Relying on a credit limit in a shaky economy is the equivalent of expecting a weak bridge to weather a storm and carry you to survival.
It’s not uncommon for credit card issuers to minimize their risk by lowering credit limits or closing accounts when there’s potential for economic distress. Credit card issuers took these actions in the Great Recession and early in the COVID-19 pandemic, according to a 2022 report by the Consumer Financial Protection Bureau, perhaps due to changes in credit profiles, internal account performance metrics or shifts in the issuer’s risk management policies.
