Chronicles Of Depression 2.0: #281: Your Card 2
Reader Pierre is a small business owner who has an American Express Business Account that used to have a $25,000 limit, but has now been cut to $1,800. He says his company’s bill is usually around $12,000 a month, and it is always paid in full — on time. While Pierre is clearly upset with American Express, the Wall Street Journal says that all banks are cutting access to credit.
That is very strange, to go after business customers first. Perhaps they are trying to equalize the pain?
Credit cards: the next crisis?
My advice: If you have to use your card, use it now. But don’t use it foolishly. Even if you get cut off, you won’t be off the hook. Your debt will be sold to a collection agency. Do not further damage your credit score.