how much you owe and how many days you've owed it. The LACK OF USE of your credit card will also trigger the bank to cut your credit card limits. The bank will assume you don't need this much credit and if money is not being used the bank can not make interest on it. Also make sure you CHECK YOUR CREDIT REPORT ON A MONTHLY BASIS. Make sure you know your credit score and check for mistakes on your credit report. With fraud and identity theft being on the rise its good to know whats going on with your credit. You can check your credit report at http://tracking.strongerads.com/SH1j

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