 |
| FICO Study Reveals Credit Card Companies Are Penalizing Good Customers |
| Posted: | August 28, 2009 |
| Details: | An August 27, 2009, post by Karen Datko on the SmartSpending blog of MSN Money’s website recently reveals that millions of credit card holders have had their limits reduced by credit card companies. According to Datko, a study by FICO, originators of the FICO credit score, “found that of the 33 million people whose credit limits were reduced between October and April, 24 million had no new marks against them in their credit reports that would prompt a card issuer to tighten the reins.”
The blogger’s position on the subject is also backed by Pamela Yip of The Dallas Morning News, who says, "those cardholders generally had low balances, didn't use up a lot of their available credit, had very few -- if any -- reports of missed payments, and had a long credit history."
To answer the question of why these responsible cardholders were penalized, Datko quotes a statement by FICO CEO Mark Greene: "Our study suggests that lenders are using a scalpel and not a hatchet to trim their revolving credit exposure and meet their requirements for regulatory capital."
To read the full SmartSpending blog post and reader comments, click here. |
| Back to the News list |
|
|
|
|
