Q: Earlier this year I got my free credit reports and my credit rating was 800, but was still classified as "B" because of debt to credit ratio. Recently, to my great surprise, my credit card companies started to lower my limits to exactly the amount I owe. I had consistently kept my balance under half of my available credit so that my rating would be GOOD! How can they do that with no warning and no reason?
A: They are trying to protect themselves from potential losses since customers with high ratios are likely to default. Under the current economy this practice has become widespread.
