The Wall Street Journal and Yahoo are reporting that credit card companies are cutting limits for some of their customers. Those hardest hit: construction and financial services workers. The credit card companies want to limit their exposure to these industries for a simple reason – they are concerned people will not be able to pay them back. Interestingly, this also applies to small business customers who have long histories with the companies, but are in the wrong lines of work.
How does this affect you? Read your credit card inserts. The credit card company may reduce your limit with proper notice. If they do, and you go over, you will be hit with an overlimit charge. That could send you down the spiral of never getting out of debt. Make sure you read your statement every month and check, not only your credit limit, but also your interest rate.