AVAILABILITY OF CREDIT LINES STILL IN DECLINE?
Meredith Whitney, a Wall Street banking analyst says creditors are continue to reduce credit lines to small businesses. Whitney states lenders will reduce credit card limits by $1.5 trillion by the end of 2010. further she predicts, “the next phase will likely be credit-line cuts as lenders race to preemptively protect themselves from regulatory changes associated with the Credit Card Accountability, Responsibility and Disclosure Act, passed in May of this year, and the 2008 Unfair and Deceptive Acts and Practices Act.”
What does this mean for consumers? It means consumers’ credit worthiness is more important today and existing credit lines are more valuable. It is important for consumers to inspect their credit reports on a regular basis and identify incorrect credit reporting. Click here for information about how to receive your free credit report.